INDIAN OVERSEAS BANK vs V N Magudeswaran on 4 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.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term Loan – II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of 14.25%, 12.20% & 10.45% p.a. with monthly rests plus 2% penal interest, from 19.12.2015, till the date of its realization, failing which

b. to direct the Applicant Bank to bring the Hypothecated Goods described in “A” Schedule and mortgaged properties described in the “B” Schedule for sale, which are mentioned hereunder and the sale proceeds appropriated for recovery of Rs.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term – II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of 14.25%, 12.20% & 10.45% p.a. with monthly rests plus 2% penal interest, from 19.12.2015, 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 Defendants have approached the Applicant Bank for availing Term Loan – I for a sum of Rs.1,56,182/-, Term Loan – II for a sum of Rs.11,39,451/- and Kissan Credit Card Facility for a sum of Rs.3,00,000/-. The Term Loans I & II for the Defendants and the Kissan Credit Card Facility for the 1st Defendant. The Applicant Bank has sanctioned the three loans.

2.2. After availing of the Term Loan – I, on 29.06.2007, the Defendants have executed Demand Promissory Note for a sum of Rs.1,56,182/- by promising to repay the loan amount with interest at the rate of 12% per annum with monthly rests and Letter containing Term & Conditions. Further, on 25.06.2010 and 14.06.2013 the Defendants admitting and acknowledging their liabilities have executed Revival Letters in favour of the

2.3. After availing of the Term Loan – II, on 27.09.2010, the Defendants have executed Demand Promissory Note for a sum of Rs.11,39,451/- by promising to repay the loan amount with interest at the rate of 10.75% per annum with monthly rests and Letter containing Term & Conditions. Further, on 01.08.2013 the Defendants admitting and acknowledging their liabilities have executed Revival Letter in favour of the Applicant Bank.

2.4. After availing of the Kissan Credit Card Facility, on 11.01.2012, the 1st Defendant have executed Demand Promissory Note for a sum of Rs.3,00,000/- by promising to repay the loan amount with interest at the rate of 7% per annum with monthly rests, Letter of Continuity and Hypothecation Agreement by hypothecating the standing crops described in the “A” Schedule in favour of the Applicant Bank. Further, on 01.08.2013, the 1st Defendant admitting and acknowledging his liabilities have executed Revival Letter.

2.5. For the above said loans, the 1st Defendant has offered his properties, described in “B” Schedule as security and had deposited / constructive re- deposited the Title Deeds on 30.12.2003, 08.05.2007, 06.09.2010 and 28.11.2011 with the Applicant Bank with an intention to create an Equitable Mortgage over the said properties by confirming the same, the 1st Defendant has executed registered Memorandum of Deposit of Title Deeds dated 22.05.2007, 14.09.2010 and Supplemental Memorandum of Deposit of Title Deeds dated 05.12.2011. Therefore, the Applicant Bank is the Mortgagee entitled to take action against the mortgage properties.

2.6. 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 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 26.02.2018.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by Sri.A.E.Manickavelu, Senior Manager, of the Applicant Bank and marked the documents as Exts.A-1 to A-29 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.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term Loan – II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of 14.25% p.a with monthly rests, 12.20% p.a with monthly rests & 10.45% p.a. with half yearly rests respectively from the date of Application, till the date of its realization, failing which

b. the Applicant Bank is directed to bring the Hypothecated Goods described in “A” Schedule and mortgaged properties described in the “B” Schedule for sale, which are mentioned hereunder and the sale proceeds appropriated for recovery of Rs.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term Loan– II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of 14.25% p.a with monthly rests, 12.20% p.a with monthly rests & 10.45% p.a. with half yearly rests respectively, from the date of Application, till the date of its realization with Costs of this OA.

7. In the result,

a. it is hereby directed the Defendants personally, jointly & severally, to pay to the Applicant Bank a sum of Rs.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term Loan – II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of 14.25% p.a with monthly rests, 12.20% p.a with monthly rests & 10.45% p.a. with half yearly rests respectively, from the date of Application, till the date of its realization.

b. On failure, the Applicant Bank is directed to bring Hypothecated Goods described in “A” Schedule and mortgaged properties described in the “B” Schedule for sale, which are mentioned hereunder and the sale proceeds appropriated for recovery of Rs.2,38,924/- towards Term Loan – I, Rs.20,55,437/- towards Term Loan – II and Rs.4,28,479/- towards Kissan Credit Card Facility with subsequent interest at the rate of of 14.25% p.a with monthly rests, 12.20% p.a with monthly rests & 10.45% p.a., with half yearly rests respectively from the date of Application, till the date of its realization with Costs of this OA.

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

9. 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.

10. 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 04th day of January, 2024.

Sd/-

[M.P. BALASUBRAMANIAN]

SCHEDULE OF PROPERTIES ‘A’ SCHEDULE – Hypothecated Goods All standing crops situated at ‘B’ Schedule mortgage properties.

