Allowed

Rbl Bank Limited v. M s Siva Sakthi Travels Rep by its Proprietor and another

DRT14 Oct 2025TA/905/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Kotak Mahindra Bank for recovery of a defaulting business loan of Rs.10,89,405.57 plus future interest and costs from the proprietors of Siva Sakthi Travels, who appeared ex-parte.

What did the court decide?

Recovery of Rs.10,89,405.57 with future interest at 21% p.a. and costs; liberty to sell assets for balance dues.

Rbl Bank Limited versus M s Siva Sakthi Travels… — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 905 of 2023

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14.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 14^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 905 of 2023

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(Originally filed before DRT- II, Chennai as OA 361/2018 and thereafter transferred to this Tribunal and renumbered as TA No 905 of 2023)

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*M/s. Kotak Mahindra Bank Ltd., Branch Office at No.185, Second Floor, Mount Road, Anna Salai, Chennai – 600066 Rep. by its Authorized Signatory ….Applicant

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(Amended vide order in IA No.413/2022 dated 31.05.2022 in view of substitution)

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-Vs-

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1 M/s. Siva Sakthi Travels

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Rep. by its Proprietor,

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No.127/31, 1^st Floor,

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Jawaharlal Nehru Salai, Koyambedu, Chennai – 600 107

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Mr. Logesh, GD

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Proprietor of M/s. Sivasakthi Travels, No.6/16, 15^th Street, Jai Nagar,

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Arumbakkam,

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Chennai – 600 106 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Arunachalam

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Defendants 1 and 2 were set ex-parte on 26.10.2018

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: - FINAL ORDER - :

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This Original Application is filed on 07.05.2018 by Erstwhile RBL

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Bank Limited under Section 19(1) of Recovery of Debts and Bankruptcy

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Act, 1993 (formerly Recovery of Debts Due to Banks and Financial

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T.A. No. 905 of 2023

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14.10.2025

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Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.10,89,405.57p (Rupees Ten Lakhs Eighty Nine Thousand Four Hundred and Five and Fifty Seven Paisa only) due in respect of Business Loan Facility (Account No. 809000822784) repayable together with further interest @ 21% per annum from the date of application till the date of realization in full and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.361 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.361 of 2018 stood transferred to this Tribunal and renumbered as TA No.905 of 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 1^st defendant is a Proprietorship firm represented by its Proprietor 2^nd defendant, who had approached the Applicant during the month of November 2016 for a Business Loan of Rs.10,00,000/- for their business purpose. The applicant bank after verification acceded to the said request of the Defendant and sanctioned Business Loan Facility vide loan account

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T.A. No. 905 of 2023

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14.10.2025

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No.809000822784 on 25.11.2016 for a sum of Rs.10,00,000/- (Rupees Ten Lakhs only). The Defendants executed loan agreement dated 25.11.2016 and agreed to pay the above said loan amount in 36 equated monthly installments of Rs.37,675/- (Rupees Thirty Seven Thousand Six Hundred and Seventy Five only) each commencing from 05.01.2017 for a further period of 36 months or such extended period. The applicant further states that the Defendants had agreed for an interest rate of 21% p.a.

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It is submitted by the Applicant Bank that subsequently to availing of loan, the defendant committed default in repayment of the loan amount. Consequently, the loan account was declared as NonPerforming Asset (NPA) on 29.11.2017 in accordance with RBI guidelines. The Applicant Bank states that the essence of the loan agreement dated 25.11.2016 is payment of installments on time as per

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the terms and conditions of the said agreement. The Defendant’s above Business loan account is currently overdue despite several reminders from the bank.

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The Applicant submits that on 05.03.2018, the applicant issued Loan Recall Notice calling upon the Defendants to pay a sum of Rs.10,89,405.57/- which is due and outstanding in the above loan account as on 02.03.2018. The Defendants failed to reply to the said notice and had not come forward to settle the dues. Since the Defendants is protracting to repay the outstanding amount which is piling up day by day, the present Original Application (OA) has been

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T.A. No. 905 of 2023

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14.10.2025

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filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1

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& 2 through Registered Post with Acknowledgment Due, which was returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.10.2018 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 & 2 were placed ex-parte on 26.10.2018.

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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. Anand Prabhu, Authorized Signatory representing 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-6 . As

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

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T.A. No. 905 of 2023

14.10.2025

: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants a sum of Rs.10,89,405.57p (Rupees Ten Lakhs Eighty Nine Thousand Four Hundred and Five and Fifty Seven Paisa only) due in respect of Business Loan Facility (Account No. 809000822784) repayable together with further interest @ 21% per annum from the date of filing the OA till date of realization in full along with costs.

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

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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 defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to 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 the date of receipt of this final order.

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T.A. No. 905 of 2023

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14.10.2025

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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/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 14^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Anand Prabhu, Authorized Signatory representing 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 dated 10.11.2016.	A-1
2.	Loan Agreement dated 25.11.2016.	A-2
3.	Demand Promissory Note dated 25.11.2016.	A-3
4.	Loan Recall Notice along with Receipts and India R-Net Postal Tracking dated 05.03.2018.	A-4
5.	Copy of Foreclosure Statement dated 02.03.2018.	A-5
6.	Statement of Accounts dated 26.04.2018.	A-6

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

SCHEDULE

-NIL-

Sd/-

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

Rbl Bank Limited v. M s Siva Sakthi Travels Rep by its Proprietor and another

Case brief

What is this about?

What did the court decide?

Rbl Bank Limited v. M s Siva Sakthi Travels Rep by its Proprietor and another

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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