SYNDICATE BANK vs M/S Abihil Agency on 22 July 2026

: - FINAL ORDER- :

1. This Original Application is filed on 03.05.2019 by Erstwhile Syndicate Bank (since merged with Canara 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.11,26,342.82p (Rupees Eleven Lakhs Twenty Six Thousand Three Hundred Forty Two and Eighty Two Paise only) as follows:

(i) A sum of Rs.8,58,476.39p due in respect of A/c No.60074890000140 repayable together with further interest @ 10.75% p.a. with monthly rests from the date of Application till the date of realization in full;

(ii) A sum of Rs.2,67,866.43p due in respect of A/c No.60014400000253 repayable together with further interest @9.50% p.a. with monthly rests from the date of Application till the date of realization in full; for sale of hypothecated assets morefully detailed in the OA schedule and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.523 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.523 of 2019 stood transferred to this Tribunal and renumbered as TA No.60 of 2023.

Brief Facts of the case:

3. 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.

4. It is the case of the applicant bank that the 1st defendant claiming to be running a Partnership Firm under the name and style ‘M/s Abihil Agency’ in the business of manufacturing, approached the applicant bank in the year 2014 for grant of certain credit facilities for improvement of the business.

5. It is submitted that considering the said request, the applicant bank sanctioned a sum of Rs. Rs.9,48,000/- on 26.07.2014 towards Working Capital and Term Loan vide A/c No. 6074890000140 & 60014400000253 respectively and the 1st defendant had accordingly availed the same.

6. The applicant submits that the 1st defendant created a primary security in favour of the applicant by way of Hypothecation of Goods, Movable plant and machineries.

7. In order to secure the loan, the 1st defendant executed the following loan and security documents in favour of applicant bank:

a) Composite Hypothecation of Movable Plant and Machinery dated 26.07.2014 executed by the 1st defendant for a sum of Rs.9,48,000/-

b) Guarantee Agreement dated 26.07.2014 executed by the 2nd defendant for a sum of Rs.9,48,000/-

c) Guarantee Agreement dated 26.07.2014 executed by the 3rd defendant for a sum of Rs.9,48,000/-

8. The applicant submits that the 1st defendant being the Partnership Firm under the name and style of M/s Abihil Agency is personally liable to settle the dues of the said partnership firm.

9. It is submitted by the applicant bank that after availing the credit facilities, the 1st defendant did not satisfactorily operate the credit facilities extended to them by the applicant bank and failed and neglected to regularize the same. Since the defendants failed to repay the loan amount the same was classified as Non Performing Asset (NPA) on 27.09.2017.

10. The applicant submits that the credit facilities availed by the 1st defendant was to be repaid as per the terms agreed. The applicant bank demanded repayment of the dues and also sent notices from the bank, all which remained futile since the defendants cared not to repay. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants

11. After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 to D-3. There was no representation for Defendants. When OA was taken up on 29.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on

29.08.2022. Heard the submissions of Applicant Bank and perused the records.

12. To prove the case of the Applicant Bank, Ms. K. Madhumathy, Branch 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-7, out of which Ex A-1 to A-6 are marked as secondary evidence.

13. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-11 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.

14. The defendants were set ex-parte on 29.08.2022 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.

15. 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:

: O R D E R :

16. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.11,26,342.82p (Rupees Eleven Lakhs Twenty Six Thousand Three Hundred Forty Two and Eighty Two Paise only) as follows:

(i) A sum of Rs.8,58,476.39p due in respect of A/c No.60074890000140 repayable together with further interest @ 10.75% p.a. with monthly rests from the date of Application till the date of realization in full;

(ii) A sum of Rs.2,67,866.43p due in respect of A/c No.60014400000253 repayable together with further interest @9.50% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(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 hypothecated assets properties morefully detailed in the OA schedule.

(c) OA Schedule shall be appended to this final order.

(d) 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.

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

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

17. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 22nd day of July, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Ms. K. Madhumathy, Branch Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 21.07.2014 Loan application A-1

2. 21.07.2014 Loan application A-2

3. 21.07.2014 Composite Hypothecation Agreement A-3

4. 26.07.2014 Guarantee Agreement A-4

5. 26.07.2014 Guarantee Agreement A-5

6. 26.07.2014 Partnership Deed A-6

7. 03.04.2019 Statement of Account A-7

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-:

Stocks of all kinds of hypothecated goods such as flex board printer and related computer system and stored now or to be stored in the future in the premises situated at No. 2783 Park tower, 2nd floor, south Rampart, Thanjavur, 613 001, Rammatheswarian Complex, Nagai Main road, T.R. Pattianam, Karaikal, Furniture/fixed assets movable in nature.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI