Allowed

Karur Vysya Bank v. M/S R P S Logistics

DRT9 Jul 2026TA/243/2023

Case brief

AI extract

What is this about?

In a debt recovery proceeding, the Tribunal allowed the bank's application for recovery of outstanding dues of Rs.57,03,752.15 along with future interest from the borrower and guarantors following ex-parte disposal.

What did the court decide?

Recovery of Rs.57,03,752.15 p plus future interest and costs jointly and severally from defendants; Recovery Certificate to be drawn up.

Karur Vysya Bank versus M/S R P S Logistics — Banking and Recovery | DRT (2026)

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T.A. No.243 of 2023

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09.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.243 of 2023

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(Originally filed before DRT- II, Chennai as OA No.390 of 2021 and thereafter transferred to this Tribunal and renumbered as TA No.243 of 2023)

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Karur Vysya Bank Ltd, Asset and recovery branch, Rep by its Chief Manager, 2^nd floor, No.1, Padmavathiyar Road, Gopalapuram, Chennai- 600 086 …Applicant

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-Vs-

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M/s R.P.S. Logistics, Rep by its Proprietor Mr.P.Kannan, Room No.302, II floor,

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No.41, Mannady Street, Hawaa Complex, Chennai- 600 001

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Mr. P. Kannan, Plot No.162 Part, Ring Road, Housing sector, Madhavaram, Chennai- 600 060

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Mrs. Jayabharathi Kannan, W/o P. Kannan, Old No.275 New No.116, 1^st Floor, Thambu Chetty Street, Chennai- 600 001 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. A. Arunbabu

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Defendants 1 to 3 were set ex-parte on 21.06.2022

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: - FINAL ORDER- :

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This Original Application is filed on 07.07.2021 by the applicant

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T.A. No.243 of 2023

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bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) read with Section 13(10) of the SARFAESI Act, against the defendants 1 to 3, jointly and severally for recovery of a total sum of Rs.57,03,752.15p (Rupees Fifty Seven Lakhs Three Thousand Seven Hundred and Fifty Two and Fifteen Paise only) due in respect of SOD (RE) Loan (A/c No.1153280000000662) repayable together with further interest @17.25% 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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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.390 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.390 of 2021 stood transferred to this Tribunal and renumbered as TA No.243 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 Tribunal.

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It is the case of the applicant bank that the second defendant approached the applicant bank in the year 2013 and requested for an SOD (RE) Fresh for a sum of Rs.49,75,000/- (Rupees Forty Nine Lakhs Seventy Five Thousand only) to meet out working capital requirements.

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T.A. No.243 of 2023

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09.07.2026

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It is submitted by that the applicant bank, considering the request of the defendants have sanctioned the sum of Rs.49,75,000/- vide Credit Sanction Intimation dated 28.02.2013. The said loan is repayable in one year together with an interest @10.75% p.a. with monthly rests or at such rates and rests as may be revised by the bank from time to time.

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In order to secure the loan, the first defendant had executed the following loan documents on 28.02.2013 in favour of applicant bank:

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a) Demand Promissory Note

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b) Agreement of Hypothecation of Book Debts

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The applicant bank submits that the 3^rd defendant stood as guarantor for the aforesaid facility and executed Agreement of Guarantee on 28.02.2013 towards the loan availed by the 1^st defendant. The 3^rd defendant mortgaged her immovable property situated at Madhavaram Village vide Memorandum of Deposit of Title Deeds dated 01.03.2013 registered as Doc.no.1288/2013 as security towards the loan availed by the first defendant.

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The applicant submits that even though the defendants had executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular and despite various demands and reminders made by the applicant bank, the defendants have failed and neglected to repay the amounts due. Consequently, the loan account was classified as Non-Performing Asset (NPA) on 30.06.2015 as per the RBI norms.

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T.A. No.243 of 2023

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The applicant bank submits that since the account turned NPA with no other option the applicant bank on 31.03.2016 issued Demand Notice by initiating the SARFAESI proceedings against the property that was given as a security towards the loan account. The applicant bank took symbolical possession of the property by issuing Possession Notice to the defendants on 11.01.2017. Inspite the notices, the defendants did not come forward to settle the dues. Even after repeated reminders made by the applicant bank, the defendants have failed and neglected to repay the amount dues.

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The applicant bank issued E-auction notice dated 25.01.2018 fixing the auction sale on 07.03.2018. The applicant bank sold the mortgaged property through e-auction to Mr. P. Dhansingh Gnandurai who were declared as the successful bidders in the auction conducted on 07.03.2018 for a sum of Rs.60,10,000/- and the sale proceeds were duly credited into the SOD account of the 1^st defendant on 31.03.2018. A sale certificate dated 03.05.2018 registered as Doc. No. 2598/2018 was issued

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by the applicant bank to Mr. P. Dhansingh Gnanadurai & Mrs. Mangalaselvi Florence in this regard. The applicant bank sent an after-sale letter dated 18.05.2018 intimating the outstanding dues to be paid by the defendants. Even after which the defendants did not come forward to repay the balance dues. 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

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to 3 through Registered Post with Acknowledgment Due, which were returned with postal endorsement ‘Left’ in respect of D-1 and D-2, while summons to D-3 returned as ‘Unclaimed’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 21.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 21.06.2022.

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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. Sundaravarathan, Assistant General 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-12.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-12 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 21.06.2022 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

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T.A. No.243 of 2023

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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 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 1 to 3 jointly and severally, for recovery of a total sum of Rs.57,03,752.15p (Rupees Fifty Seven Lakhs Three Thousand Seven Hundred and Fifty Two and Fifteen Paise only) due in respect of SOD (RE) Loan (A/c No.1153280000000662) repayable together with further interest @17.25% p.a. with monthly rests 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.243 of 2023

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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 09^th day of July, 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. Sundaravarathan, Chief 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.	28.02.2013	Credit sanction intimation	A-1
2.	28.02.2013	Demandpromissorynote	A-2
3.	28.02.2013	Agreement of hypothecation of book debts	A-3
4.	28.02.2013	Agreement of guarantee executed by the 3^rddefendant	A-4
5.	01.03.2013	Memorandum of deposit of title deeds registered as Doc No.1288/2013	A-5

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6.	22.04.2005	Sale deed Doc.No.3229/2005	registered	as	A-6
7.	31.03.2016	Demand notice			A-7
8.	11.01.2017	Possession notice			A-8
9.	25.01.2018	E-auction notice			A-9
10.	13.04.2018	Sale certificate Doc.No.2595/2018	registered	as	A-10
11.	18.05.2018	After sale notice			A-11
12.		Statement of accoun	ts		A-12

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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 09.07.2026 at 12.30 hours

Karur Vysya Bank v. M/S R P S Logistics

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M/S R P S Logistics

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Case details

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