Partly allowed

Karur Vysya Bank v. Zulaikha Motors PvtLtd

DRT13 Mar 2026OA/112/2026

Case brief

AI extract

What is this about?

The DRT granted conditional attachment and ad-interim injunction against borrower-d的身子 and directed registration authorities not to encumber mortgaged properties, safeguarding the bank's claim pending disposal of the recovery application.

What did the court decide?

Conditional attachment ordered for Rs.41.69 crores; injunction against transfer of property; direction to sub-registrars not to entertain encumbrance documents.

Karur Vysya Bank versus Zulaikha Motors PvtLtd — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of March, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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I.A. Nos.523, 524 & 525 of 2026

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O.A. No.112 of 2026

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M/s. KarurVysya Bank, Chennai Asset Recovery Branch No.2/1 & 2/2, Angadi Street Venkatasapuram Colony, Ayyanavaram Chennai – 600 023.

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Represented by its Assistant General Manager

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.…Petitioner / Applicant Bank

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-Vs-

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M/s Zulaikha Motors Private Limited Door No.39B & 39BA, Velacherry

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Tambaram Main Road,

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Velacherry Chennai – 600 042.

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Rep.by its Director, Mr.Thomas Pangaraj William

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Mr.Thomas Pangaraj William Son of Mr.Selvaraj

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No.2, Cross Street, Balaji Nagar,

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Selaiyur, Tambaram, Kancheepuram – 600 073.

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Mr.Pushpraj Samy Nadar Son of Mr.Rayappa Lardu Samy, No.1001, Plot No.420 & 421, Jeevan Sukh CHS, 14th Road, Supreme Residency

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Mumbai – 400 050.

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Mrs.Vijayalakshmi S Daughter of Mr.Subburaj, No.2/650, Vishved, 3rd Main Road, River View Enclave, Manapakkam, Kacnheepuram – 600 125.

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The Sub Registrar, Sriperumbudur No.16/8, Ramanujar Nagar TMA Street Sriperumbudur, Kancheepuram District -602 105.

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The Sub Registrar Ambattur No.6, Chennai - Thiruvallur High Road Dobhi Colony, Ramapuram Ambattur, Chennai -600 053

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The Inspector General of Registration Registration Department State of Tamilnadu No.100, Santhome High Road R.A.Puram, Chennai – 600 028

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...Respondents/ Defendants

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: - ORDER ON IA NO. 523, 524 & 525 of 2026 in OA No.112 of 2026 - :

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The Original Application is filed by the Applicant Bank against the Defendants, seeking for recovery of money due from Defendants jointly

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and severally to pay a sum of Rs.41,69,87,280/- (Rupees Forty One

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Crores Sixty Nine Lakhs Eighty Seven Thousand Two Hundred and

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Eighty only) repayable together with further interest and costs.

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The Applicant Bank has filed the present petitions i.e., I.A.Nos.523, 524 and 525 of 2026 5 with affidavit of the Assistant General Manager, Asset Recovery Branch, Chennai, praying to pass

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(i) an order of attachment before judgment in respect of the properties as detailed in the schedule to the IA, pending disposal of the above OA.

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(ii) an order of ad-interim injunction restraining the respondents / defendants from transferring, alienating or otherwise dealing with or disposing immovable properties morefully described in schedule to the petition in any manner whatsoever and

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(iii) to issue direction or any appropriate order, forbearing the 5^th and 6^th respondents from entertaining the registration of any document of whatever nomenclature that would encumber and / or alienate immovable properties morefully and particularly prescribed in the schedule to the IA.

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It is the case of applicant bank that , the petitioner / applicant herein sanctioned the aggregate financial facilities of Rs.26,00,00,000/- to the 1st respondent made up of a) Rs.15,00,00,000/- as OCC facility and b) Rs.11,00,00,000/- as BG facilities to the respondents 1 to 4 on 12.10.2022. The aforesaid loan facilities are secured by the equitable mortgage in and over their immovable properties more fully and particularly described as Item Nos.1 to 3 in Schedule A to the petition in favour of the petitioner by way of deposit of original title documents with the petitioner on 13.10.2022 by the 1st respondent, the Memorandum of Deposit of Title Deeds was registered as Doc.No.9801 of 2022, dated 13.10.2022, before the office of the SRO, Sriperumbudur.

