Allowed

Canara Bank v. M/S. Real Deal Electronic India Ltd.

DRT21 May 2026OA/72/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an origin application filed by a bank to realize aggregate dues, including principal, interest, and costs, from multiple defendants who were borrowers and guarantors on three term loans, permitting realization via sale of schedule properties.

What did the court decide?

OA allowed; Recovery Certificate issued to realize sums of Rs.13.86L, Rs.29.02L, and Rs.16.93L with reduced pendency interest from defendants jointly and severally

Canara Bank versus M/S. Real Deal Electronic India Ltd. — Banking and Recovery | DRT (2026)

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BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 21^st day of May, 2026

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PRESENT: SHRI SHARANG DHAR UPADHYAY PRESIDING OFFICER

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OA No.72 of 2023

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Canara Bank Vellore Main Branch II Represented by its Chief Manager No.10, Mundy Street Vellore – 632 004

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…Applicant Versus

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M/s Real Deal Electronic India Ltd., Represented by its Managing Director T.R. Dhinakar Prasad 104, Lingam Residency, Arani Road Sankaranpalayam, Vellore – 632 002

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Also at M/s Real Deal Electronic India Ltd., Represented by its Managing Director T.R. Dhinakar Prasad No.8, Ramasamy Nagar Civil Aerodrome, Coimbatore – 641014

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Factory at M/s Real Deal Electronic India Ltd., Represented by its Managing Director T.R. Dhinakar Prasad No.2, Kamarajan Nagar, Doctors Avenue Thuthipet, Vellore Taluk – 632 011

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Mr. T.R. Dhinakar Prasad S/o Mr. T.G. Ravi Varman Managing Director M/s Real Deal Electronic India Ltd., 104, Lingam Residency, Arani Road Sankaranpalayam, Vellore – 632 002 Also at

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Mr. T.R. Dhinkar Prasad S/o Mr. T.G. Ravi Varman Managing Director M/s Real Deal Electronic India Ltd., No.8, Ramasamy Nagar Civil Aerodrome, Coimbatore – 641 014

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Also at Mr. T.R. Dhinkar Prasad S/o Mr. T.G. Ravi Varman Managing Director M/s Real Deal Electronic India Ltd., No.22, Kothandaramasamy Koil Street Thuthipet, Vellore Taluk – 632 011

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Smt. A. Ponmani, Director W/o Mr. S.K. Arputhasamy No.17, Venkatachala Thevar Street Sulur, Coimbatore – 641 402

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Mr. A.M. Ashok Kumar, Director S/o Muthukrishnan 4/9 G, Guruvammal Nagar Kalangal Road, Sulur, Coimbatore – 641 402

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Mr. T.G. Ravi Varman S/o Mr. Govindasamy Reddy No.22, Kothanda Ramasamy Koil Street Thuthipattu Village and Post Vellore – 632 011

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Also at

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Mr. T.G. Ravi Varman S/o Govindasamy Reddiyar Door No.53, Kamarajar Nagar Thottipattu, Kanniyambadi Vellore Taluk, Vellore District

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Mr. K. Thavaseelan S/o Late Kuppan No.132/12o, Usoor Village Kottaimedu Street, Anaicut Taluk Vellore District …Defendants

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Counsels on Record / Appeared

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Counsel for Applicant Bank : M/s R. Jagadeesan Defendants 1 to 4 set ex-parte on 06.10.2023 5^th defendant – Deceased 6^th defendant set ex-parte on 21.03.2024

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FINAL ORDER

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This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants’ seeking issuance of a Recovery Certificate for recovery of an aagregate sum of Rs.59,81,284/- comprising a sum of Rs.13,86,221/- together with interest at the rate of 11.4% p.a. with monthly rests plus 2% penal interest being the amount due under Term Loan Account No.62501400001297; a sum of Rs.29,02,047/- together with interest at the rate of 9% per annum with monthly rests plus 2% penal interest being the amount due under Term Loan Account No.62509910000440; and a sum of Rs.16,93,016/together with interest at the rate of 8.85% per annum with monthly rest being the amount due in Term Loan Account No.62509910000982 plus 2% penal interest from the date of the application till the date of realisation along with costs of the application and for sale of schedule mentioned properties.

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The subject matter of the case is the various credit facilities availed by the defendants from the erstwhile Syndicate Bank.

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It is the case of the applicant that the 1^st defendant represented by 2^nd defendant as its Managing Director is engaged in the business of Solar Street Lights, Water Heater etc., and the defendants 3 to 6 are guarantors to the loan transaction.

