Allowed

Yes Bank v. Arputhasamy Sebastian

DRT5 May 2026TA/9/2022

Case brief

AI extract

What is this about?

In this debt recovery application, the Debt Recovery Tribunal allowed the bank's claim for recovery of a personal loan outstanding. The court confirmed the loan documents, noting the defendant failed to appear. The tribunal directed the issuance of a recovery certificate for the principal and interest.

What did the court decide?

Recovery of Rs. 24,75,064/- plus further interest at 10.45% p.a. and costs; issuance of Recovery Certificate.

Yes Bank versus Arputhasamy Sebastian — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 09 of 2022

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05.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 09 of 2022

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(Originally filed before DRT-II, Chennai as OA Dy. No.219 of 2022 and thereafter transferred to this Tribunal and re-numbered as TA No.09 of 2022)

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M/s. Yes Bank, Parrys Branch, Dass India Towers Second Line Beach, 3, Beach Road, Parry’s Corner, George Town Chennai-600001 Rep by its Authorized Signatory …Applicant

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-Vs-

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Aruputhasamy Sebastian S/o Sebastian Plot No.72, Bethel Nagar, 5^th Street (south), Injambakkam, Near St. John School, Chennai-600 115 ….Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Kvp Deepak Raj

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Defendant was set ex-parte on 16.11.2022

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: - FINAL ORDER- :

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This Original Application is filed on 21.02.2022 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 defendant, for recovery of a total sum of Rs.24,75,064/(Rupees Twenty Four Lakhs Seventy Five Thousand and Sixty Four only) due in respect of Personal Loan (A/c No.PLN000500761772) repayable together with further interest @

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T.A. No. 09 of 2022

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05.05.2026

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10.45% p.a. with monthly rests 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 defendant had approached the applicant bank for Personal Loan by submitting Loan Application on 23.01.2021. Based on the documents furnished by the defendants, the applicant bank had sanctioned the loan on 30.01.2021 in a sum of Rs.24,63,000/- vide account No.PLN000500761772. The said loan is repayable in 60 equated monthly installments of Rs.52,878/- each.

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The applicant bank submits that the defendant had executed all the necessary loan documents on 30.01.2021 for an amount of Rs.24,63,000/- and agreed to pay interest at the rate of 10.45% per annum.

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It is submitted that that the defendant has executed Loan Agreement dated 30.01.2021 for an amount of Rs.24,63,000/- and agreed to repay the same in 60 equated monthly instalments of Rs.52,878/- each along with interest at the rate of 10.45% per annum.

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The applicant bank submits that the defendant had neither repaid the loan amount except for a few repayments which was not sufficient for

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T.A. No. 09 of 2022

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05.05.2026

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maintaining the account. Hence the loan account became irregular and loan account was declared as Non-Performing Asset (NPA) on 08.12.2021. Inspite of several demands and reminders made by the applicant bank the defendant failed and neglected to pay the amount due under the loan account.

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The applicant bank submits that Legal Notice dated 07.01.2022 was issued to the defendant demanding the outstanding amount in respect of the said loan account. The notice sent to the defendant has been returned with endorsement ‘No such person’. Inspite of the said notice the defendant has deliberately failed to repay the loan amount in respect of the loan account. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to the Sole Defendant through Registered Post with Acknowledgment Due, which was returned unserved with remark “No such person”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 16.11.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendant were placed exparte on 16.11.2022.

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. K. Dinakaran, Authorized signatory of the Applicant Bank, has filed his Affidavit by way

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T.A. No. 09 of 2022

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05.05.2026

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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-5.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-5 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 defendant.

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The defendant was set ex-parte on 16.11.2022, 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 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 defendant.

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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 Defendant a

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T.A. No. 09 of 2022

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05.05.2026

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sum of Rs.24,75,064/- (Rupees Twenty Four Lakhs Seventy Five Thousand and Sixty Four only) due in respect of Personal Loan (A/c No.PLN000500761772) repayable together with further interest @ 10.45% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application. All pending IAs, if any also 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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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 05^th day of May, 2026)

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T.A. No. 09 of 2022

05.05.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. K. Dinakaran, Authorized signatory 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.	23.01.2021	Loan application	A-1
2.	30.01.2021	Loan agreement executed by the defendant	A-2
3.	07.01.2022	Copy of legal notice	A-3
4.		Returned cover	A-4
5.		Statement of account	A-5

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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

Yes Bank v. Arputhasamy Sebastian

Case brief

What is this about?

What did the court decide?

Yes Bank v. Arputhasamy Sebastian

Case brief

What is this about?

What did the court decide?

What the court decided

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