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It is submitted that though the petitioner has sanctioned the aggregate financial facility to the extent of Rs.26,00,00,000/- vide their sanction letter dated 12.10.2022, the 1^st respondent was permitted only to

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utilize a sum of Rs.10,00,00,000/- as against the sanctioned limit of Rs.26,00,00,000/- in terms of their letter of modification dated 04.11.2022. The petitioner herein restricted the 1^st respondent from utilizing the sanctioned limit only to the extent of Rs.10,00,00,000/- as the collateral security offered by the 1st respondent did not fully secure the sanctioned limit. In view of the above, the 1st respondent offered to create additional mortgage in and over their immovable property more fully and particularly described as Item No.4 in Schedule A to the petition in favour of the petitioner herein. As a consequence, the petitioner herein permitted the 1^st respondent to utilize the sanctioned limit upto the extent of Rs.21,00,00,000/-, vide their sanction letter dated 01.12.2022. The 1^st defendant also created mortgage in and over their immovable property more fully and particularly described as Item No.4 in Schedule A to the petition in favour of the petitioner herein by way of registering the Memorandum of Deposit of Title Deeds dated 02.12.20222, registered as Doc.No.12273 of 2022, before the office of the SRO, Sriperumbudur.

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It is further submitted that as against the aggregate sanctioned facility of Rs.26,00,00,000/- sanctioned on 12.10.2022, the respondents were restricted to avail the facility only to the extent of Rs.10,00,00,000/in terms of sanction letter dated 04.11.2022. After the furnishing of additional collateral security by the 1st respondent to the petitioner herein, the 1st respondent was permitted to utilize the sanctioned facility to the extent of Rs.21,00,00,000/-. In terms of modified sanction letter dated 23.02.2023, the petitioner permitted the 1^st respondent to utilize the

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sanctioned financial facility of Rs.26,00,00,000/- upto the limit of Rs.25,40,00,000/-. Based on the specific request of the 1^st respondent and relying on the personal guarantee of the 2nd to 4th respondents, the 1st respondent enhanced the financial facilities already sanctioned by them to the 1st defendant from the then subsisting limit of Rs.26,00,00,000/- to Rs.50,00,00,000/- vide their sanction letter dated 28.06.2023. I submit that the aforesaid enhanced limit of Rs.50,00,00,000/- is comprised of a) Rs.30,00,00,000/- as OCC facility b) Rs.10,00,00,000/- as Bank Guarantee facility c) Rs.4,00,00,000/- as Term Loan Facility - 1, d) Rs.4,00,00,000/as Term Loan Facility -II and e) Rs.2,00,00,000/- as Secured Term Loan Facilities.

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The applicant bank submits that in acknowledgement for having availed the aforesaid facility and towards security for the repayment of the same along with the interest accrued thereon, the 1st respondent executed loan and security documents in favour of the petitioner. I submit that the 2nd to 4th respondents executed Deed of Personal Guarantee in favour of

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the petitioner for the purpose of guaranteeing the repayment of the aforesaid financial facilities along with the interest accrued thereon by the 1st respondent to the petitioner. In order to secure the aforesaid loan, the 1st respondent also created equitable mortgage in and over their immovable properties more fully and particularly described in schedule B to the petition by way of deposit of original title documents with the petitioner on 30.06.2023, in addition to the equitable mortgage already created by them in and over the schedule A mentioned property in favour

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of the petitioner herein and executed Memorandum of Deposit of Title Deeds in this regard in favour of the petitioner as Doc.No.9279 of 2023, dated 30.06.2023, before the office of the SRO, Ambattur.

