Allowed

Indian Bank v. Sri Ganesh Builders and Promoters

DRT29 Aug 2025TA/804/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Indian Bank for issuance of a Recovery Certificate against three defendants for defaulted Retail Cash Credit and Car Loan amounts totaling approximately Rs. 39 lakhs with interest.

What did the court decide?

Application allowed; Recovery Certificate issued against all defendants; Defendants 2 and 3 declared personally liable; Costs awarded to Applicant.

Indian Bank versus Sri Ganesh Builders and Promoters — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBT RECOVERY TRIBUNAL –II CHENNAI

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Dated this 29^th day of August, 2025

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PRESENT: SHRI SHARANG DHAR UPADHYAY

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PRESIDING OFFICER

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TA.No.804 of 2023

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(Originally filed before DRT-I Chennai as OA.No.206/2020 and thereafter transferred to this Tribunal

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and renumbered as TA No.804 of 2023)

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Indian Bank (Erstwhile Allahabad Bank) Anna Nagar Branch Rep. by its Senior Manager No.F-48, New No.54, 1^st Main Road Anna Nagar, Chennai – 600 101

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…Applicant

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Versus

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Sri Ganesh Builders and Promotors Rep. by its proprietrix : P.Komathy Old No.156, New No.86, 1^st Floor, North Redhills Road, Villivakkam Chennai – 600 049

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Mrs. P. Komathy W/o S. Parthasarathy No.394, 35^th Street, TVS Avenue Anna Nagar West Extn., Chennai – 600 101

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Mr. S. Parthasarathy, No.394, 35^th Street, TVS Avenue Anna Nagar West Extn., Chennai – 600 101 …Defendants

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Counsel on Record / Appeared

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Counsel for Applicant : M/s. C. Ramaiah & D. Dinakar. Defendants ex-parte on 14.12.2023

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FINAL ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery

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Certificate for an aggregate sum of Rs.39,03,438/- comprising a sum of Rs.13,59,522/- with interest @9.90% p.a. with monthly rests being the amount due under Retail Cash Credit Loan (A/c No.50294335198) and a sum of Rs.25,43,916/- with interest @8.80% p.a. with monthly rests being the amount due under Retail Term Loan (A/c No.50374024706) from the date of TA till the date of its realization.

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The subject matter of the case is the Retail Cash Credit Loan availed by the defendants from the Applicant Bank.

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It is the case of the applicant that the 1^st defendant is a Proprietorship concern, represented by 2^nd defendant as its Proprietor and further that the defendants 2 and 3 are the guarantors to the loan transaction. It is stated that the 1^st defendant represented by the 2^nd defendant approached the applicant bank by loan application dated 12.08.2015 for grant of cash credit facility of Rs.10 lakhs. It is also stated that the applicant considering the said request vide its sanction dated 17.08.2015 sanction Cash Credit Facility of Rs.10 lakhs and the defendants executed the loan and security documents on 17.8.2015. It is further stated that the defendants 2 and 3 executed guarantee agreement on 17.8.2015 thereby guaranteeing due repayment of the credit facility availed by the 1^st defendant. It is stated that the defendants 2 and 3 acknowledged the debt on 27.11.2018.

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It is also the case of the applicant that the 2^nd defendant approached the applicant vide loan application dated 02.02.2017 requesting for grant of car loan and the applicant vide its sanction letter dated 03.02.2017 sanctioned car loan of Rs.25,00,000/- for purchase of BMWXI SDRIVE 20D EAT LA BS IV bearing registration No.TN-02 BH-4466. It is stated that the 2^nd defendant executed loan and security documents on 03.02.2017 and the 3^rd defendant executed guarantee agreement on 03.02.2017 thereby guaranteeing due repayment of the loan availed by the 2^nd defendant. It is stated that the 2^nd defendant acknowledged the debt on 27.11.2018.

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It is the further case of the applicant that the defendants defaulted in repayment and hence the loan accounts were classified as NPA by the applicant on 13.12.2018 and 22.10.2018 and the applicant issued the demand notice on 29.01.2019 and 16.05.2019 calling upon the defendants to clear the outstanding dues. The defendants despite receipt of the same did not come forward to clear the outstanding dues, hence the present OA is filed for recovery of its dues.

