Allowed

Bank of Baroda v. Lefit Fitness Studio

DRT8 Jun 2026OA/241/2024

Case brief

AI extract

What is this about?

In an ex-parte hearing, the Debt Recovery Tribunal allowed a bank's original application filed under the RDB Act for recovery of term loans and related advances totaling over Rs.61 lakhs, which the borrower failed to repay due to defaulted business operations and cessation of account norms.

What did the court decide?

Recovery of total sum of Rs.61,24,834/- with interest and costs; absolute attachment order made; Recovery Certificate directed.

Bank of Baroda versus Lefit Fitness Studio — Banking and Recovery | DRT (2026)

¶1

O.A. No.241 of 2024

¶2

08.06.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 08^th day of June, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 241 of 2024

¶8

Bank of Baroda,

¶9

T Nagar Branch,

¶10

No.74, Theagaraya road,

¶11

T. Nagar, Chennai-600 017

¶12

Represented by its Asst General Manager ….Applicant

¶13

-Vs-

¶14

M/S LEFIT Fitness studio,

¶15

Rep by its Proprietor Mrs. Mangayarkarasi, Plot no.1 & 2, Syndicate Bank colony,

¶16

200 feet Pallavaram, OMR Radial Road,

¶17

Keelkattalai, Chennai- 600 117

¶18

Mrs. Mangayarkarasi

¶19

D/o Thiruselvam,

¶20

No.22/49, Kumera Munusamy street, Ullagaram, Nanganallur, Chennai- 600 061 …..Defendants

¶21

Counsels on record / appeared:

¶22

Counsel for Applicant: M/s. S. Vaidyanathan

¶23

Defendants 1 and 2 were set ex-parte on 20.01.2025

¶24

: - FINAL ORDER- :

¶25

This Original Application is filed on 24.01.2024 by the applicant

¶26

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, for recovery of a total sum of

¶27

Rs.61,24,834/- (Rupees Sixty One Lakhs Twenty Four Thousand

¶28

Uploaded on 08.06.2026 at 16:00 hours

¶29

O.A. No.241 of 2024

¶30

¶31

08.06.2026

¶32

Eight Hundred and Thirty Four only) as follows:

¶33

(i) A sum of Rs.44,01,286/- due in respect of Term loan (A/c No.05320600002918) repayable together with further interest @13.80% p.a. with monthly rests plus penal interest of 2% from the date of Application till the date of realization in full;

¶34

(ii) A sum of Rs.5,09,534/- due in respect of Term loan (A/c

¶35

No.0520600002907) repayable together with further interest @9.20% p.a. with monthly rests plus penal interest of 2% from the date of Application till the date of realization in full;

¶36

(iii) A sum of Rs.12,13,714/- due in respect of Term loan (A/c No.05320600004095) repayable together with further interest @9.20% p.a. with monthly rests plus penal interest of 2% from the date of Application till the date of realization in full and for costs of this OA.

¶37

Brief Facts of the case:

¶38

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.

¶39

It is the case of the applicant bank that the 1^st defendant represented by its Proprietor, the 2^nd defendant had forwarded her application under NEEDS scheme through the Department of Industries and Commerce, Government of Tamilnadu seeking for a loan of Rs.70.00

¶40

Uploaded on 08.06.2026 at 16:00 hours

¶41

O.A. No.241 of 2024

¶42

¶43

08.06.2026

¶44

lakhs for establishing fitness centre and to purchase equipment and the same was provisionally sanctioned by the applicant bank vide sanction letter 13.02.2017.

¶45

After training by DIC the defendant applied for the loan vide application dated 25.03.2017 and accordingly the same was sanctioned vide sanction letter dated 30.03.2017 and the defendant acknowledged the terms and conditions of sanction and executed the following loan security documents agreeing to repay the loan in 83 instalments of Rs.1,23,220/- from May, 2017:

¶46

(i) Loan agreement cum hypothecation deed for priority/Non priority sector advances

¶47

(ii) Authorization to debit loan installments from her account

¶48

It is submitted that the defendant had executed acknowledged receipt of disbursement of Rs.50 Lakhs dated 30.03.2017 towards the loan for purchase of Fitness equipment.

¶49

As per the directions of Government of India and RBI for MSME’s to tide over the crises of COVID-19, the branch had sanctioned an amount of Rs.11.50 lakhs to the defendants as per request dated 05.08.2020, vide sanction letter dated 05.08.2020 and the same was acknowledged by the defendants. The loan was to be repaid in instalments of Rs.31,944/- per month for 47 months and Rs.31,960/- for the 48 months with a Moratorium of 12 months. The defendant had executed the following documents dated 05.08.2020 in acknowledgement of having availed the

¶50

Uploaded on 08.06.2026 at 16:00 hours

¶51

O.A. No.241 of 2024

08.06.2026

loan:

i. Demand promissory note for Rs.11.50 lakhs

¶56

ii. Letter of continuing security.

¶57

iii. Declarations cum undertaking cum authority

¶58

iv. Loan agreement cum instrument of hypothecation cum pledge

¶59

v. Letter of undertaking with negative lien clause.

¶60

vi. Letter of sole proprietorship

¶61

vii. Letter of installment with acceleration clause.

¶62

viii. Letter of authority to disclose names.

¶63

The applicant bank submits that as per guidelines of Govt of India., the applicant bank has further sanctioned an amount of Rs.11.50 lakhs under BGECLS 3.0 vide Sanction Letter dated 09.09.2021 for which the defendants executed by following documents:

¶64

i. Demand Promissory Note for Rs.11.50 lakhs

¶65

ii. Letter of instalment with acceleration clause.

¶66

iii. Letter of authority to disclose names.

¶67

iv. Declarations cum undertaking cum authority

¶68

v. Composite hypothecation agreement

¶69

vi. Loan cum hypothecation agreement

¶70

It is further submitted by the applicant bank that the defendants had executed Letter of Acknowledgement of Debt dated 23.07.2019 and 09.09.2021 confirming the balances in their accounts and hence the account is not barred by limitation.

¶71

Uploaded on 08.06.2026 at 16:00 hours

¶72

O.A. No.241 of 2024

¶73

08.06.2026

¶74

¶75

The applicant bank submits that subsequent to availing of loan, the defendants have not conducted the account as per terms of sanction and had not repaid the installments as agreed. The defendants have closed down their business at the address intimated to the bank and have clandestinely removed the equipment which was hypothecated to the bank. The applicant bank had issued reminder letter dated 24.08.2023 to the defendants to regularize their account but no response was received from them. Consequently, the loan account was classified as NonPerforming Asset (NPA) on 29.08.2023. The applicant bank, through its Authorised Officer had issued Demand Notice dated 31.08.2023 to the defendants u/s 13(2) of the SARFAESI Act, 2002, but the defendants have not come forward to repay their dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶76

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘No such person’ in respect of D-1, while summons to D-2 returned as ‘Unclaimed’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 20.01.2025 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants

¶77

1 and 2 were placed ex-parte on 20.01.2025.

¶78

Heard the submissions of Applicant Bank and perused the

¶79

records.

¶80

Uploaded on 08.06.2026 at 16:00 hours

¶81

O.A. No.241 of 2024

¶82

08.06.2026

¶83

¶84

To prove the case of the Applicant Bank, Shri. Sangram.G.P. Behera, Chief 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-33.

¶85

During the pendency of OA, applicant bank had filed IA No.2319/25 seeking for attachment of petition schedule mentioned properties, which are identified properties belonging to 2^nd defendant, as the OA claim is

¶86

unsecured. The said IA was allowed on 08.01.2026, directing the defendants to furnish security to the tune of OA claim within 15 days of receipt of the show cause notice, failing which to attach the IA schedule mentioned properties to answer the OA claim. Meanwhile, conditional attachment of the petition schedule mentioned properties to the extent of OA claim of Rs.61,24,834/- together with further interest was ordered to secure the dues of the applicant bank, however

¶87

(i) as second charge of the applicant bank in respect of Item No.1 property belonging to 2^nd respondent, as the Encumbrance Certificate produced by the applicant bank reflects the charge of Indian Overseas Bank vide MOD Doc No.4482/2022 dated 30.04.2022 before SRO, Pammal;

¶88

(ii) as second charge of the applicant bank in respect of Item No.2 property belonging to 2^nd respondent, as the Encumbrance Certificate produced by the applicant bank reflects the charge of Indian Bank vide MOD Doc No.9130/2021 dated

¶89

20.07.2021 before SRO, Guduvanchery;

¶90

Uploaded on 08.06.2026 at 16:00 hours

¶91

O.A. No.241 of 2024

¶92

08.06.2026

¶93

¶94

(iii) as second charge of the applicant bank in respect of Item No.3 belonging to 2^nd respondent, as the Encumbrance Certificate produced by the applicant bank reflects the charge of M/s Chandra Prabhu Agency vide Mortgage Deed Doc No.4218/2023 dated 20.03.2023 before SRO, Jt.II, Chengalpet;

¶95

(iv) as second charge of the applicant bank in respect of Item No.4 property belonging to 2^nd respondent, as the Encumbrance Certificate produced by the applicant bank reflects the charge of Bank of Maharashtra vide Mortgage Deed Doc No.13512/2022 dated 21.09.2022 before SRO, Jt.II, Chengalpet.

¶96

The show cause notice in IA sent to defendants returned unserved with postal endorsement ‘door locked, intimation delivered’. Despite knowledge of the notice from the Tribunal, defendants have deliberately evaded the notice and failed to furnish security nor show cause why the properties belonging to 2^nd defendant should not be attached. In the circumstances, the attachment order passed in IA No.219/2025 is made absolute, however subject to second charge of the respective applicant banks and financial institution respectively.

¶97

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-33 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of

¶98

Uploaded on 08.06.2026 at 16:00 hours

¶99

O.A. No.241 of 2024

¶100

¶101

08.06.2026

¶102

Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

¶103

The defendants were set ex-parte on 20.01.2025, 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.

¶104

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:

¶105

: O R D E R :

¶106

17. The OA is allowed with costs,

¶107

(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a total sum of Rs.61,24,834/- (Rupees Sixty One Lakhs Twenty Four Thousand Eight Hundred and Thirty Four only) as follows:

¶108

(i) A sum of Rs.44,01,286/- due in respect of Term loan

¶109

(A/c No.05320600002918) repayable together with further

¶110

Uploaded on 08.06.2026 at 16:00 hours

¶111

O.A. No.241 of 2024

¶112

¶113

08.06.2026

¶114

interest @13.80% p.a. with monthly rests plus penal interest of 2% from the date of Application till the date of realization in full;

¶115

(ii) A sum of Rs.5,09,534/- due in respect of Term loan (A/c No.0520600002907) repayable together with further interest @9.20% p.a. with monthly rests plus penal interest of 2% from the date of Application till the date of realization in full;

¶116

¶117

(b) The conditional attachment order passed in IA No.2319/25 is made absolute.

¶118

(c) In the event of failure of the Defendants to pay the aforesaid amount, it is hereby ordered that in the event of the properties (morefully detailed in schedule to this order), attached vide ABJ order in IA No.2319/25 dated 08.01.2026, being brought to sale through public auction / e-auction by the respective banks and financial institution for respective properties, as morefully detailed in para 13 above, the sale shall be strictly subject to the valid, subsisting second charge/mortgage held by the applicant bank

¶119

Uploaded on 08.06.2026 at 16:00 hours

¶120

O.A. No.241 of 2024

08.06.2026

(Bank of Baroda).

(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.

¶125

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

¶126

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶127

A copy of this order be communicated to the parties concerned.