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The applicant bank submits that subsequent to availing of aforesaid credit facilities, the 1st respondent committed default in repayment of both principal and interest under the aforesaid financial facilities to the petitioner herein. Consequently, the loan accounts were classified as NPA on 30.09.2024. The applicant bank through its Authorised Officer, had initiated recovery measures under SARFAESI Act and issued Demand Noice and Possession Notice on 02.12.2024 and on 11.03.2025 respectively. Immediately after which the 1^st respondent submitted request letter of OTS dated 27.08.2025, undertaking to discharge the entire liability to the petitioner at Rs.36,00,00,000/-. I submit that since the OTS offer given by the respondent was too low and unrealistic when compared with that of the liability of the respondents to the petitioner, the OTS offer of the respondent was rejected by the petitioner on 04.09.2025. In the above background, when the respondents were not coming forward bonafidely to discharge their admitted liability to the petitioner, left with no other alternative, the petitioner herein filed the above OA for the recovery of Rs.41,69,87,280/together with the interest calculated at the rate of 16.55% per annum compounded with monthly rests for the period commencing from the date of OA to date of realization in full, jointly and severally from the respondents herein.

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It is further submitted that when the petitioner was taking measures

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for the sale of the secured assets in question in exercise of their rights under the provisions of the SARFAESI Act in order to recover the sums that are due and liable to be paid by the respondents to them, much to their shock and dismay, they had come to know that the secured assets which were taken possession by them on 11.03.2025, were trespassed into without their knowledge and without any intimation to them. The immovable properties more fully and particularly described in schedule to the petition are coming under the jurisdiction of the 5th and 6th respondents herein. Being the statutory authorities, who have registered the mortgage of the petitioner in and over the schedule mentioned properties, they have been arrayed as respondents 5 and 6 in the present IA. When the petitioner inspected the site at which the secured asset were situated, they have found that the same was compounded on all four sides,

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displaying the name board of one real estate promoter / dealer "V.V.Homes". When the petitioner attempted to contact the respondents for the purpose of ascertaining the factual state of affairs, the respondents were not only found to be elusive, rather wantonly evasive in respondent to the queries put forth by the petitioner. The respondents attempted to thwart the efforts of the petitioner in selling the secured assets, by way of offering a OTS proposal at a much lower offer, which was too low and unrealistic when compared with that of the then subsisting liability of the respondents to the petitioner. I submit that when the petitioner proceeded to enforce their security interest after rejecting the OTS offer submitted by

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the respondents by way of taking possession of the secured assets, the respondents have now trespassed into the secured asset with the ulterior motive to frustrate the efforts of the petitioner in selling the secured asset for recovering the liability of the respondents to them.

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The applicant bank submits that on seeing the display of the name board of the real estate dealer at the site of the secured asset and on discrete enquiry made by them, the petitioner has come to know that the respondents herein are attempting to encumber the secured assets / schedule mentioned property to prevent the petitioner to deal with the secured assets under one pretext or another. It is reliably learnt that the respondents are indebted to so many creditors in the market and that the respondents herein are planning to dispose of the schedule mentioned properties and secrete away the sale proceeds to be realized therefrom beyond the reach of the petitioner herein for their personal aggrandizement. Hence the present IAs are filed to pass

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(i) an order of attachment before judgment in respect of the properties as detailed in the schedule to the IA, pending disposal of the above OA.

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(iii) to issue direction or any appropriate order, forbearing the 5^th and 6^th respondents from entertaining the registration of any

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document of whatever nomenclature that would encumber and / or alienate immovable properties morefully and particularly prescribed in the schedule to the IA, pending disposal of the OA.

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Heard the counsel for applicant bank and perused the

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records produced along with the IAs.

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The Applicant Bank has filed the above I.As. on the premise that respondents 1 to 4 may alienate or dispose of or create third-party interest on the properties morefully described in the schedule to the IA.

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It is a matter of record that the OA was filed for recovery of sum of Rs.41,69,87,280/- which is a colossal sum of money. Considering the amount of claim involved in this case and the balance of convenience, the present IAs has to be considered by keeping open the merits of the case and without prejudice to the rights of both the parties. By doing so, no

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prejudice, no harm and loss will be caused to the Defendants.

