Allowed

Karur Vysya Bank v. M/S Svlp Travels

DRT17 Apr 2026TA/449/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Karur Vysya Bank to recover outstanding amounts including interest and costs against three defendants for multiple vehicle loans. The bank proved its case via affidavit and documents, while defendants did not appear or contest.

What did the court decide?

Recovery of total sum of Rs.47,25,201.70 plus future interest @ 15.80% p.a., together with costs of the application.

Karur Vysya Bank versus M/S Svlp Travels — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 449 of 2023

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17.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.449 of 2023

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(Originally filed before DRT- II, Chennai as OA 298/2021 and thereafter transferred to this Tribunal and renumbered as TA No 449 of 2023)

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The Karur Vysya Bank Ltd Asset and Recovery Branch Rep by its Chief Manager 2^nd Floor, No.1, Padmavathiyar Road Gopalapuram, Chennal - 600 086 …Applicant

-Vs-

1. M/s SVLP Travels

Rep by its Partners

Mr.M.Srinivas 2. Mr.L.Subash Chandra Bose No.14/16, Gandhi Road Alwarthiru Nagar, Valasaravakkam Chennai - 600 087

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Mr.M.Srinivas, S/o Mr.M.Sudhakar Naidu No.104, Karpagam Apartment Chidambaranar Street, Ramakrishna Nagar Valasaravakkam, Chennai - 600 087.

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Mr. L. Subash Chandra Bose, S/o Mr.J.Lakshmipathy Old No.4, New No.6, C P Cittarasu Street, Villivakkam, Chennai -600 049 ….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 22.08.2024

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T.A. No. 449 of 2023

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: - FINAL ORDER- :

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1 This Original Application is filed on 29.04.2021 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, jointly and severally for recovery of a total sum of Rs.47,25,201.70p (Rupees Forty Seven

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Lakhs Twenty Five Thousand Two Hundred and One and Seventy Paise only) as follows:

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(i) A sum of Rs.7,79,034.35p due in respect of Vehicle loan (A/c No.1255.743.1303), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.10,49,690.78p due in respect of Vehicle

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loan (A/c No.1255.743.1229), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iii) A sum of Rs.5,65,200.88p due in respect of Vehicle loan (A/c No.1255.743.1321), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iv) A sum of Rs.8,37,217.41p due in respect of Vehicle loan (A/c No.1255.743.1287), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of

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T.A. No. 449 of 2023

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Application till the date of realization in full,

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(v) A sum of Rs.9,86,975.52p due in respect of Vehicle loan

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(A/c No.1255.743.1262), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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(vi) A sum of Rs.5,37,082.76p due in respect of Vehicle loan (A/c No.1255.743.1321), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of hypothecated vehicles morefully detailed in Schedule to the OA, and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.298 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.298 of 2021 stood transferred to this Tribunal and renumbered as TA No.449 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 first defendant M/s

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SVLP Travels represented by its partners the second and third

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T.A. No. 449 of 2023

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defendants herein availed 6 Vehicle Transport Plus (SRTO) loans in the year 2016. The amount of loan availed by the defendants are Vehicle loan of Rs. 5,91,000/- vide Credit Sanction Intimation dated 14.10.2016 and the said loan is repayable in 60 monthly instalments of Rs.13,386.64p/- together with interest @ 12.80% p.a. compounded with monthly rests or at such rates and rests as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the

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loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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(i) Demand promissory note (ii) Letter of undertaking to hypothecate vehicle (iii) Letter of authority to make payment to the suppliers (iv) Letter of undertaking to repay in instalments. (v) Right to seize letter (vi) Hypothecation of motor vehicle agreementhypothecating the vehicle as a security towards the loan availed.

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(vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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It is the further case of applicant bank that the Defendants availed vehicle loan Rs.8,28,000/- vide credit sanction intimation dated 14.10.2016. The said loan is repayable in 60 monthly installments of

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Rs. 18,754.88p together with an interest @ 12.80% p.a. compounded with monthly rests or such rates and rests as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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i) Demand promissory note.

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ii) Letter of undertaking to hypothecate vehicle

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iii) Letter of authority to make payment to the suppliers

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iv) Letter of undertaking to repay in instalments.

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v) Right to seize letter

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vi) Hypothecation of motor vehicle agreement- hypothecating the vehicle as a security towards the loan availed.

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vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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The applicant bank submits that the defendants availed a vehicle loan of Rs.4,63,000/- vide credit sanction intimation dated 14.10.2016. The said loan is repayable in 60 monthly installments of Rs.10,487.33p together with an interest @12.80% p.a. compounded with monthly rests or at such rates as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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i) Demand promissory note.

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ii) Letter of undertaking to hypothecate vehicle

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iii) Letter of authority to make payment to the suppliers

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iv) Letter of undertaking to repay in instalments.

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v) Right to seize letter

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vi) Hypothecation of motor vehicle agreement- hypothecating the vehicle as a security towards the loan availed.

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vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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It is submitted by the applicant bank that the defendants availed a vehicle loan of Rs.7,09,000/- vide credit sanction intimation dated 14.10.2016. The said loan is repayable in 60 monthly installments of Rs.16,059.43p together with an interest @12.80% p.a. compounded with monthly rests or at such rates as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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i) Demand promissory note.

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ii) Letter of undertaking to hypothecate vehicle

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iii) Letter of authority to make payment to the suppliers iv) Letter of undertaking to repay in instalments. v) Right to seize letter

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vi) Hypothecation of motor vehicle agreement- hypothecating the vehicle as a security towards the loan availed.

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vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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The applicant bank submits that the defendants availed a vehicle loan of Rs.8,76,000/- vide credit sanction intimation dated 14.10.2016. The said loan is repayable in 60 monthly installments of Rs.19,842.12p together with an interest @12.80% p.a. compounded with monthly rests or at such rates as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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i) Demand promissory note.

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ii) Letter of undertaking to hypothecate vehicle

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iii) Letter of authority to make payment to the suppliers

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iv) Letter of undertaking to repay in instalments.

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v) Right to seize letter

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vi) Hypothecation of motor vehicle agreement- hypothecating the vehicle as a security towards the loan availed.

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vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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The defendants availed a vehicle loan of Rs.4,63,000/- vide credit

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T.A. No. 449 of 2023

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sanction intimation dated 14.10.2016. The said loan is repayable in 60 monthly installments of Rs.10,487.33p together with an interest @12.80% p.a. compounded with monthly rests or at such rates as may be revised by the bank from time to time.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank on 14.10.2016:

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i) Demand promissory note.

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ii) Letter of undertaking to hypothecate vehicle

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iii) Letter of authority to make payment to the suppliers iv) Letter of undertaking to repay in instalments.

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v) Right to seize letter

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vi) Hypothecation of motor vehicle agreement- hypothecating the vehicle as a security towards the loan availed.

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vii) The second and third defendants stood as guarantors and executed a guarantee agreement towards the loan availed by the first defendant.

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The applicant submits that the even though the defendants had executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular. Hence the applicant bank issued separate Seizure Notices dated 17.09.2018 to the defendants regarding the outstanding dues towards all the vehicle loans. Inspite of the notices the defendants did not come forward to settle the dues. Hence the account was classified as Non-Performing

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Asset (NPA) on 29.09.2018 as per RBI norms.

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The applicant bank submits that the first defendant had executed a Revival Letter dated 08.11.2018 towards the loan A/c No.1255.743.1321 reviving the demand promissory note dated 14.10.2016 towards the loan availed. Even after repeated reminders made by the applicant bank, the defendants had failed and neglected to repay the amount dues.

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In the meanwhile the applicant bank had seized and sold 4 vehicles in an auction for a sum of Rs.7,25,000/- and the same was duly credited into the accounts of the first defendant on 18.10.2019 (A/c Nos. 1255.743.1229-70,000/-, 1255.743.1287-2,15,000/& 1255.743.1262- Rs.3,65,000/- & 18.11.2019 (A/cNo.1255.743.1244Rs.75,000/-) towards the outstanding dues. The applicant bank further issued legal notices on 20.04.2021 to the defendants through its counsel demanding the entire outstanding dues. The notices sent to the defendants were returned. 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 was sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was returned with remark ‘Insufficient address’ respect of D-1 and D-2 and served in respect of D-3. When OA was taken up on 22.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte

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on 22.08.2022.

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. P.S. Sundaravarathan, Chief 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-65

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-65 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 22.08.2022, 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 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, total sum of Rs.47,25,201.70p (Rupees Forty Seven Lakhs Twenty Five Thousand Two Hundred and One and Seventy Paise only) as follows:

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(ii) A sum of Rs.10,49,690.78p due in respect of Vehicle loan (A/c No.1255.743.1229), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iv) A sum of Rs.8,37,217.41p due in respect of Vehicle loan (A/c No.1255.743.1287), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full,

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(v) A sum of Rs.9,86,975.52p due in respect of Vehicle loan (A/c No.1255.743.1262), repayable together with further interest @ 15.80% p.a. with monthly rests from the date of Application till the date of realization in full;

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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 mentioned hypothecated vehicles morefully detailed in the OA schedule.

