Allowed

Indiabulls Asset Reconstruction Private Limited v. M/S Sheeba Enterprises

DRT7 Nov 2025TA/989/2023

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Indiabulls Asset Reconstruction Company Limited (Assignee) for recovery of a loan of over Rs. 1.39 crore along with interest and costs against two borrowers who failed to discharge their dues. The claim was adjudicated in the absence of the respondents.

What did the court decide?

Recovery of Rs. 1,39,58,067.70 including interest at 10.60% p.a. and costs; liberty to sell mortgaged and personal assets. Recovery certificate to be issued.

Indiabulls Asset Reconstruction Private Limited versus M/S… — Banking and Recovery | DRT (2025)

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T.A. No. 989 of 2023

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07.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 989 of 2023

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(Originally filed before DRT- II, Chennai as OA 62/2021 and thereafter transferred to this Tribunal and renumbered as TA No 989 of 2023)

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Indiabulls Asset Reconstruction Company Limited, Rep. by its Assistant General Manager Also acting in its capacity as Trustee of the Indiabulls ARC-XIV Trust Having its registered office at Indiabulls Finance Centre, 9^th Floor, Tower 1, Elphinstone Road, Mumbai 400013 ….Applicant

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-Vs-

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Mr. Mithun Jothiraj,

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S/o Mr. Gnanasekar Ranjith

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Proprietor of M/s. Sheeba Enterprises

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No.271, LIG phase 1, 24^th Cross Street,

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Nolambur, Chennai – 600 037

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Mrs. Selvidha

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W/o Mr. MithunJothiraj, D/o. Rajan,

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No.271, LIG phase 1, 24^th Cross Street,

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Nolambur, Chennai -600037 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Ramalingam & Associates Defendants 1 and 2 were set ex-parte on 28.04.2022

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: - FINAL ORDER - :

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This Original Application is filed on 12.01.2021 by the applicant

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bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for recovery of a total

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sum of Rs.1,39,58,067.70p (Rupees One Crore Thirty Nine Lakhs

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T.A. No. 989 of 2023

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07.11.2025

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Fifty Eight Thousand Sixty Seven and Seventy Paisa Only) due in respect of Working Capital Loan Facility (Account No. TBL00034N) together with further interest @ 10.60% per annum with monthly rests from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.62 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.62 of 2021 stood transferred to this Tribunal and renumbered as TA No.989 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 First Defendant is the Proprietor of M/s. Sheeba Enterprises, who as the Borrower and the Second Defendant as the Co-Borrower, being husband and wife, approached the Indusind Bank – the Assignor Bank, requesting for a secured loan facility towards their Working Capital requirements and submitted loan application dated 15.11.2017.

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T.A. No. 989 of 2023

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07.11.2025

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It is submitted by the applicant bank that considering the said request, the Assignor had sanctioned a secured Loan facility a sum of Rs.1,29,69,000/- (Rupees One Crore Twenty Nine Lakh Sixty Nine Thousand only) vide Sanction Letter dated 15.11.2017, which was duly acknowledged and subsequently availed by the Defendants on 17.11.2017.

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The Applicant submits that to secure the above said facility and in consideration of the same, the defendants had executed the under mentioned loan documents in favour of the Assignor Bank:-

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a) Demand Promissory Note dated 17.11.2017 executed by the Defendants in favour of the Assignor Bank.

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b) Secured Loan Agreement dated 17.11.2017 executed by the defendants in favour of the Assignor Bank.

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c) Letter of Continuity dated 17.11.2017 executed by the defendants in favour of the Assignor Bank.

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d) Letter of General Lien and set off dated 17.11.2017 executed by the defendants in favour of the Assignor Bank.

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e) The Defendants had executed an Irrevocable Power of Attorney dated 17.11.2017 in favour of Assignor Bank.

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It is submitted by the Applicant Bank that in order to secure the loan, the first Defendant had deposited the Original Title Deeds with M/s. Indusind Bank Ltd, pertaining to the schedule mentioned property, on 08.01.2018 with intention to create mortgage over the same to

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secure the said facility. Further the first defendant had also executed Memorandum of Deposit of Title Deeds on the same day in favour of the M/s. Indusind Bank, which was registered as Doc No. 90 of 2018 on the file of the Sub-Registrar office, Konnur.

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The Applicant further submits that the defendants had agreed to repay the loan amount by paying a sum of Rs.1,54,990/- per month as installment in a period of 144 months with an interest rate of 10% per annum. However, the Defendants had failed to comply the norms as per agreement.

