INDIAN OVERSEAS BANK vs S K Thangaraj on 27 February 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, 2 TA 1174/2019

a. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank for a sum of Rs.26,500/- with subsequent interest at the rate of 9% per annum with half yearly rests plus 2% overdue interest from the date of Application, till the date of its realization towards Term Loan-I;

b. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank for a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests plus 2% overdue interest from the date of Application, till the date of its realization towards Term Loan-II;

c. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank for a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests plus 2% over due interest from the date of Application, till the date of its realization towards Kissan Credit Card Facility; failing which

d. to direct the Applicant Bank to bring the Hypothecated Goods & Mortgaged Properties described as Schedule – “A” & “B” Properties hereunder for sale, and the sale proceeds for appropriated for recovery of

9% per annum with half yearly rests plus 2% overdue interest from the date of Application, till the date of its realization ;

ii. for a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests plus 2% overdue interest from the date of Application, till the date of its realization ; 3 TA 1174/2019

iii. a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests plus 2% over due interest from the date of Application, till the date of its realization with Costs of the 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 – I for a sum of Rs.36,000/- for purchase of two wheeler and Term Loan – II for a sum of Rs.6,40,000/- for the purchase of Tractor & Trailer and Kissan Cash Credit Facility to the limit of Rs.3,00,000/- for his agriculture. The Applicant Bank has also sanctioned the said Term Loans & Kissan Cash Credit Facility.

2.2. In consideration of the Term Loan – I, the 1st Defendant has executed a Demand Promissory Note on 09.11.2006 for a sum of Rs.36,000/- in favour of the Applicant Bank, promising to repay the loan amount on demand with interest at the rate of 9% per annum with half yearly rests or such other rates as prescribed by the Reserve Bank of India from time to time, Letter containing Terms & Conditions, Letter of Hypothecation by hypothecating the two wheeler which is fully described in the “A” Schedule hereunder and by promising to repay the loan in 8 yearly installments of Rs.4,500/- with interest at the rate of 9% per annum with half yearly rests or at such other rates or rest as may be revised by the Applicant Bank from time to time.

2.3. The 2nd Defendant agreed to stand as Continuing Guarantor for the repayment of the said loan with interest & Costs thereon and executed Agreement of Continuing Guarantee on 09.11.2006 in favour 4 TA 1174/2019

of Applicant Bank. The 1st Defendant admitting & acknowledging their liabilities towards the said loan, the 1st Defendant has executed Revival Letters dated 07.11.2009, 02.11.2012 & 23.10.2015 in favour of the Applicant Bank.

2.4. In consideration of the Term Loan – II, the 1st Defendant has executed a Demand Promissory Note on 01.08.2008 for a sum of Rs.6,40,000/- in favour of the Applicant Bank, promising to repay the loan amount on demand with interest at the rate of 14% per annum with half yearly rests or such other rates as prescribed by the Reserve Bank of India from time to time, Letter containing Terms & Conditions, Letter of Hypothecation by hypothecating the Tractor & Trailer which is fully described in the “A” Schedule hereunder and by promising to repay the loan in 18 half yearly installments of Rs.35,556/- with interest at the rate of 15% per annum with half yearly rests or at such other rates or rest as may be revised by the Applicant Bank from time to time.

2.5. The 1st Defendant admitting & acknowledging their liabilities towards the said loan, the 1st Defendant has executed Revival Letters dated 28.07.2011 & 10.07.2014 in favour of the Applicant Bank.

2.6. In consideration of the Kissan Credit Card Facility, the 1st Defendant has executed a Demand Promissory Note on 16.08.2007 for a sum of Rs.3,00,000/- in favour of the Applicant Bank, promising to repay the loan amount on demand with interest at the rate of 7% per annum with half yearly rests or such other rates as prescribed by the Reserve Bank of India from time to time, Letter of Continuity, Hypothecation Agreement by hypothecating the standing crops which are fully described in the “A” Schedule hereunder.

5 TA 1174/2019

2.7. The 1st Defendant admitting & acknowledging their liabilities towards the said loan, the 1st Defendant has executed Revival Letters dated 04.08.2010 & 19.07.2013 in favour of the Applicant Bank.

2.8. In Consideration of the above said Loans & Facility, the 1st Defendant offered his Properties which are more fully described in the “B” Schedule hereunder as Security and deposited and redeposited his Title Deeds on 19.07.2007 and 02.08.2008 with the Applicant Bank and confirming the same, the 1st Defendant executed a Registered Memorandum of Deposit of Title Deeds on 24.07.2007 and Supplemental Memorandum of Deposits of Title Deeds on 27.07.2010 pertaining to the said properties in favour of the Applicant Bank.

2.9. The Applicant Bank demanded the Defendants to repay the loan and on various dates, when the Applicant Bank demanded the Defendants for the repayment of the loan dues and when the Defendants failed to repay the loan dues. Therefore, the Applicant Bank filed this OA against the Defendants for Recovery of the loan dues with interest and this Hon’ble Tribunal may be allowed the OA with Costs.

3. The Defendants were called absent and set ex-parte on 10.01.2018.

4.1. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr.Nithin V. Bhaskar, Branch Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-61 in support of its claim in the OA.

5. The Ld. Counsel for the Applicant Bank submitted Written Arguments and reiterated the statements made by the Applicant Bank. A cumulative analysis of both the Proof Affidavit and documents 6 TA 1174/2019

marked by the Applicant Bank would prove on the basis of the claim in the Proof Affidavit filed by the Applicant Bank.

6. 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 Rs.26,500/- with subsequent interest at the rate of 9% per annum with half yearly rests from the date of Application, till the date of its realization towards Term Loan-I;

b. from the 1st Defendant a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests from the date of Application, till the date of its realization towards Term Loan-II;

c. from the 1st Defendant a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests from the date of Application, till the date of its realization towards Kissan Credit Card facility; failing which

d. to direct the Applicant Bank to bring the Hypothecated Goods & Mortgaged Properties described as Schedule – “A” & “B” Properties hereunder for sale, and the sale proceeds for appropriated for recovery of

9% per annum with half yearly rests from the date of Application, till the date of its realization ;

ii. for a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests from the date of Application, till the date of its realization ; 7 TA 1174/2019

iii. a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests from the date of Application, till the date of its realization with Costs of the OA.

7. In the result,

a. it is hereby directed that the Defendants personally, jointly & severally to pay to the Applicant Bank for a sum of Rs.26,500/- with subsequent interest at the rate of 9% per annum with half yearly rests from the date of Application, till the date of its realization towards Term Loan-I;

b. it is hereby directed that the 1st Defendant to pay to the Applicant Bank for a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests from the date of Application, till the date of its realization towards Term Loan-II ;

c. it is hereby directed that the 1st Defendant to pay to the Applicant Bank for a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests from the date of Application, till the date of its realization towards Kissan Credit Card Facilitiy;

d. On failure, that the Applicant Bank is hereby directed to bring the Hypothecated Goods & Mortgaged Properties described as Schedule – “A” & “B” Properties hereunder for sale, and the sale proceeds for appropriated for recovery of

9% per annum with half yearly rests from the date of Application, till the date of its realization ;

8 TA 1174/2019

ii. for a sum of Rs.18,20,000/- with subsequent interest at the rate of 14% per annum with half yearly rests from the date of Application, till the date of its realization ;

iii. a sum of Rs.6,95,000/- with subsequent interest at the rate of 10.45% per annum with half yearly rests from the date of Application, till the date of its realization with Costs of the 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 27th day of February, 2024.

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9 TA 1174/2019

SCHEDULE OF PROPERTIES ‘A’ Schedule – Hypothecated Goods Item No.1

Two Wheeler bearing Reg.No.TN-36-K-2506 used to ply all over Tamil Nadu and used to park at Door No.194, Pekkattu Thottam, Mugasi Pudur, Bhavani, Erode District – 638 314. Item No.2

Tractor bearing Chasis No.BZCSB135693/3 and Engine No.3100EL82A136299 and bearing Registration.No.TN-36-W-4332 and Trailer bearing Chasis No.SEW023/09/08 and bearing Registration.No.TN- 36-W-4330 used to ply all over Tamil Nadu and used to park at Door No.194, Pekkattu Thottam, Mugasi Pudur, Bhavani, Erode District – 638

314. Item No.3

All standing crops at “B” Schedule Mortgage Properties.

“B” SCHEDULE – Mortgage Properties (Property belonging to 1st Defendant) Item No.1

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 1 Acre 10 cents in old S.No.128 corresponding to RS.No.151/4. Item No.2

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 17 cents in old S.No.122/A corresponding RS No.153/3.

10 TA 1174/2019

Item No.3

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, an undivided 1/3 shares in a land measuring 9 cents in old S.No.122/A, B corresponding RS.No.153/4. Item No.4

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 11 ½ cents in old S.No.122/B corresponding RS.No.153/5 and another land measuring 28 ½ cents in S.No.122/B, C corresponding to RS. No.153/7 totaling 40 cents. Item No.5

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, an undivided 1/3 shares in a land measuring 15 cents in S.No.122/C corresponding RS.No.153/8 with 5HP motor & pumpset. Item No.6

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 66 cents in S.No.122/D corresponding RS.No.153/9. Item No.7

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, Old S.No. RS.No. Extent in Hec.

0.07.0

0.02.0

0.08.0

11 TA 1174/2019

0.06.5

0.17.5

0.11.5

0.09.5

0.18.5

0.02.5

Total 0.90.5

Total land measuring 2 Acres 24 Cents and Well in S.No.154/11. Item No.8 Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, Old S.No. RS.No. Extent in Hec.

0.03.0

0.09.0

0.42.0

0.10.5

0.02.5

Total 0.67.0 Total land measuring 1 Acre 66 Cents. Item No.9 Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, Old S.No. RS.No. Extent in Hec.

0.20.5

0.43.0

Total 0.71.0 Total land measuring 1 Acre 76 Cents.

12 TA 1174/2019

Item No.10 Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, Old S.No. RS.No. Extent in Hec.

0.01.0

0.01.0

0.07.0

0.79.5

Total 0.96.5

Total land measuring 2 Acres 39 Cents. Item No.11

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, Old S.No. RS.No. Extent in Hec.

0.18.0

0.09.0

0.21.0

0.04.5

0.05.5

0.06.0

Total 0.63.5

Total land measuring 1 Acre 57 Cents. Item No.12 Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, 13 TA 1174/2019

Old S.No. RS.No. Extent in Hec.

0.18.0

0.15.5

Total 0.32.5

Total land measuring 80 Cents. Item No.13

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring undivided half share 8 cents in S.No.116 corresponding to RS.No.159/3. Item No.14

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 40 cents in S.No.116 corresponding to RS.No.159/4. Item No.15

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 1 Acre 25 cents in S.No.116 corresponding to RS.No.159/7. Item No.16

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 29 cents in S.No.116 corresponding to RS.No.159/12. Item No.17

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 14 cents in S.No.116 corresponding to RS.No.159/15.

14 TA 1174/2019

Item No.18

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 16 cents in S.No.116 corresponding to RS.No.159/13. Item No.19

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 8 cents in S.No.116 corresponding to RS.No.159/9 along with 5HP motor, well etc., Item No.20

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 49 cents in old S.No.111 corresponding RS.No.164/2 and another land measuring 44 cents in S.No.111, corresponding to RS.No.164/3 totaling 93 cents. Item No.21

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 45 cents in old S.No.107 corresponding RS.No.166/8. Item No.22

Erode District, Erode Registration District, Ammapettai Sub Registration District, Bhavani Taluk, Poonachi Village, land measuring 38 cents in old S.No.121 corresponding RS.No.166/12.

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15 TA 1174/2019

PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Shri. Nithin V. Bhaskar, Branch Manager. LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK

Sl. No. Date Description of Document Exhibits

09.11.2006 Original – Demand Promissory Note executed by the 1st Defendant in favour of the Applicant Bank. A.1

09.11.2006 Original – Letter containing terms & conditions executed by the 1st Defendant in favour of the Applicant Bank. A.2

09.11.2006 Original – Letter of

Defendant in favour of the Applicant Bank. A.3

09.11.2006 Original – Deed of Guarantee executed by the 1st Defendant in favour of the Applicant Bank. A.4

07.11.2009 Original – Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.5

02.11.2012 Original - Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.6

23.10.2015 Original - Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.7

-- Copy of Statement of Accounts. A.8

01.08.2008 Original – Demand Promissory Note executed by the 1st Defendant in favour of the Applicant Bank. A.9

01.08.2008 Original – Letter containing Terms & Conditions executed by the 1st Defendant in favour of the Applicant Bank. A.10

01.08.2008 Original – Letter of

Defendant in favour of the Applicant Bank. A.11

01.08.2008 Original – Letter of Hypothecation executed by the 1st Defendant in favour of the Applicant Bank. A.12

28.07.2011 Original - Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.13

10.07.2014 Original - Revival Letter executed by the 1st A.14

16 TA 1174/2019

Defendant in favour of the Applicant Bank.

29.09.2008 Original – Registration Certificate of Tractor bearing Registration No.TN-36-W-4332. A.15

26.09.2008 Original – Registration Certificate of Trailer bearing Registration No.TN-36-4330. A.16

-- Copy of Statement of Accounts. A.17

16.08.2007 Original - Demand Promissory Note executed by the 1st Defendant in favour of the Applicant Bank. A.18 18A 16.08.2007 Original – Letter of continuity executed by the 1st Defendant in favour of the Applicant Bank. A.18A 18B 16.08.2007 Original – Letter of

Defendant in favour of the Applicant Bank. A.18B

04.08.2010 Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.19

19.07.2013 Revival Letter executed by the 1st Defendant in favour of the Applicant Bank. A.20

-- Copy Statement of Accounts. A.21

24.07.2007 Original – Registered Memorandum of Deposit of Title Deeds executed by the 1st Defendant in favour of the Applicant Bank. A.22