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It is also the case of the applicant that the 2^nd defendant approached the applicant bank vide application dated 07.03.2016 for grant of credit facility and considering the said request the erstwhile bank sanctioned Secured Overdraft facility of Rs.10 lakhs under Loan Account No.6250140001297 under Synd MSE facility. The 2^nd defendant representing the 1^st defendant along with defendants 3 and 4 gave executed guarantee agreement and necessary loan documents on 07.03.2016.

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It is the further case of the applicant that the 2^nd defendant approached the application vide application dated 4.11.2016 for grant of OSL facility and considering the said request the erstwhile Syndicate Bank sanctioned OSL facility of Rs.25.00 lakhs on 4.11.2016 under Loan Account No.62509910000440 and the 2^nd defendant representing the 1^st defendant and defendants 3 and 5 executed guarantee agreements and necessary loan documents on 4.11.2016.

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It is also the case of the applicant that the 1^st defendant represented by 2^nd defendant approached the applicant bank vide loan application dated

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4.9.2017 for sanction of OSL facility and the applicant considering the said request sanctioned a sum of Rs.15 lakhs on 8.9.2017. The 1^st defendant represented by the 2^nd defendant as Managing Director along with 6^th defendant as guarantor executed the loan documents on 8.9.2017.

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It is stated that the 5^th defendant deposited the title deeds of the schedule mentioned property with the applicant bank with an intent to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds on 28.10.2016 registered as Doc No.2132 of 2015. Similarly, the 6^th defendant deposited the title deeds of his property with the applicant bank with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 17.07.2017 registered as Doc. No.4778 of 2017.

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It is also the case of the applicant that the defendants were highly irregular in repayment and failed to regularize the loan account despite repeated demands and hence the loan account was classified as NPA on 30.07.2019. It is further stated that as the defendants did not come forward to clear the outstanding dues, the applicant issued legal notice on 26.02.2022 requesting the defendants to clear the outstanding dues but in vain. Hence the present application is filed for recovery of its dues.

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Summons was taken out to the defendants 1 & 2 returned with endorsement “Refused”, hence deemed to be served. Summons to defendants 3 and 4 returned with endorsement “No such person”, hence were served notice by way of substituted service by causing paper publication. Summons to 5^th defendant returned with endorsement “deceased”. Summons to 6^th defendant is served. As there was no representation for defendants 1 to 4 continuously and on 06.10.2023, they were set ex-parte on that day. It is reported that the LRs of deceased 5^th defendant is the 2^nd defendant. As there was no representation continuously for 6^th defendant and on 21.03.2024, he was set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 26 documents, which were marked as Ex. A-1 to A-26 on 19.06.2024. The Ld. Counsel for Applicant Bank made his submissions on 17.04.2026 and thereafter the matter stood till this date for passing final orders.

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The following issues arise for consideration in the matter: -

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(a) Whether the applicant had succeeded in proving the liability of the defendants?

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(b) What order as to cost of the proceedings need be passed?

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These issues are considered together.

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Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

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The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-26 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

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In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

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In view of the fact that the loan facility availed by the defendants is a Cash Credit facility and loan for its business and the applicant has claimed

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interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates.

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In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

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(a) OA No.72 of 2023 stands allowed.

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(b) Applicant is permitted to realize a sum of Rs.13,86,221/- with further interest @10% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants 1 to 4 jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the other assets of the defendants.

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(c) Applicant is permitted to realize a sum of Rs.29,02,047/- with further interest @9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants 2, 3 and 5 jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the other assets of the defendants.

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(d) Applicant is permitted to realize a sum of Rs.16,93,016/- with further interest @8% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants 1, 2 and 6 jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the other assets of the defendants.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendants 2 to 6 are personally liable for all such amounts due as ordered above.