“B” SCHEDULE – MORTGAGE PROPERTIES

ITEM No.1 (Properties belonging to 1st Defendant

Vide Annexure-II for Title Deeds)

a) Erode District,

District, Gobichettipalayam Joint No.II Sub Registration District, Gobichettipalayam Taluk, Nagadevempalayam Village, land measuring 6 acre 83 cents out of which 1 acre in S.No.84 corresponding to S.No.477/3, 4, 8 and 1/6th share in the Well and motor pumpset thereon within the following boundaries

On the North : Land belonging to Ramasamy Gounder

On the East : Land belonging to Velliangiri

On the South : Land belonging to Shanmugasundaram

On the West : Panchayat Road

b) Erode District,

District, Gobichettipalayam Joint No.II Sub Registration District, Gobichettipalayam Taluk, Nagadevempalayam Village, land measuring 5 acre 28 cents out of which 2 acre 26 cents in old S.No.91 corresponding to new S.No.479/1, 2, 3 and 1/3rd share in the Well thereon within the following boundaries

On the North : Cart Track

On the East : Land belonging to Duraisamy

On the South : Land belonging to Karuppusamy

On the West : Land belonging to Velliangiri

c) Erode District,

District, Gobichettipalayam Joint No.II Sub Registration District, Gobichettipalayam Taluk, Nagadevempalayam Village, land measuring 7 acre 44 cents out of which 1 acre 38 cents in old S.No.43/1 corresponding to new S.No.463/5 within the following boundaries

: Land belonging to Karuppanna Gounder

On the East : LBP Channel

On the South : LBP Channel

On the West : Land belonging to Palanisami Item No.2 (Properties belonging to 1st Defendant Vide Annexure – III for Title Deeds) Erode District,

District, Gobichettipalayam Joint No.II Sub Registration District, Gobichettipalayam Taluk, Nagadevempalayam Village, land measuring 0.19.5 hectares in old S.No.84 corresponding to new S.No.477/3 within the following boundaries

On the North : Land belonging to Ramasamy

On the East : Land belonging to Karuppanan

On the South : Land belonging to Magudeswaran

On the West : Land belonging to Magudeswaran

Sd/-

[M.P. BALASUBRAMANIAN]

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

1. 29.06.2007 Original – Demand Promissory Note executed by the Defendants in favour of the Applicant Bank. A.1

29.06.2007 Original – Letter of Terms and Conditions executed by the Defendants in favour of the Applicant Bank. A.2

25.06.2010 Original – Revival Letter executed by the A.3

14.06.2013

A.4

-- Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business. A.5

27.09.2010 Original – Demand Promissory Note executed by the Defendants in favour of the Applicant Bank. A.6

27.09.2010 Original – Letter of Terms & Conditions executed by the Defendants in favour of the Applicant Bank. A.7

01.08.2013

A.8

-- Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business. A.9

11.01.2012 Original – Demand Promissory Note executed by the 1st Defendant in favour of the Applicant Bank. A.10

11.01.2012 Original – Letter of continuity executed by the 1st Defendant in favour of the Applicant Bank. A.11

11.01.2012 Original – Letter of Hypothecation Agreement executed by the 1st Defendant in favour of the Applicant Bank. A.12

01.08.2013

A.13

-- Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business. A.14

22.05.2007 Original – Registered Memorandum of Deposit of Title Deed executed by the 1st Defendant in favour of the Applicant Bank. A.15

14.09.2010 Original – Registered Memorandum of Deposit of Title Deed executed by the 1st Defendant in favour of the Applicant Bank. A.16

05.12.2011 Original – Registered Memorandum of Deposit of Title Deed executed by the 1st Defendant in favour of the Applicant Bank. A.17

24.01.1973 Original – Partition Deed entered between A.18

Nallsamy Gounder and Masiriammal.

17.12.2003 Original – Certificate issued by VAO, 35 B Nagathevampalayam Village, Gobichettipalayam Taluk. A.19

29.01.2001 Original – Kist Receipt for Fasli 1410 A-II-3 in favour of Magudeswaran & Dhanasekaran. A.20

27.06.2001 Carbon Copy of Kist Receipt for Fasli 1410 A- II-4 in favour of Magideswaran & Dhanasekaran. A.21

19.11.2003 Original – Patta issued by Head Quarters Deputy Thasildar, Gobichettipalayam in favour of Nallasamy Gounder & Others. A.22

19.11.2003 Original – Adangal Extracts for Fasli 1411 issued by Head Quarters Deputy Thasildar, Gobichettipalayam in favour of Nallasamy Gounder & Others. A.23

04.12.2003 Resurvey Settlement Extract issued by VAO, 35 – B- Nagathevampalayam in favour of Nallasamy Gounder and Others. A.24

12.06.1974 Original – Sale Deed executed by the Sellappa Gounder & Veerappa Gounder in favour of Magudeswaran. A.25

13.08.2010 Original – Patta issued by Head Quarters Deputy Thasildar, Gobichettipalayam in favour of Nallasamy Gounder, Magudeswaran & Dhanasekaran. A.26

07.08.2010 Adangal Extract for Fasli 1418 issued by Zonal Deputy Tahsildar, Gobichettipalayam in favour of Magudeswaran, Nallasamy, Chellappa Gounder. A.27

19.09.2010 Kist Receipt for Fasli 1418 & 1419 issued by VAO, Nagathevampalayam in favour of Magudeswaran. A.28

18.08.2010 Original – Certificate issued by VAO, 35 – B- Nagadevampalayam Village, Gobichettipalayam Taluk. A.29

Sd/-

[M.P. BALASUBRAMANIAN]