CANARA BANK vs MUTHULAKSHMI on 2 January 2024

O R D E R

1. This Original Application is filed by the Applicant Bank, under Section 19 (1) of the RDDB & FI Act, 1993,

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a. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank a sum of Rs.12,63,215/- with interest at the rate of 10.75% per annum with penal interest @ 2%, from the date of Application, till the date of its realization, failing which

b. to direct to bring the mortgaged properties described in the Schedule of property, which are mentioned hereunder and the sale proceeds appropriated for recovery of Rs.12,63,215/- with interest at the rate of 10.75% per annum with penal interest @ 2%, from the date of Application, till the date of its realization with Costs of this OA.

BRIEF FACTS

2. The Averments made by the Applicant Bank in the Application are stated as follows :

2.1. One Mr. K.S. Muthukrishnan applied for Agricultural Term Loan for a sum of Rs.5,30,000/- for purchasing of a Tractor to the Applicant Bank. The same was sanctioned by the Applicant Bank on 18.11.2004. The K.S. Muthu Krishnan availed the loan and executed necessary documents in favour of the Applicant Bank on 27.11.2004.

2.2. Further, the K.S. Muthukrishnan created an Equitable Mortgage over his property by deposit of title deeds on 25.11.2004 and the same was confirmed by Letter evidencing Deposit of Title Deeds on 27.11.2004. The K.S. Muthukrishnan executed Acknowledgement of Debt cum Security on 23.12.2006 & 17.09.2007.

2.3. Subsequently, the said K.S. Muthukrishnan died leaving behind the Defendants as his legal heirs and they are also executed Acknowledgement of Debt cum Security on 20.07.2010. The Defendants did not to repay the loan dues as agreed by them. Despite repeated demands and reminders issued by the Applicant Bank, the Defendants not paid the loan dues. As such, both the Defendants are

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personally, jointly and severally liable to repay the loan dues with interest. Therefore, the Applicant Bank filed this OA against the Defendants for recovery of the OA amount, and this Hon’ble Tribunal may be allowed the OA with Costs.

3. The Defendants were called absent and set ex-parte on 25.08.2018.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by Chief Manager, Sivagiri Branch, D.P.1030 of the Applicant Bank and marked the documents as Exts.A-1 to A-22 in support of its claim in the OA. A cumulative analysis of both the Proof Affidavit and Documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.

5. Therefore, in view of the observations made supra, the OA stands allowed and the Applicant Bank is entitled to recover

a. from the Defendants personally, jointly & severally, a sum of Rs.12,63,215/- with interest at the rate of 10.75% per annum, from the date of Application, till the date of its realization, failing which

b. the Applicant Bank is directed to bring the mortgaged properties described in the Schedule of Property for sale, and the sale proceeds appropriated for recovery of Rs.12,63,215/- with interest at the rate of 10.75% per annum, from the date of Application, till the date of its realization, with Costs of this OA.

6. In the result,

a. it is hereby directed the Defendants personally, jointly & severally, to pay to the Applicant Bank for a sum of Rs.12,63,215/-

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with interest at the rate of 10.75% per annum, from the date of Application, till the date of its realization.

b. On failure, the Applicant Bank is directed to bring the mortgaged properties described in the Schedule of Property for sale, and the sale proceeds appropriated for recovery of Rs.12,63,215/- with interest at the rate of 10.75% per annum, from the date of Application, till the date of its realization, with Costs of this OA.

7. All the pending IAs. if any, stand closed and disposed of by this Tribunal.

8. The Registry is directed to prepare DRC in terms of this Final Order. The Applicant Bank shall file memo of costs within 15 days from the date of this Order.

9. The Registry is directed to communicate the copy of this Order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993 as amended in 2016. Dictated to Steno, directly typed on the Computer corrected and pronounced by me in the open Tribunal, this the 02nd day of January, 2023.

Sd/-

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SCHEDULE OF PROPERTY (Equitable Mortgage) Item No.1 :-

Erode District, Erode Sub Registration District, Erode Taluk, Kulavilakku Village, lands in R.S.No.375/2 measuring 3.63 Punja Acres bounded by : North : Canal Promboke in G.S.No.278/1, South : Road Poramboke in G.S.No.306, East : Share owned by Dhanalakshmy Vagaiyarah, West : Canal Porombokke in G.S.No.278/1. Item No.2 : - Erode District, Erode Sub Registration District, Erode Taluk, Kulavilakku Village, lands in R.S.No.367 measuring 0.75 Punja Acres bounded by : North : G.S.No.280 and 281, South : S. Dhanalakshmi Vagaiyarah’s land, East : G.S.No.280, West : G.S.No.280. Item No.3 : - Erode District, Erode Sub Registration District, Erode Taluk, Kulavilakku Village, lands in R.S.No.367 measuring 0.20 Punja Acres bounded by : North : Other lands owned by S. Dhanalakshmi Vagaiyara, South : Property owned by K.S. Muthukrishnan, East : Other lands owned by S. Dhanalakshmi Vagaiyara, West : Other lands owned by S. Dhanalakshmi Vagaiyara.

