Allowed

Canara Bank v. C P Sudharson

DRT21 May 2026OA/342/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by Canara Bank for recovery of Rs. 26,97,296.08 from the Defendant regarding a vehicle loan, granting liberty to sell hypothecated assets and for issuance of Recovery Certificate after ex-parte procedure.

What did the court decide?

Recovery of Rs. 26,97,296.08 with interest at 7.95% p.a. and costs; liberty to sell hypothecated vehicle and Defendant's other assets for balance dues; issuance of Recovery Certificate.

Canara Bank versus C P Sudharson — Consumer Protection | DRT (2026)

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O.A. No. 342 of 2022

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21.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 21^st day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.342 of 2022

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Canara Bank, Nandanam Branch, 96, Chamiers road, Nandanam, Chennai-600 018 Represented by its Branch Manager ….Applicant

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-Vs-

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Mr. C.P. Sudharson, S/o M.Chidambaram, No.22, Suriyamman Koil Street, VOC Street, Pammal, Chennai-600 075

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…..Defendant

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Counsels on record / appeared:

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Counsel for Applicant: Sh. N. G. Durairajan

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Defendant was set ex-parte on 14.02.2023

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: - FINAL ORDER -:

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This Original Application is filed on 14.10.2022 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 defendant for recovery of a total sum of Rs.26,97,296.08p (Rupees Twenty Six Lakhs Ninety Seven Thousand Two Hundred and Ninety Six and Eight paisa only) due in respect of Vehicle Loan (A/c No. 2604603002307) repayable together with further interest at the rate of 7.95% p.a. from the date of Application till the date of realization in full, for sale of schedule

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mentioned hypothecated vehicle 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 jurisdiction of this Tribunal.

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It is the case of the Applicant Bank that the defendant had approached the applicant bank and requested for a Vehicle Loan. Upon considering the request of the defendant, the applicant bank had sanctioned a sum of Rs.25,00,000/- under “Canara Vehicle loan” for purchase of Toyota Innova Crysta A/T2Xi to the defendant on 11.02.2019. The loan is repayable in 84 EMI’s commencing from the next month of the disbursement, repayable together with interest @ 9.35% p.a. floating.

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It is submitted by the applicant bank that the defendants, upon agreeing to the terms of sanction, had executed following loan documents on 19.03.2019 towards availing the said Canara Vehicle loan of Rs.25.00 lakhs:

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i) Canara Loan Agreement dated 19.03.2019

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ii) Agreement related to collateral security: Machinery : Vehicles iii) Particulars of Hypothecated Vehicle.

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The applicant bank submits that the defendant had produced the Xerox copy of the RC book for Vehicle No.TN 22 DW 0007 dated 01.04.2019, for which the vehicle loan was sanctioned by the applicant

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and availed by the defendant.

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It is further submitted that subsequent to availing of loan, the repayment of the Vehicle Loan availed by the defendant was irregular as against the terms of sanction and hence the applicant had issued the legal notice to the defendant on 25.02.2020. Even after the issuance of legal notice on 25.02.2020, the account was not regularized and consequently, was classified as Non-Performing Asset (NPA) on 18.12.2020 as per the guidelines of the RBI.

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The applicant further submits that the defendant had executed Acknowledgement of Debt and Security on 27.01.2022 in respect of the Canara Vehicle loan account No. 2604603002307 and acknowledged the balance amount of Rs.24,47,842.22p as on 27.01.2022 together with further interest, charges and expenses.

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It is submitted by the applicant bank that interest shall be charged on the outstanding in the account of the defendant in respect of the Canara Vehicle loan facility at such rates as may be determined by the bank from time to time in consonance with the interest rates prescribed by the head office of the bank and base rate from time to time and also in terms of the agreements executed from time to time. The interest will be charged on daily balance with such interest being added to the balance outstanding on the last working day of every calendar month and the said interest if unpaid will become part of the amount advanced and bear interest at the same rate. The defendant agreed that the applicant bank is entitled to charge overdue interest as per sanction terms and conditions

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of sanction.

The sanction letter/agreements/ documents executed by the defendant authorize the bank to charge as its own discretion enhanced rate of interest for any irregularity or breach of the terms or any change in the credit rating. The defendant had agreed to pay such enhanced rate of interest without any demur. The interest is levied as per Reserve bank of India guidelines under section 21A of Banking regulation Act, 1949 and instructions issued by the head office of the applicant bank from time to time and there is no contravention or violation in this regard. The applicant further submits that the defendant is not entitled for any relief debt relief acts.

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In spite of repeated demands and several reminders made by the applicant, the defendant had failed and neglected to repay the liability owed by them to the applicant under the aforesaid credit facilities. Consequently, the loan account has become irregular and classified as Non-Performing Asset on (NPA) on 18.12.2020 as per the directives of Reserve Bank of India. Though several opportunities have been provided to the defendant to regularize the loan, the defendant had failed and neglected to do so. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to the Sole Defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘door locked, unclaimed’. Applicant

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Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 14.02.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, sole Defendant was placed ex-parte on 14.02.2023

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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, Mr. Suresh Kumar, 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-8 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-8 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 14.02.2023 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 defendant are produced or filed to dispute the claim of applicant bank.

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Hence, it can be concluded that applicant bank has proved its claim against defendant.

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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 Defendant, a total sum of Rs.26,97,296.08p (Rupees Twenty Six Lakhs Ninety Seven Thousand Two Hundred and Ninety Six and

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Eight paisa only) due in respect of Vehicle Loan (A/c No. 2604603002307) repayable together with further interest at the rate of 7.95% p.a. from the date of Application till the date of realization in full along with costs of this application.

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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 vehicle 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 Defendant (both movable and immovable) to recover the balance dues as required under law

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for which the 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 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

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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 21^st day of May, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Suresh Kumar, Senior Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	11.03.2019	Sanction memorandum of Rs.25,00,000/-	A-1
2.	19.03.2019	Canara vehicle loan agreement	A-2
3.	19.03.2019	Agreement related to collateral security: Machinery: vehicles	A-3
4.	19.03.2019	Particulars of vehicles hypothecated to applicant	A-4
5.	01.04.2019	Certificate of registration of the vehicle	A-5
6.	25.02.2020	Legal notice issued by the applicant to the defendant	A-6
7.	27.01.2022	Acknowledgement of debt and security	A-7
8.		Statement of accounts & Banker’s certificate	A-8

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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 HYPOTHECATED PROPERTY

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Toyota Innova Crysta 2.82- Car bearing Engine No.1G0A300425 and Registration No.TN 22 DW-0007.

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

Canara Bank v. C P Sudharson

Case brief

What is this about?

What did the court decide?

Canara Bank v. C P Sudharson

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

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Case details

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