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As per Section 19 (13)(A) & 15 of RDB Act,

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“ Where, at any stage of the proceedings, [the Tribunal on an application made by the applicant along with particulars of property to be attached and estimated value thereof, or otherwise] is satisfied that the defendant, with intent to obstruct or delay or frustrate the execution of any order for the recovery of debt that may be passed against him

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(i)is about to dispose of the whole or any part of his property; or

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(ii)is about to remove the whole or any part of the property from the local limits of the jurisdiction of the Tribunal; or

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(iii)is likely to cause any damage or mischief to the property or affect its value by misuse or creating third party interest,

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the Tribunal may direct the defendant, within a time to be fixed by it, either to furnish security, in such sum as may be specified in the order, to produce and place at the disposal of the Tribunal, when required, the said property or the value of the same, or such portion thereof as may be sufficient to satisfy the certificate for the recovery of debt, or to appear and show cause why he should not furnish security.

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(B)Where the defendant fails to show cause why he should not furnish security, or fails to furnish the security required, within the time fixed by the Tribunal, the Tribunal may order the attachment of the whole or such portion of the properties claimed by the applicant as the properties secured in his favour or otherwise owned by the defendant as appears sufficient to satisfy any certificate for the recovery of debt.

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15. The Tribunal may also in the order direct the conditional attachment of the whole or any portion of the property specified under Sub-Section (13)”

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As the Applicant Bank has prima facie established the essential ingredients for granting an order of temporary injunction restraining the

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respondents 1 to 4 in respect of the property mentioned in the schedule to the petition, this Tribunal proceeds to pass the following order:

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:ORDER:

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In the circumstances pleaded, the respondents 1 to 4 are hereby directed to show cause as to why they should not furnish security to the tune of OA claim in a sum of Rs.41,69,87,280/-, within 15 days from the date of receipt of this order, failing which to attach the IAs schedule mentioned property belonging to respondents to answer the OA claim herein.

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(ii) Meanwhile, conditional attachment of the petition schedule mentioned properties to the extent of OA claim of Rs.41,69,87,280/-, together with further interest is hereby ordered to secure the dues of the applicant bank and interim injunction is granted thereby restraining the respondents 1 to 4 / defendants from transferring, alienating or otherwise dealing with or disposing immovable properties morefully described in schedule to the petition in any manner whatsoever

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(iii) The 5^th and 6^th respondents are hereby directed not to entertain the registration of any document of whatever nomenclature that would encumber and / or alienate immovable properties morefully and particularly prescribed in the schedule to the IAs, pending disposal of the OA.

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The Registry is directed to issue show cause notice to the respondents 1 to 4 and also communicate this Order to the Concerned Sub

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Registrar Office/ Village Officer for necessary action and for records.

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15. IA Schedule property shall form part of this order.

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Sd/-

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 13^th day of March, 2026)

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SCHEDULE - A

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(Description of the immovable property mortgaged by the 1st respondent in favour of the petitioner).

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Item No.1

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All that piece and parcel of the immovable property, being vacant land measuring an extent of 21,000 sq.ft. or thereabouts, comprised in O.S.No.308/2, R.S.No.308/153, Patta No.2513, Mevalurkuppam (B) - Chettipedu Village, Sriperumbudur Taluk, Kancheepuram District, situate at Plot No.1, VGP Industrial Complex Layout, Mevalurkuppam, Kancheepuram, Tamil Nadu 600 105, within the sub registration district of Sriperumbudur and in the registration district of Chenglepet measuring

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North to South on the Eastern Side : 150.00 Feet

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North to South on the Western Side : 150.00 Feet

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East to West on the Northern Side : 140.00 Feet

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East to West on the Southern Side : 140.00 Feet

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and bounded on the

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North by : Plot No.8

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South by : 60 Feet Road

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East by : Immovable property belonging to VGP & Company P.Limited West by Plot No.2

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The above property is covered under sale deed dated 04.05.2022, registered as Doc.No.4149 of 2022, before the office of the SRO, Sriperumbudur.

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Item No.2

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All that piece and parcel of the immovable property, being vacant land measuring an extent of 21,000 sq.ft or thereabouts, comprised in O.S.No.308/2, R.S.No.308/154, Patta No.2514, Mevalurkuppam (B) - Chettipedu Village, Sriperumbudur Taluk, Kancheepuram District, situate at Plot No.2, VGP Industrial Complex Layout, Mevalurkuppam, Kancheepuram, Tamil Nadu - 600 105, within the sub registration district of Sriperumbudur and in the registration district of Chenglepet measuring North to South on the Eastern Side : 150.00 Feet

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North to South on the Western Side 150.00 Feet

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East to West on the Northern Side 140.00 Feet

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East to West on the Southern Side 140.00 Feet

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and bounded on the:

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North by : Plot No.7

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South by : 60 Feet Road

East by : Plot No.1

West by : Plot No.3

The above property is covered under sale deed dated 04.05.2022, registered as Doc.No.4152 of 2022, before the office of the SRO, Sriperumbudur.