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It is submitted by the applicant bank that contrary to the terms of repayment, the defendants have failed and neglected to pay the monthly installments regularly. There were erratic repayments and also defaults in repayment of the monthly installments. The defendants

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made the payments on 16.01.2020, 30.01.2020 and finally on 31.01.2020. In view of the defaults committed by the defendants in repayments the arrears amount in repayment was mounting. Even the interest portion was not serviced by the defendants and hence as per the regulations of Reserve Bank of India, the Loan account of the 1^st defendant was classified as Non-Performing Asset (NPA) in the Books of the Applicant Bank as on 06.02.2020.

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The Applicant submits that as the revival of the defendant's account was in question, M/s IndusInd Bank had assigned all their

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T.A. No. 989 of 2023

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07.11.2025

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debts, rights, titles with all underlying securities in favour of the Assignee and the Applicant herein under the Assignment Agreement dated 09.12.2020, registered as Doc. No. 8124 of 2020 on the file of the Sub Registrar Office, Pammal. Subsequently the Applicant had issued a Demand Notice dated 19.12.2020 under section 13(2) of the SARFAESI Act, 2002 to the defendants calling upon them to repay the entire outstanding dues.

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The Applicant submits that even after enjoying the credit facilities granted by the M/s. Indusind Bank Limited for the purpose of development of their business, the defendants had failed to comply the terms and conditions of the agreement. Both the defendants are jointly and severally liable to repay a sum of Rs.1,39,58,067.70/- with interest debited upto 10.01.2021 and to recover the same, the present Original Application (OA) has been 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 Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 28.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 28.04.2022.

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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. Rupesh Bhaskar Jadhav, Assistant General Manager 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-12 . 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 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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15. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants a sum of total sum of Rs.1,39,58,067.70p (Rupees One Crore Thirty Nine Lakhs Fifty Eight Thousand Sixty Seven and Seventy Paisa Only) due in respect of Working Capital Loan Facility (Account No. TBL00034N) together with further interest @ 10.60% per annum with monthly rests from the date of application till the date of realization in full along with costs.

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(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by

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sale of the schedule mentioned immovable property morefully detailed in the OA.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, 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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(e) 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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(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the 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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 07^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Rupesh Bhaskar Jadhav, Assistant General Manager 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 submitted by the Defendants to the Assignor Bank dated 15.11.2017.	A-1
2.	Sanction letter issued by the Assignor Bank in favour of the Defendants dated 15.11.2017.	A-2
3.	Demand Promissory Note executed by the Defendants in favour of the Assignor Bank dated 17.11.2017.	A-3
4.	Agreement for secured loan executed by the Defendants in favour of the Assignor Bank dated 17.11.2017.	A-4
5.	Letter of Continuity executed by the Defendant in favour of the Assignor Bank dated 17.11.2017.	A-5
6.	Letter of General Lien and Set off executed by the Defendants in favour of the Assignor Bank dated 17.11.2017.	A-6
7.	Irrevocable power of Attorney executed by the Defendants in favour of the Assignor Bank dated 17.11.2017.	A-7
8.	Memorandum of Deposit of Title Deed executed by the first defendant in favour of the Assignor Bank, registered as document No.90 of 2018 on the file of the Sub Registrar office konnur dated 08.01.2018.	A-8

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9.	Assignment of Debt Agreement entered into between M/s Indusind Bank Limited and Applicant, registered as document No.8124 of 2020 on the file of the Sub Registrar office Pammal dated 09.12.2020.	A-9
10.	Demand notice issued under section 13(2) of the SARFAESI Act, 2002 to the Defendants – with postal receipts dated 19.12.2020.	A-10
11.	Sale Deed dated 16.09.2011 in the name of the first Defendant, registered as document No.3992 of 2011, on the file Sub-Registrar Office Konnur dated 16.09.2011.	A-11
12.	Statement of Account for TBL00034N	A-12

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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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SCHEDULE

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All that piece and parcel of the Land and Building viz, to an extent of 1383 sq.ft, together with the building thereon comprised in S.No.227/5A part, of Nolambur village, bearing Plot Nos. LIG-I, D-269, D- 270 and D-271 of Nolambur Phase I Scheme, bearing door No. D-271, 24^th Cross street, Nolambur, Phase I, Ambattur Taluk, Thiruvallur, Chennai – 600 037 and

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Bounded on the:

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North by : Cannal

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South by : Remaining land of Plot Nos. LIG-I, D-269, D-270 and D-271 of Nolambur

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East by : 6 meter Road

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West by : park

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Situated within the Sub Registration District of Konnur and the Registration District of North Chennai.

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

Indiabulls Asset Reconstruction Private Limited v. M/S Sheeba Enterprises

Case brief

What is this about?

What did the court decide?

Indiabulls Asset Reconstruction Private Limited v. M/S Sheeba Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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