Allowed

Bank of Maharashtra v. Sree Poorna Tex

DRT24 Mar 2026OA/256/2024

Case brief

AI extract

What is this about?

Bank of Maharashtra sought recovery of dues totaling Rs. 31.98 lakhs under the RD&BA. The Tribunal examined evidence, noted the absence of the respondents, and allowed the application with costs, permitting recovery from hypothecated assets or the proprietor's personal assets.

What did the court decide?

Recovery of Rs. 31,98,245/- with interest; liberty to sell hypothecated assets and personal property of the second respondent for balance dues.

Bank of Maharashtra versus Sree Poorna Tex — Insolvency and Bankruptcy | DRT (2026)

O.A. No. 256-24

24.03.2026

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of March, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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ORIGINAL APPLICATION No.256 of 2024

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Bank of Maharashtra Asset Recovery Branch No. 4, Sivagnanam Road, T. Nagar, Chennai – 600 017. Rep. by its Chief Manager ….Applicant

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-Vs-

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M/s Sree Poorna Tex, Rep by its Proprietrix Mrs Poornachandrika S No. 193/72C/1, North Cross, Pension Line Road, Salem – 636 006.

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Mrs Poornachandrika S W/o R Senthilkumar No. 193/72C/1, North Cross, Pension Line Road, Salem – 636 006. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. K. Radhakrishnamurthy

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Defendants 1 and 2 were set ex-parte on 18.11.2024

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: - FINAL ORDER - :

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This Original Application is filed on 20.12.2023 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 of a total sum of Rs.31,98,245/- (Rupees Thirty One Lakhs Ninety Eight

O.A. No. 256-24

24.03.2026

Thousand Two Hundred and Forty One only) as follows:

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i) A sum of Rs.25,24,720/- due in respect of CC account (A/c No.60387380539) repayable together with subsequent interest at 11.40% p.a. with monthly rests from the date of the Application till date of realization in full;

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ii) A sum of Rs.4,70,728/- due in respect of ECLG account (A/c No.60371364515) repayable together with subsequent interest at 11.25% p.a. with monthly rests from the date of the Application till date of realization in full;

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iii) A sum of Rs.72,206/- due in respect of WCTL account (A/c No.60387379238) repayable together with subsequent interest at 14.30% p.a. with monthly rests from the date of the Application till date of realization in full;

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iv) A sum of Rs.1,30,591/- due in respect of FITL account (A/c No.60304434299) repayable together with subsequent interest at 14.30% p.a. with monthly rests from the date of the Application till date of realization in full;

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and for sale of hypothecated assets moerfully detailed in the schedule to the OA and for costs.

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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 19 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

O.A. No. 256-24

24.03.2026

It is the case of the Applicant Bank that the 1^st defendant is a Proprietrix concern, wherein the 2^nd defendant is its sole Proprietrix. The first defendant is carrying on business for the manufacture of Silk Fabrics etc.

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It is submitted by the applicant bank that at the request of the First Defendant by its application dated 17.01.2018 (Loan under STAND UP INDIA SCHEME), the applicant has sanctioned a sum of Rs.20 Lakhs vide its Sanction letter dt.16.03.2018 as Cash Credit facility against hypothecation of goods and book debts as working capital for development of its business. The 1^st defendant represented by 2^nd defendant executed the following documents on 16.03.2018 as Proprietrix of the firm in favour of applicant bank:

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a) Application /Request letter for making credit facility available.

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b) Demand Promissory Note dated 16.03.2018 for Rs.20 lakhs promising to repay the amount together with interest thereon at 2% per annum above MCLR (currently 10.65% p.a.) with monthly rests from the date hereof till the date of realization, or at such other rates as may be revised by the Bank from time to time, compounded monthly for the value received.

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c) Deed of hypothecation for all facilities

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The applicant further submits that at the request of the first defendant, the applicant by its Sanction letter dt.30.09.2020 has sanctioned a sum of Rs.4 lakhs on 30.09.2020 under Emergency Credit Line

O.A. No. 256-24

24.03.2026

Guarantee (ECLG) Scheme and the same was availed by the 1^st defendant represented by 2^nd defendant on 30.10.2020 by executing the following documents:

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a) Application/Request letter for making credit facility

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b) Demand Promissory Note dated 30.10.2020 for Rs.4 lakhs promising to repay the amount together with interest thereon at 7.50% per annum at fixed rate with monthly rests from the date hereof till the date of realization, or at such other rates as may be revised by the Bank from time to time, compounded monthly for the value received.

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c) Deed of hypothecation.

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d) Receipt for amount of Loan.

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It is further submitted by the applicant bank that the first defendant by its letter dated 28.06.2021, requested the Bank for Re-structuring of Accounts of WCTL of Rs.55,000/- and FITL Facility of Rs.1,10,000/-. The applicant bank considering the said request had has re-structured the Loan under One Time Restructuring scheme under MSME Sector for a working capital Term Loan (WCTL) for a sum of Rs.55,000/- on 28.06.2021. The 1^st defendant, represented by 2^nd defendant had availed the same on 28.06.2021 and had executed the following documents on 28.06.2021 in favour of applicant bank:

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a) Application/Request letter for making credit facility.

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b) Demand Promissory Note dated 28.06.2021 for Rs.55,000/-

O.A. No. 256-24

24.03.2026

promising to repay the amount together with interest thereon at 3% per annum above RLLR (currently 9.90% p.a.) with monthly rests from the date hereof till the date of realization, or at such other rates as may be revised by the Bank from time to time, compounded monthly for the value received.

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c) Agreement for Term Loan.

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d) Receipt for amount of Term Loan dated 29.06.2021.

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The applicant further submits that at the request of the first defendant, the applicant had restructured the Loan under One Time Restructuring scheme under MSME Sector for a Future Interest Term Loan (FITL) for a sum of Rs.1.10 Lakhs on 28.06.2021. The 1^st defendant represented by 2^nd defendant had availed the same on 28.06.2021 by executing the following documents:

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a) Application/Request letter for making credit facility.

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b) Demand Promissory Note dated 28.06.2021 for Rs.1.10 lakhs promising to repay the amount together with interest thereon at 3% per annum above RLLR (currently 9.90% p.a.) with monthly rests from the date hereof till the date of realization, or at such other rates as may be revised by the Bank from time to time, compounded monthly for the value received.

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c) Agreement for Term Loan.

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It is submitted that subsequent to availing of loan, the defendants

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have failed to repay the loan amount inspite of repeated reminders and

O.A. No. 256-24

24.03.2026

consequently the same was classified as Non Performing Asset (NPA) on 28.02.2022. On classification of the account as NPA, interest charged has not been appropriated to the income in the applicant’s profit and loss account and the penal interest has not been charged and capitalized. 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 and the same was returned as “Addressee cannot be located”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 18.11.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 18.11.2024.

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Heard the submissions of Applicant Bank and perused the records .

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To prove the case of the Applicant Bank, Sh. Tulsi Ram Sahoo, 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-22.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-22 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

O.A. No. 256-24

24.03.2026

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 18.11.2024 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 the 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 the 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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally a sum of Rs.31,98,245/- (Rupees Thirty One

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Lakhs Ninety Eight Thousand Two Hundred and Forty One only) as follows:

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(i) A sum of Rs.25,24,720/- due in respect of CC account (A/c No.60387380539) repayable together with subsequent interest at 11.40% p.a. with monthly rests from

O.A. No. 256-24

24.03.2026

the date of the Application till date of realization in full;

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(ii) A sum of Rs.4,70,728/- due in respect of ECLG account (A/c No.60371364515) repayable together with subsequent interest at 11.25% p.a. with monthly rests from the date of the Application till date of realization in full; (iii) A sum of Rs.72,206/- due in respect of WCTL account (A/c No.60387379238) repayable together with subsequent interest at 14.30% p.a. with monthly rests from the date of the Application till date of realization in full; (iv) A sum of Rs.1,30,591/- due in respect of FITL account (A/c No.60304434299) repayable together with subsequent interest at 14.30% p.a. with monthly rests from the date of the Application till 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 mentioned hypothecated assets morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd Defendant (both movable and immovable) to recover the balance dues as required under law for which the 2^nd Defendant to disclose to the Tribunal

O.A. No. 256-24

24.03.2026

particulars of other properties or assets owned by the 2^nd Defendant.

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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

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

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

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 24^th day of March, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Tulsi Ram Sahoo, Chief Manager of the Applicant Bank.

O.A. No. 256-24

24.03.2026

Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	17.01.2018 - Applicant - Request Loan application by 1st Defendant	A-1
2.	16.03.2018 - Sanction letter by applicant for CC Loan of Rs.20 lakhs by 1st Defendant	A-2
3.	16.03.2018 - Application / Request letter for credit facility by 1st Defendant	A-3
4.	16.03.2018 - Demand Promissory Note for Rs.20 lakhs by 1st Defendant	A-4
5.	16.03.2018 - Deed of Hypothecation by 1st Defendant	A-5
6.	30.09.2020 - Sanction letter by applicant for ECLG for Rs.4.00 lakhs by 1st Defendant	A-6
7.	30.10.2020 - Application / Request letter for credit facility by 1st Defendant	A-7
8.	30.10.2020 - Demand Promissory Note for Rs.4 lakhs by 1st Defendant.	A-8
9.	30.10.2020 - Deed of Hypothecation by 1st Defendant.	A-9
10.	30.10.2020 - Receipt for amount of Loan by 1st Defendant.	A10
11.	28.06.2021-Request letter by 1st Defendant	A11
12.	28.06.2021 - Application / Request letter for credit facility by 1st Defendant	A-12
13.	28.06.2021 - Demand Promissory Note for Rs.55,000/-by 1st Defendant	A-13
14.	28.06.2021 - Agreement for term loan by 1st Defendant.	A-14
15.	29.06.2021 - Receipt for amount of Loan by 1st Defendant.	A-15
16.	28.06.2021 - Applicant / Request letter by 1st Defendant.	A-16
17.	28.06.2021 - Demand Promissory Note for Rs.1,10,000/-by 1st Defendant.	A-17
18.	28.06.2021 - Agreement for term loan by 1st Defendant.	A-18
19.	24.02.2022-Demand Notice to the defendants	A-19
20.	03.03.2021 - Balance and security confirmation letters by 1st Defendant.	A-20
21.	11.10.2023 - Balance and security confirmation letters by 1st Defendant.	A-21
22.	Certified Statement of Accounts.	A-22

O.A. No. 256-24

24.03.2026

Witness Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil-

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All the hypothecated stocks of various silk fabrics, sarees and all other silk items are lying at the 1st defendant premises viz., No. 193/72C/1, North Cross, Pension Line Road, Salem–636 006 or stored or to be stored

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or in transit or wherever found. All the Book Debts and Receivables.

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

Bank of Maharashtra v. Sree Poorna Tex

Case brief

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Bank of Maharashtra v. Sree Poorna Tex

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