STATE BANK OF INDIA vs M/S SRI SUBHALAKSHMI INFRA PVT LTD on 15 October 2026

: - FINAL ORDER- :

1. This original application is filed on 31.12.2019 by the applicant bank under Section 19(1) 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 7, for recovery of a total sum of Rs.2,14,50,377/- (Rupees Two Crores Fourteen Lakhs Fifty Thousand Three Hundred and Seventy Seven only) due in respect of Cash Credit Faculty (A/c No.36613121151) repayable together with further interest @ 12.20% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.80 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.80 of 2020 stood transferred to this Tribunal and renumbered as TA No.399 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 at the request of the defendants, the applicant bank had sanctioned Dropline Overdraft facility (under ABL-1 & ABL-II) in a sum of Rs.1.50 crores and Rs.2.25 crores, which was availed by the 1st defendant. The 2nd and 7th defendants are the Directors of the 1st defendant and defendants 2 to 7 stood as guarantors for the loan granted to the 1st defendant.

5. The applicant bank has originally sanctioned the loan amount of Rs.1.50 crores on 13.08.2015 and the same was discharged by the defendants. At the request of the 1st defendant the applicant bank has sanctioned the Overdraft facility (under ABL-1 & ABL-II) as Working Capital loan amount of Rs.2.25 crores on 06.03.2017. The defendants have acknowledged the Sanction Letter dated 06.03.2017 and executed Letter of Arrangement and Supplemental Agreement of loan cum hypothecation dated 06.03.2017.

6. In Evidence of availing the credit facilities and as security thereof the defendants have executed the following loan documents. i. Letter of arrangement dated 06.03.2017 executed by the defendants ii. Supplemental agreement of loan cum hypothecation dated 06.03.2017 executed by the defendants. iii. Guarantee agreement dated 06.03.2015 executed by the 2 to 7 defendants. iv. Agreement to mortgage have executed by 6th and 7th defendants v. Demand promissory note dated 06.03.2017 executed by 2nd and 7th defendant vi. Letter of confirmation and memorandum relating to deposit of title deeds dated 30.03.2017 executed by 7th defendant vii. Memorandum relating to deposit of title deeds dated 30.03.2017 executed by 6th defendant

7. It is submitted by the applicant bank that Guarantee Agreement have been executed by the defendants 2 to 7 in favour of the applicant bank on 06.03.2017. The 6th and 7th defendants have executed Agreement to mortgage in favour of the applicant bank. The Demand Promissory Note has executed by the defendants 1, 2 & 7 on 06.03.2017. The 7th defendant executed Letter of Confirmation dated 29.03.2017 and Memorandum relating to deposit of title deeds executed by the 6th and 7th defendants in favour of the applicant bank on 30.03.2017 respectively.

8. The applicant bank submits that subsequent to availing of loan, the defendants failed to repay the loan dues, despite repeated reminders. Hence the applicant bank issued Demand Notice under Section 13(2) of the SARFAESI Act to the defendants on 03.07.2019. Subsequently, the defendants account have been transferred from Ekkadduthangal Branch to State Bank of India, ARMB Teynampet.

9. The applicant bank submits that the 1st defendant defaulted in payment of interest and instalments. Consequently, the loan account of the defendants was classified as Non-Performing Assets (NPA) on 30.06.2019 in terms of the directives of Reserve bank of India.

10. It is submitted that the 1st defendant was not able to infuse additional funds to pay the interest and instalments. Hence the account has become irregular of non-payment of interest and instalments as per the sanctioned terms. Inspite of repeated demands and several reminders made, the defendants have failed to repay the loan liability owed by them to the applicant bank under the aforesaid credit facility. The applicant bank could not succeed in its efforts in recovering dues from the defendants even after making a demand through various letters advising and cautioning the defendants to regularize the loan account by repaying the entire loan dues through the aforesaid notice from the defendants.

11. The defendants have originally agreed to pay interest at the rate of 10.30% p.a. vide Letter of Arrangement dated 06.03.2017. The applicant bank had not debited interest during NPA period in view of directions of RBI regarding Income Recognition, Asset classification. The interest rate is subject to enhancement from time to time as may be decided by the applicant bank in conformity with the terms agreed by the defendants and the present rate of interest payable by the defendants for Cash Credit facility is at Rs.12.20% p.a.

12. After the filing of the OA, summons were sent to the Defendants 1 to 7 through Registered Post with Acknowledgment Due, which was duly served in respect of D-3, D-4, D-5 and D-7, while summons to D-1, D-2 and D-6 returned with postal endorsement as ‘Left’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 7 were placed ex-parte on 06.06.2022. Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Mr. R.R. Nanikumar, City Case Officer of the Applicant Bank, filed 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-14.

14. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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.

15. The defendants were set ex-parte on 06.06.2022, 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.

16. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs. 1,75,10,900/- as follows: i) A sum of Rs.1,06,70,000/- realized by way of sale of Schedule mentioned property under SARFAESI Act on 11.08.2021. Accordingly, part satisfaction of sum of Rs. 1,06,70,000/- was duly recorded vide proceedings dated 21.03.2022. ii) A sum of Rs.68,40,900/- realized by way of sale of Schedule mentioned property under SARFAESI Act on 29.03.2022 and sale proceeds were credited to the borrower’s loan account on 08.04.2022.

17. 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 :

18. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 7, a total sum of Rs. 2,14,50,377/- (Rupees Two Crores Fourteen Lakhs Fifty Thousand Three Hundred and Seventy Seven only) due in respect of Cash Credit Loan (A/c No.36613121151) together with further interest @12.20% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this application; (b) The sum of Rs.1,75,10,900/- realized by way of sale of schedule mentioned mortgaged properties are directed to be given credit to the borrower’s loan account as on date of realization.

(c) If the sale proceeds of the immovable properties are not sufficient to satisfy the dues as ordered above, 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.

(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.

19. 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 October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. R.R. Nanikumar, City Case Officer of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 06.03.2017 Board resolution A-1

2. 06.03.2017 Sanction letter A-2

3. 06.03.2017 Letter of arrangement A-3

4. 06.03.2017 Supplemental agreement of loan cum hypothecation A-4

5. 06.03.2017 Guarantee agreement executed by defendants 2 to 7 A-5

6. 06.03.2017 Agreement to mortgage executed by 6th and 7th defendant A-6

7. 13.08.2015 Demand promissory note A-7

8. 29.03.2017 Letter of confirmation A-8

9. 30.03.2017 Memorandum relating to deposit of title deeds (Doc.No.2289/2017) A-9

10. 12.09.2014 Settlement deed executed by B.Udayasankar infavour of U.Suganya A-10

11. 30.03.2017 Memorandum relating to deposit of title deeds (Doc.No.3974/2017) A-11

12. 06.08.2015 Released deed executed by D.Lakshmi in favour of D.Nalini A-12

13. 03.07.2019 13(2) Notice A-13

14. 08.03.2017 to 01.11.2019 Statement of account and certificate under Banker’s Book evidence Act, 1891 A-14

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

:-SCHEDULE-: The mortgaged properties have been sold under SARFAESI Act.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI