Allowed

Karur Vysya Bank v. M/S Sri Saha Agencies

DRT20 Apr 2026TA/1478/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank’s application for recovery of a loan default of Rs. 21,34,219.43 with interest. The court validated the claim based on bank documents and statements of accounts filed by the applicant, as the respondents appeared ex-parte.

What did the court decide?

Recovery of Rs. 21,34,219.43 with interest @ 16.35% p.a. and costs against the defendants.

Karur Vysya Bank versus M/S Sri Saha Agencies — Money Laundering | DRT (2026)

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T.A. No. 1478 of 2023

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20.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.1478 of 2023

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(Originally filed before DRT- II, Chennai as OA 799/2019 and thereafter transferred to this Tribunal and renumbered as TA No.1478 of 2023)

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M/s. Karur Vysya Bank Rep by its Branch Manager Saidapet Branch Office at Sri Vigeshwara, No.22/2, Potters street Saidapet

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Chennai- 600 015 …Applicant

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-Vs-

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M/s Sri Saha Agencies Partnership firm No.47/101, Bazaar Street Saidapet Chennai- 600 015

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Mr.S.Palanivel S/o.Mr.K.Srinivasan Partner M/s. Sri Saha agencies No.47/101, Bazaar Street Saidapet, Chennai-600 015

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Also at Mr.S.Palanivel S/o.Mr.K.Srinivasan No.55/27, CIT Nagar First main road, Saidapet, Chennai-600 015

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Mrs.P. Uma W/o Mr.S.Palanivel Partner M/s. Sri Saha agencies No.47/101, Bazaar Street Saidapet, Chennai-600 015

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T.A. No. 1478 of 2023

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20.04.2026

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Also at Mrs.P. Uma W/o Mr.S.Palanivel No.55/27, CIT Nagar First main road, Saidapet, Chennai-600 015 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. S.Narendra Moorthy

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Defendants 1 to 3 were set ex-parte on 20.10.2021

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: - FINAL ORDER- :

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This Original Application is filed on 10.06.2019 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 to 3 for recovery of a total sum of Rs.21,34,219.43p (Rupees Twenty One Lakhs Thirty Four Thousand Two Hundred and Nineteen and Forty Three Paise only) due in respect of Open Cash Credit Facility (A/c No.1651223000000021) repayable together with further interest @ 16.35% p.a. from the date of Application till the date of realization in full, and for costs of the OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.799 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.799 of 2019 stood transferred to this Tribunal and renumbered as TA No.1478 of 2023.

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T.A. No. 1478 of 2023

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20.04.2026

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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 defendants, being a partnership firm represented by 2^nd and 3^rd defendants have approached the applicant bank for Open Cash Credit loan of Rs.20,00,000/- (Rupees Twenty lakhs only) for their business needs under CGTMSE scheme in the year 2014 for meeting the working capital requirements of the defendant’s canteen services at PSNA college, Dindugal. The defendants have accepted the terms and conditions applicable to the said loan facility.

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It is submitted that considering the said request, the applicant bank had sanctioned the OCC facility to the tune of Rs.20 lakhs vide Sanction Communication dated 01.07.2014. The defendants have utilized the said loan facility by executing necessary loan documents in favour of the applicant bank.

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It is further submitted that upon request of the defendants, the said facility was renewed by way of Renewal Sanction on 01.06.2017. The defendants had acknowledged the Debt and Liability vide Acknowledgement of Debt and Security dated 31.10.2017 in respect of their loan.

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The applicant bank submits that it was understood and agreed by

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T.A. No. 1478 of 2023

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the defendants that the said loan facility should be repaid within 12 months in instalments along with the agreed interest and further it is agreed by the defendants that on committing default if repayment of loan amount, the said loan facility would attract penal interest.

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It is submitted that after availing and utilizing the said loan facility, the defendants have neglected to repay the said loan facility and committed default in making in payments towards their liability. Time and again the applicant had requested and reminded 2^nd and 3^rd defendants to regularize the said loan facility, but 2^nd and 3^rd defendants failed to do so.

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The applicant bank submits that on 01.12.2017, the applicant has sent a Recall Notice to the defendants demanding to repay the entire outstanding balance of Rs.20,77,606.13p together with interest arrears of Rs.84,800.80p and further interest at 16.35% p.a. from 01.01.2019 on the Cash Credit Account no.1651223000000021, however on receiving the notice 2^nd and 3^rd defendants failed to repay the outstanding amount as demanded in recall notice dated 01.12.2017.

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The applicant bank further submits that despite repeated requests and reminders/ recall notice made by the applicant, 2^nd and 3^rd defendants have failed to regularise the loan account to discharge their liability and hence the defendant’s loan account became Non-Performing Asset (NPA) on 30.12.2018. Further, the applicant came to know that 2^nd and 3^rd defendants have closed the canteen at PSNA college, Dindugal and now it was run by some other firm, which amounts to cheating and criminal breach of trust.

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T.A. No. 1478 of 2023

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It is submitted by the applicant bank that on 04.01.2019, the applicant bank had sent a Second Recall Notice to the defendants demanding the entire outstanding balance of Rs.20,77,606.13p together with interest arrears of Rs.84,800.80p and also further interest at 16.35%

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p.a. from 01.01.2019. However, despite receiving the notice, the defendants failed to repay the dues.

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It is further submitted that subsequent to the second Recall Notice dated 04.01.2019 the applicant has sent a legal notice through their advocate on 27.03.2019 to the defendants to repay the total outstanding due amount of Rs.21,34,219.43p on 28.02.2019 and also further interest at 16.35% p.a. Even after receiving notice, 2^nd and 3^rd defendants failed

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to repay the outstanding amount as demanded in legal notice dated 27.03.2019. The defendants had not shown any significant transaction to the utmost satisfaction of the applicant bank which is an utter contravention of the projection given at the time of availing of the loan. 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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After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 20.10.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 20.10.2021.

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Heard the submissions of Applicant Bank and perused the

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record s.

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T.A. No. 1478 of 2023

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To prove the case of the Applicant Bank, Mr. G. Sathish Kumar, Branch 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-22

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-22 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 20.10.2021, 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. However, vakalat of defendants has been filed on 22.07.2024, without any set aside petition. 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 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

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T.A. No. 1478 of 2023

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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, a sum of Rs.21,34,219.43p (Rupees Twenty One Lakhs Thirty Four Thousand Two Hundred and Nineteen and Forty Three Paise only) due in respect of Open Cash Credit Facility (A/c No.1651223000000021) repayable together with further interest @ 16.35% p.a. from the date of Application till the date of realization in full along with costs of the OA. Pending IAs, if any stands closed.

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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 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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T.A. No. 1478 of 2023

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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 20^th day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh.G. Sathish Kumar, Branch Manager 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.		Borrower profile	A-1
2.	01.07.2014	Sanctioncommunication	A-2
3.	02.07.2014	Sanction/ Renewal of credit facilities and deed of hypothecation.	A-3
4.	09.12.2015	SanctionCommunication	A-4
5.	10.12.2015	Sanction/Renewal of credit facilities	A-5
6.	10.12.2015	Insurancepolicy	A-6
7.	11.06.2017	CERSAI-Registration	A-7
8.	01.09.2017	Sanction communication	A-8
9.	31.10.2017	Renewal of credit facilities	A-9
10.	31.10.2017	Revival letter	A-10
11.	31.10.2017	Acknowledgement of Debt and security executed bydefendants	A-11
12	31.10.2017	Acknowledgement of debt from the guarantor	A-12
13.	31.10.2017	Letter of partnership	A-13
14.	31.10.2017	Letter from guarantor whenever limits are to be renewed	A-14
15.	31.10.2017	Undertakingletter	A-15
16.	31.10.2017	Take delivery Letter (TDL)-Cum- Continuity letter in relation to DPN	A-16
17.	01.12.2017	Recall notice	A-17

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18.	04.01.2019	Recall notice with acknowledgment card	A-18
19.	27.03.2019	Legal notice	A-19
20		Acknowledgement cards	A-20
21.		Returnpostal cover	A-21
22.		Statement of account in respect of A/c No.1651223000000021	A-22

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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 20.04.2026 at 15:55 hours

Karur Vysya Bank v. M/S Sri Saha Agencies

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M/S Sri Saha Agencies

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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