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(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

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

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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Sd/(SHARANG DHAR UPADHYAY ) PRESIDING OFFICER DRT-II, CHENNAI

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 21^st day of May, 2026)

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EXHIBITS MARKED BY APPLICANT BANK

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S. No.	Date	Description of Documents	Exhibit Nos.
1.	07.03.2016	Application submitted by the 1^stdefendant represented by nd defendant for Rs.10 lakhs	A-1
2.	07.03.2016	Composite Hypothecation agreement for Rs.10 lakhs	A-2
3.	07.03.2016	Guarantee Agreement for Rs. 10 lakhs by 2^nd defendant.	A-3
4.	07.03.2016	Guarantee Agreement for Rs. 10 lakhs by 3^rd defendant.	A-4
5.	07.03.2016	Guarantee Agreement for Rs. 10 lakhs by 4^th defendant.	A-5
6.	04.11.2016	Application submitted by 2^nddefendant for Rs.25 lakhs	A-6
7.	04.11.2016	General agreement for Rs.25 lakhs executed by 2^nddefendant	A-7
8.	04.11.2016	Guarantee agreement for Rs.25 lakhs by 3^rd defendant	A-8
9.	04.11.2016	Guarantee agreement for Rs.25 lakhs by 5^th defendant	A-9
10.	04.09.2017	Application by 1^stdefendant represented by 2^nd defendant for Rs.15 lakhs	A-10
11.	08.09.2017	Sanction letter by applicant bank	A-11
12.	08.09.2017	Composite hypothecation agreement for Rs.15 lakhs by 2^nddefendant	A-12
13.	08.09.2017	Stamped receipt for Rs. 15 lakhs executed by 1^st defendant represented by 2^nddefendant	A-13

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S. No.	Date	Description of Documents	Exhibit Nos.
14.	08.09.2017	Guarantee agreement by 6^thdefendant	A-14
15.	17.10.2016	Confirmation of deposit of title deeds executed by 5^thdefendant	A-15
16.	28.10.2016	Memorandum relating to deposit of title deeds by 5^thdefendant	A-16
17.	30.10.2016	Letter handing over title deeds by 5^thdefendant	A-17
18.	12.07.2017	Letter handing over title deeds by 6^thdefendant	A-18
19.	17.07.2017	Memorandum relating to deposit of title deeds by 6^thdefendant	A-19
20.	04.09.2017	Confirmation of deposit of title deeds by 6^th defendant	A-20
21.	05.12.2005	Registered exchange deed entered between T.G. Ravivarman and G. Bakhtavatsalam both sons of Late Govindasamy Reddiar, Doc. No.1698 of 2005	A-21
22.	10.02.2016	Release deed entered by Sasikala W/o Subramani, Kasthuri, wife of Gunasekaran to and in favour of K. Thavaselan S/o Lae kuppan and also brother of sasikara and Kasthuri – Doc. No.1290 of 2016	A-22
23.	26.02.2022	Legal notice by application along with AD cards and undelivered envelopes	A-23
24.		Statement of Accounts Loan Account No.62501400001297	A-24
25.		Statement of Accounts Loan Account No.62509910000440	A-25

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S.	Description of Documents		Exhibit
No.			Nos.
26.	Statement of Accounts Loan	Account	A-26
	No.62509910000982

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Sd/- (SHARANG DHAR UPADHYAY ) PRESIDING OFFICER DRT-II, CHENNAI

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DESCRIPTION OF PROPERTY

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Property of 5^th defendant

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All that piece and parcel of vacant land along with RCC Roof house constructed thereon bearing Plot No.5, in Kamarajar Nagar, Thuttiappatu Village comprised in Survey No.177/2A and bound on

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East by :	Plot No.4
West by :	Plot No.6
North by :	Plot situated in S. No.177/1
South by : Admeasuring 2420 Sq. ft.	East West 20 feet wide road
East to West :	40 feet
North to South :	60 ½ feet

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Lying within the Sub Registration District of Kaniyambadi and Registration district of Vellore, Vellore District.

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Property of 6^th defendant

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All that piece and parcel of vacant land along with RCC Roof house constructed thereon bearing Door No.132/120 in Kottaimedu, Usoor Village, Anaicut Taluk

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comprised in Old Survey No.90 Part and Sub Divided as S. No.90/21 as per Patta No.357 and bounded

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East by	:	House of Annadurai
West by	:	Street
North by	:	Street
South by	:	House of Mayammal

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Admeasuring 148 Sq. mtr (1593 Sq. ft)

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East to West on the Northern side : 9.40 mtr East to West on the Southern side : 9.80 mtr North to South on the Eastern side : 15.40 mtr North to South on the Western side : 15.40 mtr

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Lying within the Sub Registration District of Vellore and Registration District of Vellore, Vellore District

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Sd/(SHARANG DHAR UPADHYAY )

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PRESIDING OFFICER DRT-II, CHENNAI

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Canara Bank v. M/S. Real Deal Electronic India Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Real Deal Electronic India Ltd.

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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