Allowed

Indian Bank v. Sri Lakshmi Water Supply

DRT7 Aug 2026OA/48/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indian Bank for recovery of Rs. 30,19,884/- secured overdraft dues. The Tribunal found the defendants' default proven via bank records and allowed recovery of principal, interest, and costs, granting the bank liberty to sell assets. Costs were awarded to the applicant.

What did the court decide?

Recovery of Rs. 30,19,884/- along with interest @16% p.a., penal interest @2%, and costs granted. Liberty to sell 2nd defendant's assets for balance. Recovery certificate to be issued.

Indian Bank versus Sri Lakshmi Water Supply — Banking and Recovery | DRT (2026)

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O.A. No. 48 of 2024

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07.08.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of August, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.48 of 2024

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Indian Bank,

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Corporate office at 254-260, Avvai Shanmugam Salai, Chennai, Branch at Siruseri, Office at Anand Institute of Higher Tech Campus, Old Mahabalipuram Road, Kazhipattur- 603 103 ….Applicant -Vs-

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M/s Sri Lakshmi Water Supply, Rep by its Sole prop: Mr. M.R. AnanthaJayanam,

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No.55A, Thayiur Road, Rajeswari Nagar, Kelambakkam Town, Thiruporur Taluk, Chengalpattu District-603 103

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Also at: M/s Sri Lakshmi Water Supply, No.55, Market Street, Thaiyur Village, Thiruporur Taluk, Chengalpattu District- 603 103

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Also at: M/s Sri Lakshmi Water Supply, No.25, Ariankuppam commune panchayat, Ariankuppam, Pondicherry- 605 007

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Mr. M.R. Anantha Jayanam, No.55, Thaiyur Road, Rajeswari Nagar, Kelambakkam Town Thiruporur Taluk, Chengalpattu District- 603 103 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant: M/s. Hemalatha Suresh

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Defendants 1 and 2 were set ex-parte on 03.05.2024

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O.A. No. 48 of 2024

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07.08.2026

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: - FINAL ORDER- :

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This Original Application is filed on 19.10.2023 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 and 2, for recovery of a total sum of Rs.30,19,884/- (Rupees Thirty Lakhs Nineteen Thousand Eight Hundred and Eighty Four only) due in respect of Secured Overdraft Facility (A/c No. 856674919) repayable together with further interest @16% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full 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 1^st defendant is a Sole Proprietorship firm rep by its Sole Proprietor, the second defendant herein, who had applied for Secured Overdraft loan of Rs.20,00,000/from the applicant bank.

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It is submitted that considering the said request of the defendants, the credit facility was sanctioned by the applicant vide Sanction Letter dated 31.03.2018. The defendants availed the said loan on 31.03.2018

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O.A. No. 48 of 2024

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07.08.2026

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and executed the following documents on 31.03.2018 as security for the loan availed in favour of applicant bank and the same are described as hereunder:

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a) Demand promissory note dated 31.08.2018

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b) Letter of continuity dated 31.08.2018

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c) Agreement of hypothecation of movables dated 31.08.2018

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d) Declaration by the borrower dated 31.08.2018

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e) Letter from the borrower regarding details of family members dated 31.08.2018

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The applicant further submits that subsequent to the disbursement of the above said loan facility the defendants were not operating the loan account as per the terms and conditions and the defendants never had any intention to repay the availed loan facility. Further the repeated demands and persistent follow up made by the applicant bank towards the defendants to repay the outstanding dues of its loan account was of no avail and the defendants continued with its default indefinitely. It is on account of the delay/default committed by the defendants in repayment of both the principal and interest, the defendant had become due and liable to pay penal interest calculated at the rate of 2% per month with monthly rests to the applicant herein.

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The applicant further submits that however the defendants had executed Letter of Acknowledgment of Debt due on 29.03.2021 by acknowledging the debt due in the above account. After this the defendants had not cared to make any payment. It is on account of

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O.A. No. 48 of 2024

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07.08.2026

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delay/default committed by the defendants in repayment the applicant bank was constrained to declare the defendants loan account as Non Performing Asset (NPA) on 24.04.2020.

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The applicant submits that despite repeated reminders and requests to the defendants the defendants failed to repay the outstanding loan amount which constrained to issue Legal Notice dated 31.07.2023, service of which, the defendants successfully evaded to receive the same and even after the said notice the defendant has failed to liquidate the amount due to the applicant.

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The applicant submits that the latest position of the outstanding dues as on 16.10.2023 is a sum of Rs.30,19,884/- in the secured overdraft loan account. Despite repeated request and demands, 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 the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which were returned with remarks ‘No such address’ in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 03.05.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 03.05.2024.

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Heard the submissions of Applicant Bank and perused the

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records.

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O.A. No. 48 of 2024

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07.08.2026

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To prove the case of the Applicant Bank, Mr. Senthil Velmurugan, Branch Manager, Siruseri 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-10

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-10 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 03.05.2024, 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

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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 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.A. No. 48 of 2024

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: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a total sum of Rs.30,19,884/- (Rupees Thirty Lakhs Nineteen Thousand Eight Hundred and Eighty Four only) due in respect of Secured Overdraft Facility (A/c No. 856674919) repayable together with further interest @16% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full along with costs of this application.

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(b) If the event of default in repayment of the amount by the defendants as stated 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 particulars of other properties or assets owned by the 2^nd Defendant.

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(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 Defendants to the applicant bank.

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(d) 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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O.A. No. 48 of 2024

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07.08.2026

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(e) 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 07^th day of August, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Senthil Velmurugan, Branch Manager, Siruseri Branch of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	31.03.2018	Loan application	A-1
2.	31.03.2018	Sanction letter	A-2
3.	31.03.2018	Demand promissory note	A-3
4.	31.03.2018	Letter of continuity	A-4
5.	31.03.2018	Agreement of hypothecation of movables	A-5
6.	31.03.2018	Declaration by the borrower	A-6
7.	31.03.2018	Letter from the borrower regarding details of family members	A-7
8.	29.01.2021	Letter of acknowledgement of debt	A-8
9.	31.07.2023	Notice issued by the applicant’s counsel and returned covers	A-9
10.	05.10.2023	Certified statement of account	A-10

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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. 48 of 2024

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07.08.2026

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SCHEDULE OF PROPERTY

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-NIL-

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

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Uploaded on 07.08.2026 at 16:00 hours

Indian Bank v. Sri Lakshmi Water Supply

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sri Lakshmi Water Supply

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

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