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Item No.3

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All that piece and parcel of the immovable property, being vacant land measuring an extent of 10,500 sq.ft or thereabouts, comprised in O.S.No.308/2, R.S.No.308/155, Patta No.2515, Mevalurkuppam (B) – Chettipedu Village, Sriperumbudur Taluk, Kancheepuram District, situate at Plot No.3A, VGP Industrial Complex Layout, Mevalurkuppam, Kancheepuram, Tamil Nadu – 600 105, within the sub registration district of Sriperumbudur and in the registration district of Chenglepet measuring

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North to South on the Eastern Side 150.00 Feet

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North to South on the Western Side : 150.00 Feet

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East to West on the Northern Side 70.00 Feet

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East to West on the Southern Side : 70.00 Feet

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and bounded on the:

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North by : Plot No.6

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South by : 60 Feet Road

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East by : Plot No.3

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West by : Plot No.4

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The above property is covered under sale deed dated 04.05.2022, registered as Doc.No.4147 of 2022, before the office of the SRO, Sriperumbudur.

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Item No.4

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All that piece and parcel of the immovable property, being vacant land measuring an extent of 24,300 sq.ft. or thereabouts, comprised in O.S.No.308/2, R.S.No.308/152, Patta No.2512, Mevalurkuppam (B) - Chettipedu Village, Sriperumbudur Taluk, Kancheepuram District, situate at Plot No.4, VGP Industrial Complex Layout, Mevalurkuppam, Kancheepuram, Tamil Nadu - 600 105, within the sub registration district of Sriperumbudur and in the registration district of Chenglepet measuring

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North to South on the Eastern Side 150.00 Feet

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North to South on the Western Side : 150.00 Feet

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East to West on the Northern Side : 162.00 Feet

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East to West on the Southern Side : 162.00 Feet

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and bounded on the:

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North by : Plot No.5 :

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South by : 60 Feet Road :

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East by : Plot No.3A

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West by : 50 Feet Road

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The above property is covered under sale deed dated 29.11.2022, registered as Doc.No.11430 of 2022, before the office of the SRO, Sriperumbudur.

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SCHEDULE B

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(Description of the immovable property mortgaged by the 1st respondent in favour of the petitioner).

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All that piece and parcel of the immovable property, being vacant land measuring an extent of 5920 sq.meters or 63,723 sq.ft or thereabouts

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comprised in Old Survey No.561/6A, T.S.No.28, Block No.66, Ward No.B, Patta No.3784, Ambattur Village, Ambattur Taluk, Chennai District within the sub registration district of Ambattur and in the registration district of Chennai North, measuring

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North to South on the Eastern Side : 52.3 meters

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North to South on the Western Side : 91.0 meters

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East to West on the Northern Side : 49.0+10.0+7.0+35.0 meters

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East to West on the Southern Side: 33.6+60.3 meters

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and bounded on the:

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North by	:Immovable property comprised in T.S.Nos.29, 40/1 & 40/2 belonging to Arul Rubber Industries.
South by	:Immovable property comprised in T.S.No.27, TNHB- Phase III, (New Colony 13th Street)
East by	: Immovable property comprised in T.S.No.41, belonging to Krishnan and Sivasakthi
West by	: Immovable property comprised in T.S.No.13/1, TNHB-
	Phase, III, 12 Feet Wide New Colony 12th Street and 10
	Feet Wide New Colony 12th Cross Street.

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The above property is covered under sale deed dated 26.04.2023, registered as Doc.No.7953 of 2023, before the office of the SRO, Ambattur.

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Sd/-

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

Karur Vysya Bank v. Zulaikha Motors PvtLtd

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Zulaikha Motors PvtLtd

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

Coram

Case details

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