Allowed

Karur Vysya Bank v. Almeida

DRT29 May 2026TA/1335/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Karur Vysya Bank under Section 19 of the RDB Act for recovery of dues from two defendants regarding a Flexi Mobile Loan. The court held the application was within limitation and allowed recovery of principal, interest, and penal interest jointly and severally, issuing a Recovery Certificate.

What did the court decide?

Recovery of Rs. 68,43,510.75 plus further interest at 9.95% p.a. and penal interest at 3% p.a., jointly and severally, along with costs and issuance of Recovery Certificate.

Karur Vysya Bank versus Almeida — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 1335 of 2023

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29.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 29^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.1335 of 2023

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(Originally filed before DRT- II, Chennai as OA No.157/2020 and thereafter transferred to this Tribunal and renumbered as TA No.1335/2023)

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The Karur Vysya Bank Ltd, Represented by its Chief Manager Asset Recovery Branch, 2^nd floor, No.1, Padmavathiyar Road, Gopalapuram, Chennai- 600 086 …Applicant

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-Vs-

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Mr. Almeida C.T, S/o Mr. John Almeida Plot No.67/68, Adhipara Sakthi nagar, Pondhur village, Sriperumpudur, Kanchipuram-602 106

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Mr. Ramani Kumar.M S/o Mr. Mani B44, NAD Colony, Meenambakkam, Chennai- 600 027 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Sathiyanarayanan Defendants 1 and 2 were set ex-parte on 22.06.2022

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: - FINAL ORDER- :

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This Original Application is filed on 13.02.2020 by the applicant bank under Section 19 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, jointly and severally for recovery of

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a total sum of Rs.68,43,510.75p (Rupees Sixty Eight Lakhs Forty

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T.A. No. 1335 of 2023

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29.05.2026

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Three Thousand Five Hundred and Ten and Seventy Five paise only) due in respect of Flexi Mobile Loan (Vehicle loan) (A/c No.1219717000009771) repayable together with further interest @ 9.95% p.a. with monthly rests and Penal interest at 3% p.a. from the date of Application till the date of realization in full and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 157 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.157 of 2020 stood transferred to this Tribunal and renumbered as TA No. 1335 of 2023.

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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 Hon’ble Tribunal.

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It is the case of the applicant bank that the 1^st defendant had applied for Flexi Mobile loan (vehicle loan) facility to the applicant bank. After due consideration of the above request of the 1^st defendant, the applicant bank had sanctioned Flexi Mobile (Vehicle loan) facility of Rs.44 Lakhs vide its Sanction Letter dated 07.03.2016. The 2^nd defendant stood as guarantor for the loan facility availed by the 1^st defendant. Loan is repayable in 84 months in Equated Monthly Instalments of Rs.74,531.44p

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T.A. No. 1335 of 2023

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29.05.2026

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together with interest at the rate of 10.65% p.a. The borrowers also agreed to pay penal interest at the rate o 3% p.a. in case of default in remitting EMIs.

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The applicant bank submits that in furtherance of the said sanction of the Flexi Mobile loan facility, the 1^st defendant had executed the following documents on 07.03.2016 in favour of the applicant bank:

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a) Demand Promissory Note

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b) Letter of undertaking to repay in instalments

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c) Hypothecation of Motor Vehicle Agreement

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The applicant bank submits that 2^nd defendant had executed the Agreement of Guarantee dated 07.03.2016 and thereby guaranteed the repayment of the facility availed by the 1^st defendant.

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It is submitted by the applicant bank that the 1^st defendant had executed Revival Letter on 01.03.2019.

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The applicant bank disbursed the sanctioned loan amounts as per the loan agreements/ documents. However, subsequent to availing of loan, the defendants failed and neglected to repay to the applicant bank. The loan amount interest and other monies and also committed other defaults in observing the conditions of the loan agreements and sanction letter. Consequent to the defaults committed by the borrower in respect of the repayments, the account was classified as Non-Performing Asset (NPA) on 18.08.2016 in accordance with the directions / guidelines issued by the Reserve bank of India.

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T.A. No. 1335 of 2023

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29.05.2026

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The applicant bank submits that in view of the defaults committed by the defendants, the applicant bank vide their Recall Notice dated 05.08.2016, demanded/ recalled and called on the defendants to discharge their entire liabilities by paying to the applicant bank a sum of Rs.44,17,821.23/- with interest at 10.65% plus other charges within 3 days from the date of the receipt of notice and further advised that in case of failure to make payment, the applicant bank shall be constrained to take steps for realizing the dues.

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Consequent to the sanction of the flexi mobile loan facilities by the applicant bank to the 1^st defendant appropriate account were opened in the name of the 1^st defendant in the usual books of accounts of the applicant bank at its Whites Road Branch, Chennai. The applicant bank has regularly kept and maintained the account and all entries of debits and credit were correctly made therein by the applicant bank in the regular, ordinary and usual course of its banking business in as much as all the payments by way of advance allowed to the defendants and interest accruing thereon at the contracted rate with agreed rests as also all agreed incidental costs, charges and expenses etc, were duly debited and the payments made by the defendants towards part liquidation of their liabilities were correctly credited to the aforesaid accounts on respective dates. Inspite of the applicant’s notice, the defendants did not make the payment as per the Recall Notice. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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T.A. No. 1335 of 2023

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29.05.2026

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After the filing of the OA, summons was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 while summons to D-2 returned with postal endorsement “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 22.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 22.06.2022.

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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, Sh. P.S. Sundaravarthan, Chief Manager/Constituted Attorney of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-

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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 22.06.2022 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

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T.A. No. 1335 of 2023

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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 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 Defendants jointly and severally, a sum of Rs.68,43,510.75p (Rupees Sixty Eight Lakhs Forty Three Thousand Five Hundred and Ten and Seventy Five paise only) due in respect of Flexi Mobile Loan (Vehicle loan) (A/c No.1219717000009771) repayable together with further interest @ 9.95% p.a. with monthly rests and Penal interest at 3% 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) 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

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T.A. No. 1335 of 2023

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29.05.2026

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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) Recovery Certificate shall be drawn up and issued to the 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 29^th 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: Sh. P.S.Sundaravarthan, Chief Manager/Constituted Attorney 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.	07.03.2016	Sanction letter	A-1
2.	07.03.2016	Demandpromissorynote	A-2
3.	07.03.2016	Letter of undertaking to repay in instalments	A-3
4.	07.03.2016	Hypothecation of motor vehicle agreement	A-4

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T.A. No. 1335 of 2023

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5.	07.03.2016	Guarantee agreement	A-5
6.	01.03.2019	Revival letter	A-6
7.	05.08.2016	Recall notice	A-7
8.	12.02.2020	Statement of accounts along with certificate under the Banker’s Book evidence act	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-:

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-NIL-

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

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Uploaded on 29.05.2026 at 17:00 hours

Karur Vysya Bank v. Almeida

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Almeida

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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