¶128

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

¶129

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 08^th day of June, 2026)

¶130

ANNEXURES

¶131

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶132

AW-1: Shri. Sangram.G.P. Behera, Chief Manager of the Applicant Bank

¶133

Uploaded on 08.06.2026 at 16:00 hours

¶134

O.A. No.241 of 2024

¶135

08.06.2026

¶136

¶137

Exhibits on the part of the Applicant:

¶138

Sl. No.	Date	Description of Documents	Exhibit No.
1.	13.02.2017	Sanction letter	A-1
2.	25.03.2017	Loan application	A-2
3.	30.03.2017	Sanction letter acknowledged by the defendant	A-3
4.	30.03.2017	Loan agreement cum hypothecation deed	A-4
5.	30.03.2017	Authorisation to debit loan instalments	A-5
6.	30.03.2017	Acknowledgement receipt of disbursement of Rs.50.00 lakhs	A-6
7.	23.07.2019	Acknowledgement of liability	A-7
8.	16.08.2019	Letter of reschedulingloan installment	A-8
9	05.08.2020	Request of Rs.11.50 lakhs by the defendant	A-9
10	05.08.2020	Sanction of Rs.11.50 lakhs to the defendant	A-10
11.	05.08.2020	Attestation memo	A-11
12.	05.08.2020	Demand promissory note for Rs.11.50 lakhs	A-12
13.	05.08.2020	Letter of continuingsecurity	A-13
14.	05.08.2020	Letter of undertaking with negative lien clause	A-14
15.	05.08.2020	Letter of soleproprietorship	A-15
16.	05.08.2020	Declarations cum undertaking cum authority.	A-16
17.	05.08.2020	Loan agreement cum instrument of hypothecation cumpledge	A-17
18.	05.08.2020	Letter of instalment with acceleration clause	A-18
19.	05.08.2020	Letter of authorityto disclose names	A-19
20	09.09.2021	Sanction of amount Rs.11.50 lakhs under BGECLS	A-20
21.	09.09.2021	Demand promissory note for Rs.11.50 lakhs	A-21
22.	09.09.2021	Letter of instalment with acceleration clause	A-22
23.	09.09.2021	Letter of authorityto disclose names	A-23
24.	09.09.2021	Declarations cum undertaking cum	A-24

¶139

Uploaded on 08.06.2026 at 16:00 hours

¶140

O.A. No.241 of 2024

¶141

¶142

08.06.2026

¶143

		authority
25.	09.09.2021	General undertaking		A-25
26.	09.09.2021	Composite hypothecation agreement		A-26
27.	09.09.2021	Loan cum hypothecation agreement		A-27
28.	09.09.2021	Letter of acknowledgement of debt		A-28
29.	24.08.2023	Reminder letter executed by defendant	the	A-29
30.	31.08.2023	Demand notice		A-30
31.		Statement of term loan accounts No.05320600002918)	(A/c	A-31
32.		Statement of BGECL No.0520600002907	A/c	A-32
33.		Statement of BGECL account No.05320600004095	(A/c	A-33

¶144

Witness Examined for the Defendants: -Nil-

¶145

List of Documents Exhibited for the Defendants: -Nil –

¶146

SCHEDULE OF PROPERTY IN IA NO.2319/2025

¶147

Item no.1(As per Doc.no.3127/2022) Schedule A

¶148

All that piece and parcel of Land bearing Plot no.9 & Plot no.6 West Part, total extent 1773 sq.ft comprised in Old Patta no.111, Survey no.20/2, New Patta no.1617, as per New Patta New Survey no.20/2b, situated at Kolapakkam Village, Ramamoorthy Avenue, Kundrathur Taluk, Kancheepuram District, within the Registration District of Chennai South and Sub Registration District of Pammal

¶149

Bounded on the :

¶150

North By : 20 feet Road South By : Land in Sy.no.21/2 East By : Plot no.6, West By : Ramamurthy Avenue Road

¶151

Uploaded on 08.06.2026 at 16:00 hours

¶152

O.A. No.241 of 2024

08.06.2026

Measuring

East to West on Northern side: 37 feet East to West on Southern side: 36 feet 6 inches North to south on Eastern side: 46 feet 3 inches North to South on Western side: 50 feet 3 inches

¶157

Total extent 1773 sq.ft

¶158

Schedule B(Settlement property)

¶159

An undivided 412 sq.ft share of land , right title and interest in the above mentioned Schedule-A Property together with Flat no.S4, second Floor in “Diamond Meadows” measuring an extent of 870 sq.ft super plinth area inclusive of common areas Car Parking below F-1, Master Bed near Left in the building , EB connection and all other amenities etc.

¶160

Item no.2(as per Sale Deed Doc.no.10048/2020)

¶161

Schedule-A

¶162

All that piece and parcel of the house ground and premises an extent of 4121 sq.ft bearing Plot no.10, Narayanapuram, comprise in Old Survey no.215/3, Patta no.2092, as per Patta New Sy.no.215/3, Patta no.2092, as per Patta New Survey no.215/3C, in No.6 Nandivaram Village, Chengalpet Taluk, now Vandalur Taluk, Kancheepuram District now Chengalpet District and the land being bounded on the:

¶163

North By : Road, South By : Vacant Land, East By : Plot no.11 and 12, West By : Plot no.9 Measuring

¶164

East to West on the Northern side : 40 feet East to West on the Southern side : 41 feet North to South on Eastern side : 104 feet

¶165

Uploaded on 08.06.2026 at 16:00 hours

¶166

O.A. No.241 of 2024

¶167

08.06.2026

¶168

¶169

North to South on Westrn side

¶170

: 99 feet

¶171

In all measuring 4121 sq.ft of land and building thereon and lying within the Registration District of Chennai South and Sub Registration District of Guduvanchery.

¶172

Schedule-B

¶173

590 sq.ft undivided share of land in and out of the Schedule”A” property together with Residential Flat no.G-1 in the Ground Floor, “B” Block having built up area of 1300 sq.ft including common area plot measuring 1675.50 sq.ft bearing Sub Divided Plot no.10A, and 50% right in common passage of 623 sq.ft (totally measuring 1987 sq.ft) with covered car park Slot no.G-1 in the stilt Floor, in the Residential Buildling named as “I-5 Constructions”.

¶174

Bounded on the

¶175

North By : 20 feet Road South By : Sub Divided Plot no.10B East By : 10 feet common passage connecting from 20 feet Road, West BY : Plot no.9

¶176

In all measuring 1987 sq.ft

¶177

Item no.3 (As per Sale deed Doc.no.9268/2022)

¶178

All that piece and parcel of land measuring 2580 sq.ft out of this Undivided share of 340 sq.ft with Flat no.F2 on the First Floor measuring 850 sq.ft, in Plot no.6, Patta no.443, in Sy.no.208, Patta new Survey no.208/15, at Potheri Village, Chengalpet District within the Sub Registration District of Chengalpet Jt.II, and Registration District of Chengalpet bounded on the:

¶179

North By : Plot no.7 South By : Plot no.05 East By : plot no.09 West By : Old Panchayat Road.

¶180

Uploaded on 08.06.2026 at 16:00 hours

¶181

O.A. No.241 of 2024

¶182

08.06.2026

¶183

¶184

Item no.4 (As per Sale deed 9270/2022)

¶185

All that piece and parcel of land measuring 2580 sq.ft out of this Undivided share of 540 sq.ft with Flat no.F2 on the First Floor measuring 850 sq.ft, in Plot no.6, Patta no.443, in Sy.no.208, Patta new Survey no.208/15, at Potheri Village, Chengalpet District within the Sub Registration District of Chengalpet Jt.II, and Registration District of Chengalpet bounded on the: North By : Plot no.7 South By : Plot no.05 East By : plot no.09 West By : Old Panchayat Road.

¶186

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

¶187

Uploaded on 08.06.2026 at 16:00 hours

Bank of Baroda v. Lefit Fitness Studio

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Lefit Fitness Studio

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

Similar cases

State Bank of India versus Ajula Krishnan

State Bank of India versus Vivek

State Bank of India versus Padma Prasad

Union Bank of India versus Mrs R Gayathri and another

State Bank of India versus Jagenathan

Canara Bank versus Cresent Enteprises