A Debt Recovery Tribunal allowed the bank's application for recovery of ₹27,02,220.66 comprising Cash Credit and Term Loan dues. The court found the bank proved its claim through documentary evidence as the defendant failed to contest or file a written statement.
Recovery of ₹27,02,220.66 with interest at 13.20% p.a. and costs from the defendant.
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.
TA No.1185/2023 1
17.03.2026
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 17th day of March, 2026
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 1185 of 2023
(Originally filed before DRT- II, Chennai as OA 655/2019 and thereafter transferred to this Tribunal and renumbered as TA No.1185 of 2023)
Indian Overseas Bank Triplicane Branch No.203, Tripliance High Road Triplicane, Chennai – 600 005 Rep. by its Chief Manager
….Applicant
-Vs-
M/s. Subra System Represented by its Proprietor : Mr. P. Subramanian S/o Mr. Paramantham, No.5/12, Akbar Street Triplicane, Chennai – 600 005 ….Defendants
Counsels on record / appeared:
Counsel for Applicant : M/s. A. Sermaraj Counsel for Defendants : M/s P. Muthamizh Selvakumar
: - FINAL ORDER - :
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17.03.2026
Term Loan Limit (A/c No.009803261400003) , both facilities repayable together with further interest at the rate of 13.20% p.a. compounded with monthly rests, from the date of the above application till the date of realization in full and for costs of this OA.
Brief Facts of the case:
TA No.1185/2023 3
17.03.2026
For Cash Credit Limit:
For Term Loan:
Common document:
TA No.1185/2023 4
17.03.2026
Deed of Hypothecation (for securing machineries / vehicles / goods / book-debts) for Rs.6.67 lakhs executed by the defendant.
TA No.1185/2023 5
17.03.2026
lakhs to Rs.12 lakhs.
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17.03.2026
monthly rest executed by the defendant;
TA No.1185/2023 7
17.03.2026
credit facilities sanctioned to the first defendant as per contractual rate over and above the MCLR fixed by the applicant. The interest rate is subject to variation from time to time. Further, the defendant is liable to pay default interest at the rate of 2% per annum over and above the contractual rate since the defendant is the willful defaulter. As such the present rate of interest for the Cash Credit limit availed by the defendant is 11.20% + 2% = 13.20% p.a. compounded with monthly rest and the rate of interest for the Term Loan limit sanctioned to the defendant is 11.20% + 2% = 13.20% per annum compounded with monthly rest. As the defendant 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 defendant.
Heard the submissions of Applicant and perused the records .
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17.03.2026
documents came to be marked as Ex A-1 to A-24.
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
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17.03.2026
on the following terms:
: O R D E R :
(a) The applicant bank is allowed to recover from the Defendant, for recovery of a total sum of Rs.27,02,220.66p (Rupees Twenty Seven Lakhs Two Thousand Two Hundred and Twenty and Sixty Six Paise only) comprising of (i) A sum of Rs.26,33,501.66p due in respect of Cash Credit facility (A/c No.009802000006713) and (ii) A sum of Rs.68,719/- due in respect of Term Loan Limit (A/c No.009803261400003) , both facilities repayable together with further interest at the rate of 13.20% p.a. compounded with monthly rests, from the date of the above application till the date of realization in full, along with costs of this OA.
(b) 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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17.03.2026
Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 17th day of March, 2026)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. Bishwanath Prasad, Senior Manager, Triplicane Branch of the applicant bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents |
Exhibit No. |
|---|---|---|
| 1. | Loan Sanction Letter dated 22.03.2014 | A-1 |
| 2. | Demand Promissory Note for Rs.5 lakhs executed by the defendant dated 25.03.2014 |
A-2 |
| 3. | Letter of Continuity to DPN for Rs.5 lakhs executed by the defendant dated 25.03.2014 |
A-3 |
| 4. | Deed of Hypothecation of stocks for Rs.5 lakhs executed by the defendant dated 25.03.2014 |
A-4 |
| 5. | Deed of Hypothecation of book-debts for Rs.5 lakhs executed by the defendant dated 25.03.2014 |
A-5 |
| 6. | Demand Promissory Note for Rs.1.87 lakhs executed by the defendant for Term Loan limit dated 25.03.20214 |
A-6 |
| 7. | Letter of Repayment of Term Loan amount of Rs.1.87 lakhs executed by the defendant dated 25.03.2014 |
A-7 |
| 8. | Term Loan Agreement for Rs.1.87 lakhs executed by the defendant dated 25.03.2014 |
A-8 |
| 9. | Deed of Hypothecation for securing machineries / vehicle / goods/ book-debts for Rs.6.87 lakhs executed by the defendant dated 25.03.2014 |
A-9 |
| 10. | Loan Sanction letter from the applicant dated 20.11.2015 |
A-10 |
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17.03.2026
| 11. | Demand Promissory Note for Rs.3 lakhs executed by the defendant dated 20.11.2015 |
A-11 |
|---|---|---|
| 12. | Letter of Continuity to DPN for Rs.3 lakhs executed by the defendant dated 20.11.2015 |
A-12 |
| 13. | Deed of Hypothecation for securing machineries / vehicle / goods/ book-debts for Rs.9.87 lakhs executed by the defendant dated 20.11.2015 |
A-13 |
| 14. | Demand Promissory Note for Rs.4 lakhs executed by the defendant dated 12.07.2016 |
A-14 |
| 15. | Letter of Continuity to DPN for Rs.4 lakhs executed by the defendant dated 12.07.2016 |
A-15 |
| 16. | Deed of Hypothecation for securing machineries / vehicle / goods/ book-debts for Rs.13.87 lakhs executed by the defendant dated 12.07.2016 |
A-16 |
| 17. | Revival Letter executed by the defendant for the Term Loan Limit dated 01.02.2017 |
A-17 |
| 18. | Loan Sanction Letter from the applicant dated 04.11.2017 |
A-18 |
| 19. | Demand Promissory Note for Rs.8 lakhs executed by the defendant dated 04.11.2017 |
A-19 |
| 20. | Letter of Continuity to DPN for Rs.8 lakhs executed by the defendant dated 04.11.2017 |
A-20 |
| 21. | Deed of Hypothecation for securing machineries / vehicle / goods/ book-debts for Rs.21.87 lakhs executed by the defendant dated 04.11.2017 |
A-21 |
| 22. | Demand Notice issued by the applicant to the defendant dated 0803.2019 |
A-22 |
| 23. | Statement of account for Cash Credit Limit dated 30.05.2019 |
A-23 |
| 24. | Statemetn of account for Term Loan limit dated 30.05.2019 |
A-24 |
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
1 issue framed by the court
Whether the bank was entitled to recover the outstanding dues including interest and costs from the defaulting borrower.
3 provisions across 3 enactments
Indian Overseas Bank Triplicane Branch
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
