KARUR VYSYA BANK vs Raajendher on 15 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 03.12.2020 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, for recovery of a total sum of Rs.36,83,718.52p (Rupees Thirty Six Lakhs Eighty Three Thousand

Seven Hundred and Eighteen and Fifty Two Paise only) due in respect of KVB Flexi Mobile Loan (A/c No.175271000000057) repayable together with further interest @ 12.40% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned hypothecated vehicle and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.51 of 2019 and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 51 of 2019 stood transferred to this Tribunal and renumbered as TA No. 272 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 defendants approached the applicant bank and requested for KVB Flexi Mobile Loan for a sum of Rs.29,60,000/- for the purchase of Pajero Sport Car. Considering the request, the applicant sanctioned Flexi Mobile vide Credit Sanction Intimation dated 25.02.2015. The said loan is repayable in 84 monthly instalments of Rs.50,682.41p together with interest @10.75% from the date of sanction till the date of payment in full, compounded with monthly rests or at such rates and rests as may be revised by the bank from time to time.

5. It is submitted by the applicant bank that the fist defendant executed necessary loan documents towards the loan availed on 25.02.2015, in favour of the applicant bank:

a) Demand Promissory Note

b) Letter of undertaking to repay in instalments

6. Further, the first defendant had executed Hypothecation of Motor Vehicle Agreement on 25.02.2015, hypothecating the vehicle as security towards the loan availed. The second defendant stood as Guarantor and executed Guarantee Agreement dated 25.02.2015 towards the loan availed by the first defendant.

7. The applicant submits that even though the defendants have executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular. Despite various demands and reminders made by the applicant bank, the defendants have failed and neglected to repay the amount dues. Consequently, the loan account had become Non-Performing Asset (NPA) on 02.07.2017 as per the RBI norms.

8. It is submitted that since the account turned NPA, the applicant bank issued Recall Notice dated 25.09.2017 to the defendants recalling the outstanding dues towards the loan availed. Further, on 06.10.2020, the applicant bank issued Legal Notice to the defendants through its counsel demanding the entire outstanding dues. However the notices were returned with endorsement ‘Left’. 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.

9. 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 remarks ‘Left’ in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 16.03.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 16.03.2022. Heard the submissions of Applicant Bank and perused the records.

10. 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-10.

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

12. The defendants were set ex-parte on 16.03.2022, 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.

13. 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 :

14. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a total sum of Defendants 1 and 2, for recovery of a total sum of Rs.36,83,718.52p (Rupees Thirty Six Lakhs Eighty Three Thousand Seven Hundred and Eighteen and Fifty Two Paise only) due in respect of KVB Flexi Mobile Loan (A/c No.175271000000057) repayable together with further interest @ 12.40% p.a. with monthly rests from the date of Application till the date of realization in full, along with costs of this application.

(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 schedule mentioned hypothecated vehicle 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.

15. 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 15th day of September, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. P.S. Sundaravarathan, Chief Manager of the Applicant Bank

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 25.02.2015 Credit sanction intimation A-1

2. 25.02.2015 Demand promissory note A-2

3. 25.02.2015 Letter of undertaking to repay in instalments A-3

4. 25.02.2015 Hypothecation of motor vehicle agreement A-4

5. - Form of certificate of registration A-5

6. 25.02.2015 Agreement of guarantee A-6

7. 25.02.2015 Recall notice A-7

8. 06.10.2020 Legal notice A-8

9. - Return covers A-9

10. - Statement of accounts A-10

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

:-SCHEDULE-: Particulars of Vehicle:

Vehicle Number : TN 13 C 2200 Class of Vehicle : L.M.V (CAR) Maker’s name : HINDUSTAN MOTOR LTD Maker’s class : PAJERO SPORT AUTOMATIC AT BSIV Type of body : STATION WAGON Month & year : 11/2014 Chassis Number : MA702KG4WEL003679 Engine Number : 4D56UFM2524 Cubic capacity : 2477 Color : Blue

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI