SYNDICATE BANK vs M/S Subrama Audio on 31 August 2026

: - FINAL ORDER- :

1. This Original Application is filed on 07.05.2019 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 and 2, jointly and severally for recovery of a total sum of Rs.10,89,523/- (Rupees Ten Lakhs Eighty Nine Thousand Five Hundred and Twenty Three only) due in respect of Term Loan (A/c No.60157910000098) repayable together with further interest @10.75% p.a. with monthly rests plus 2% penal interest from the date of Application till the date of realization in full and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 560 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.560 of 2019 stood transferred to this Tribunal and renumbered as TA No.1876 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 represented by the 2nd defendant as Proprietor submitted an application on 23.07.2014 to purchase machineries and thus requested for sanction of Term Loan of Rs.12,00,000/-.

5. Considering the said request, the applicant bank had sanctioned the Term Loan of Rs.11,50,000/- on 16.10.2014. On availing the said credit facilities these defendants 1 & 2 have executed the following loan documents in favour of applicant bank: i. Composite hypothecation agreement dated 15.10.2014 executed by the 1st defendant represented by the 2nd defendant ii. Receipt for Rs.8,00,000/- dated 15.10.2014 executed by the 1st defendant represented by the 2nd defendant iii. Receipt for Rs.1,00,000/- dated 11.05.2015 executed by the 1st defendant represented by the 2nd defendant

6. The applicant bank submits that subsequent to availing of loan, the defendants violated the terms of sanction including the repayment schedule and therefore the account has become Non-Performing Asset (NPA) on 31.03.2016. There were several personal follow up meetings held with these defendants by various officials of the bank only with a bonafide intention to come forward to settle the dues in one manner or other. It can be seen from the statement of account that these defendants did not have any intention to adjust the dues, despite the applicant’s offer to settle the dues. In spite of effective/hectic follow up by the applicant bank, the defendants did not come forward to pay the overdue or regularize the loan account. A Legal Notice was issued to the defendants on 26.03.2017 urging them to repay the balance outstanding in the loan account. All the efforts taken by the applicant bank to recover the dues resulted in futility. The defendants are wilful defaulters.

7. The applicant submits that the statement of account maintained by the applicant bank in the ordinary course of business and the interest calculations after the loan become NPA are submitted before the Tribunal. It has been seen from the statement of account the account has become NPA and the interest debited which is not capitalized. 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.

8. 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 postal endorsement as ‘Left’ respect of D-1, while summons to D-2 was duly served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 30.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 30.05.2022. Heard the submissions of Applicant Bank and perused the records.

9. To prove the case of the Applicant Bank, Smt. Viveka P, Authorised Signatory 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.

10. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-7 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.

11. The defendants were set ex-parte on 30.05.2022, 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.

12. 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 :

13. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.10,89,523/- (Rupees Ten Lakhs Eighty Nine Thousand Five Hundred and Twenty Three only) due in respect of Term Loan (A/c No.60157910000098) repayable together with further interest @10.75% p.a. with monthly rests plus 2% penal interest from the date of Application till the date of realization in full along with costs of this application.

(b) In the event of default in repayment of the amount as ordered above by the defendants, 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.

(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.

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

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

14. 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 31st day of August, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. Viveka P, Authorised Signatory of the Applicant Bank Exhibits on the part of the Applicant: Sl. No. Date Description of Documents Exhibit No.

1. 23.07.2014 Application submitted by the defendant A-1

2. 16.10.2014 Letter of sanction issued by the applicant A-2

3. 15.10.2014 Composite hypothecation agreement A-3

4. 15.10.2014 Receipt for Rs.8,00,000/- A-4

5. 11.05.2015 Receipt for Rs.1,00,000/- A-5

6. 26.03.2017 Legal notice sent to the defendants A-6

7. - Statement of A/c No. 60157910000098 A-7

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI