CANARA BANK vs V K ESWARAN on 12 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,

a. to direct the Defendant personally to pay to the Applicant Bank a sum of Rs.2,09,452/- under Minor Irrigation with subsequent 2 TA 1390/2019

interest @ 13.45% with monthly rests + 2% penal interest per annum, from the date of Application, till the date of its realization,

b. to direct the Defendant personally to pay to the Applicant Bank a sum of Rs.18,06,931/- under AFM with subsequent interest @ 14.20% with monthly rests + 2% penal interest per annum, from the date of Application, till the date of its realization, failing which,

c. to direct the Applicant Bank to bring the “A” – Schedule hypothecated assets & “B” Schedule Mortgaged Property mentioned hereunder for sale and the sale proceeds appropriated for recovery of a sum of Rs.2,09,452/- under Minor Irrigation with subsequent interest @ 13.45% with monthly rests + 2% penal interest per annum and a sum of Rs.18,06,931/- under AFM with subsequent interest @ 14.20% with monthly rests + 2% penal interest per annum, 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 :

The Defendant availed various credit facilities from the Applicant Bank for developing his Agricultural Activities. It was considered by the Applicant Bank. The Loan details sanctioned by the Applicant Bank are detailed hereunder: Sl. No. Type of Loan Date of Loan Loan Amount Date of execution of documents

1. Minor Irrigation

Rs.1,00,000/- 20.01.2005

2. AFM 26.09.2006 Rs.7,40,000/- 26.09.2006

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2.2. The above said loan was sanctioned and Availment of the Defendant executed necessary documents and the details of the interest, repayment and present outstanding are detailed hereunder : Sl. No. Nature of Loan Rate of Interest Repayment Schedule Outstanding Loan amount as on 09.12.2015

1. Minor Irrigation 13.45% + 2% PI 8 Yearly installments of Rs.11,100/- & 9th Year Installment of Rs.11,200/- with interest Rs. 2,09,452/-

2. AFM 14.20% + 2% PI 9 Yearly instalments of Rs.82,300/- with interest Rs.18,06,931/-

3. TOTAL Rs.20,16,383/-

2.3. The Defendant also created mortgage over his property by Deposit of Title Deeds dated 18.01.2005 in favour of Applicant Bank and the same was confirmed by LEDTD Dt.19.01.2005 and enhanced the limit on 21.09.2006 and the same was registered. The Defendant executed the Acknowledgement of Debt and Security for the said Loan on 10.12.2007, 02.09.2009, 07.06.2010, 05.06.2012, 24.05.2013 & 05.05.2015.

2.4. After availing the loans, the Defendant has not repaid the loans as agreed and promised by him. Thus the Defendant has committed default in repaying the loans. Despite repeated demands made by the Applicant Bank, the Defendant did not take any steps to discharge the loan. Therefore, the Applicant Bank filed this OA against the Defendants and this Hon’ble Tribunal may be allowed the OA with Costs.

3. The Defendant was called absent and set ex-parte on 22.08.2017.

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4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Shri.P.Sathish Kumar, Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-14 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 on the basis of the claim in the Proof Affidavit filed by the Applicant Bank.

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

a. from the Defendant personally for a sum of Rs.20,16,383/- [Rs.2,09,452/- Under Minor Irrigation & Rs.18,06,931/- Under AFM] with subsequent interest at the rate of 12% p.a. being an Agricultural Loan from the date of Application, till the date of its realization, failing which,

b. the Applicant Bank is directed to bring the “A” – Schedule hypothecated assets & “B” Schedule - Mortgaged Property mentioned hereunder for sale and the sale proceeds appropriated for recovery of a sum Rs.20,16,383/- [Rs.2,09,452/- Under Minor Irrigation & Rs.18,06,931/- Under AFM] with subsequent interest at the rate of 12% p.a. being an 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 that the Defendant personally to pay to the Applicant Bank a sum of Rs.20,16,383/- [Rs.2,09,452/- Under Minor Irrigation & Rs.18,06,931/- Under AFM] with subsequent interest at the rate of 12% p.a. being an Agricultural Loan from the date of Application, till the date of its realization 5 TA 1390/2019

b. On failure to pay, the Applicant Bank is hereby directed to bring the “A” – Schedule hypothecated assets & “B” Schedule Mortgaged Property mentioned hereunder for sale and the sale proceeds appropriated for recovery of a sum Rs.20,16,383/- [Rs.2,09,452/- Under Minor Irrigation & Rs.18,06,931/- Under AFM] with subsequent interest at the rate of 12% p.a. being an 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 12th day of February, 2024.

Sd/-

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SCHEDULE OF PROPERTIES “A” – SCHEDULE HYPOTHECATED PROPERTY Tractor bearing its Reg.No.TN-36-K-4263 Trailer bearing its Reg. No.TN-36-K-4299 “B” SCHEDULE MORTGAGED PROPERTY

Erode District, Ammapettai SubRD., Bhavani Taluk, Vellithirupur Villalge, land in RS.No.242/2, RS No.237/3c extent punjai acre 4.90 cents bounded within the following boundaries :

North

: Land of Kandappa Gounder

South

: Land of Arumuga Gounder

East

: Land of Rasammal

West

: Land of Somasundaram Land Sd/-

PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Mr.P. Sathish Kumar, Manager LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK

Sl. No. Date Description of Document Exhibits

12.01.2005 Original – Comprehensive Application – cum – Appraisal Report for Minor Irrigation/Farm Development/Land Development Activities executed by the Defendant in favour of Applicant Bank. A.1

Original – Memorandum of Agreement for Agricultural Loans executed by the Defendant in favour of Applicant Bank. A.2

12.09.2006 Original – Agricultural Loan Application (Short/Long Term Loan) executed by the Defendant in favour of Applicant Bank. A.3

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Original – Memorandum of Agreement for Agricultural Loans executed by the Defendant in favour of Applicant Bank. A.4

02.02.2007 Xerox copy of Form of Certificate of Registration for TN-36-K-4263 in favour of Defendant and Xerox copy of Form of Certificate of Registration for TN-36-K-4299 in favour of Defendant. A.5

19.01.2005 Original – Letter evidencing Deposit of Title Deeds executed by the Defendant in favour of Applicant Bank. A.6

21.09.2006 Original – Letter Evidencing Deposit of Title Deed executed by the Defendant in favour of Applicant Bank. A.7

10.12.2007 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.8

02.09.2009 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.9

07.06.2010 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.10

05.06.2012 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.11

24.05.2013 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.12

05.05.2015 Original – Acknowledgement of Debt and Security executed by the Defendant in favour of Applicant Bank. A.13

-- Statement of Accounts. A.14

Sd/-