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(d) The applicant bank shall file the latest memo of calculation

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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

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Registry to prepare Recovery Certificate for the amount to be

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paid by Defendants to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days

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from the date of receipt of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the

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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 17^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. 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.	14.10.2016	Credit sanction intimation	A-1
2.	14.10.2016	Demand promissory note	A-2
3.	14.10.2016	Letter of undertaking to hypothecate vehicle	A-3
4.	14.10.2016	Letter of authority to make payment to the suppliers	A-4
5.	14.10.2016	Letter of undertaking to repay in installments	A-5
6.	14.10.2016	Right to seize letter	A-6
7.	14.10.2016	Hypothecation of motor vehicle agreement	A-7
8.		Form of Certificate of Registration	A-8
9.	14.10.2016	Agreement of guarantee	A-9

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10.	14.10.2016	Credit sanction intimation		A-10
11.	14.10.2016	Demand promissory note		A-11
12	14.10.2016	Letter of undertaking to vehicle	hypothecate	A-12
13.	14.10.2016	Letter of authority to make pa suppliers	yment to the	A-13
14.	14.10.2016	Letter of undertaking to installments	repay in	A-14
15.	14.10.2016	Right to seize letter		A-15
16.	14.10.2016	Hypothecation of motor vehicle	agreement	A-16
17.	14.10.2016	Form of Certificate of Registrati	on	A-17
18.	14.10.2016	Agreement of guarantee		A-18
19.	14.10.2016	Credit sanction intimation		A-19
20	14.10.2016	Demand promissory note		A-20
21.	14.10.2016	Letter of undertaking to vehicle	hypothecate	A-21
22.	14.10.2016	Letter of authority to make pa suppliers	yment to the	A-22
23.	14.10.2016	Letter of undertaking to installments	repay in	A-23
24.	14.10.2016	Right to seize letter		A-24
25.	14.10.2016	Hypothecation of motor vehicle	agreement	A-25
26.	14.10.2016	Agreement ofguarantee		A-26
27.	14.10.2016	Credit sanction intimation		A-27
28.	14.10.2016	Demand promissorynote		A-28
29.	14.10.2016	Letter of undertaking to vehicle	hypothecate	A-29
30.	14.10.2016	Letter of authority to make pa suppliers	yment to the	A-30
31.	14.10.2016	Letter of authority to make pa suppliers	yment to the	A-31
32.	14.10.2016	Right to seizeletter		A-32
33.	14.10.2016	Hypothecation of motor vehicle	agreement	A-33
34.	14.10.2016	Agreement ofguarantee		A-34
35.	14.10.2016	Credit sanction intimation		A-35
36.	14.10.2016	Demand promissorynote		A-36
37.	14.10.2016	Letter of undertaking to vehicle	hypothecate	A-37
38.	14.10.2016	Letter of authority to make pa suppliers	yment to the	A-38
39.	14.10.2016	Letter of undertaking to installments	repay in	A-39
40.	14.10.2016	Right to seize letter		A-40
41.	14.10.2016	Hypothecation of motor vehicle	agreement	A-41
42.	14.10.2016	Agreement ofguarantee		A-42

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43.	14.10.2016	Credit sanction intimation	A-43
44.	14.10.2016	Demand promissorynote	A-44
45.	14.10.2016	Letter of undertaking to hypothecate vehicle	A-45
46.	14.10.2016	Letter of authority to make payment to the suppliers	A-46
47.	14.10.2016	Letter of undertaking to repay in installments	A-47
48.	14.10.2016	Right to seizeletter	A-48
49.	14.10.2016	Hypothecation of motor vehicle agreement	A-49
50.	14.10.2016	Agreement ofguarantee	A-50
51.	17.09.2018	SeizureNotice	A-51
52.	17.09.2018	SeizureNotice	A-52
53.	17.09.2018	Seizure Notice	A-53
54.	17.09.2018	SeizureNotice	A-54
55.	17.09.2018	Seizure Notice	A-55
56.	17.09.2018	SeizureNotice	A-56
57.	08.11.2018	Revival letter	A-57
58.	20.04.2021	Legal notices	A-58
59.		Returncovers	A-59
60.		Statement ofaccounts	A-60
61.		Statement of accounts	A-61
62.		Statement ofaccounts	A-62
63.		Statement ofaccounts	A-63
64.		Statement ofaccounts	A-64
65.		Statement of accounts	A-65

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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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Particulars of Vehicle No.1

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Vehicle number: TN10 AY2118

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Type of vehicle: Tourist motor car/ Taxi

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Maker’s name: HYUNDAI MOTORS INDIA LTD

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Maker’s class: HYUNDAI XCENT CRDI BSIV

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Type of body: Car (Sedan)

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Month & year: 10/2016

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T.A. No. 449 of 2023

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Chassis number: MALA741DLGM220450 Engine number: D3PAGM198969 Color: Red

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Particulars of Vehicle No. 2

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Vehicle number: TN10 AX7078 Type of vehicle: Tourist Maxi cab Maker’s name: Mahindra & Mahindra LTD Maker’s class: XYLO H4 HAWK CRDE 2WD 8 Type of body: Sedan (Maxi cab) Month & year: 09/2016 Chassis number: MA1PT2MLXG2J29721 Engine number: MLG4J18320 Color: Silver

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

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Karur Vysya Bank v. M/S Svlp Travels

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M/S Svlp Travels

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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Case details

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