STATE BANK OF INDIA vs NTL CALL TAXI PRIVATE LIMITED on 21 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 01.03.2022 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 4, for recovery of a total sum of Rs.1,33,12,099/- (Rupees One Crore Thirty Three Lakh Twelve Thousand and Ninety Nine only) as follows: i. A sum of Rs.25,87,522/- due in respect of Cash Credit Loan (A/c No.32902099394) repayable together with further interest @ 15.55% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs. 1,07,24,577/- due in respect of Working Capital Term Loan (A/c No.38488271543) repayable together with further interest @ 15.55% 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 schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.141 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.141 of 2022 stood transferred to this Tribunal and renumbered as TA No.1284 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 1st defendant is the borrower and 2nd defendant is Managing Director and 3rd and 4th defendants are director/guarantors of the 1st defendant. At the request of the 1st defendant, the applicant bank sanctioned Cash Credit facility loan amount of Rs.3.25 crores sanctioned on 21.03.2013.

5. It is submitted that in order to secure the loan, the defendants executed loan documents on 21.03.2013 in favour of the applicant bank, wherein the defendants have executed letter of arrangement and agreement of loan cum hypothecation dated 21.03.2013 wherein the 2nd, 3rd and 4th defendants have executed Guarantee Agreement dated 21.03.2013.

6. In evidence of availing the credit facilities and as security thereof the defendant had executed the following loan documents. i. Letter of arrangement executed by the defendant dated 21.03.2013 ii. Agreement of loan cum hypothecation executed by the defendants dated 21.03.2013 iii. Guarantee agreement executed by the 2nd, 3rd and 4th defendants

7. Subsequently at the request of the 1st defendant the applicant bank had renewed Working Capital limits amount of Rs.3.25 crores sanctioned on 12.05.2014 wherein the defendants acknowledged the same vide Sanction Letter dated 12.05.2014 wherein the defendants have executed a letter of arrangement dated 02.06.2014 and revival letter dated 11.01.2016.

8. In evidence of availing the credit facilities and as security thereof the defendant had executed the following loan documents in favour of the app i. Sanction letter acknowledgement by the defendants dated 12.05.2014 ii. Letter of arrangement executed by the defendants dated 02.06.2014 iii. Revival letter executed by the defendants dated 11.01.2016

9. It is submitted by the applicant bank that subsequently at the request of the 1st defendant the applicant bank has renewal of working capital limits amounts of Rs.3.25 crores sanctioned on 18.05.2016 wherein the defendants have executed a letter of arrangement dated 18.05.2016 and revival letter dated 03.01.2019.

10. In evidence of availing the credit facilities and as security thereof the defendant had executed the following loan documents. i. Letter of arrangement executed by the defendant dated

18.05.2016 ii. Revival letter executed by the defendants dated

11. Subsequently at the request of the 1st defendant the applicant bank has reduced the cash credit loan amount of Rs.3.25 crores to 50 lakhs and sanctioned the working capital demand loan amount of Rs.2.00crores. Total amount of Rs.2.50crores wherein the defendants have acknowledged the sanction letter dated 28.03.2019 wherein the defendants have executed a letter of arrangement and agreement of loan cum hypothecation and demand promissory note and revival letter dated 29.03.2019 and guarantee agreement dated 29.03.2019 executed by the 2 to 4 defendants in favour of the applicant when the defendants failed to repay the loan dues whereas the applicant bank issued 13(2) demand notice dated 16.11.2021 to the defendants and since the loan account have become NPA on 04.08.2021.

12. In evidence of availing the credit facilities and as security thereof the defendant had executed the following loan documents. i. Sanction letter acknowledged by the defendants dated 28.03.2019 ii. Letter of arrangement executed by the defendants dated 29.03.2019 iii. Agreement of loan cum hypothecation executed by the defendants dated 29.03.2019 iv. Demand promissory note executed by 1st defendant dated 29.03.2019

v. Guarantee agreement executed by defendants 2 to 4 dated 29.03.2019 vi. Revival letter executed by the defendants dated 29.03.2019

13. The applicant submits that subsequent to availing of loan, the operation of the account by the defendants was far from satisfactory. The defendants did not keep up the repayment schedule as per the terms of sanction. Inspite of repeated demands and several reminders made, the defendants failed to repay the balance of the liability owned by them to the applicant bank under the aforesaid credit facility. Consequently, the loan accounts of the defendants has been classified as Non Performing Asset (NPA) on 04.08.2021 in terms of the directives of Reserve bank of India.

14. The applicant bank submits that the defendants have undertaken to repay the loan amount together with interest as per the terms and conditions of the Letter of Arrangement dated 21.03.2013, 02.06.2014, 18.05.2016, 29.03.2019 executed by the defendants in favour of the applicant bank. However, after availing the aforesaid loan facilities, the defendants were irregular in repayment of instalments and serving the monthly rest from the date of sanction towards the loan account of defendants. The applicant submits that it could not succeed in its efforts in recovering due from the defendants even after making a demand through various letter advising and cautioning the defendants to regularize the loan account of defendants by repaying the entire loan dues through the aforesaid notice from the defendants. The defendants remained with callous and supine attitudes without taking any serious steps to settle the loan due to the applicant bank. All the efforts taken by applicant bank to recover the loan dues to the applicant bank from the aforesaid defendants did not yield the desired results. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

15. After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, which was served in respect of D-1, summons to D-2 & D-4 returned with postal endorsement as ‘Left’ while summons to D-3 returned as ‘Addressee Moved’. Applicant Bank had caused paper publication of the notice and filed proof thereof. Defendants 1, 3 and 4 were represented by Counsel, who had filed Vakalat 27.09.2023. However, the defendants did not choose to file any written statement. When OA was taken up on 26.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 26.10.2023. Heard the submissions of Applicant Bank and perused the records.

16. To prove the case of the Applicant Bank, Mr. R. Nanikumar, Deputy Manager, SARB-II, Chennai 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-19.

17. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 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.

18. The defendants were set ex-parte on 26.10.2023, 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.

19. 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 :

20. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 4, a total sum of Rs.1,33,12,099/- (Rupees One Crore

Thirty Three Lakh Twelve Thousand and Ninety Nine only) as follows: i. A sum of Rs.25,87,522/- due in respect of Cash Credit Loan (A/c No.32902099394) repayable together with further interest @ 15.55% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs. 1,07,24,577/- due in respect of Working Capital Term Loan (A/c No.38488271543) repayable together with further interest @ 15.55% 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 morefully detailed in the OA schedule.

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

(d) If the sale proceeds of the hypothecated assets 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.

(e) 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.

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

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

21. 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 21st day of October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. R. Nanikumar, Deputy Manager. SARB-II, Chennai of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 16.05.2012 Article association of M/s NTL Call Taxi private limited A-1

2. 18.05.2012 Memorandum of association of M/s NTL Call Taxi private limited A-2

3. 21.03.2013 Letter of arrangement A-3

4. 21.03.2013 Agreement of loan cum hypothecation A-4

5. 21.03.2013 Guarantee agreement A-5

6. 12.05.2014 Sanction letter A-6

7. 02.06.2014 Letter of arrangement A-7

8. 11.01.2016 Revival letter A-8

9. 18.05.2016 Letter of arrangement A-9

10. 03.01.2019 Revival letter A-10

11. 28.03.2019 Sanction letter A-11

12. 29.03.2019 Letter of arrangement A-12

13. 29.03.2019 Arrangement letter A-13

14. 29.03.2019 Guarantee agreement A-14

15. 29.03.2019 Demand promissory note A-15

16. 29.03.2019 Revival letter A-16

17. 16.11.2021 13(2) Notice and acknowledging A-17

18. 26.03.2013 to 30.12.2021 Statement of account and certificate of Bankers book Evidence Act, 1891 A-18

19. 29.05.2019 to 31.08.2021 Statement of account and certificate of Bankers book Evidence Act, 1891 A-19

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

:-SCHEDULE-: Hypothecation assets nature of stocks and receivables at No.11/2, Muthiyal Reddy street, Alandur, Chennai- 600 016.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI