INDIAN OVERSEAS BANK vs V.A.Rangasamy on 7 September 2023

ORDER

1. This Original Application is filed by the Applicant Bank, under Section 19 of the RDBD & FI Act, 1993,

a. to direct the Defendants personally, jointly & severally to pay to the Applicant Bank a sum of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with penal interest at the rate of 2% p.a. with half yearly rests from the date of Application, till the date of its realization, failing which;

b. to direct to sell the hypothecated "A" Schedule property & mortgaged "B" Schedule property, which is mentioned hereunder, and the sale proceeds appropriated for recovery of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with penal interest at the rate of 2% p.a. with half yearly rests 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 approached the Applicant Bank for loan availing Term Loan for purchase of Tractor & Trailer and Kissan Credit Card Facility for his agriculture. The Applicant Bank considered the 1^st Defendant request, and sanctioned Kissan Credit Card Facility, the 1^st Defendant had accepted the terms and conditions and executed Demand Promissory Note for a sum of Rs.1,00,000/- on 22.12.2004 in favour of Applicant Bank by accepting the interest at the rate of 11% per annum with half yearly rests or such other rates as prescribed by the Reserve Bank of India from time to time.

3TA 1209/2019

2.2. The 1^st Defendant had executed Hypothecation Agreement by hypothecating the standing crops which are fully described in the "A" Schedule property mentioned hereunder. For the loan, the 2^nd Defendant is the Guarantor and executed Guarantee Deed on 22.12.2004 in favour of the Applicant Bank.

2.3. The Applicant Bank also sanction Term Loan to the 1^st Defendant on 22.03.2007, and availed Term Loan for a sum of Rs.6,60,000/- by the 1^st Defendant by accepting the Terms and Conditions and the 1^st Defendant executed a Demand Promissory Note on the same day and executed Letter containing Terms & Conditions and two Letters of Hypothecation on 22.03.2007. The 2^nd Defendant agreed to stand as Continuing Guarantor and executed Deed of Continuing Guarantor on 22.03.2007 in favour of the Applicant Bank.

2.4. For the above said two loans, the 1^st Defendant mortgaged "B" Schedule property as Security and has deposited his Title Deeds on 01.12.2004 with an intention to create an Equitable Mortgage over the said property and by confirming the same, the 1^st Defendant had executed a Letter Confirming Deposit of Title Deeds dated 02.12.2004 and executed letter of Supplemental Mortgage dated 21.03.2007 and executed a Registered Memorandum of Deposit of Title Deeds dated 21.03.2007 in favour of the Applicant Bank.

2.5. The Defendants had admitted and acknowledged their liabilities and executed Revival Letters dated 14.12.2007, 12.01.2010, 05.01.2013 in favour of the Applicant Bank.

2.6. After availed the loan facilities, the Defendants not properly repaid the said loans as agreed by them. Therefore they have committed default in repaying the said loans with interest & Costs. Despite repeated demands made by the Applicant Bank, the Defendants did not take any steps to discharge the loans. The Defendants are jointly and severally liable to repay the loan amount with interest. The Defendants are chronic defaulters, 4TA 1209/2019

therefore the Applicant Bank filed this OA, and this Hon'ble Tribunal may be allowed the OA with Costs.

3. The Defendants were set ex-parte on 20.02.2018.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr.K.Mayilvaganan, who is a Branch Manager of the Applicant Bank and marked the documents as Exts.A-1 to A-32 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, a sum of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with half yearly rests from the date of Application, till the date of its realization, failing which,

b. the Applicant Bank is directed to sell the mortgaged properties, which is described in the Schedule "A" hypothecated properties & Schedule "B" mortgaged property, and the sale proceeds appropriated to the loan accounts for recovery of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with half yearly rests 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 for a sum of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with half yearly rests from 5TA 1209/2019

the date of Application, till the date of its realization, failing which

b. it is hereby directed the Applicant Bank to sell the mortgaged properties, which is described in the Schedule "A" hypothecated properties & Schedule "B" mortgaged property, and the sale proceeds appropriated to the loan accounts for recovery of Rs.26,59,095/- (Rs.2,37,568/- towards Kissan Cash Credit Facility + Rs.24,21,527/- towards Term Loan) with subsequent interest at the rate of 11% per annum with half yearly rests 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 7^th day of September, 2023.

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

6TA 1209/2019**SCHEDULE OF PROPERTIES****'A' Schedule – Hypothecation****Item No.1**

All existing standing & future standing crops in 'B' Schedule mortgage properties.

**Item No.2**

Tractor bearing Chassis No.BZCSY10786613, Engine No.3100F62L107434 & Registration No.TN-36-K-8012 and Trailer bearing Chassis No.TLW/032/APR/2007 & Registration No.TN-36-K-8020 used to ply all over Tamil Nadu and used to park at 'B' Schedule mortgage properties and at Mokkal Thottam, Vettuvanpudur, Senrayampalayam Village, Gobi Taluk, Erode District – 638 506.

**'B' Schedule Mortgage Properties****(Property belonging to 1^st Defendant Thiru. V.A. Rangasamy)**

Erode District, Gobichettipalayam Registration District, Thuckanayakanpalayam Sub Registration District, Gobichettipalayam Taluk, Senrayampalayam Village, land in new S.No.168/1 measuring 1.62.0 Hectare (4 acre) with common half share in the well with motor pumpset etc., within the following boundaries.

- On the North : Land belonging to Karuppusamy & Ramasamy

- On the East : Land belonging to Sadayappa Gounder

- On the South : Land belonging to Rangasamy

- On the West : Land belonging to Ramasamy.

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

7TA 1209/2019**PROOF AFFIDAVIT OF THE APPLICANT BANK**

Mr.K.Mayilvaganan, Branch Manager

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

<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>22.12.2004</td> <td>Original – Demand Promissory Note executed by the 1^st Defendant in favour of the Applicant Bank for a sum of Rs.1.00 Lakh.</td> <td>A.1</td> </tr> <tr> <td>2</td> <td>22.12.2004</td> <td>Original – Hypothecation Agreement (Agricultural Advance) executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.2</td> </tr> <tr> <td>3</td> <td>22.12.2004</td> <td>Original – Deed of Guarantee for Cash Credits executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A.3</td> </tr> <tr> <td>4</td> <td>--</td> <td>Statement of Accounts maintained by the Applicant Bank of the 1^st Defendant with Certificate.</td> <td>A.4</td> </tr> <tr> <td>5</td> <td>22.03.2007</td> <td>Original – Demand Promissory Note executed by the 1^st Defendant in favour of the Applicant Bank for a sum of Rs.6,60,000/-.</td> <td>A.5</td> </tr> <tr> <td>6</td> <td>22.03.2007</td> <td>Original – Letter of Terms &amp; Conditions executed by the Defendants.</td> <td>A.6</td> </tr> <tr> <td>7</td> <td>22.03.2007</td> <td>Original – Letter of Hypothecation Agreement (Agricultural Advance) executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.7</td> </tr> <tr> <td>8</td> <td>22.03.2007</td> <td>Original – Deed of Hypothecation executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.8</td> </tr> <tr> <td>9</td> <td>22.03.2007</td> <td>Original – Deed of Guarantee executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A.9</td> </tr> <tr> <td>10</td> <td>25.05.2007</td> <td>Xerox Copy of Registration Certificate of Tractor bearing Registration No.TN-36-K-8012 in favour of 1^st Defendant.</td> <td>A.10</td> </tr> <tr> <td>11</td> <td>25.05.2007</td> <td>Xerox Copy of Registration Certificate of Trailer bearing Registration No.TN-36-K-3020 in favour of 1^st Defendant.</td> <td>A.11</td> </tr> <tr> <td>12</td> <td>--</td> <td>Statement of Accounts maintained by the Applicant Bank of the 1^st Defendant with Certificate.</td> <td>A.12</td> </tr> </tbody> </table>

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<tr> <td>13</td> <td>02.12.2004</td> <td>Original – Letter Confirming Deposit of Title Deeds executed by executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.13</td> </tr> <tr> <td>14</td> <td>21.03.2007</td> <td>Original – Letter of Supplemental Mortgage executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.14</td> </tr> <tr> <td>15</td> <td>21.03.2007</td> <td>Original – Registered Memorandum of Deposit of Title Deeds executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.15</td> </tr> <tr> <td>16</td> <td>14.12.2007</td> <td>Original – Revival Letter executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.16</td> </tr> <tr> <td>17</td> <td>14.12.2007</td> <td>Original – Revival Letter executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A.17</td> </tr> <tr> <td>18</td> <td>12.01.2010</td> <td>Original – Revival Letter executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.18</td> </tr> <tr> <td>19</td> <td>12.01.2010</td> <td>Original – Revival Letter executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A,19</td> </tr> <tr> <td>20</td> <td>05.01.2013</td> <td>Original – Revival Letter executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.20</td> </tr> <tr> <td>21</td> <td>05.01.2013</td> <td>Original – Revival Letter executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A.21</td> </tr> <tr> <td>22</td> <td>28.12.2015</td> <td>Original – Revival Letter executed by the 1^st Defendant in favour of the Applicant Bank.</td> <td>A.22</td> </tr> <tr> <td>23</td> <td>28.12.2015</td> <td>Original – Revival Letter executed by the 2^nd Defendant in favour of the Applicant Bank.</td> <td>A.23</td> </tr> <tr> <td>24</td> <td>10.09.2003</td> <td>Original – Gift Deed executed by Muthaayal in favour of Rangasamy – 1^st Defendant.</td> <td>A.24</td> </tr> <tr> <td>25</td> <td>24.06.1949</td> <td>Certified Copy of Sale Deed executed by Pachamoopachi &amp; Muthaal in favour of Maramoopan.</td> <td>A.25</td> </tr> <tr> <td>26</td> <td>19.08.2004</td> <td>Original – Certificate issued by VAO, Periyakodivery Village in favour of 1^st Defendant.</td> <td>A.26</td> </tr> <tr> <td>27</td> <td>10.08.2004</td> <td>Patta issued by Zonal Deputy Tehsildar, Gobichettipalayam standing in the name of Kanniyammal &amp; Others in S.F.No.260 of 003 Sendrayampalayam.</td> <td>A.27</td> </tr> <tr> <td>28</td> <td>10.08.2004</td> <td>"A" Register issued by Zonal Deputy Tehsildar, Gobichettipalayam standing in the name of Kanniyammal &amp; Others in S.F.No.168, Old</td> <td>A.28</td> </tr> </table>

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<tr> <td></td> <td></td> <td>S.F.No.111-A, 111-C of 003<br/>Sendrayampalayam.</td> <td></td> </tr> <tr> <td>29</td> <td>10.08.2004</td> <td>Extract of Adangal for Fasli 1413 issued by Zonal Deputy Tehsildar, Gobichettipalayam standing in the name of Kanniyammal &amp; Others in S.F.No.168, of 003 Sendrayampalayam.</td> <td>A.29</td> </tr> <tr> <td>30</td> <td>19.08.2004</td> <td>Kist Receipt for Fasli 1413 issued by VAO, Senrayamapalayam Village standing in the name of Rangasamy.</td> <td>A.30</td> </tr> <tr> <td>31</td> <td>28.08.2002</td> <td>Death Certificate of Maramoopan issued by Periyakodiveri Panchayat.</td> <td>A.31</td> </tr> <tr> <td>32</td> <td>22.10.2004</td> <td>Legal Heir Certificate of Maramoopan in respect of Tmt.Muthaayaal issued by Tehsildar, Gobichettipalayam.</td> <td>A.32</td> </tr> </table>

[M.P. BALASUBRAMANIAN] PRESIDING OFFICER