Allowed

Indian Overseas Bank v. M/S Raaman Builders Rep by Its Prop C v Ramasamy

DRT30 Jan 2026TA/298/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's Original Application filed under Section 19 of RDB Act. Confirming the loan and default, the Tribunal ordered recovery of the principal, interest, and costs, granting liberty to sell mortgaged and personal assets if necessary.

What did the court decide?

Recovery of Rs.38,23,629.14 with further interest at 12.85% p.a.; liberty to recover balance by sale of mortgaged and personal assets.

Indian Overseas Bank versus M/S Raaman Builders Rep by Its… — Specific Performance | DRT (2026)

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T.A. No.298 of 2023

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30.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 30^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 298 of 2023

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(Originally filed before DRT- II, Chennai as OA 174/2022 and thereafter transferred to this Tribunal and renumbered as TA No.298 of 2023)

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Indian Overseas Bank VHS Branch Rep. by its Manager VHS Campus, Rajiv Gandhi Road, IT Corridor

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Taramani, Chennai – 600 113 ….Applicant

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-Vs-

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M/s Ramana Builders Represented by its Proprietor C.V. Ramasamy New No.14, Old No.44/3 Kandasamy Street, Pallipattu

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Chennai – 600 113

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Sh. C.V. Ramasamy

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Proprietor,

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M/s Raaman Builders

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New No.14, Old No.44/3

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Kandasamy Street, Pallipattu

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Chennai – 600 113 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. K. Parameshwari

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Defendants 1 and 2 were set ex-parte on 23.08.2023

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: - FINAL ORDER - :

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This Original Application is filed on 24.02.2022 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993)

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T.A. No.298 of 2023

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30.01.2026

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.38,23,629.14p (Rupees Thirty Eight Lakhs Twenty Three Thousand Six Hundred and Twenty Nine and Fourteen Paise only)

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due as on 07.01.2022 in respect of Cash Credit Loan (Account No.174402000000025) repayable together with further interest @ 12.85% p.a. with monthly rests from the date of application till the date of realisation in full, for sale of schedule mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.280 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.174 of 2022 stood transferred to this Tribunal and renumbered as TA No.298 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 1^st Defendant is M/s Raaman Builders, represented by its Proprietor C.V. Ramasamy and 2^nd second defendant is the Proprietor of 1^st defendant. The defendants had approached the Applicant Bank for seeking financial assistance for their business purpose.

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T.A. No.298 of 2023

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30.01.2026

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It is submitted that considering the said request of the Defendants, the Applicant Bank had sanctioned Cash Credit facility to the tune of Rs.25,00,000/- on 15.03.2014 vide loan account No.174402000000025, for which all the required documents were executed by the defendants. The defendants agreed to repay principal with interest @ 12% p.a. in one year from the date of sanction.

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It is submitted by the applicant bank in order to secure the loan the defendants executed the following documents on 15.03.2014 in favour of applicant bank:

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It is submitted that in order to secure the loan, the defendants had mortgaged the property comprised of land measuring 775 Sq. ft. and building consisting of ground floor admeasuring 534 Sq. ft. and first floor admeasuring 455 Sq. ft. in S.No.61/3, Pallipattu Village located in New No.14, Old No.44/3, Kandasamy Street, Pallipattu, Chennai – 600 113. The defendant had executed Memorandum of Deposit of Title Deeds Doc No.665/2014, SRO, Adyar on 13.03.2014 in favour of applicant. The defendant had deposited Sale Deed of his property i.e., registered Sale Deed Doc No.434/2004, SRO, Adyar to applicant. The defendants further agreed to pay interest in the change of rates and any other debits raised

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T.A. No.298 of 2023

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30.01.2026

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in the account like insurance charges, fees etc. The defendants executed Revival Letter dated 04.03.2017 in favour of applicant.

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The applicant bank further submits that inspite of undertaking to repay the loan, the defendants did not do so and progressively became more and more chronic defaulter. The defendants was found to be evasive in the replies to regularize the account inspite of repeated reminders by the applicant. Ultimately, the loan account has become Non-Performing Asset (NPA) on 31.01.2019 in accordance with RBI guidelines. On 25.02.2019, the applicant issued Demand Notice under Section 13(2) of SARFAESI Act to the defendants. On 27.06.2019, the applicant bank issued Possession Notice under Section 13(4) of the Act. Despite repeated requests and demands, as defendants 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 defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with the postal endorsement as “unclaimed”. When OA was taken up on 23.08.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 23.08.2023.

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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, Smt. N. Valarmathy, Senior

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T.A. No.298 of 2023

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30.01.2026

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Manager of the Applicant Bank, has filed her 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-10.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-10 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 23.08.2023, 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 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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T.A. No.298 of 2023

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: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, for recovery of a total sum of Rs.38,23,629.14p (Rupees Thirty Eight Lakhs Twenty Three Thousand Six Hundred and Twenty Nine and Fourteen Paise only) due as on 07.01.2022 in respect of Cash Credit Loan (Account No.174402000000025) repayable together with further interest @ 12.85% p.a. with monthly rests from the date of application till the date of realisation in full, along with costs of this application.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the mortgaged property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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T.A. No.298 of 2023

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(e) 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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(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(g) 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/-

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 30^th day of January, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. N. Valarmathy, Senior Manager representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Credit Sanction Advice dated 15.03.2014	A-1

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T.A. No.298 of 2023

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30.01.2026

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2.	Demand Promissory Note dated 15.03.2014	A-2
3.	Letter of Hypothecation dated 15.03.2014	A-3
4.	Hypothecation of Book Debts dated 15.03.2014	A-4
5.	Sale Deed Doc No.434/2004 in the name of defendant dated 12.02.2004	A-5
6.	Memorandum of deposit of Title Deeds Doc No.665/2014, SRO, Adyar in favour of applicant dated 13.03.2014	A-6
7.	Revival Letter dated 04.03.2017	A-7
8.	Demand Notice dated 25.02.2019 issued under Section 13(2) of the SARFAESI Act	A-8
9.	Possession Notice dated 27.06.2019 issued under Section 13(4) of the SARFAESI Act	A-9
10.	Statement of Accounts along with BBE Certificates	A-10

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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 OF PROPERTY-:

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Lands admeasuring 775 Sq. ft. (out of total extent of 1984 Sq. ft. already 1209 Sq. ft. land sold on 29.01.1986 and balance) situated at Kandasamy Naicker Street, Comprised in T.S. No.84 Part Old S.No.61/3, Block 3, No.117 Pallipattu Village, Mylapore – Triplicane Taluk, Chennai Corporation Area, Adyar Sub-Registration Office and with Registration District of South Chennai and house constructed in the Plot bearing Old Door No.44/3, New Door No.14, constructed area in the ground 534 Sq. ft. built up area of 455 Sq. ft. in the first floor bounded on

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North : residential plot of Umashankar South : Kandasamy Naicker Street East : Mariam Uma Ria and Urikkam residential plot West : residential plot of Balasubramaniam

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

Indian Overseas Bank v. M/S Raaman Builders Rep by Its Prop C v Ramasamy

Case brief

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Indian Overseas Bank v. M/S Raaman Builders Rep by Its Prop C v Ramasamy

Case brief

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