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Item No.4 : - Erode District, Erode Sub Registration District, Erode Taluk, Kulavilakku Village, lands in R.S.No.367 measuring 0.50 Punja Acres bounded by : North : Land owned by S. Dhanalakshmi Vagaiyarah and Item Nos.1 to 3 herein, South : Other lands owned by S. Dhanalakshmi Vagaiyara, East : G.S.No.282, West : The other lands owned by S. Dhanalakshmi Vagaiyara. Item No.5 : - Erode District, Erode Sub Registration District, Erode Taluk, Kulavilakku Village, lands in R.S.No.367 measuring 0.70 ½ Punja Acres bounded by : North : Other lands owned by S. Dhanalakshmi Vagaiyara, South : G.S.Nos.286 and 287, East : Other lands owned by S. Dhanalakshmi Vagaiyara, West : G.S.No.284. Thus, totally 5.78 ½ Punja Acres. Sd/-

PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Chief Manager, Sivagiri Branch, D.P.1030. LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK Sl. No. Date Description of Document Exhibits

1. 18.11.2004 Original – Application given by K.S. Muthu Krishnan for Agricultural Credit – Short Term/Term Loan to the Applicant Bank. A.1

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18.11.2004 Original – Application given by K.S. Muthu Krishnan for purchase of Tractor/Power Tiller/Farm Machinery to the Applicant Bank. A.2

27.11.2004 Original – Appraisal Report – Purchase of Tractor of the Applicant Bank. A.3

27.11.2004 Original – Memorandum of Agreement for Agricultural Loans executed by K.S. Muthu Krishnan. A.4

27.11.2004 Original – Letter Evidencing Deposit of Title Deeds executed by K.S. Muthu Krishnan in favour of Applicant Bank. A.5

06.11.2004 Original – Letter of Declaration executed by the K.S. Muthu Krishnan signed by Notarized by Sri. C. Yoganathan, Notary, Erode District. A.6

23.12.2006 Original – Acknowledgement of Debt and Security executed by K.S. Muthu Krishnan in favour of Applicant Bank. A.7

17.09.2007 Original – Acknowledgement of Debt and Security executed by K.S. Muthu Krishnan in favour of Applicant Bank. A.8

20.07.2010 Original – Acknowledgement of Debt and Security From the Legal Heirs of Borrower, Co-Obligant executed by Smt. M. Muthulakshmi and M. Mutharasu in favour of Applicant Bank. A.9

29.11.1980 Original – Sale Deed executed by Dhanalakshmi, Gandhimadhi and Punniyam in favour of K.S. Muthu Krishnan. A.10

18.03.2004 Xerox Copy of Patta bearing No.685, 071 Kulavilakku Village, Erode District. A.11

18.03.2004 Xerox Copy of Patta bearing No.147, 071 Kulavilakku Village, Erode District. A.12

18.03.2004 Xerox Copy of “A” Register for S.F.No.365/1, 366, in Patta No.685 of

Kulavilakku Village, Erode District. A.13

18.03.2004 Xerox Copy of “A” Register for S.F.No.375/2, 381/2 in Patta No.685 of 071 Kulavilakku Village, Erode District. A.14

05.11.2004 True Copy of Adangal Extract for the Fasli 1413 in S.F.No.375/2A, 367/1, 2 of 71 A.15

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Kulavilakku Village, Erode District.

01.06.1985 Original – Kist Receipt bearing No.352849 of 71 Kulavilakku Village, Erode District in respect of K.S. Muthu Krishnan for Patta Nos.147, 685 - for a sum of Rs.817.45. A.16

24.07.1987 Original – Kist Receipt bearing No.445394 of 71 Kulavilakku Village, Erode District in respect of K.S. Muthu Krishnan Patta Nos.147, 685 - for a sum of for Rs.46. A.17

30.08.2001 Original – Kist Receipt bearing No.0171771 of 71 Kulavilakku Village, Erode District in respect of K.S. Muthu Krishnan for Patta No. 685 - for a sum of Rs.500/-. A.18

14.07.2001 Original – Kist Receipt bearing No.0167148 of 71 Kulavilakku Village, Erode District in respect of K.S. Muthu Krishnan for Patta Nos. 147, 685 - for a sum of Rs.2,000/-. A.19

20. 05.11.2004 Original – Kist Receipt bearing No.0267378 of 71 Kulavilakku Village, Erode District in respect of K.S. Muthu Krishnan for Patta Nos. 147, 685 - for a sum of Rs.120/-. A.20

21. 04.11.2004 Encumbrance Certificate in No.1409/2004 issued by Sub Registrar, Sivagiri for the period from 01.01.1990 to 03.11.2004. A.21

22. -- Statement of Accounts. A.22

Sd/-