INDIAN OVERSEAS BANK vs INDIRAA on 15 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 18.12.2020 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 Defendant, for recovery of a total sum of Rs.36,54,346.92p (Rupees Thirty Six Lakhs Fifty Four Thousand Three Hundred and Forty Six and Ninety Two paise only) due in respect of Vehicle Loan (A/c No.069803452000005) repayable together with further interest @9.15% p.a. with monthly rests along with penal interest @2% p.a. 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. 176 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 176 of 2021 stood transferred to this Tribunal and renumbered as TA No.1018 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 defendant, during the normal course of its business had approached the applicant bank on 01.02.2017 and submitted an application dated 01.02.2017 for grant of Pushpaka Loan (Vehicle loan) of Rs.29,00,000/- in order to purchase a Honda Hybrid Vehicle in her name.

5. The applicant bank submits that in consideration of the above request made by the defendant, the applicant bank after examining the viability of the vehicle and after considering the financial position of the borrower, sanctioned the Vehicle Loan to the tune of Rs.29 lakhs vide Credit Sanction Advice dated 02.02.2017. The said loan is repayable with interest at the rate of 9.15% per annum at monthly rests compounded, linked to MCLR. MCLR at the time of sourcing being 8.65% + 0.50% p.a.

6. The defendant accepted all the terms and conditions of the aforesaid facilities and executed various documents to secure the above Vehicle Loan facility granted by the applicant bank. For securing the performance of the obligations of the defendant under the above Sanction Letter and loan documents together with all interest, costs, charges, expenses and other monies stipulated in or payable under or pursuant to the loan documents, the defendant inter-alia created the securities for the benefit of the applicant bank.

7. The applicant bank submits that the defendant is bound by the terms and conditions mentioned in the Agreement Letter dated 02.12.2018 wherein it was interalia agreed to repay the loan amount of Rs.29,00,000/- in 84 equal instalments of Rs.46,879/- interest at the rate of 8.65% + 0.5% p.a. would accrue and be payable on that date. There other conditions for sanction of the facilities are evidenced by the credit sanction advice and loan documents.

8. It is submitted by the applicant bank that the defendant had executed Deed of Hypothecation dated 02.02.2017 and accepted to all the terms and conditions of the agreement.

9. The applicant bank submits that after completing the execution all the documents, the applicant bank disbursed to the defendant said Vehicle Loan amount of Rs.29,00,000/- in accordance with the agreement to the account of the dealer M/s Capital Honda maintained with United Bank of

India, Mount Road Branch on 02.02.2017, which was a fake account, fraudulently opened by the defendant herself in the name of the dealer and the loan amount of Rs.29,00,000/- deposited was withdrawn and no vehicle was purchased to create a hypothecation over the vehicle. The defendant had defrauded the applicant bank. Hence the hypothecation agreement is left blank.

10. It is submitted by the applicant bank that the defendant had executed Demand Promissory Note dated 02.02.2017 for Rs.29,00,000/- in favour of the applicant bank. The defendant had executed Letter of Undertaking, Repayment in instalments on 02.02.2017 and accepted to the terms and conditions of the letter.

11. The applicant bank submits that the defendant had executed an Authorization Letter to recover the instalments and the pending due from her SB account. However, subsequent to availing of loan, the defendants failed to adhere to the repayment schedule and failed to make payment as agreed upon under the loan documents or otherwise and despite repeated demand, the defendant had not made any payment towards principal and interest on the credit facility. The applicant had issued a letter dated 16.12.2017 to the defendant to regularize the credit facility and they had also intimated the defendant that they may have to intimate her employer for recovery of dues from her salary.

12. It is submitted that the defendant had issued a consent letter to her HR Manager on 18.12.2017 requesting them to deduct the EMI Amount of Rs.47,000/- from her salary and authorize the employer to pay all the settlement dues arising out of her resignation or termination from the services from the company to her SB account linked with the loan account in favour of the applicant bank. The applicant submits that they have issued a letter to the defendant’s employer M/s Indus Software Technologies (P) Ltd to recover the pending dues of Rs.3,58,234/- and the EMI amount of Rs.46,879/- from the salary every month and remit to her loan account as per the letter dated 18.12.2017.

13. It is submitted that the applicant bank had issued Recall Notice on 20.01.2018 to the defendant recalling the entire loan amount of Rs.27,56,697/- due as on that day. The last payment received by the applicant from the defendant was on 20.01.2018 for an amount of Rs.1,25,248/-. Thereafter, the account of the defendant under which the facilities were availed became irregular and was classified as Non Performing Asset (NPA) on 31.12.2017 by the applicant bank in accordance with the guidelines issued by the Reserve Bank of India from time to time.

14. In view of repeated defaults, the applicant bank was constrained to intimate the defendant to repay the outstanding dues amounting to Rs.27,56,697/- along with interest. The defendant has neither repaid the over dues nor closed the loan outstanding due to the applicant bank.

15. The applicant bank submits that despite being provided adequate opportunities, the defendant failed to repay the dues with the applicant bank. The applicant bank has meetings prior to and subsequent to the issuance of the aforementioned notice wherein the defendant was made aware of the status of the account. However, no remedial action was taken by the defendant. The applicant bank submits that the defendant is personally due to the applicant bank to the tune of below mentioned liability together with interest, penal interest, expenses etc. This clearly proves that the defendant has been chronic defaulter in the repayment of the loan availed. A sum of Rs.36,54,346.92/- is due and payable by the defendant to the applicant bank under the aforesaid credit facility account as on 30.11.2020 with further interest at the rate of 9.15% p.a. with monthly rests from 30.11.2020. The defendant has failed and neglected to repay the debts due to the applicant bank despite repeated reminders by the applicant bank. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

16. After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘Door locked’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 23.05.2022 even after giving sufficient time, there was no appearance or representation from the Defendant. Hence, Defendant was placed ex-parte on 23.05.2022. Heard the submissions of Applicant Bank and perused the records.

17. To prove the case of the Applicant Bank, Ms. Vidya V Nair, Assistant General Manager 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-11.

18. 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 Defendant.

19. The Defendant was set ex-parte on 23.05.2022, 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 Defendant are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against Defendant.

20. 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 :

21. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendant,

a sum of Rs.36,54,346.92p (Rupees Thirty Six Lakhs Fifty Four Thousand Three Hundred and Forty Six and Ninety Two paise only) due in respect of Vehicle Loan (A/c No.069803452000005) repayable together with further interest @9.15% p.a. with monthly rests along with penal interest @2% p.a. 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 dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

(c) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendant 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 Defendant 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.

22. 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: Ms. Vidya V Nair, Assistant General Manager of the Applicant Bank Exhibits on the part of the Applicant: Sl. No. Date Description of Documents Exhibit No.

1. 01.02.2017 Loan application submitted by the defendant A-1

2. 02.02.2017 Loan sanction letter issued by the applicant A-2

3. 02.02.2017 Deed of hypothecation executed by the defendant A-3

4. 02.02.2017 Revised demand promissory note executed by the defendant A-4

5. 02.02.2017 Letter of undertaking repayment in instalment executed by the defendant A-5

6. 02.02.2017 Undertaking letter executed by the defendant A-6

7. 16.12.2017 Letter from applicant to defendant A-7

8. 18.12.2017 Letter addressed to Indus software by the defendant A-8

9. 22.12.2017 Letter by applicant to Indus software A-9

10. 20.01.2018 Recall notice A-10

11. 30.11.2020 Statement of accounts A-11

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

:-SCHEDULE-: -NIL-

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI