Allowed

Oriental Bank of Commerce v. Ms Bindu Rao Design Pvt. Ltd.

DRT2 Jun 2026TA/933/2023

Case brief

AI extract

What is this about?

The TRIBUNAL allowed the bank's application for recovery of dues filed under Section 19 of RDB Act. The court found the claim proven via affidavit evidence as respondents were absent. It ordered recovery of approximately Rs. 36.5 Lakhs with interest and costs.

What did the court decide?

Recovery of principal sum of Rs. 36,50,880.61 with interest at 12.50% p.a. and costs jointly and severally from defendants.

Oriental Bank of Commerce versus Ms Bindu Rao… — Contract and Commercial Disputes | DRT (2026)

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T.A. No.933 of 2023

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02.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 02^nd day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.933 of 20 23

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(Originally filed before DRT- II, Chennai as OA No.195/2019 and thereafter transferred to this Tribunal and renumbered as TA No.933 of 2023)

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***** Punjab National Bank, (Erstwhile Oriental bank of Commerce) Circle Sastra Centre, Chennai north, No.769, Spencer Plaza, Ground Floor, Anna Salai, Chennai- 600 002

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…Applicant

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(Amended vide order in IA No.1067/2022 dated 22.09.2022 in view of merger)

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-Vs-

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M/s Bindu Rao Design Pvt. Ltd., Rep by its Director A. Sunil Rao No.12, Natesan Colony, Kottivakkam, Chennai- 600 041

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A. Sunil Rao No.4B, DGI Layout, Blossom Avenue, Kottivakkam Chennai- 600 041

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Hima Bindu Rao, W/o A. Sunil Rao No.4B, DGI layout, Blossom avenue, Kottivakkam Chennai- 600 041 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s P. Reghu Raja

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Defendants 1 to 3 were set ex-parte on 30.05.2019

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T.A. No.933 of 2023

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02.06.2026

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: - FINAL ORDER- :

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This Original Application is filed on 22.10.2018 by the Erstwhile Oriental Bank of Commerce (since merged with Punjab National 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.36,50,880.61p (Rupees Thirty Six Lakhs Fifty Thousand Eight Hundred and Eighty and Sixty One Paise only) due in respect of Cash Credit facility (A/c No.01654011000833) repayable together with further interest @ 12.50% 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.195 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.195 of 2019 stood transferred to this Tribunal and renumbered as TA No.933 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 M/s Bindu

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T.A. No.933 of 2023

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02.06.2026

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Rao Design Pvt. Ltd rep by its Director approached the applicant bank and submitted the application at its Branch Office in Anna Salai Branch for availing Term Loan-I for a sum of Rs.47,00,000/-, Term Loan-II for a sum of Rs.53,00,000/- and Bank Guarantee for a sum of Rs.17,00,000/- on 21.10.2010, Term Loan of Rs.15,00,000/- on 20.04.2011, Cash Credit facility of Rs.30,00,000/- on 23.02.2012, Car Loan of Rs.12,40,000/- on 30.03.2013 and Cash Credit facility of Rs.30,00,000/- was renewed on 18.02.2014.

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It is submitted by the applicant bank that considering the proposal, the applicant bank had sanctioned a sum of Rs.47,00,000/-, Rs. 53,00,000/-, Rs.17,00,000/-, Rs.15,00,000/-, Rs.12,40,000/- through Sanction Letter dated 21.10.2010, 23.02.2012 and 30.03.2013 and 18.02.2014 on the terms and conditions mentioned therein.

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The applicant bank submits that upon accepting the said terms and conditions of sanction letter mentioned therein and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the 1^st defendant signed and executed the loan documents in favour of the applicant. M/s Bindu Rao Design Pvt. Ltd rep by its Director, the 1^st defendant is liable for the said facility availed. The 2^nd and 3^rd defendant personally guaranteed the repayment of the loan with interest to the applicant by the 1^st defendant. The 1^st defendant had availed the said loan from the applicant and became liable to repay the said loan amount with the agreed rate of interest at the time of availing the loan as per the RBI guidelines which is at 12.50% p.a. with monthly

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T.A. No.933 of 2023

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02.06.2026

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rests such interest being added to the balance outstanding on the amount advanced and bear interest at the same rate.

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The applicant bank submits that at the time of availing the said loan, the defendant had executed the following documents in favour of the applicant:

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a) Agreement of hypothecation of assets dated 21.10.2010

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b) Agreement of term loan dated 21.10.2010

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c) Counter guarantee agreement dated 21.10.2010

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d) Agreement of guarantee dated 21.10.2010

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e) Agreement of guarantee dated 21.10.2010

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f) Common agreement dated 21.10.2010

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g) Agreement of guarantee dated 20.04.2011

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h) Agreement of guarantee dated 20.04.2011

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i) Balance and security confirmation dated 20.04.2011

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j) Balance and security confirmation dated 20.04.2011

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k) Common agreement dated 20.04.2011

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l) Agreement of term loan dated 20.04.2011

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m)Agreement of guarantee dated 12.04.2013

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n) Agreement of guarantee dated 12.04.2013

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o) Agreement of guarantee dated 12.04.2013

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p) Balance and security confirmation dated 24.02.2013

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q) Balance and security confirmation dated 24.02.2013

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r) Balance and security confirmation dated 24.02.2013

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The applicant further submits that the 1^st defendant hypothecated

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T.A. No.933 of 2023

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02.06.2026

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the movable assets present and in future by executing the said agreement for hypothecation of movables dated 21.10.2010, Agreement of Term Loan dated 21.10.2010, Counter Guarantee dated 21.10.2010 in favour of the applicant.

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It is submitted by the applicant bank that the 1^st defendant executed Common Agreement dated 21.10.2010 and 20.04.2011, Agreement of Term Loan of Rs.15,00,000/-dated 21.10.2011 in favour of the bank.

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The applicant bank submits that guaranteeing the due repayment of the Said facilities availed by the 1^st defendant and performance of all obligation in relation thereto, the 2^nd and 3^rd defendants have executed Agreements of Guarantee dated 21.10.2010, 20.04.2011, 12.04.2013 in favour of the applicant.

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It is further submitted that the 1^st defendant executed Agreement of Term Loan of Rs.12,40,000/- dated 12.04.2011 in favour of the bank. The 1^st defendant had also executed Acknowledgement of Debt-cum Security Letter dated 20.04.2011 and 24.02.2013, confirming the dues payable on that date in favour of the applicant bank.

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The applicant further submits that the first defendant had closed the Term Loan facility and Car Loan and subsequently committed default in repayment of the Cash Credit loan of Rs.30,00,000/-. After availing the said loan amount from the applicant, the defendants failed and neglected to repay the same with interest and other charges. Several notices were

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T.A. No.933 of 2023

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02.06.2026

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sent to the defendants calling upon them to pay the amount dues. However the defendants did not pay any amount towards such dues till this date. 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 remarks “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 30.05.2019 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 30.05.2019.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. P. Mahendran, 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-23 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-23 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

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T.A. No.933 of 2023

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02.06.2026

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the amount claimed against defendants.

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The defendants were set ex-parte on 30.05.2019 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 1 to 3, jointly and severally, for recovery of a total sum of Rs. 36,50,880.61/- (Rupees Thirty six lakhs Fifty thousand eight

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hundred and eighty and sixty one only) due in respect of Cash credit facility (A/c No.01654011000833) together with further interest @ 12.50% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this application;

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T.A. No.933 of 2023

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02.06.2026

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(b) The applicant bank is at liberty to sell the personal assets of the Defendants 1 to 3 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 1 to 3 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 1 to 3.

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

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(e) 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 02^nd day of June, 2026)

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T.A. No.933 of 2023

02.06.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Mahendran, 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.	25.03.2012	Loan application	A-1
2.	25.03.2012	Sanction letter	A-2
3.	30.03.2013	Sanction letter	A-3
4.	18.02.2014	Sanction letter	A-4
5.	21.10.2010	Agreement of hypothecation of assets	A-5
6.	21.10.2010	Agreement of term loan	A-6
7.	21.10.2010	Counter guarantee agreement	A-7
8.	21.10.2010	Agreement of guarantee	A-8
9.	21.10.2010	Agreement of guarantee	A-9
10.	20.04.2011	Common agreement	A-10
11.	20.04.2011	Agreement of guarantee	A-11
12.	20.04.2011	Agreement of guarantee	A-12
13.	20.04.2011	Balance and security confirmation	A-13
14.	20.04.2011	Balance and security confirmation	A-14
15.	20.04.2011	Common agreement	A-15
16.	20.04.2011	Agreement of term loan	A-16
17.	12.04.2013	Agreement of term loan	A-17
18.	12.04.2013	Agreement of guarantee	A-18
19.	12.04.2013	Agreement of guarantee	A-19
20	24.02.2013	Balance and security confirmation	A-20
21.	24.02.2013	Balance and security confirmation	A-21
22.	24.02.2013	Balance and security confirmation	A-22
23.		Statement of account	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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-Nil-

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

Oriental Bank of Commerce v. Ms Bindu Rao Design Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Oriental Bank of Commerce v. Ms Bindu Rao Design Pvt. Ltd.

Case brief

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