YES BANK vs MS AERO GLOBE FACILITY MANAGEMENT on 30 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 30.06.2022 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 to 3, for recovery of a total sum of Rs.36,11,673.69p (Rupees Thirty Six Lakhs Eleven Thousand Six Hundred and Seventy Three and Sixty Nine Paise only) due in respect of Working Capital facility (A/c No. 041884600000056) repayable together with further interest @ 13.05% p.a. with monthly rests along with penal interest @2% per month from the date of Application till the date of realization in full and for costs of this OA. Brief Facts of the case:

2. 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.

3. It is the case of the applicant bank that the 1st defendant approached the applicant bank for Working Capital facility by submitting the loan application on 10.05.2018. Based on the documents furnished by the 1st defendant, the applicant bank sanctioned the said loan on 10.05.2018 for an amount of Rs.25,00,000/- bearing A/c No.041884600000056, which was repayable on demand.

4. The applicant bank submits that the defendant had executed necessary loan documents on 10.05.2018 for an amount of Rs.25,00,000/- and agreed to pay interest at the rate of 13.05% p.a. which was repayable on demand. In order to secure the loan, the 1st defendant executed the following documents on 10.05.2018 such as Demand Promissory Note and Master Facility Agreement.

5. It is submitted by the applicant bank that the 2nd and 3rd defendants stood as Guarantors for due repayment of the above said loan and have signed as Guarantors in the Letter of Continuing Guarantee for an amount of Rs.25,00,000/- on 10.05.2018.

6. The applicant bank submits that based on the request of the 1st defendant, the above facility was renewed on 20.08.2019 for an amount of Rs.25,00,000/-. The defendants neither repaid the loan amount except for few repayments which was not sufficient for maintaining the account, Consequently, the loan account became irregular and the loan account was declared as Non Performing Asset (NPA) on 30.11.2020.

7. It is submitted by the applicant bank that when matters stood thus, the applicant issued Legal Notice dated 23.05.2022 to the defendants demanding the outstanding amount in respect of the said loan account. The notice sent to the 2nd and 3rd defendant’s residential address were duly Served, while the notice sent to 1st defendant’s address has been returned with an endorsement ‘Left’. Inspite of receiving the said notice the defendant had deliberately failed to repay the loan amount in respect of the loan account.

8. The applicant bank submits that the loan was availed for business purpose and hence the defendant is liable to repay the loan amount with interest at the rates agreed at the time of availing of loan and subsequently till date of complete discharge. The rates of interest applied in the above account are rates prescribed by the bank periodically as permitted by the Reserve Bank of India. The compound interest has been calculated at such rates and capitalized at such periodical rests as permitted by the Reserve Bank of India and do not run counter to any of its directives. The present rate applicable is 13.05% and the penal interest is 2% per month. The interest is calculated at monthly rests.

9. The 1st defendant, being the borrower and the 2nd and 3rd defendants, being the Guarantors are jointly and severally liable to repay the loan amount of Rs.36,11,673.69p along with interest at the rate of 13.05% p.a. with monthly rests and penal interest @2% per month from the date of filing of this Original Application till the date of realization of the amount. 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.

10. After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 to D-3. When OA was taken up on 12.09.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 12.09.2024. Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Mr. Muthusamy, Senior Manager (Legal) 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-7.

12. 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.

13. The defendants were set ex-parte on 12.09.2024, 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.

14. 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 :

15. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 3, a total sum of Rs. 36,11,673.69p (Rupees Thirty Six Lakh Eleven Thousand Six Hundred and Seventy Three and Sixty Nine Paise only) due in respect of Working Capital facility (A/c No. 041884600000056) repayable together with further interest @ 13.05% p.a. with monthly rests along with penal interest @2% per month from the date of Application till the date of realization in full along with costs of this application.

(b) 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.

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

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

16. 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 06th day of November, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. Muthusamy, Senior Manager (Legal) of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 10.05.2018 Loan application A-1

2. 10.05.2018 Demand promissory note executed by the 1st defendant A-2

3. 10.05.2018 Master facility agreement executed by the 1st defendant A-3

4. 10.05.2018 Letter of continuing guarantee executed by the 2nd defendant A-4

5. 20.08.2019 Sanction letter-renewal A-5

6. 23.05.2022 Copy of legal notice A-6

7. - Acknowledgement cards and returned covers A-7

8. - Statement of accounts A-8

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