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Summons was taken out to the defendants and the same was returned unserved and hence the defendants were served with notice by way of substituted service by causing paper publication. As there was no representation on behalf of the defendants continuously and on 14.12.2023 the defendants were called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 20 documents,

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which were marked as Ex. A-1 to A-20 on 22.05.2024; however, Exhibit A-18 was marked subject to proof and relevancy. The Ld. Counsel for Applicant Bank made his submissions on 07.08.2025 and thereafter the matter stood till this date for passing final orders.

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The following issues arise for consideration in the matter: -

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(a) Whether the applicant had succeeded in proving the liability of the defendants?

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(b) What order as to cost of the proceedings need be passed?

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These issues are considered together.

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Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

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The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-20 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and rebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that

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the amount claimed by the applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

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In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

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In view of the fact that the loan facility availed by the defendants is a Cash Credit Loan and Car Loan, this Tribunal is not inclined to interefere with the interest claimed by the applicant.

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In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, TA is disposed off in the following manner: -

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(a) TA No.804 of 2023 stands allowed.

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(b) Applicant is entitled for a Recovery Certificate as against defendants 1 to 3, for a total sum of Rs.13,59,522/- together with further interest at the rate of 9.90% p.a. with monthly rests on the amount as determined above and remained unpaid in the Retail Cash Credit Loan A/c No.50294335198) from the date of this OA till the date of its realization along with costs.

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(c) Applicant is entitled for a Recovery Certificate as against defendants 2 and 3, for a total sum of Rs.25,43,916/- together

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with further interest at the rate of @8.80% p.a. with monthly rests on the amount as determined above and remained unpaid in the Car Loan A/c No.50374024706) from the date of this OA till the date of its realization along with costs.

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(d) It is further ordered that any amount remitted by defendants or realized by the applicant bank during the pendency of this OA shall be given due credit to the respective loan accounts of the defendants on the respective dates.

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(e) It is made clear that the defendants 2 and 3 are personally liable for all such amounts due as ordered above.

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(f) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

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(g) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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Sd/- (SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 29^th day of August, 2025)

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EXHIBITS MARKED BY APPLICANT BANK

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S. No.	Date	Description of documents	Exhibit No.
1.	12.08.2015	Loan Application (Retail CC Limit) submitted by 1^stdefendant represented by 2^nddefendant	A-1
2.	17.08.2015	Sanction Letter issued by the applicant bank	A-2
3.	17.08.2015	DPN for Rs.10,00,000/- executed by the defendants 1 & 2.	A-3
4.	17.08.2015	Acknowledgement of Debt, admitting receipt of the Sanction Letter.	A-4
5.	17.08.2015	General letter of Hypothecation applicable in case individual and proprietorship firms.	A-5
6.	17.08.2015	Letter of Guarantee executed by 2^ndand 3^rd defendants guaranteeing the repayment of the above loan availed.	A-6
7.	27.11.2018	Form of acknowledgement of debt.	A-7
8.	27.11.2018	Letter of promise to pay outstanding dues.	A-8
9.	02.02.2017	Loan Application (Car Loan) by 2^nddefendant	A-9
10.	03.02.2017	Sanction Letter issued by the applicant bank	A-10
11.	03.02.2017	Promissory Note for Rs.25,00,000/-.	A-11
12.	03.02.2017	Letter waiving presentment of Pro-note.	A-12
13.	03.02.2017	Agreement of medium term loan.	A-13
14.	03.02.2017	Letter of Guarantee executed by 3^rd defendant.	A-14
15.	27.11.2018	Letter of promise to pay the outstanding dues.	A-15
16.	27.11.2018	The letter of Acknowledgement of debt for car loan.	A-16
17.	29.01.2019	Final Recall Notice issued by the applicant	A-17
18.	16.05.2019	Demand Notice issued by the applicant	A-18
19.		Statement of account (Retail CC Limit).	A-19
20.		Statement of account (Car Loan).	A-20

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Sd/- (SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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DESCRIPTION OF PROPERTY

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NIL

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Sd/- (SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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Indian Bank v. Sri Ganesh Builders and Promoters

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sri Ganesh Builders and Promoters

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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