Allowed

Indian Bank v. Modern Ultra Solar Energy Ltd.

DRT13 May 2026OA/130/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Indian Bank for recovery of debts totaling Rs.1.22 crore from a borrower and guarantors. After deducting proceeds from the SARFAESI sale of mortgaged property, the remaining balance is to be recovered from personal assets.

What did the court decide?

Recovery of dues of Rs.1,22,70,646.51p; direction to give credit of Rs.84.50 lakhs from SARFAESI sale and sell personal assets for balance.

Indian Bank versus Modern Ultra Solar Energy Ltd. — Banking and Recovery | DRT (2026)

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O.A. No.130 of 2022

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13.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.130 of 2022

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Indian Bank, Porur branch, Represented by its Branch Manager No.225, Trunk road, Porur, Chennai-600 116

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….Applicant

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-Vs-

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M/s Modern Ultra Solar Energy I Pvt. Ltd,

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No.20, Rajarajan Nagar, Vanagaram,

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Nr. Capitan TV,

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Chennai- 600 095

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Mr. R. Manimuthu, S/o Mr. Rengasamy No.21, 3^rd Main Road, Porur Garden Phase II Chennai-600 095

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Mr. R. Venkatesan, S/o. Mr. Ranganathan, No.4/437, Kizhandai Street, Mummudikuppam Village,

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Vayalur, Tiruvallur-602 105

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Mrs. Nanda Gupta, W/o Mr. Chandrakumar, C-Block, 210/212, 1^st Floor, C 111/112 Cochrane Basin Road, Korukkupet,

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Chennai- 600 021

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…..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. T. Saravana Prakash Defendants 1 to 4 were set ex-parte on 03.08.2022

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O.A. No.130 of 2022

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13.05.2026

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: - FINAL ORDER -:

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This Original Application is filed on 19.04.2022 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 to 4, jointly and severally for recovery of a total sum of Rs.1,22,70,646.51p (Rupees One Crore Twenty Two Lakhs Seventy Thousand Six Hundred and Forty Six and Fifty One Paisa only) as follows:

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(i) A sum of Rs.64,75,471.68p due in respect of Medium Term Loan (A/c No.6713560164) repayable together with further interest @ 12.50% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.57,95,174.83p due in respect of Bank Guarantee Loan (A/c No.6614067397) repayable together with further interest @ 12.50% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of schedule mentioned immovable property 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

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O.A. No.130 of 2022

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jurisdiction of this Tribunal.

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It is the case of the applicant bank that the defendant M/s Modern Ultra Solar Energy Pvt. Ltd., represented by its Partners, being the defendants 2 to 4 herein (the borrowers) had availed the Term Loan facility to the tune of Rs.50,00,000/- and also availed Bank Guarantee for a sum of Rs.60,00,000/- (Rupees Sixty lakhs only).

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It is submitted by the applicant bank that the applicant bank had sanctioned the same vide Sanction Letter dated 09.01.2019. The defendants were sanctioned with the Term Loan vide loan account bearing number 6713560164 and the Bank Guarantee vide loan account number 6719048648. Further the defendants were facilitated with Current Account bearing number 6614067397 for utilizing the Bank Guarantee.

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The applicant submits that the defendant agreed for all the terms and conditions of the loan facility. The defendant executed the necessary loan documents towards availing the loan facility and executed the Term Loan Agreement dated 09.01.2019. The defendants agreed to pay interest towards the loan facility at 12.50% p.a. at BRR prevailing from time to time. The defendant had executed the following loan documents which are self-explanatory and very well establish the liabilities of the defendants:

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a) Demand Promissory Note jointly and severally executed by defendants dated 09.01.2019

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b) Agreement for Medium Term Loan dated 09.01.2019

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c) Agreement of Guarantee by the R. Manimuthu, 2^nd defendant

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herein dated 09.01.2019

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d) Agreement of Guarantee by the Mrs. Nanda Gupta, 4^th defendant herein dated 09.01.2019

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The applicant submits that the in order to secure the loan amounts the 4^th defendant had created mortgage of the property, belonging to her vide Sale Deed dated 09.10.2014 registered as Document no. 3174 of 2014 in the office of the SRO at Royapuram and the same was mortgaged by executing a Memorandum of deposit of title deeds in favour of the applicant bank on 10.01.2019 which was registered as Document No.82 of 2019 in the same SRO. Further to that the 4^th defendant handedover the original title deed of the said property to the applicant bank.

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It is submitted by the applicant bank that upon execution of all the above necessary documents, the loan amount was duly disbursed to the defendants by the applicant. The credit facilities availed by the defendant was to be repaid as per the terms agreed. Further applicant bank had executed Bank Guarantees by way of bond in favour of the National Small Industries Corporation Ltd, Chennai for an amount of Rs. 30,00,000/(Rupees thirty lakhs only) vide BG No.003331G190000013 dated 30.01.2019 and another bond for an amount of Rs.30,00,000/-(Rupees thirty lakhs only) vide BG No. 003331G190000020 dated 08.02.2019

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The applicant submits that after availing the credit facilities, the defendants were irregular in repayment and servicing the loan extended by the applicant bank. In spite of repeated reminders, the defendant failed and neglected to regularize the same. In view of the default, both

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the loan accounts turned as Non-Performing Asset (NPA) since 26.11.2019. The defendants did not come forward to settle the dues in spite of several requests made by the applicant. Hence the applicant bank initiated measures under SARFAESI act and issued Demand Notice on 06.12.2019 to the defendants demanding to repay the loan dues within 60 days.

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The applicant submits that the Bank Guarantee executed in favour of the National Small Industries Corporation Ltd, Chennai for an amount of Rs.30,00,000/- vide BG No.003331G190000013 dated 30.01.2019 and another bond for an amount of Rs.30,00,000/vide BG No. 003331G190000020 dated 08.02.2019 were returned on 03.03.2020.

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It is submitted by the applicant bank that the defendants, despite of having knowledge of the statutory notices and fully aware of the consequences and their statutory obligation towards the applicant, failed to discharge their liability within the statutory period. The applicant submits that being secured creditor upon default by the borrower after statutory notice under section 13(2) of the Act, are entitled to proceed against the borrower under section 13(4) of the act to take possession of the secured asset. The applicant had taken symbolic possession of the secured asset on 17.03.2020 and had served the Possession Notice by affixing the notice on the secured asset and the notice was also sent to the defendants. Further the publication of the Possession Notice was effected in one issue of the “The New Indian Express” and “Dhinamani” on 17.03.2020.

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The applicant submits that the amount due is public money and the defendants are jointly and severally liable to pay the same. In these circumstances left with no other alternative the applicant bank is constrained to file the present OA for the recovery of dues from the defendants without prejudice to the rights of the applicant bank to take proceedings under the SARFAESI Act and by reversing its rights to proceed further under the provisions SARFAESI Act.

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After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, which was returned with remarks “Unclaimed” in respect of D-1, D-2 & D-4. Summons to D-3 was not property served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 03.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendant were placed ex-parte on 03.08.2022.

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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, Smt. R. Santhi, Chief Manager of the Applicant Bank, has filed her 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-18 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-18 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 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 03.08.2022, 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.84,50,000/- by way of sale of Schedule immovable property under SARFAESI Act on 26.09.2025 and sale certificate was executed in favour of auction purchaser registered as Doc. No.3330/2025 before SRO, Royapuram on 15.10.2025. Accordingly, part satisfaction of sum of Rs.84,50,000/- was duly recorded vide proceedings dated 07.04.2026 and documents marked as Ex A-8 and A-9 were ordered to be returned to applicant bank under proper acknowledgement.

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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

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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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants for recovery of a total sum of Rs.1,22,70,646.51p (Rupees One Crore Twenty Two Lakhs Seventy Thousand Six Hundred and Forty Six and Fifty One Paisa only) as follows:

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(i) A sum of Rs.64,75,471.68p due in respect of Medium Term Loan (A/c No.6713560164) repayable together with further interest @ 12.50% p.a. with monthly rests plus penal interest of 2% p.a. from the date of Application till the date of realization in full;

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(ii) A sum of Rs.57,95,174.83p due in respect of Bank Guarantee Loan (A/c No.6614067397) repayable together with further interest @ 12.50% p.a. with monthly rests plus penal interest of 2% p.a. from the date of Application till the date of realization in full; along with costs of this OA.

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(b) The sum of Rs.84,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants 2 to 4 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 2 to 4 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 to 4.

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(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 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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(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(f) 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 13^th day of May, 2026)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. R. Santhi, Chief 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.	Jan 2019	Term loan application	A-1
2.	09.01.2019	Sanction letter	A-2
3.	09.01.2019	Demandpromissorynote for Rs.50,00,000/-	A-3
4.	09.01.2019	Medium term loan agreement for Rs.50,00,000/-	A-4
5.	09.01.2019	Agreement of Guarantee byMr. R.Manimuthu	A-5
6.	09.01.2019	Agreement of Guarantee byMr. Venkatesan	A-6
7.	09.01.2019	Agreement of Guarantee by Mrs. Nanda Gupta	A-7
8.	09.01.2019	Registered sale deed Doc. No. 3174 of 2014 in the SRO Royapuram executed by M/s Oswal Wollen Mills Ltd, to and in favour of Mrs. Nanda Gupta Chandrakumar.	A-8
9.	10.01.2019	Registered MOD executed by Mrs. Nanda Gupta Chandrakumar in favour of India bank and registered as Doc.No.82/2019- in SRO Royapuram	A-9
10.	30.01.2019	Bank guarantee executed by Indian bank in favour of National small Industries corporation Ltd-BG No. 003331G190000013	A-10
11.	08.02.2019	Bank guarantee executed by Indian bank in favour of National small Industries corporation Ltd-BG No. 003331G190000020	A-11
12.	06.12.2019	Notice issued under section 13(2) of the SARFAESI Act along with postal receipts and AD card	A-12
13.	06.12.2019	Notice served by hand service to 4^th respondent	A-13
14.	03.03.2020	Returning the bank guarantee by National small industries corporation Ltd	A-14
15.	17.03.2020	Possession notice A/wpostal receipts	A-15
16.	17.03.2020	Possession noticepublication	A-16

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17.	-	Statement of accounts of MTL	A-17
18.	-	Statement of accounts of Current account	A-18
		Bankguarantee
19.	-	Statement of calculation of interest-MTL
20.	-	Statement of calculation of interest-BG
21.	09.11.2022	Evidence under Banker’s Book Evidence Act.

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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 PROPERTY

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Mortgaged property has been sold under SARFAESI Act.

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

Indian Bank v. Modern Ultra Solar Energy Ltd.

Case brief

What is this about?

What did the court decide?

Indian Bank v. Modern Ultra Solar Energy Ltd.

Case brief

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