The DRT allowed an Original Application filed by Federal Bank Ltd. against two defendants for recovery of dues under Pradhan Mantri Mudra Yojana facilities. The court granted a sum of Rs. 29,51,536/- including interest, costs, and liberty to sell assets.
Recovery of Rs. 29,51,536/- with further interest @ 18.15% and 18.25% p.a., costs, and liberty to sell defendants' assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
O.A. No. 307 of 2024
01.01.2026
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 01st day of January, 2026
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 307 of 2024
The Federal Bank Limited, Br. Sholinganallur, Rep. by its Branch Head No.212, Rajiv Gandhi Salai, Sholinganallur, Chennai – 600 119 ….Applicant
-Vs-
Counsels on record / appeared:
Counsel for Applicant: M/s. T. Shanmugananda Vijayakumar Defendants 1 and 2 were set ex-parte on 21.11.2024
: - FINAL ORDER - :
recovery of a total sum of Rs.29,51,536/- (Rupees Twenty Nine
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Lakhs Fifty One Thousand Five Hundred and Thirty Six Only) as follows:
(i) A sum of Rs.14,55,585/- due in respect of Pradhan Mantri Mudra Yojana (PMMY) facility (A/c No.16216900000377),
repayable together with further interest @ 18.15% p.a. with monthly rests from the date of filing the OA, till date of realization in full;
(ii) A sum of Rs.14,95,951/- due in respect of Pradhan Mantri Mudra Yojana (PMMY) facility (A/c No.16216900000385), repayable together with further interest @ 18.25%, p.a. with monthly rests from the date of filing the OA till date of realization in full; and for costs of this application.
Brief Facts of the case:
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movable assets. In this given credit facility the 1st Defendant is the Principal Borrower and the 2nd defendant is the Co-Obligant / CoBorrower. The Applicant Bank had sanctioned the loan facility under Loan A/c. No. 16216900000377.
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01.01.2026
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Defendant is the Principal Borrower and the 1st defendant is the CoObligant / Co-borrower. The Applicant Bank had sanctioned the loan facility under Loan A/c. No. 16216900000385.
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confirmed the Balance outstanding in both the loan accounts on 2.11.2019, 03.01.2020 and finally on 11.05.2022. However, subsequent to availing of loan, the defendants had defaulted in repayment of the dues and hence both the loan accounts bearing No. 16216900000377 and 16216900000385 were classified as a nonperforming asset (NPA) as on 30.03.2021 in the books of accounts of the applicant in accordance with RBI guidelines.
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applicant states that the non-payment of the dues by the defendants is a deliberate attempt on their part to avoid the repayment of the loan together with applicable interest. Since, the applicant is a public institution and a custodian / trustee of the public money and public trust, it is necessary that the applicant makes all attempts to legally enforce the payment of dues by the defendants and it becomes just and imperative that the applicant should proceed against the defendants personally also in order to enforce payment of its legal dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.
Heard the submissions of Applicant Bank and perused the records.
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01.01.2026
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contra evidence available on record to repudiate the claim of the Applicant Bank.
: O R D E R :
(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a sum of Rs.29,51,536/-
(Rupees Twenty Nine Lakhs Fifty One Thousand Five Hundred and Thirty Six Only) as follows:
(i) A sum of Rs.14,55,585/- due in respect of Pradhan Mantri Mudra Yojana (PMMY) facility (A/c No.16216900000377), repayable together with further interest @ 18.15% p.a. with monthly rests from the date of filing the OA, till date of realization in full; (ii) A sum of Rs.14,95,951/- due in respect of Pradhan Mantri Mudra Yojana (PMMY) facility (A/c No.16216900000385), repayable together with further interest @ 18.25%, p.a. with monthly rests from the date of filing the OA till date of realization in full; along with costs.
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(b) The applicant bank is at liberty to sell the personal assets of the 1st and 2nd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 1st and 2nd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 1st and 2nd Defendants.
(c) 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 Defendant to the applicant bank.
(d) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.
(e) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 01st day of January, 2026)
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ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Shri N Viswanath, Manager representing the Applicant Bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit No. |
|---|---|---|
| 1. | Loan Application for PMMY dated 03.08.2018. | A-1 |
| 2. | Sanction Communication Letter – 16216900000377 dated 19.09.2018. |
A-2 |
| 3. | Demand Promissory Note dated 19.09.2018. | A-3 |
| 4. | Security Delivery Letter dated 19.09.2018. | A-4 |
| 5. | Term Loan Agreement dated 19.09.2018. | A-5 |
| 6. | Loan Application for PMMY dated 27.11.2018. | A-6 |
| 7. | Sanction Communication Letter – 16216900000385 dated 11.12.2018. |
A-7 |
| 8. | Demand Promissory Note dated 15.12.2018. | A-8 |
| 9. | Security Delivery Letter dated 15.12.2018. | A-9 |
| 10. | Term Loan Agreement dated 15.12.2018. | A-10 |
| 11. | Confirmation of Balance Outstanding dated 12.11.2019. |
A-11 |
| 12. | Confirmation of Balance Outstanding dated 03.01.2020. |
A-12 |
| 13. | Confirmation of Balance Outstanding dated 11.05.2022. |
A-13 |
| 14. | Recall Notice dated 09.10.2023. | A-14 |
| 15. | Statement of Accounts with interest Calculation Sheet dated 29.11.2023. |
A-15 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
:- SCHEDULE -:
-NIL-
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
2 issues framed by the court
Whether the Original Application filed under Section 19(1) of RDBA is maintainable for recovery of bank dues.
Whether the defendants are liable to repay the principal amount along with interest as claimed by the bank.
2 provisions across 1 enactments
The Federal Bank Limited
Mr. Manojkumar S
Mr. Praveen kumar S
Smt. S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