27.07.2010 Original – Registered Supplemental Memorandum of Deposit of Title Deeds executed by the 1st Defendant in favour of the Applicant Bank. A.23

07.08.1928 Original – Registered Sale Deed executed by Bethi Reddi in favour of Ellammal (Doc.No.2100/28). A.24

23.08.1933 Original – Registered Sale Deed executed by Ellammal & Another in favour of Rame Reddi (doc.No.1533/33). A.25

02.04.1936 Original – Registered Sale Deed executed by Venkatta Reddi in favour of Sengoda Gounder (Doc.No.457/36). A.26

25.01.1937 Original – Registered Sale Deed executed by Basuva Reddi in favour of Ramasamy Reddi (Doc.No.112/37). A.27

09.04.1944 Original – Registered Sale Deed executed by A.28

17 TA 1174/2019

Perumal Reddi in favour of Kuppu Reddi (Doc.No.593/44).

24.04.1945 Original – Registered Sale Deed executed by Kuppu Reddi in favour of Sengoda Gounder (Doc.No.739/45). A.29

03.11.1950 Original – Registered Sale Deed executed by Kuppammal & Another in favour of Sengoda Gounder (Doc.No.2760/50) A.30

11.07.1959 Original – Registered Sale Deed executed by Krishna Reddi in favour of Karuppayamal (Doc.No.1535/59). A.31

05.06.1961 Original – Registered Sale Deed executed by Perumal Reddiar & Others in favour of minor Kandasamy Gounder & Another (Doc.No.1323/62). A.32

02.05.1963 Original – Registered Sale Deed executed by Sinnapalani Gounder & Others in favour of Sengoda Gounder (DocNo.778/63). A.33

05.02.1971 Original – Registered Sale Deed executed by Perumal Reddiar & Others in favour of Karuppayammal (Doc.No.145/71). A.34

05.02.1973 Original – Registered Sale Deed executed by Perumal & Others in favour of Kandasamy Gounder (Doc.No.187/73). A.35

29.05.1975 Original – Registered Sale Deed executed by Kandasamy & others in favour of Minor Selvam & Another (Doc.No.893/75). A.36

07.07.1976 Original – Registered Sale Deed executed by Kandasamy in favour of Pongiammal (Doc.No.1070/76). A.37

05.05.1992 Original – Registered Partition Deed executed by entered into between Sengoda Gounder & Others (Doc.No.777/92). A.38

03.09.1992 Original – Registered Sale Deed executed by Pacha Gounder in favour of Kandasamy (Doc.No.1358/92). A.39

26.08.1993 Original – Registered Sale Deed executed by Ramasamy & others in favour of Kandasamy (Doc.No.641/93). A.40

30.05.1994 Original – Registered Sale Deed executed by Chinnasamy in favour of Kandasamy A.41

18 TA 1174/2019

(Doc.No.508/94).

22.02.1996 Original – Registered Sale Deed executed by Subramaniam & Others in favour of Thagaraj @ Sengottaian (Doc.No.170/96). A.42

1012.1997 Original – Registered Sale Deed executed by Maniammal in favour of Selvam & Another (Doc.No.1508/97). A.43

05.02.2001 Original – Registered Partition Deed entered into between Kandasamy & Others (Doc.No.439/01) A.44

19.09.2006 Original - Patta issued by Head Quarters Deputy Tahsildar, Bhavani standing in the name of Jayaraman & Another. A.45

19.09.2007 Original - Patta issued by Head Quarters Deputy Tahsildar, Bhavani standing in the name of Thangaraj. A.46

19.09.2006 Original - Patta issued by Head Quarters Deputy Tahsildar, Bhavani standing in the name of Thangaraj. A.47

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thagaraj. A.48

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thagaraj & Others. A.49

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Kandasamy & Others. A.50

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thagaraj & Others. A.51

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Semba Gounder & Others. A.52

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Jayaraman & Others. A.53

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thangaraj. A.54

19 TA 1174/2019

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thangaraj. A.55

29.05.2007 Original – ‘A’ Register issued by Head Quarters Deputy Tahsildar, Bhavani standing the name of Thangaraj. A.56

09.03.2007 Original – Kist Receipt issued by VAO, Poonachi standing in the name of Thangaraj. A.57

28.04.2007 Original – Possession Certificate issued by Poonachi VAO. A.58

-- Original – Extract of Adangal issued by VAO, Poonachi standing in the name of Thangaraj 1415 Fasli. A.59

-- Original – Extract of Adangal issued by VAO, Poonachi standing in the name of Thangaraj 1415 Fasli. A.60

28.04.2007 Original – Extract of Adangal issued by VAO, Poonachi standing in the name of Thangaraj. A.61

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