CANARA BANK vs P.R. DHAKISHNAMOORTHY on 13 March 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 1668/2019

a. to direct the Defendants personally, jointly and severally to pay to the Applicant Bank a sum of Rs.19,15,178/- with subsequent

Application, to till the date of realization, failing which

b. to direct the Applicant Bank to bring the hypothecated property which is mentioned hereunder for sale and the sale proceeds appropriated for recovery of a sum of Rs.19,15,178/- with subsequent interest @ 15.95% per annum with half yearly rests from the date of Application, to till the date of 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 purchase of Tractor & Trailer and its accessories. The Applicant Bank has also sanctioned the said Term Loan for a sum of Rs.6,50,000/-. The 2nd Defendant stood as co-obligant for the loan availed by the 1st Defendant.

2.2. In consideration of the said Term Loan, on 30.08.2015, the 1st Defendant executed a Memorandum of Agreement for Agricultural Loan for a sum of Rs.6,50,000/- in favour of Applicant Bank containing various terms & conditions by hypothecating the said Tractor, Trailer & its accessories which are fully described in the Schedule hereunder and agreeing to repay the loan amount 8 annual installments of Rs.74,000/- each and 9th installment of Rs.58,000/- with interest in favour of the Applicant Bank.

2.3. Further, the 2nd Defendant, who stood as co-obligant has executed covenants of co-obligant in favour of the Applicant Bank by agreeing and undertaking various terms and conditions. Further, Defendants promised to repay the loan amount with compound 3 TA 1668/2019

interest at the rate of 10.75% per annum with half yearly rests or such other rates as may be revised by the Bank from time to time with penal interest at the rate of 2% per annum in case of default.

2.4. The Defendants admitting and acknowledging their liabilities and have executed Letters of Acknowledgement of Debt and Security dated 15.01.2008, 14.12.2010 & 06.10.2013 in favour of the Applicant Bank. The Defendants have not repaid the said loans as agreed and promised by them. They have committed default in repaying the loan amount. Despite repeated demands made by the Applicant Bank, the Defendants did not take any sincere steps to discharge the loan. Therefore, the Applicant Bank is constrained to file this Original Application and prays this Hon’ble Tribunal may be allowed the OA with Costs.

3. The Defendants were called absent and set ex-parte on 18.01.2018.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr.S.S.Muralikrishna, Chief Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-6 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 Defendants personally, jointly and severally to pay for a sum of Rs.19,15,178/- with subsequent interest @ 15.95% per annum with half yearly rests from the date of Application, to till the date of realization, failing which

b. to direct the Applicant Bank to bring the hypothecated property which is mentioned hereunder for sale and the sale proceeds 4 TA 1668/2019

appropriated for recovery of a sum of Rs.19,15,178/- with subsequent

Application, to till the date of realization, with Costs of this OA.

6. In the result,

a. it is hereby directed that the Defendants personally, jointly and severally to pay to the Applicant Bank for a sum of Rs.19,15,178/- with subsequent interest @ 15.95% per annum with half yearly rests from the date of Application, to till the date of realization.

b. On failure, it is hereby directed that the Applicant Bank to bring the hypothecated property which is mentioned hereunder for sale and the sale proceeds appropriated for recovery of a sum of Rs.19,15,178/- with subsequent interest @ 15.95% per annum with half yearly rests from the date of Application, to till the date of 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 13th day of March, 2024.

Sd/-

[M.P. BALASUBRAMANIAN]

5 TA 1668/2019

SCHEDULE OF HYPOTHECATED GOODS

Tractor bearing Engine No.3A08239G4, Chassis No.08164G5 and Reg. No.TN-36-J-0178 and Trailer Reg. No.TN-36-J-0178 and all other accessories such as rotavator etc., used to ply all over Tamil Nadu and used to park & kept at Door No.4/1, Ayyan Thottam, Paruvachi, Bhavani Taluk, Erode District. Sd/-

M.P. BALASUBRAMANIAN PRESIDING OFFICER PROOF AFFIDAVIT OF THE APPLICANT BANK

1. Shri.S.S.Muralikrishna, Chief Manager. LIST OF DOCUMENTS MARKED BY THE APPLICANT BANK

Sl. No. Date Description of Document Exhibi ts

30.08.2005 Original – Memorandum of Agreement for Agricultural Loans executed by the 1st Defendant along with Covenants of the Co- Obligant executed by 2nd Defendant in favour of Applicant Bank. A.1

15.01.2008 Original – Acknowledgement of Debt and Security executed by the 1st Defendant in favour of Applicant Bank. A.2

15.01.2008 Original – Acknowledgement of Debt and Security executed by the 1st Defendant in favour of Applicant Bank. A.3

14.12.2010 Original – Acknowledgement of Debt and Security executed by the 1st Defendant in favour of Applicant Bank. A.4

06.10.2013 Original – Acknowledgement of Debt and Security executed by the 1st Defendant in favour of Applicant Bank. A.5

Statement of Accounts with certificate A.6

Sd/-

M.P. BALASUBRAMANIAN

6 TA 1668/2019