CANARA BANK vs Palanisamy on 18 January 2024

**ORDER**

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.13,97,928.85 together with future interest at the rate of 12% per annum with 2% penal interest from the date of Application, till the date of its realization, failing which b. to direct the Applicant Bank to bring the mortgaged property described hereunder for sale, and the sale proceeds appropriated for recovery a sum of Rs.13,97,928.85 together with future interest at the rate of 12% per annum with 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 1^st Defendant applied for Poultry Rearing Loan for a sum of Rs.7,00,000/- from the Applicant Bank for the purpose of construction of Poultry Shed on 15.12.2006. On the same day, the Applicant Bank sanctioned to the Defendants. For the sanction of the said loan, on 15.12.2006, the 1^st Defendant executed necessary documents in favour of the Applicant Bank. The 2^nd to 4^th Defendants 3TA 816/2019

offered their Guarantee for the loan availed by the 1^st Defendant and executed the Deed of Guarantee on 15.12.2006. The Defendants created an Equitable Mortgage over their property by Deposit of Title Deeds on 04.12.2006 for the above said facility and the same was confirmed by the Defendants by way of Letter of Evidencing Deposit of Title deeds on 08.12.2006 and the same was registered.

2.2. The Defendants though have availed loan facility, and they have not chosen to repay the loan installment amounts as agreed by them. Despite repeated demands and reminders made by the Applicant Bank, the Defendants has not paid the due loan amount. As such, on 30.06.2010, the Applicant Bank issued Lawyer Notice through their Lawyer and the same was received by the Defendants, the Defendants not deposit of any loan due amount. 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 01.02.2017.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by Mr.Karthi.B, Chief Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-10 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, for a sum of a sum of Rs.13,97,928.85 together with future interest at the rate of 12% per annum (Agricultural Loan), from the date of Application, till the date of its realization, failing which, 4TA 816/2019

b. the Applicant Bank is directed to bring the mortgaged property described in the hereunder for sale, and the sale proceeds appropriated for recovery of a sum of Rs.13,97,928.85 together with future interest at the rate of 12% (Agricultural Loan), 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 of a sum of Rs.13,97,928.85 together with future interest at the rate of 12% per annum (Agricultural Loan), from the date of Application, till the date of its realization,

b. On failure to pay, the Applicant Bank is directed to bring the mortgaged property described in the hereunder for sale, and the sale proceeds appropriated for recovery of a sum of Rs.13,97,928.85 together with future interest at the rate of 12% (Agricultural Loan), 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 18^th day of January, 2024.*

**[M.P. BALASUBRAMANIAN]** **PRESIDING OFFICER**

5TA 816/2019

**SCHEDULE OF PROPERTY**

Erode District, Erode Registration District, Thingalur Sub Registration District, Perundurai Taluk, Namittipalayam Village in R.S.No.68/1 P.H.0.18.0

R.S.No.67/2 P.H.0.11.0

R.S.No.67/4 P.H.0.24.0

R.S.No.67/5 P.H.0.23.0

R.S.No.67/6 P.H.0.19.0

R.S.No.67/7 P.H.0.20.5

----- Total P.H.1.15.5 -----

In total extent of P.H.1.15.5 with mamool pathway rights and other rights etc.

**[M.P. BALASUBRAMANIAN] PRESIDING OFFICER**

**PROOF AFFIDAVIT OF THE APPLICANT BANK**

1. Sri. Karthi. B, Chief Manager

**LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK**

<table border="1"> <thead> <tr> <th>Sl. No.</th> <th>Date</th> <th>Description of Document</th> <th>Exhibits</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>15.12.2006</td> <td>Original – Loan Application for Agricultural Credit – Short Term/Tem Loan executed by 1^st Defendant in favour of Applicant Bank.</td> <td>A.1</td> </tr> <tr> <td>2</td> <td>15.12.2006</td> <td>Original – Application for Poultry executed by 1^st Defendant in favour of Applicant Bank.</td> <td>A.2</td> </tr> <tr> <td>3</td> <td>15.12.2006</td> <td>Original – Memorandum of Agreement for Agricultural Loans executed by 1^st Defendant in favour of Applicant Bank.</td> <td>A.3</td> </tr> <tr> <td>4</td> <td>15.12.2006</td> <td>Original – Guarantee Covering Letters executed by the Defendants in favour of Applicant Bank.(3 Nos.)</td> <td>A.4</td> </tr> </tbody> </table>

6TA 816/2019

<table border="1"><tr><td>5</td><td>14.11.2008</td><td>Original – Acknowledgement of Debt and Security executed by 1^st, 2^nd &amp; 4^th Defendants in favour of Applicant Bank.</td><td>A.5</td></tr><tr><td>6</td><td>14.11.2008</td><td>Original – Acknowledgement of Debt and Security executed by 3^rd Defendant in favour of Applicant Bank.</td><td>A.6</td></tr><tr><td>7</td><td>04.11.2011</td><td>Original – Acknowledgement of Debt and Security executed by 1^st Defendant in favour of Applicant Bank.</td><td>A.7</td></tr><tr><td>8</td><td>08.12.2006</td><td>Original – Letter evidencing Deposit of Title Deeds executed by the Defendants in favour of the Applicant Bank.</td><td>A.8</td></tr><tr><td>9</td><td>30.06.2010</td><td>Office copy of the Legal Notice issued by the Lawyer of the Applicant Bank to the Defendants.</td><td>A.9</td></tr><tr><td>10</td><td>--</td><td>Statement of Accounts.</td><td>A.10</td></tr></table>

**[M.P. BALASUBRAMANIAN]** **PRESIDING OFFICER**