Allowed

Karur Vysya Bank v. N Devi

DRT19 Jan 2026TA/542/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a transferred application filed by Karur Vysya Bank to recover approximately Rs. 1.34 crore from four defendants, comprising a borrower, proprietorship entity, and guarantors, arising from a Home Loan and an OCC loan. The bank proved its case via affidavit as defendants were ex-parte. The order permits recovery from remaining secured assets and direct payment.

What did the court decide?

Recovery of Rs. 1,34,52,709.85/- granted jointly and severally against respondents; liberty to issue Recovery Certificate against remaining unsecured amount.

Karur Vysya Bank versus N Devi — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 542 of 2023

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19.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 19^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 542 of 2023

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(Originally filed before DRT- II, Chennai as OA 280/2021 and thereafter transferred to this Tribunal and renumbered as TA No 542 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, Chennai-600 086 ….Applicant

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-Vs-

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Mrs. N.Devi, W/o Mr.T.Natarajan No.29/32, Rajalakshmi Flats Krishnappa Naicken Street, West Mambalam, Chennai-600 033

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M/s Ayyan Agro Services Rep by its Sole Proprietor Mrs.N.Devi Plot No.6, Siva Vishnu Koil Street Padmavathy Main Road Rajajipuram Periyakuppam Thiruvallur, Chennai-602 001

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Mr.T.Natarajan, S/o Mr.T.M.Thiruanvukarasu No.29/32, Rajalakshmi Flats Krishnappa Naicken Street, West Mambalam, Chennai-600 033

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Mr.S.Manikandan, S/o Mr.Subramanian No.39, Pookara Pandara Street, Vadapalani, Chennai-600 026 Also at: Mr.S.Manikandan, S/o Mr.Subramanian Flat No.11/1, S. V.Chidambaram Road Jayachandra Flats, Jaferkhanpet, Ashok Nagar, Chennai-600 083 ….Defendants

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T.A. No. 542 of 2023

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19.01.2026

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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 4 were set ex-parte on 18.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 22.06.2021 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 4, jointly and severally for recovery of a total sum of Rs.1,34,52,709.85p (Rupees One Crore Thirty Four Lakhs Fifty Two Thousand Seven Hundred and Nine and Eighty Five Paise only) due in respect of

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i. A sum of Rs.59,70,729.04p due in respect of Home Loan (Account No.1651753000000134) repayable together with further interest @ 11.25% p.a., with monthly rests from the date of application till the date of realisation in full;

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ii. A sum of Rs.74,81,980.81p due in respect of OCC Loan (Account No.165122300000052) repayable together with further interest @ 17.09% p.a., with monthly rests from the date of application till the date of realisation in full;

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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

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T.A. No. 542 of 2023

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19.01.2026

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Ministry of Finance, DFS dated 04.10.2022, OA No.280 of 2021 stood transferred to this Tribunal and renumbered as TA No.542 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 had approached the applicant bank in the year 2014 and requested for a home loan for a sum of Rs.37,67,000/- for the purpose of purchasing brand new flat. The applicant bank, considering the request, had sanctioned the said loan of Rs.37,67,000/-(Rupees Thirty Seven Lakhs and Sixty Seven Thousand) vide Credit Sanction Intimation dated 11.06.2014.

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It is submitted that the said loan is repayable in 240 monthly instalments of Rs.38,882.54p each, with an initial holiday period of 9 months and together with an interest @11.00% p.a. compounded with monthly rests or at such rates as may be revised by the bank from time to time. The First Defendant accepted the terms and conditions and executed the following necessary loan documents on 11.06.2014 in favour of applicant bank:

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(i) Demand promissory note

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(ii)Term Loan agreement for housing finance

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(iii)Letter of undertaking to repay in instalments

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T.A. No. 542 of 2023

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19.01.2026

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The third defendant herein stood as a guarantor and executed an Agreement of Guarantee dated 11.06.2014 towards the loan availed by the first defendant. Besides that, the first defendant had mortgaged her property at Potheri Village vide a memorandum of deposit of title deeds dated 22.07.2014 registered a Doc. No.8711/2014 as a security towards the Housing Loan availed which is morefully described in the Schedule to the OA.

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The applicant submits that the second defendant M/s Ayyan Agro Services represented by its Proprietrix, the first defendant herein, approached the Applicant Bank in the year 2015 and requested for an OCC limit for a sum of Rs.30,00,000/- (Rupees Thirty lakhs) towards working capital requirements.

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It is submitted by the applicant bank that considering the request of the defendants, the applicant bank had sanctioned the said sum of Rs.30,00,000/- (Rupees Thirty Lakh) vide Credit Sanction Intimation dated 28.09.2015. The said loan is repayable in one year together with interest @13.75%p.a. compounded with monthly rests or at such rates and rests as may be revised by the bank from time to time. The second defendant executed the following necessary documents towards the loan availed on 28.09.2015:

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(i) Demand promissory note

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(ii) Deed of hypothecation of current assets

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(iii) Hypothecation agreement for cash credit/overdraft

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T.A. No. 542 of 2023

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19.01.2026

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The third and fourth defendants stood as Guarantors and executed Agreement of Guarantee dated 28.09.2015 towards the loan availed by the second defendant. Besides that, the fourth defendant had mortgaged his property at kodambakkam village vide Memorandum of Deposit of Title Deeds dated 28.09.2015 registered as Doc No.2693/2015 as security towards the OCC facility availed by the second defendant.

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It is submitted that subsequent to availing of the aforesaid loans, the defendants were not regular in repayment of dues, despite repeated requests and demands. Consequently, the loan account of the first defendant turned into Non-Performing Asset (NPA) on 10.08.2017 in accordance with RBI guidelines. Since the account turned NPA, the applicant bank through its Authorised Officer initiated SARFAESI proceedings by issuing Demand notice to the defendants on 22.09.2017. The account of the second defendant turned NPA on 28.09.2017. The applicant bank issued Demand notice to the defendants on 04.11.2017 demanding the entire outstanding dues. In spite of the notices the defendants did not come forward to settle the issues.

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The applicant bank further issued legal notices on 23.04.2021 to the defendants through its counsel demanding the entire outstanding dues. The notices sent to the first and third defendants were duly acknowledged and the notices sent to the second and fourth defendants were returned. Even after repeated reminders made by the applicant bank, the defendants had failed and neglected to repay the amount dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its

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T.A. No. 542 of 2023

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19.01.2026

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dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, which was returned with the remarks “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 18.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 18.05.2022.

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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. P.S. Sundaravarathan, Chief Manager, ARMB 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-23 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.33,75,000/- by way of sale of Schedule immovable property Item No.1 under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.33,75,000/- was duly recorded vide order dated 17.12.2025 and documents marked as Ex A-6, A-7 and A-8 were returned to applicant bank on 31.11.2025 under proper acknowledgement

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With regard to the amount advanced, the interest applied, the conduct

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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, a total sum of Rs.1,34,52,709.85p (Rupees One Crore Thirty Four Lakhs Fifty Two Thousand Seven Hundred and Nine and Eighty Five Paise only) due in respect of

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(i) A sum of Rs.59,70,729.04p due in respect of Home Loan (Account No.1651753000000134) repayable together with further interest @ 11.25% p.a., with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.74,81,980.81p due in respect of OCC Loan (Account No.165122300000052) repayable together with further interest @ 17.09% 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) The sum of Rs.33,75,000/- realized by way of sale of Item No.1 of the OA schedule mentioned property is directed to be given credit to the borrower’s loan account as on the date of realization.

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amount, the bank is at liberty to recover the amount by sale of the

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T.A. No. 542 of 2023

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schedule Item no.2 of the mentioned immovable property morefully detailed in the OA schedule.

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(d) Schedule Item no.2 mentioned immovable property shall be appended to this final order.

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

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

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(Dictated to Steno (Arti), transcribed by her, corrected, signed and pronounced by me on this the 19^th day of January, 2026)

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T.A. No. 542 of 2023

19.01.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P.S.Sundaravarathan, Chief Manager, ARMB of 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 intimation dated 11.06.2014	A-1
2.	Demand promissory note dated 11.06.2014	A-2
3.	Term loan agreement for housing finance dated 11.06.2014	A-3
4.	Letter of undertaking to repay in installments dated 11.06.2014	A-4
5.	Agreement of guarantee dated 11.06.2014	A-5
6.	Memorandum of deposit of title deeds registered as Doc No.8711/2014 dated 22.07.2014	A-6
7.	Construction agreement registered as Doc No.6704/2014 dated 09.06.2014	A-7
8.	Sale deed registered as Doc No.6705/2014 dated 09.06.2014	A-8
9.	Credit sanction intimation dated 28.09.2015	A-9
10.	Demand Promissory note dated 28.09.2015	A-10
11.	Deed of hypothecation of current assets dated 28.09.2015	A-11
12.	Hypothecation agreement for cash credit/overdraft dated 28.09.2015	A-12
13.	Agreement of Guarantee dated 28.09.2015	A-13
14.	Memorandum of deposit of title deeds registered as Doc No.2693/2015 dated 28.09.2015	A-14
15.	Sale deed registered as Doc No.2816//2015 dated 14.11.2005	A-15
16.	Acknowledgement of debt from the borrower dated 02.01.2017	A-16
17.	Acknowledgement of debt from the guarantor dated 02.01.2017	A-17
18.	Demand notice dated 22.09.2017	A-18
19.	Demand notice dated 04.11.2017	A-19
20.	Legal Notice dated 23.04.2021	A-20
21.	Acknowledgement cards and return covers	A-21
22.	Statement of accounts	A-22
23.	Statement of accounts	A-23

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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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Item No.1:-

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Sold under SARFAESI Act.

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Item No.2:-

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Property of Mr.s.Manikandan:

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All that piece and parcel of land and building situated at Flat bearing O.S.No.261/5, T.S.No.38, Door No.11//1, Plot No.A-115, Ground Floor, Block No.78, S.V.Chidambaram Salai, Jafferkhanpet, Chennai-600 083 having a built up area of measuring an extent of 1/8^th undivided share of land out of 289sq.ft., having a plinth area of 500 sq.ft including common areas bounded on the:

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North by : Plot No.A-208 South by : S.V.Chidambaram Salai

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East by : Plot No.A-116 West by : Plot No.A-114

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Within the Registration District of Chennai Central and Sub-Registration District of Ashok Nagar.

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

Karur Vysya Bank v. N Devi

Case brief

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Karur Vysya Bank v. N Devi

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