The DRT allowed the bank's application for recovery of dues of over Rs. 1.69 crore against four respondents who failed to repay secured loans. The court accepted bank evidence and issued an order permitting recovery via sale of mortgaged property.
Granted recovery of Rs. 1,69,19,758 plus interest and liberty to sell the mortgaged property if payment fails.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.A. No. 935 of 2023 (E)
07.03.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 07th day of March, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 935 of 2023
(Originally filed before DRT- II, Chennai as OA 243/2021 and thereafter transferred to this Tribunal and renumbered as TA No 935 of 2023)
Bank of India Chennai Main Branch “Star House” No.30, (Old No.17), Errabalu Street, Chennai – 600 001 Represented by its Constituted Attorney
….Applicant
-Vs-
Factory at: No. 111, Gojan College Road, Edapalayam, Chennai – 600 052
T.A. No. 935 of 2023 (E)
2
07.03.2025
Counsels on record / appeared:
Counsel for Applicant : Mr. M. P. Venkateswaran
Defendants 1 to 4 were set ex-parte on 06.12.2021
: - FINAL ORDER - :
(i) A sum of Rs.55,57,652/- due in respect of Cash Credit facility (A/c No.800030110000080), together with further interest @ 8.45%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full;
(ii) A sum of Rs.1,13,62,106/- due in respect of Export Packing Credit Facility (A/c No.800082610000022), together with further interest @ 8.45%, p.a. compounded with monthly rests from the date of filing the OA till date of realization in full,
and for sale of mortgaged property morefully detailed in Schedule to the OA,
T.A. No. 935 of 2023 (E)
3
07.03.2025
and for costs of this application;
Brief Facts of the case:
T.A. No. 935 of 2023 (E)
07.03.2025
4
Rs.25,00,000/-, the 1st Defendant represented by its Partners, the Defendants 2 to 4 executed the following Security documents in favour of Applicant Bank on 13.12.2018 :
(i) Demand Promissory Note promising to pay to the Applicant a sum of Rs.25,00,000/- together with interest @ 1.10% above yearly BOIMCLR, then 9.80% p.a., compounded with monthly rests for value received.
(ii) Bearer letter.
(iii) Composite loan document.
9.80% p.a., compounded with monthly rests for value received.
(iii) Composite loan document.
T.A. No. 935 of 2023 (E)
07.03.2025
5
(vii) UCC Agreement
(viii) Stamped undertaking
(ix) MCLR agreement
(x) Hypothecation cum loan agreement (Plant & Machinery, Stocks, Book Debts).
T.A. No. 935 of 2023 (E)
07.03.2025
6
Defendants to repay the loan amount. As defendants miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 31.03.2021, as per the guidelines issued by the RBI but they had failed to do so. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.
T.A. No. 935 of 2023 (E)
07.03.2025
7
: O R D E R :
Nineteen Thousand Seven Hundred & Fifty Eight Only) as follows:
(i) A sum of Rs.55,57,652/- due in respect of Cash Credit facility (A/c No.800030110000080), together with further interest @ 8.45%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full;
(ii) A sum of Rs.1,13,62,106/- due in respect of Export Packing Credit Facility (A/c No.800082610000022), together with further interest @ 8.45%, p.a. compounded with monthly rests from the date of filing the OA till date of realization in full,
(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property morefully detailed in the OA;
(c) Schedule mentioned immovable property in the OA shall be appended to this final order;
(d) 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
T.A. No. 935 of 2023 (E)
8
07.03.2025
by defendants to the applicant bank.
(e) The applicant bank shall file memo of costs within ten days from the date of this final order.
(f) Recovery Certificate shall be drawn up and issued to the Recovery
Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 07th day of March, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Mrs. Gowri Ramachandra, Constituted Attorney of the Applicant Bank.
Exhibits on the part of the Applicant:
| **Sl. No. ** | Description of Documents | **Exhibit No. ** |
|---|---|---|
| 1. | Loan Application Formdated 07.12.2018 | A-1 |
| 2. | Sanction letterdated13.12.2018 | A-2 |
| 3. | DemandPromissoryNote dated13.12.2018 | A-3 |
| 4. | Bearer Letterdated13.12.2018 | A-4 |
| 5. | CompositeLoan Document dated13.12.2018 | A-5 |
| 6. | Deed of Guarantee executed by Defendants 2 to 4 dated 13.12.2018 |
A-6 |
| 7. | DemandPromissoryNote dated13.12.2018 | A-7 |
| 8. | Bearer Letterdated13.12.2018 | A-8 |
| 9. | CompositeLoan Document dated13.12.2018 | A-9 |
| 10. | Trust Receipt dated 13.12.2018 | A-10 |
| 11. | Deed of Indemnity dated13.12.2018 | A-11 |
| 12. | OmnibusIndemnity dated13.12.2018 | A-12 |
T.A. No. 935 of 2023 (E)
9
07.03.2025
| 13. | UCCAgreement dated13.12.2018 | A-13 |
|---|---|---|
| 14. | Stamped undertaking dated13.12.2018 | A-14 |
| 15. | MCLR Agreement dated13.12.2018 | A-15 |
| 16. | Hypothecationcum Loan Agreement dated13.12.2018 | A-16 |
| 17. | Deed of Guarantee executed by Defendants 2 to 4 dated 13.12.2018 |
A-17 |
| 18. | Supplemental Memorandum of Deposit of Title Deeds Regd as Doc No.17808, SRO, Ambattur executed by the 2ndDefendant to and in favour of Bank of India dated 26.12.2018 |
A-18 |
| 19. | Sale Deed Regd as Doc No.11983 of 2005, SRO, Ambattur executed by S. Kirubavathi and others to and in favourofthe2ndDefendant dated11.11.2005 |
A-19 |
| 20. | Lettersent by theApplicant dated13.02.2020 | A-20 |
| 21. | Letter sent by the Applicant dated 19.08.2020 | A-21 |
| 22. | Demand Notice under Section 13(2) of the SARFAESI Act dated 03.04.2021 |
A-22 |
| 23. | Statement of Accountin respect ofCashCreditAccount | A-23 |
| 24. | Statement of Account in respect of Export Packing Credit Account |
A-24 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
SCHEDULE
All that piece and parcel of land bearing Plot No.1 in “Arulmigu Sree Mahalakshmi Avenue” measuring an extent of 5286 Sq.ft., (491.25 Sq. Mtr including splay area) in approved layout CMDA No.70/2005, comprised in Survey No.233/3C of Ayapakkam Village, Ambattur Taluk, Thiruvallur District and measuring;
North by : 27.8 Mtrs South by : 41.2 Mtrs East by : 15.0 Mtrs West by : 21.8 Mtrs
In all measuring 5286 Sq.ft., or 491.25 Sq.Mtrs (including splay area) and bounded on the
T.A. No. 935 of 2023 (E)
10
07.03.2025
South by : 7.2 Mtr Road East by : Plot No.2 West by : 21.0 Mtr Road
Situated within the Sub-Registration District of Ambattur and Registration District of
Chennai North.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
3 issues framed by the court
Whether the application for recovery of dues under Section 19(1) of the RDB Act is maintainable and should be allowed despite the respondents being absent in person.
Whether the unpaid loan amount, interest, and secured assets are sufficient to warrant a final order for recovery in favour of the bank.
Whether the secured immovable property can be sold to recover the dues in case of default by the respondents.
1 provisions across 1 enactments
Bank of India, Chennai Main Branch
M/s. Jayanthi International
Mr. S. Sridhar
Mr. S. Vijayarahul
Mrs. S. Jamuna Rani
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
