Allowed

Bank of India v. M/S Malar Maintenance Services

DRT9 Jun 2025TA/639/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by the Bank of India against a proprietorship concern for recovery of a cash credit facility dues totaling Rs.27,28,371.86p along with consequential interest and costs, holding the claim unchallenged due to ex-parte proceedings.

What did the court decide?

Recovery of Rs.27,28,371.86p with interest at 11.15% p.a. and costs; liberty to sell assets of the second defendant.

Bank of India versus M/S Malar Maintenance Services — Banking and Recovery | DRT (2025)

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T.A. No. 639 of 2023

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09.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 639 of 2023

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(Originally filed before DRT- II, Chennai as OA 209/2020 and thereafter transferred to this Tribunal and renumbered as TA No 639 of 2023)

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Bank of India Adyar Branch No.33/3, 1^st Main Road, Gandhi Nagar, Adyar, Chennai 600 020.

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Rep. by its Constituted Attorney ….Applicant

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-Vs-

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M/s Malar Maintenance Service

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Proprietorship concern represented by its

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Proprietor Mr. G. Chandrasekaran,

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At: No.6/11, 1^st Cresent Park Road, V.J.Flat, No.5, Gandhi Nagar,

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Adyar, Chennai 600 020.

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Mr. G. Chandrasekaran

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S/o. Mr. C. Ganesan,

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Residing at: No.6/11, 1^st Cresent Park Road,

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V.J. Flat, No.5, Gandhi Nagar,

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Adyar, Chennai 600 020. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. R. Sudhanraj

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Defendants 1 and 2 were set ex-parte on 05.01.2022

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: - FINAL ORDER - :

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This original application is filed on 07.03.2020 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly

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T.A. No. 639 of 2023

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09.06.2025

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.27,28,371.86p (Rupees Twenty Seven Lakhs Twenty Eight

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Thousand Three Hundred Seventy One and Eighty Six Paisa only) due in respect of Cash Credit Facility (Account No.801030110000073) together with further interest @ 11.15% p.a., compounded with monthly rests from the date of Application till the date of realization in full for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.209 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.209 of 2020 stood transferred to this Tribunal and renumbered as TA No.639/2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the defendants had approached the applicant in month of July 2014 seeking financial assistance and submitted loan application form for cash credit facility dated 10.07.2014 to the applicant.

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It is submitted by applicant bank that after carefully considering the

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T.A. No. 639 of 2023

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09.06.2025

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request of the defendants and representation made by them, applicant sanctioned Cash Credit facility loan for Rs.8,00,000/- to the 1^st defendant vide its sanction letter dated 17.07.2014.

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The Applicant further submits that to secure the repayment defendants have executed the following loan documents at Adyar Branch of the Applicant bank on 17.07.2014:

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a) Demand Promissory Note dated 17.07.2014 for Rs.8,00,000/-

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b) Bearer letter dated 17.07.2014

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c) Deed of continuing security cum declaration dated 17.07.2014

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d) Hypothecation cum loan agreement dated 17.07.2014

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e) Charge and Hypothecation of Book debts dated 17.07.2014 .

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It is submitted that the defendants had requested the applicant for enhanced Cash Credit facility of Rs.7,00,000/- and the applicant after carefully considering the request of the defendants and representation made by them sanctioned enhanced credit facility to the defendants.

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It is submitted that to secured the repayment of aforesaid enhanced cash credit limit the 1^st defendant represented by the 2^nd defendant herein have executed the following loan documents at Adyar Branch of the applicant bank on 28.01.2015:

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a) Demand Promissory Note dated 28.01.2015 for Rs.7,00,000/-

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b) Bearer letter dated 28.01.2015

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T.A. No. 639 of 2023

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09.06.2025

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c) Deed of continuing security cum declaration dated 28.01.2015

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d) Charge and hypothecation of Book Debts dated 28.01.2015

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e) Supplemental Agreement dated 28.01.2015.

