Recovery of Rs. 37 Lakhs Allowed, Assets to be Sold if need be: DRT Decides Ex-parte

The Debts Recovery Tribunal (DRT) - III, Chennai heard an original application ex-parte and allowed the recovery of Rs.37 Lakhs, even if the defendant needs to sell assets secured.

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Defendant 1, R.M. Enterprises, is a MSME Enterprise registered under Udayam Scheme conducting business of trading oil and groceries. Defendant 2 is its Proprietor who had approached the applicant bank, Bank of Baroda, for grant of Working Capital Facilities for the purpose of development of business.

The applicant bank sanctioned the Working Capital Overdue Limit under CGSTMSE Scheme to a tune of INR 35,00,000/- on 25.11.2021. Shortly afterwards, the defendants failed to make payments as per agreed terms of loan agreement. Eventually, the loan account was classified as NPA on 01.06.2022 in accordance with RBI guidelines.

Summons to the Original Application (OA) were returned ‘unclaimed’. OA was taken up on 02.04.2024 after sufficient time, but defendants neither appeared nor were represented.

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K.R. Saravanan, Senior Branch Manager of Applicant Bank, filed his affidavit and a list of documents. After examining the documents carefully, the defendants were set ex-parte and concluded that the applicant bank proved its claim against the defendants.

The tribunal, via S.V. Gowarmma, Presiding Officer, DRT-III, held that the OA stands allowed with costs.

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