Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs K P Krishna Samy on 9 May 2023
**IN THE DEBTS RECOVERY TRIBUNAL AT COIMBATORE**
**PRESENT: SHRI. M.P. BALASUBRAMANIAN, M.A., B.L., PRESIDING OFFICER**
DATED THIS 09<sup>TH</sup> DAY OF MAY, 2023.
**TRANSFERRED APPLICATION No. 194 OF 2019**
Between
Canara Bank,
Represented by its Branch Manager,
Malayapalayam Branch,
Malayapalayam,
Gobichettipalayam,
Erode District.
... Applicant Bank.
And
Mr. K.P. Krishnasamy,
S/o. C.K. Palani Goundar,
Magaaliamman Kovil Thottam,
Chellamuthu Nagar,
Kottupulampalayam Post,
Gobichettipalayam,
Erode District.
... Defendant
Appearance of Advocates :
Counsel for Applicant Bank
None for Defendant
: Shri. C. Jawahar Ravindran
: Defendant set exparte.
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**ORDER**
This Original Application is filed by the Applicant Bank, under Section 19 of the RDDB & FI Act, 1993, 2TA No.194 - 2019
a. to direct the Defendant to pay to the Applicant Bank for a sum of Rs.20,47,164/- for term loan with interest at the rate of 11.65% interest calculated up to 31.03.2016, together with penal interest at the rate of 2% from the date of this Application, till the realization ;
b. to pass an order to sell mortgaged property i.e., Schedule "A" & hypothecated property i.e., Schedule "B" of the OA schedule mentioned properties of for recovery of the amounts : and for Costs of the OA.
**BRIEF FACTS**
2. The Averments made by the Applicant Bank in the Application are stated as follows :
2.1. The Defendant applied the Applicant Bank seeking Term Loan for a sum of Rs.5,40,000/- to purchase a new Tractor, Gauge Wheel, Trailer and Accessories. The Defendant agreed to pay interest at the rate 11.25% p.a. for the Term Loan or at such rates may be revised by the Applicant Bank from time to time. The Defendant agreed to deposit the Original Title Deeds of his properties with the Applicant Bank as security for the Term Loan.
2.2. The Defendant had agreed for all the terms and conditions, the Applicant Bank sanctioned the Term Loan of Rs.5,40,000/- to the Defendant. On 12.05.2006, the Defendant availed Term Loan of Rs.5,40,000/- from the Applicant Bank and executed the necessary documents in favour of the Applicant Bank, such as Loan Application, Sanction Memorandum, Memorandum of Agreement for Agricultural Loan, Memorandum of Deposit of Title Deeds.
2.3. Thereafter, the Defendant had agreed to repay the Term Loan in yearly instalments at Rs.95,675/- for 9 years with interest. The Defendant had hypothecated the Tractor, Gauge Wheel, Trailer and Accessories, which are mentioned as "B" Schedule in OA Schedule mentioned properties with the Applicant Bank.
3TA No.194 – 2019
2.4. The Defendant also deposited the Original Title Deeds of his properties, which are mentioned as "A" Schedule in OA Schedule mentioned Properties with an intention to create equitable mortgage as security for Term Loan and on 10.05.2007, the Defendant had executed Memorandum of Deposit of Title Deeds in favour of the Applicant.
2.5. The Defendant has not repaid the loan as agreed by him. The Defendant was very irregular to repay the loan instalments inspite of various reminders and repeated demands by the Applicant Bank. On 31.07.2008, 18.01.11 & 15.06.2014 the Defendant had executed Acknowledgement of Debt and Security in favour of the Applicant Bank. The Applicant Bank has called upon the Defendant to discharge his liability in full, by issuing Legal Notice on 18.03.2013. Therefore, the Applicant Bank is come forward with the present OA is filing seeking to recover the dues by enforcing the securities. As such, this Hon'ble Tribunal may be allowed the OA with costs.
3. The Defendant was called absent and set exparte on 14.02.2018.
4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. N. Piramanayagam, who is the Senior Manager of the Applicant Bank and marked the documents as Exs.A.1 to A.19, in support of its Original Claim. 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 Original Application.
5. Therefore, in view of the observations made supra, the OA stands allowed and the Applicant Bank is entitled to recover from the
a. the Defendant to pay to the Applicant Bank a sum of Rs.20,47,164/- for term loan with interest at the rate of 11.65%, calculated upto 31.03.2016, together with penal interest at the rate of 2% from the date of this Application, till the realization, failing which 4TA No.194 – 2019
b. the Applicant Bank is directed to bring the properties, which are mentioned as "A" Schedule (Hypothecated Property) & "B" Schedule (Mortgaged Properties) for sale and to realize its dues with costs of this OA.
6. In the result,
a. the Defendant to pay to the Applicant Bank a sum of Rs.20,47,164/- for term loan with interest at the rate of 11.65%, calculated upto 31.03.2016, together with penal interest at the rate of 2% from the date of this Application, till the realization, failing which
b. the Applicant Bank is directed to bring the properties, which are mentioned as "A" Schedule (Hypothecated Property) & "B" Schedule (Mortgaged Properties) for sale and to realize its dues 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 09th day of May, 2023.*
**SCHEDULE OF PROPERTIES**
**SCHEDULE -"A"**
Gopichettipalayam Registration District, Gopichettipalayam Joint I Sub Registrar Office, Erode District, Gopichettipalayam Taluk, Kottupulampalayam Village.
5TA No.194 - 2019
<table border="1"> <thead> <tr> <th>Sl.No.</th> <th>Survey No.</th> <th>Extent</th> <th>Boundaries</th> </tr> </thead> <tbody> <tr> <td>i.</td> <td>144/1<br/>144/3<br/>144/4<br/>(O.S.F.Nos.<br/>113/A1, 113/A3,<br/>114/1, 114/3,<br/>168/B,C)</td> <td>0.54.0 Hec.<br/>0.03.0 Hec.<br/>0.93.0 Hec.<br/><br/>1.50.0 Hec. in<br/>this<br/>0.67.5 Hec.<br/>(1.66 Acre)</td> <td>North : S.F.No.143<br/>South : S.F.No.177<br/>East : L.B.P.A. Vaikal<br/>West : S.F.No.145</td> </tr> <tr> <td>ii.</td> <td>180/1</td> <td>1.29.0 Hec. in<br/>this<br/>0.43.0 Hec.<br/>(1.06 Acre)</td> <td>North : S.F.No.177<br/>South : Subramanian Land<br/>East : S.F.No.181<br/>West : S.F.No.178</td> </tr> <tr> <td>iii.</td> <td>154/2</td> <td>3.42.0 Hec in<br/>this<br/>0.40.5 Hec.<br/>(1.00 Acre)</td> <td>North : Subramanian Land<br/>South : Subramanian Land &<br/>Nanjeya Gounder Land<br/>East : Pallam<br/>West : Palanisamy Land</td> </tr> <tr> <td>iv.</td> <td>154/2</td> <td>3.42.0 Hec in<br/>this<br/>0.40.5 Hec.<br/>(1.00 Acre)</td> <td>North : Karuppana Gr. Land<br/>South : Palani Gounder<br/>East : Pallam<br/>West : Nanjaya Gr. Land</td> </tr> <tr> <td rowspan="3">v.</td> <td rowspan="3">154/2</td> <td>3.42.0 Hec in<br/>this<br/>0.40.5 Hec.<br/>Plot (1)<br/>0.80.0 Hec.</td> <td>North : Palani Gr. Land<br/>South : Nanjeya Gr. Land<br/>East : Nanjeya Gr. Land<br/>West : S. Palani Gr. Land</td> </tr> <tr> <td>Plot (2)<br/>0.24.5 Hec.</td> <td>North : Palani Gr. Land<br/>South : Palani Gr. Land<br/>East : Pallam<br/>West : Nanjeya Gr. Land</td> </tr> <tr> <td>Plot (3)<br/>0.08.0 Hec.</td> <td>North : Subaiya Gr. Land<br/>South : Kuppana Gr. Land</td> </tr> </tbody> </table>
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<tr> <td></td> <td></td> <td></td> <td>East : Pallam</td> </tr> <tr> <td></td> <td></td> <td></td> <td>West : Karuppana Gr. Land</td> </tr> </table>
(1.00 acre)
1/6 share in the well in S.F.No.52/1, 1/8<sup>th</sup> share in the well in S.F.No.154/2 LBP Vaikkal Pasanam, Mamool way and all appurtenances attached thereto. Total 5.72 acres.
SCHEDULE - "B"
Tractor bearing Registration No.TN36 J 8299, Gauge Wheel, Trailer and accessories.
**PROOF AFFIDAVIT OF THE APPLICANT BANK**
1. 1. Mr. N. Piramanagayam, Senior Manager.
LIST OF DOCUMENTS FILED 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>12.05.2006</td> <td>Original Loan Application.</td> <td>A.1</td> </tr> <tr> <td>2</td> <td>12.05.2006</td> <td>Original Sanction Memorandum of Applicant Bank.</td> <td>A.2</td> </tr> <tr> <td>3</td> <td>06.05.2012</td> <td>Original Memorandum of Agreement for Agricultural Loans.</td> <td>A.3</td> </tr> <tr> <td>4</td> <td>01.07.2006</td> <td>Xerox copy of Form of Certificate of Registration of SWARAJ Tractor (Agriculture) in Registration No.TN36 J 8299in favour of Defendant KP. Krishnasamy and Original Farmers' Package Insurance Policy.</td> <td>A.4</td> </tr> <tr> <td>5</td> <td>10.05.2006</td> <td>Original Memorandum of Deposit of Title Deeds executed by K.P. Krishnasamy in favour of Canara Bank.</td> <td>A.5</td> </tr> </tbody> </table>
7TA No.194 - 2019
<tr> <td>6</td> <td>12.06.1984</td> <td>Original Sale Deed executed by Kuppanna Gounder, Ponnusamy and Chinnasamy in favour of K.P. Krishnasamy.</td> <td>A.6</td> </tr> <tr> <td>7</td> <td>13.06.1984</td> <td>Original Sale Deed executed by Kuppanna Gounder, Ponnusamy and Chinnasamy in favour of K.P. Krishnasamy.</td> <td>A.7</td> </tr> <tr> <td>8</td> <td>20.03.2000</td> <td>Original Partition Deed executed between Nanjammal, K.P. Subiramaniyam, K.P. Krishnasamy & K.P. Kothandapani.</td> <td>A.8</td> </tr> <tr> <td>9</td> <td>25.04.2006</td> <td>Original Adangal Extract in respect of 1414 Fasali in respect of 40 Kottupullampalayam, Gobichettipalayam Circle, Erode District in respect of Land S.No.154/2, 144/1, 144/4 of</td> <td>A.9</td> </tr> <tr> <td>10</td> <td>24.04.2006</td> <td>Original "A" Register in respect of 31 Gobichettipalayam, 040 Kottupullampalayam in respect of Land New S.No.144/1, 144/3, 144/4 & 154/2, Old S.F.Nos.113-A-1, 114-1, 165-B, 165-C, 113-3-A, 114-3, 113-A-3 & 161. (2 Sheets - 4 Pages).</td> <td>A.10</td> </tr> <tr> <td>11</td> <td>24.04.2006</td> <td>Original Patta-228 of S.Nos.144-1, 144-3, 144-2, 172-2 Gobichettipalayam, 040 Kottupullampalayam in favour of K.P. Krishnasamy, Perumal Gounder, P. Kothandapani, P. Subramaniyam & Original Patta-228 of S.No.154-2 Gobichettipalayam, 040 Kottupullampalayam in favour of Nanjappa Gounder, Karuppanna Gounder, Palani Gounder, Veerappa Gounder, Senniyammal, Krishnasamy, Palaniyammal, Chandrasekar & Karthigeyan.</td> <td>A.11</td> </tr> <tr> <td>12</td> <td>15.03.2006</td> <td>2 Original Kist receipts in respect of K.P. Krishnasamy in respect of Patta Nos. 228, 472, 484, 855.</td> <td>A.12</td> </tr> <tr> <td>13</td> <td>25.04.2006</td> <td>Original VAO Certificate issued in respect of S.F.No.144/1, 4 & 154/2 in favour of K.P. Krishnasamy.</td> <td>A.13</td> </tr> <tr> <td>14</td> <td>--</td> <td>Encumbrance Certificates (3 Nos.) in respect of Old S.F.Nos.113/A1, 113/A3, 114/1 114/3, 168/B, C, 172/A, 154/2, for the period from 01.01.1974 to 14.09.1980 (1), 15.09.1980 to 31.12.1986 (2) & 01.01.1987 to 21.04.2008 (3).</td> <td>A.14</td> </tr> </table>
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<table border="1"><tr><td>15</td><td>31.07.2008</td><td>Original Acknowledgement of Debt & Security executed by the Defendant in favour of Applicant Bank.</td><td>A.15</td></tr><tr><td>16</td><td>18.06.2011</td><td>Original Acknowledgement of Debt & Security executed by the Defendant in favour of Applicant Bank.</td><td>A.16</td></tr><tr><td>17</td><td>15.06.2014</td><td>Original Acknowledgement of Debt & Security executed by the Defendant in favour of Applicant Bank.</td><td>A.17</td></tr><tr><td>18</td><td>18.03.2013</td><td>Legal Notice issued on behalf of Applicant Bank to the Defendant.</td><td>A.18</td></tr><tr><td>19</td><td>19.09.2018</td><td>Statement of Account for the period from 01.01.2006 to 19.09.2018.</td><td>A.19</td></tr></table>