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The applicant submits that defendant again requested the applicant for additional cash credit facility of Rs.10,00,000/- and the applicant bank after carefully considering the request of the defendants and representation made by them, has sanctioned cash credit facility vide its sanction letter dated 22.06.2015 and to secure the due repayment of the enhanced cash credit limit the defendants have executed the following loan documents at Adyar Branch of the applicant bank on 22.06.2015,

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a) Demand Promissory Note dated 22.06.2015 for Rs.10,00,000/-

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b) Bearer letter dated 22.06.2015

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c) Deed of continuing security cum declaration dated 22.06.2015

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d) Charge and Hypothecation of Book Debts dated 22.06.2015

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e) Supplemental Agreement dated 22.06.2015

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The Applicant further submits that defendants have executed letter of acknowledgement of Debts and Securities for cash credit facility on various dates such as 28.01.2015, 22.06.2015 and on 17.04.2018 in favour of the applicant bank.

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It is submitted by applicant bank that subsequent to availing of loan from applicant bank, defendants did not repay the loan as undertaken and

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T.A. No. 639 of 2023

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09.06.2025

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committed default in repayment of the loan facilities availed by them from the applicant bank. Since the defendants did not regularize the loan account, the account of the defendants was classified as NPA on 31.07.2019 as per the guidelines issued by the RBI. As defendants did not come forward to repay the dues, the present Original Application (OA) has been filed for recovery of dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 05.01.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 05.01.2022.

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Heard the submissions of Applicant Bank and perused the

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records .

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To prove the case of the Applicant Bank, Sh. I. Thaveethuvel, Constituted Attorney of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-22 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal

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T.A. No. 639 of 2023

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09.06.2025

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comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.27,28,371.86p (Rupees Twenty Seven Lakhs Twenty Eight Thousand Three Hundred Seventy One and Eighty Six Paisa only) due in respect of Cash Credit Facility (Account No.801030110000073)

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together with further interest @ 11.15% p.a. compounded with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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(b) The applicant bank is at liberty to sell the personal assets of the 2^nd Defendant (both movable and immovable) to recover the balance dues as required under law for which the 2^nd Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd Defendant.

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(c) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to

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T.A. No. 639 of 2023

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09.06.2025

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prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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(d) The applicant bank shall file memo of costs within ten days from

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the date of receipt of this final order.

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(e) Recovery Certificate shall be drawn up and issued to the

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Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 09^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. I. Thaveethuvel, Constituted Attorney of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Loan application form 10.07.2014	A-1
2.	Sanction Letter 17.07.2014	A-2
3.	Demand Promissory Note 17.07.2014	A-3
4.	Bearer Letter 17.07.2014	A-4
5.	Deed of continuing security cum declaration 17.07.2014	A-5
6.	Hypothecation cum loan agreement 17.07.2014	A-6
7.	Charge and hypothecation of Book Debts 17.07.2014	A-7

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T.A. No. 639 of 2023

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8.	Demand Promissory Note 28.01.2015	A-8
9.	Bearer Letter 28.01.2015	A-9
10.	Deed of continuing security cum declaration 28.01.2015	A-10
11.	Charge and Hypothecation of Book Debts 28.01.2015	A-11
12.	Supplemental agreement 28.01.2015	A-12
13.	Letter of acknowledgement of Debts and Securities 28.01.2015	A-13
14.	Sanction letter 22.06.2015	A-14
15.	Demand Promissory note 22.06.2015	A-15
16.	Bearer letter 22.06.2015	A-16
17.	Deed of continuing security cum declaration 22.06.2015	A-17
18.	Supplemental Agreement 22.06.2015	A-18
19.	Charge and Hypothecation of Book Debts 22.06.2015	A-19
20.	Letter of Acknowledgement of Debts and Securities 22.06.2015	A-20
21.	Letter of Acknowledgement of Debts and Securities 17.04.2018	A-21
22.	Statement of Account	A-22

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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SCHEUDLE

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NIL

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Bank of India v. M/S Malar Maintenance Services

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Malar Maintenance Services

Case brief

What is this about?

What did the court decide?

What the court decided

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