Allowed

City Union Bank Limited v. S Avani

DRT5 Aug 2026OA/104/2023

Case brief

AI extract

What is this about?

The DRT allowed the Original Application filed by City Union Bank Ltd under Section 19 of the RDB Act against two defendants. Being an ex parte proceedings with no response, the Tribunal adjudicated that the loan documents were valid and the amount due as certified by the bank.

What did the court decide?

Order allows recovery of Rs.69,03,353/- with interest and costs; authorizes sale of schedule A and B properties and personal assets for balance dues.

City Union Bank Limited versus S Avani — Banking and Recovery | DRT (2026)

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O.A. No.104 of 2023

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05.08.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of August, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.104 of 2023

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City Union Bank Ltd, No.149, T.S.R. Big Street, Kumbakonam Administrative office at 24B, Gandhi Nagar, Kumbakonam Branch office at Thirumakkottai, Represented by its Branch Manager Gani Complex, Sivan Koil North street, Thriumakkotai- 614 017, Thiruvarur District ….Applicant

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-Vs-

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Mr.S. Avani S/o Shanmugam, No.1/258, South Street, Ukkadu Thenparai, Mannargudi Taluk, Thiruvarur district- 614 020

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Mrs.A. Senthamarai Selvi W/o S. Avani No.1/258, South Street, Ukkadu Thenparai, Mannargudi Taluk, Thiruvarur district- 614 020 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant: M/s. Hasmukh S Surana

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Defendants 1 and 2 were set ex-parte on 03.10.2023

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: - FINAL ORDER- :

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This Original Application is filed on 29.04.2023 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery

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of a total sum of Rs.69,03,353/- (Rupees Sixty Nine Lakhs Three

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Thousand Three Hundred and Fifty Three only) as follows:

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i. A sum of Rs.39,78,406/- due in respect of Loan A/c No. 030012000349743 repayable together with further interest @15.50% p.a. along with penal interest @2% with monthly rests from the date of Application till the date of realization in full;

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ii. A sum of Rs.29,24,947/- due in respect of Loan A/c No. 030012000415019 repayable together with further interest @12.75% p.a. along with penal interest @2% with monthly rests from the date of Application till the date of realization in full;

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for sale of schedule A mentioned immovable property and schedule B mentioned hypothecated assets and for costs of this OA.

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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 applicant bank had extended financial assistance as requested by the 1^st defendant for purchase of Tractor, for which the 2^nd defendant stood as co-obligant/s. Further the 1^st defendant had created equitable mortgage over the Schedule A mentioned property.

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O.A. No.104 of 2023

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It is submitted by the applicant bank that the applicant bank under loan A/c No. 030012000349743 sanctioned a sum of Rs.4,45,000/- to the defendants. In order to secure the aforesaid credit facility, the following documents were executed by the defendants in favour of applicant bank:

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a) Sanction Ticket dated 24.08.2007;

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b) Loan application dated 20.09.2007;

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c) On Demand Promissory Note dated 29.09.2007 executed by the defendants;

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d) Agreement of Hypothecation of Vehicles dated 29.09.2007 executed by the 1^st defendant;

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e) Registered Memorandum of Deposit of Title Deeds dated 14.09.2007 executed by the 2^nd defendant in favour of the applicant bank;

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f) Letter of Revival for secured advances along with confirmation of balance dated 17.09.2010 executed by the defendants;

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g) Letter of Revival of secured advances along with confirmation of balance dated 10.09.2013 executed by the defendants;

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h) Letter of Revival of secured advances along with confirmation of balance dated 11.05.2016 executed by the defendants;

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i) Letter of Revival of secured advances along with confirmation of balance dated 08.05.2019 executed by the defendants;

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j) Letter of Revival of secured advances along with confirmation of balance dated 04.05.2022 executed by the defendants;

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It is the further case of the applicant bank that they had further

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O.A. No.104 of 2023

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sanctioned financial assistance as requested by the 1^st defendant for purchase of tractor, for which the 2^nd defendant stood as co-obligant/s. Further the 1^st defendant had created equitable mortgage over the schedule A mentioned property.

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Considering the said request, the applicant bank under Loan A/c No. 030012000415019 sanctioned a sum of Rs.4,66,000/- to the defendants. In order to secure the aforesaid credit facility, the following documents were executed by the defendants in favour of applicant bank:

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a) Sanction Ticket dated 13.03.2008;

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b) Loan application dated 19.03.2008;

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c) On Demand Promissory Note dated 19.03.2008 executed by the defendants;

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d) Consent letter dated 19.03.2008 signed and agreed by the defendants;

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e) Hypothecation (machinery) agreement dated 19.03.2008 executed by the 1^st defendant;

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f) Agreement of hypothecation of vehicles dated 19.03.2008 executed by the 1^st defendant;

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g) Letter of confirmation of extension of mortgage expressing willingness to offer his property as security dated 19.03.2008;

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h) Letter of confirmation of extension of mortgage expressing willingness to offer his property as security dated 13.05.2010;

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i) Lien letter on deposits dated 06.07.2012;

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j) Letter of revival for secured advances along with confirmation of balance dated 14.03.2011 executed by the defendants;

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k) Letter of revival for secured advances along with confirmation of balance dated 03.03.2014 executed by the defendants;

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l) Letter of revival for secured advances along with confirmation of balance dated 02.02.2017 executed by the defendants;

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m)Letter of revival for secured advances along with confirmation of balance dated 14.03.2011 executed by the defendants;

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n) Letter of revival for secured advances along with confirmation of balance dated 11.01.2023 executed by the defendants.

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The applicant bank submits that the defendants after availing the aforesaid credit facilities had neither repaid the amount nor settled their dues inspite of various demands made by the applicant bank. The defendants failed and neglected to comply with and adhere to the terms and conditions of the credit facilities. The applicant bank submits that several requests were made to the defendants to repay the said loan amounts and regularize the account maintained by them. Consequently, the loan accounts of the defendants were classified as Non-Performing Asset (NPA) on 19.09.2009.

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It is submitted that in pursuance to the default committed by the defendants, the applicant bank had made various requests to repay the entire amount due and payable by them. However, the defendants knowing well the default committed by them have failed to repay the

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O.A. No.104 of 2023

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outstanding amount due to the applicant bank. The applicant bank submits that a sum of Rs.69,03,353/- is due and payable by the defendants as on 27.04.2023 together with interest. This amount is due to the applicant bank and the defendants are liable to pay the sum with interest on contractual rates with monthly rests from the date of filing until realization. Hence, 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 the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which were duly served. No representation for Defendants. When OA was taken up on 03.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 03.10.2023.

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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. G. Ramesh, Branch Manager 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-31 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-31 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms

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of averments made in Original Application as well as Proof Affidavit filed

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O.A. No.104 of 2023

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by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 03.10.2023, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

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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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14. 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, for recovery of a total sum of

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Rs.69,03,353/- (Rupees Sixty Nine Lakhs Three Thousand

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Three Hundred and Fifty Three only) as follows:

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(i) A sum of Rs.39,78,406/- due in respect of Loan A/c

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No. 030012000349743 repayable together with further

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interest @15.50% p.a. along with penal interest @2% with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.29,24,947/- due in respect of Loan A/c No. 030012000415019 repayable together with further interest @12.75% p.a. along with penal interest @2% with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

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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 sale of the schedule A and B mentioned immovable property and hypothecated assets morefully detailed in the OA schedule.

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(d) If the sale proceeds of the mortgaged property and 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

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Defendant 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 05^th day of August, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. G. Ramesh, Branch Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	24.08.2007	Sanction ticket	A-1
2.	20.09.2007	Loan application	A-2
3.	29.09.2007	On demand promissory note executed by the defendants	A-3
4.	29.09.2007	Agreement of hypothecation of vehicles executed by the 1^stdefendant	A-4
5.	14.09.2007	Registered memorandum of deposit of	A-5

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		title deed executed by the 2^nddefendant infavour of the applicant bank
6.	10.09.2013	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-6
7.	11.05.2016	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-7
8.	08.05.2019	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-8
9	04.05.2022	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-9
		Loan A/c No. 030012000415019- Rs.4,66,000/-
10	13.03.2008	Sanction ticket	A-10
11	19.03.2008	Loan application	A-11
12	19.03.2008	On demand promissory note executed by the defendants	A-12
13	19.03.2008	Consent letter signed and agreed by the defendants	A-13
14.	19.03.2008	Hypothecation (machinery) agreement executed by the 1^stdefendant	A-14
15.	19.03.2008	Agreement of hypothecation of vehicles executed by the 1^stdefendant	A-15
16.	06.07.2012	Lien letter on deposits	A-16
17.	14.03.2011	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-17
18.	03.03.2014	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-18
19.	02.02.2017	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-19
20.	01.02.2020	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-20
21.	11.01.2023	Letter of revival for secured advances along with confirmation of balance executed by the defendants.	A-21
		MORTGAGE/CHARGE CREATED BY THE DEFENDANTS

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22.	14.09.2007	Registered memorandum of deposit of title deeds executed by the 2^nddefendant in favour of the applicant bank	A-22
23.	19.03.2008	Letter of confirmation of extension of mortgage expressing willingness to offer his property as security	A-23
24.	13.05.2010	Letter of confirmation of extension of mortgage expressing willingness to offer his property as security	A-24
25.	21.08.2006	Registered sale deed executed by V.Arumugam infavour of S.Avani i.e. 1^st defendants herein under Doc. No. 2309 of 2006 in the office of the Sub-Registrar, Mannargudi	A-25
26.	20.02.2007	Registered sale executed by Pachamuthu’s son (1) P. Kasinadan, (2) P. Sivapuniyam and (3) P. Nallathambi in favour of S.Avani i.e. 1^st defendant herein under Doc.No.619 of 2007 in the office of the Sub Registrar-Mannargudi	A-26
27.	23.03.2007	Registered sale executed by G. Rahothanachar General power of agent of Sri 1008 Sathiyatna Theertha Swamigal Sri Padangalavaru Sri Uthirapathy madam in favour of S. Avani i.e. 1^stdefendant herein under Doc.No.900 of 2007 in the office of the Sub Registrar-Mannargudi	A-27
28.	23.03.2007	Registered sale executed by G. Rahothanachar General power of agent of Sri 1008 Sathiyatna Theertha Swamigal Sri Padangalavaru Sri Uthirapathy madam in favour of S. Avani i.e. 1^stdefendant herein under Doc.No.901 of 2007 in the office of the Sub Registrar-Mannargudi	A-28
29.	27.07.2007	R.C. Book Pertaining to the Tractor bearing Regn. No. TN 50 Y 8051	A-29
30.	-	Statement of account pertaining to Loan A/c No. 03001200349743	A-30
31.	-	Statement of account pertaining to Loan A/c No. 30012000415019	A-31

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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 OF PROPERTIES

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SCHEDULE-A (Mortgaged to the applicant bank) PROPERTY OWNED BY THE 1^ST DEFENDANT

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I. Doc. No 900 of 207 Dt. 23.03.2007

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Nagapattinam, registration, Mannargudi, Sub registry, Mannargudi

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taluk, 71, Thenparai village

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S.No	Survey No	O. Survey No	Ares	A.C	Sq.ft
1.	106-2A1	106-2A		0-02	872
	Poora 0-72-0
	Ares
2.	106-2A3	106-2A	0-01-5	0-04	1744
	Punjai Poora

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Both items bounded by

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Sri Uthirapathy Madam Land and West, North and east and Avani land and South

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3.	298-18	298-	0-24	10464
	Punjai out	9A1B
	of 0-38-0 Ares

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Bounded by

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Road on North, Chandra Manai on East, and Mullayammal land on South and west

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II. Doc. No.901 of 2007 Dt. 23.03.2007 71, Thenparai village

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220 Nanjai 0-99 out of 1- 35-0 Ares

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Bounded by

Vadikal on North and east, Kanni on South and Avani Nanjai on West

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III. Doc No.619 of 2007 Dt. 20.02.2007

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71, Thenparai village

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216 Nanjai 0-58 Poora 1-325 Hectare

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Bounded by

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Vadikal on South, and Sri Uthirapathy Mutt Land West, North and West

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220 0-41 Nanjai Poora 1-350 Hectare

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Bounded by

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Vadikal on North, Sri Uthirapathy Mutt Land on East, Paichal Kanni on South and Arumugam asari land on West

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Doc. No. 2308 of 2006 Dt. 21.08.2006

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91, Thenparai village,

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Survey No. 221 extent of 0.45 A.C. Nanjai

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Total extent of 2-73

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Bounded by:

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North on North, Sri Uthirapathy Mutt land on East and West and Pasana Kanni on South

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O.A. No.104 of 2023

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SCHEDULE B PROPERTY

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(HYPOTHECATED TO THE APPLCIANT BANK)

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i.	Registration No	: TN 50 Y 3297
	Class vehicle	: TRACTOR
	Maker’s Name	: TAFE
	Type of Body	: OPEN
	Year of Manufacture	: 2008
	Number of cylinders	: 3
	Chassis No	: 420934
	Engine No	: S 325 B 340 75
	Horse power	: 40
	Seating capacity	: 1
	Unladen weight	: 1850
ii.	Registration No	: TN 50 Y 3297
	Class vehicle	: TRACTOR
	Maker’s Name	: Eicher Tractors Ltd
	Type of Body	: OPEN
	Year of Manufacture	: 2007
	Number of cylinders	: 2
	Chassis No	: 913713102424
	Engine No	: B00066
	Horse power	: 35
	Seating capacity	: 1
	Unladen weight	: 2010

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

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City Union Bank Limited v. S Avani

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. S Avani

Case brief

What is this about?

What did the court decide?

What the court decided

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