Allowed

Union Bank of India v. Ultimate Fitness Zone

DRT5 Feb 2026OA/302/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of Rs. 39,98,200 plus interest from four defendants. The court held the bank proved its claim via affidavit and documents, defendants appeared ex-parte, and the Tribunal decreed recovery and authorized sale of mortgaged properties.

What did the court decide?

Recovery of Rs.39,98,200/- plus interest @ 11.75% p.a. and 2% penal interest; liberty to sell mortgaged properties; issuance of Recovery Certificate.

Union Bank of India versus Ultimate Fitness Zone — Banking and Recovery | DRT (2026)

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O.A. No. 302 of 2022

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05.02.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of February, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 302 of 2022

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Union Bank of India, Rep. by its Branch Manager, Ambattur Branch, No.2, Pallam Street, Secretariat Colony,

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Ambattur, Chennai – 600 053 ….Applicant

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-Vs-

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M/s. Ultimate Fitness Zone, Rep. by its Proprietor, Mr. Shanthosh Kanna No.6, Lakshmi Illam, 3^rd Street, Baja Nagar, N.M.Road, Avadi, Chennai – 600 054

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Mr. G. Shanthosh Kanna, S/o. K. Gajababu No.10, 6^th Street, J.B. Estate, Avadi, Chennai – 600 054

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Mrs. G. Lakshmi, W/o K. Gajababu Old No.11, New No.6, Baja Nagar, Paruthipattu Village, Chennai – 600 054

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Mr. Gajababu, S/o Kannaiya Naidu Old No.11, New No.6, Baja Nagar, Paruthipattu Village,

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Chennai – 600 054 …..Defendants

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O.A. No. 302 of 2022

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05.02.2026

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Parthasarathy

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Defendants were set ex-parte on 02.01.2023

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: - FINAL ORDER - :

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This Original Application is filed on 28.07.2022 by the Applicant Bank under Section 19 (1) 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.39,98,200/- (Rupees Thirty Nine Lakh Ninety Eight Thousand Two Hundred Only) due in respect of Cash Credit facility (Account No.6122063900000202) repayable together with further interest @ 11.75% p.a. with monthly rests and additional interest @ 2% from the date of filing the OA, till date of realization in full and for sale of immovable property more fully detailed in Schedule to the OA and for costs of this application.

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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 1^st Defendant represented by its Proprietor, the 2^nd Defendant has approached the Applicant Bank by way of Application Form on 09.09.2019 for sanction of

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O.A. No. 302 of 2022

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05.02.2026

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Term Loan and the Applicant Bank has sanctioned the Term Loan of Rs.40 Lakh on 27.12.2019 to the 1^st Defendant. The Applicant Bank has sanctioned the Term Loan Facility for Rs.40 Lakh towards working capital for running their Business in A/c. No.612206390000202 repayable in 76 monthly installments with the interest rate of 10.85% per annum. On the request of the Defendants, the Applicant Bank has sanctioned a Term Loan facility for Rs.40 Lakh to the Defendants and they have executed the following documents for the credit facility.

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a) The Applicant has issued Sanction Advice, dated 27.12.2019 for Rs.40 Lakh issued to the Defendants.

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b) The 1^st Defendant represented by the 2^nd Defendant has executed the Demand Promissory Note, dated 27.12.2019 in favour of the Bank for Rs.40 Lakh.

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c) The 1^st defendant represented by the 2^nd Defendant has executed General Term Loan Agreement for Rs.40 Lakh in favour of the Applicant.

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d) The 1^st defendant represented by the 2^nd Defendant has executed Term Loan Agreement for Rs.40 Lakh in favour of the Applicant.

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e) The 2^nd to 3^rd Defendants have executed Letter of Guarantee in favour of Applicant for guaranteeing the repayment of the facilities by the 1^st Defendant.

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f) The 2^nd Defendant has duly signed the letter of continuity in pursuant to the Demand Promissory Note, dated 27.12.2019

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addressed to the Applicant.

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g) The 1^st Defendant represented by the 2^nd Defendant has duly signed Letter of Undertaking, dated 27.12.2019 in favour of the Applicant.

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h) The 2^nd Defendant has duly signed a Letter of undertaking, dated 27.12.2019 in favour of the Applicant.

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i) The 2^nd Defendant has executed interest agreement, dated 27.12.2019 in favour of the Applicant.

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The applicant submits that the defendants have agreed to pay interest at Applicant’s Banks Base rate at 10.85% per annum with monthly rests for the value received. The Applicant Bank shall also be entitled to charge an additional interest at 2 % per annum over and above the agreed rate of interest in the event of non-payment of any installments of principle and/or interest, costs and other charges due or in the event of any other irregularity, during the period the amount due remains unpaid or the irregularity continues for the defaulted amount or an overdue outstanding as on that date. However, the rights is in addition to and not in derogation of the Bank’s other rights to immediately call upon the Borrower to repay the entire amount outstanding or to enforce the security as stipulated in Term Loan Agreement. 5. The Applicant submits that subsequent to availing of loan, the Defendants have defaulted in repayment of Installment/interest. Consequently Term Loan account of the Defendants turned into NonPerforming Asset (NPA) as on 30.06.2020. Despite the reminders,

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O.A. No. 302 of 2022

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05.02.2026

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personal contacts and repeated demands made by the Applicant Bank, the defendants failed to pay the over dues in the Term Loan Account bearing No. 612206390000202 as on 16.07.2022 an amount of Rs.39,98,200/- with the rate of interest at 10.85% excluding 2% additional interest chargeable for default period in making repayment till the date of realization along with the costs due to the Applicant Bank.

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The Applicant Bank caused Legal Notice to the Defendants on 21.07.2022 to repay the outstanding amount of Rs.39,98,200/- as on 16.07.2022. The Applicant submits that the 3^rd Defendant has already availed Housing Loan for Rs.19.36 Lakhs against mortgage of the same schedule of property and the same is subsisting. The 3^rd Defendant has extended the same property as given in the Schedule as collateral security for the financial facility sanctioned to the 1^st and 2^nd Defendants. Despite repeated requests and reminders, as defendants did not come forward to repay the dues, 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 Defendants 1 to 4 through Registered Post with Acknowledgement Due. Summons to defendants 1, 3 and 4 were duly served, while summons to D2 retuned as ‘unclaimed’. Applicant bank had caused paper publication

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of the notice and filed proof thereof. When OA was taken up on 02.01.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were

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O.A. No. 302 of 2022

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05.02.2026

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placed ex-parte on 02.01.2023.

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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. Saurabh Shekar, Senior 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-15 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-15 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 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 02.01.2023, 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

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O.A. No. 302 of 2022

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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 for recovery of a total sum of Rs.39,98,200/- (Rupees Thirty Nine Lakh Ninety Eight Thousand Two Hundred Only) due in respect of Cash Credit facility (Account No.6122063900000202) repayable together with further interest @ 11.75% p.a. with monthly rests and additional interest @ 2% from the date of filing the OA, till date of realization in full along with costs. All pending IAs, if any also stands closed.

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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 immovable properties.

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(d) If the sale proceeds of the immovable properties 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 to 4^th Defendants (both movable and immovable) to recover the balance dues as

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O.A. No. 302 of 2022

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required under law for which the 2^nd to 4^th Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendant;

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(e) The applicant bank shall file the latest memo of calculation of

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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 Defendant to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days

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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/-

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

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 05^th day of February, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Saurabh Shekhar, Senior Manager of the Applicant Bank.

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O.A. No. 302 of 2022

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05.02.2026

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Application form of the borrower dated 09.09.2019	A-1
2.	Sanction Advice along with terms and conditions for Rs.40.00 lakhs dated 20.12.2019	A-2
3.	Demand Promissory Note for Rs.40.00 lakhs dated 27.12.2019	A-3
4.	General Term Loan agreement executed by the defendants in favor of the bank for Rs.40.00 lakhs dated 27.12.2019	A-4
5.	Term Loan agreement Hypothecation of Movables for 40.00 lakhs dated 27.12.2019	A-5
6.	Letter of guarantee duly signed by the 2^ndand 3^rd defendants dated 27.12.2019	A-6
7.	Letter of continuity in pursuant to the demand promissory note dated 27.12.2019	A-7
8.	Letter of undertaking dated 27.12.2019	A-8
9.	Interest Agreement dated 27.12.2019	A-9
10.	Memorandum of Deposits of Title Deeds, dated 26.12.2019 in Doc.No.3755 of 2017 dated 23.05.2017	A-10
11.	Memorandum of Deposits of Title Deeds, dated 26.12.2019 in Doc.No.18150 of 2019	A-11
12.	Settlement Deed executed by Mrs. Sulochana in favour of Mrs. Lakshmi, registered as Doc.NO.14896 of 2014 dated 25.11.2014	A-12
13.	Settlement Deed executed by Mrs. Sulochana in favour of Mrs. Lakshmi registered as Doc.No.4206 of 2015, dated 08.04.2015	A-13
14.	Legal notice issued by the applicant dated 21.07.2022	A-14
15.	Statement of Account for Loan Account NO.612206390000202 along with certificate under Bankers Book Evidence Act	A-15

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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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O.A. No. 302 of 2022

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:- SCHEDULE -:

Item No.1

All that piece and parcel of land measuring 864 sq.ft., forms part of 2044.5 sq.ft., on Western Portion together with ½ Share in common passage measuring 302.5 sq.ft (i.e., 151.2 sq.ft.) both totalling 1015 ¼ comprised in Block No.12, Ward No.1 Grama Natham Survey No.46/1 A2 as T.S.No.44 situated at Baja Nagar 3^rd Street, Paruthipattu Village, Avadi Taluk, Thiruvallur District. Land being bounded on the

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North by: Land and House belongs to Mrs. Chitra, W/o Mr. Murganantham,

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South by: Common Passage measuring 302.5 sq.ft., belongs to Mr. Narendran and Mrs. Ponnulakshmi.

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East by: Land retained by Mrs. Sulochana

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West by: Baja Nagar, 3^rd Street

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Situated within the Sub Registration District of Avadi and Registration District of South Chennai. Linear measurement admeasuring on the Northern side; 26’,6’’ southern side; 27’6’’ Eastern side; 32’ and Western side; 32’

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Item No.2

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All that piece and parcel of land measuring an extent of 864 sq.ft. form part of 2044.5 sq.ft. on Eastern Portion together with ½ share in common passage measuring 302.5 sq.ft., (i.e., 151.2 sq.ft.,) both totaling 1015 ¼ sq.ft. comprised in Grama Natham Survey No.46/1A2 as T.S.No.44, Block No.12, Ward No.1, situated at Baja Nagar 3^rd Street, Paruthipattu Village, Avadi, Thiruvallur District and land being bounded on the

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North by: Land and House belongs to Mr. Ethiraj

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O.A. No. 302 of 2022

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05.02.2026

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South by: Common Passage measuring 302.5 sq.ft., East by: Land belongs to Mr. Harachand West by: Baja Nagar, 3^rd Street

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Situated within the Sub Registration District of Avadi and Registration District of South Chennai. Linear Measurement admeasuring on the Northern side; 26’.6’’ Southern side; 27’.6’’ Eastern side; 32’ and Western side; 32’

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

Union Bank of India v. Ultimate Fitness Zone

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ultimate Fitness Zone

Case brief

What is this about?

What did the court decide?

What the court decided

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