INDIAN OVERSEAS BANK vs A.Vijayalakshmi 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,

a. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank a sum of Rs.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests plus 2% penal interest, from the date of Application, till the date of its realization, failing which

b. to direct to sell the, hypothecated goods more fully described in the Schedule ‘A’ and mortgaged properties described in the Schedule ‘B’, which are mentioned hereunder and the sale proceeds appropriated for recovery of Rs.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests plus 2% penal interest, 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. The 1st Defendant approached the Applicant Bank for availing Term Loan for a sum of Rs.14,87,000/- for her business. The Applicant Bank has sanctioned the said Term Loan. Therefore, the 1st Defendant had executed a Demand Promissory Note on 26.03.2012 for the above said amount in favour of the Applicant Bank by promising to repay the loan amount with interest at the rate of 12.75% per annum with monthly rests or at such other rates as prescribed by the Reserve Bank of India from time to time.

2.2. Further, on 26.03.2012, the Defendants have executed Letter containing Terms & Conditions & the 1st Defendant executed two Letters of Hypothecation & Term Loan Agreement by hypothecating 3 TA 1086/2019 the goods which are described in ‘A’ Schedule hereunder in favour of Applicant Bank and promising to repay the loan in 84 monthly installments of Rs.27,000/- each with interest at the rate of 12.75% per annum with monthly rests or at such other rates as prescribed by the Reserve Bank of India from time to time.

2.3. For the above said Term Loan, the 2nd Defendant agreed to stand as continuing guarantor for the repayment and executed Deed of Continuing Guarantee on 26.03.2012 in favour of the Applicant Bank. The 2nd Defendant has continuing Guarantor is Co-extensive for the 1st Defendant. The 2nd Defendant deposited his title deeds and executed a Registered Mortgage Deed on 13.03.2012. On 19.11.2014 the 2nd Defendant had executed Revival Letter for the said loan dues and on 21.01.2015 & 29.03.2015 the 1st Defendant executed Revival Letters in favour of the Applicant Bank. As such, both the Defendants are personally, jointly and severally liable to repay the loan dues with interest.

2.4. Inspite of repeated Demands and several reminders made by the Applicant Bank to the Defendants, the Defendants did not pay the due loan amounts. As such the Accounts became irregular and classified as Non Performance Assets and the Applicant Bank issued Demand Notice u/s.13(2) of the SARFAESI Act on 02.07.2014, by claiming a sum of Rs.16,22,830/- as on 02.07.2014. The Defendants failed to repay the loan dues. 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 11.08.2017.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by Mr.A.E.Manickavelu, Senior Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-12 in support of its claim in the OA. A cumulative analysis of both the Proof 4 TA 1086/2019 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.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests from the date of Application, till the date of its realization, failing which

b. the Applicant Bank is directed to bring the hypothecated goods more fully described in the Schedule ‘A’ and mortgaged properties described in the Schedule ‘B’, for sale and the sale proceeds appropriated for recovery of Rs.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests 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.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests, from the date of Application, till the date of its realization.

b. On failure, the Applicant Bank is directed to bring the hypothecated goods more fully described in the Schedule ‘A’ and mortgaged properties described in the Schedule ‘B’ for sale and the sale proceeds appropriated for recovery of Rs.21,33,229/- with interest at the rate of 11.70% per annum with monthly rests, 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.

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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, 2024)

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6 TA 1086/2019 SCHEDULE OF PROPERTIES ‘A’ SCHEDULE – Hypothecated Goods

Siruba 5 Thread, 4 Thread & Multi Needle Machineries with accessories etc., all stored, kept & erected at Door No.18/9, Pattappan Street, Kummikarukku, Kolappalur Post, Gobichettipalayam Taluk, Erode District – 638 456. ‘B’ SCHEDULE – Mortgage Properties (Property belonging to 2nd Defendant) Item No.1

Erode District, Gobichettipalayam Registration District, Gobichettipalayam Joint No.I Sub Registration District, Gopichettipalayam Taluk, Kolappalur Village, Kolappalur Town, Pattappan Street, a house site measuring East-West 20 feet both on the Northern & Southern sides and North-South 73 feet both on the Eastern & Western side totaling 1460 Sq. ft. in old S.No.142 corresponding to new RS.No.284/10 and building constructed thereon bearing old Door Nos.18 & 18A corresponding to New Door Nos.8 & 9 within the following boundaries.

On the North : House belonging to Patta Boyan

On the East : House belonging to Venkatrama Boyan & others On the South : Land belonging to Nagammal

On the West : House belonging to Rama Boyan, Chetti Boyan

& Others Item No.2 Erode District, Gobichettipalayam Registration District, Gobichettipalayam Joint No.I Sub Registration District, Gopichettipalayam Taluk, Kolappalur Village, Kolappalur Town, Pattappan Street, a house site measuring East-West 76 feet both on the Northern & Southern sides and North-South 54 feet both on the Eastern & Western side totaling 4104 Sq. ft. in old S.No.142 corresponding to new RS.No.284/10 and building constructed thereon within the following boundaries.

7 TA 1086/2019 On the North : House belonging to Venkatrama Boyan & Others On the East : North-South Ettari On the South : Land belonging to K.P. Muthusamy On the West : Land belonging to Nagammal & Item No.1 herein. Sd/-

PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Sri. A.E. Manickavelu, Senior Manager. LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK Sl. No. Date Description of Document Exhibits

26.03.2012 Original – Demand Promissory Note executed by the 1st Defendant in favour of the Applicant Bank. A.1

26.03.2012 Original – Letter of Terms & Conditions executed by the Defendants in favour of the Applicant Bank. A.2

26.03.2012 Original – Letter of Hypothecation executed by the 1st Defendant in favour of the Applicant Bank. A.3

26.03.2012 Original – Letter of Hypothecation executed by the 1st Defendant in favour of the Applicant Bank. A.4

26.03.2012 Original – Term Loan Agreement executed by the 1st Defendant in favour of the Applicant Bank. A.5

26.03.2012 Original – Deed of continuing Guarantee executed by the 2nd Defendant in favour of the Applicant Bank. A.6

13.03.2012 Original – Registered Mortgage Deed executed by the 2nd Defendant in favour of the Applicant Bank. A.7

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19.11.2014 Original – Revival Letter executed by the 2nd Defendant in favour of the Applicant Bank. A.8

21.01.2015 Original – Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.9

20.03.2015 Original – Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.10

02.07.2014 Demand Notice u/s.13(2) of the SARFAESI Act by the Applicant Bank to the Defendants. A.11

-- Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business. A.12

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