CANARA BANK vs RAMALINGAM on 23 October 2026

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant seeking issuance of a Recovery Certificate for recovery of a sum of Rs.44,94,948/- together with interest at the rate of 16.55% per annum compounded with half yearly rests from the date of the application till the date of realisation along with costs of the application and for sale of schedule mentioned property.

2. The subject matter of the case is the Farm Machinery Loan availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant 1 and 2 approached the applicant bank for grant of Farm Machinery Loan of Rs.6,50,000/- vide its application dated 01.06.2007 for purchase of Swaraj 735 Model FE (39 HP) Tractor, Trailer, 9 Tyne Cultivator, 7+7 Disc Harrow, Land Leveler and 5 Tyne Cultivator. Considering the request of the defendants 1 and 2 the applicant sanctioned a sum of Rs.6,50,000/- vide sanction dated 01.06.2007. Having availed the loan the defendants 1 and 2 executed Memorandum of Agreement for Agricultural Loans on 01.06.2007 in favor

of the applicant. The defendants also undertook to repay the loan in 9 yearly installments of Rs.72,300/- with last installment at Rs.71,600/-.

4. It is also the case of the applicant that the defendants jointly deposited the title deeds of the properties admeasuring an aggregate extent of 6 Acres and 04 cents comprised in various survey numbers of Siruvalai Village, Villupuram Taluk, Villupuram District more fully described in the schedule to the OA and confirmed creation of equitable mortgage by executing Memorandum of Deposit of Title deeds – Letter evidencing Deposit of Title deeds dated 29.05.2007 registered as Doc. No.724 of 2007, SRO, Anniyur.

5. It is the further case of the applicant some property belong to Mr. Kannappan, father of defendants 1, 2 and 4 and wife of 3rd defendant who died intestate on 11.01.2023 as evidenced in the death certificate dated 09.12.2003 and the defendants 1 to 4 are his legal heirs as per the legal heir certificate dated 17.11.2006 issued by Tahsildar, Villupuram.

6. It is also the case of the applicant that the defendants 1 and 2 purchased the Tractor, Trailer and other implements from machinery loan availed by them and had hypothecated the same in favour of the applicant.

7. It is also the case of the applicant bank that the defendant defaulted in repayment and hence the loan account was classified as NPA on

01.01.2020. The defendants 1 and 2 acknowledged the debt and liability on various dates by executing Acknowledgement of Debt and Security on 13.03.2010, 12.03.2013 and 19.01.2019 and as no payment was forthcoming the applicant bank seized the hypothecated tractors which was voluntarily surrendered by defendants 1 and 2 and was sold for a sum of Rs.1,20,000/- and the same was duly credited to the loan account.

8. It is the case of the applicant that despite the above action of the applicant, the defendants did not come forward to clear the dues, hence the applicant issued a legal notice on 29.01.2020 calling upon the defendants to clear the outstanding dues. The equitable mortgage executed in favour of applicant by defendants on 26.5.2007 was subsequently extended on 19.1.2019 as per acknowledgement of debt and security dated 19.1.2019 and the equitable mortgage subsists till this date. Despite the said notice the defendantS did not come forward to clear the outstanding dues, hence the present OA is filed for recovery of its dues.

9. Summons was taken out to the defendants returned with postal acknowledgement as “Refused”. As there was no representation for the defendants on 29.07.2022, the defendants were set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 18 documents, which were marked as Ex. A-1 to A-18 on 23.02.2024. however, Exhibits A-3, A-7, A-8 and A-17 were marked subject to proof and relevancy. The Ld. Counsel

for Applicant Bank made his submissions on 07.09.2026 and thereafter the matter stood till this date for passing final orders.

10. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendants?

(b) What order as to cost of the proceedings need be passed?

These issues are considered together.

11. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

12. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-18 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and rebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the

applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

13. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

14. In view of the fact that the loan facility availed by the defendants is an agricultural loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates.

15. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: - (a) TA No.641 of 2023 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.44,94,498/- with further interest @9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the schedule property and other assets of the defendants.

(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendants 1 and 2 are personally liable for all such amounts due as ordered above and the defendants 3 and 4 are liable only to the extent of the estates devolved upon them their deceased father Mr. Kannappan.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

16. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

Sd/-

(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 23rd day of October, 2026)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 01.06.2007 Loan Application by defendants 1 and 2 A-1

2. 01.06.2007 Appraisal Report by Applicant A-2

3. 01.06.2007 Sanction Memorandum by applicant bank A-3

4. 01.06.2007 Memorandum of Agreement for Agricultural loans by defendants 1 and 2 A-4

5. 29.05.2007 Memorandum of Deposit of Title deeds – registered as Doc. No.724/2007 A-5

6. 10.05.2007 Sale Deed in favour of defendants 1 and 2 – Doc. No.724 of 2007 with gist of translation A-6

7. 09.12.2003 Death Certificate of Mr. Kannappan A-7

8. 17.11.2006 Legal heir certificate of shri Kannappan with gist of translation A-8

9. 15.08.1974 Sale deed in favour of Kannappan, Doc. No.2820 of 1974 witn translation A-9

10. 24.09.1954 Sale deed in favour of Kannappan – Doc. No.73 of 1955 with gist of translation. A-10

11. 07.05.1943 Sale deed in favour of Kannappan – Doc. No.2249 of 1943 A-11

12. 13.03.2010 Acknowledgement of Debut and Security by 1st defendant A-12

13. 12.03.2013 Acknowledgement of Debut and Security by 1st defendant A-13

14. 12.02.2016 Acknowledgement of Debut and Security by 1st defendant A-14

15. 19.01.2019 Acknowledgement of Debut and Security by 1st defendant A-15

16. 19.01.2019 Acknowledgement of Debut and Security by 1st defendant A-16

17. 19.01.2019 Lawyer’s Notice A-17

18. Statements of Accounts A-18

Sd/-

DESCRIPTION OF PROPERTY

All that piece and parcel of agricultural lands measuring an aggregate extent of 6 Acres and 4 cents comprised in various Survey numbers of Siruvalai Village, Villupuram Taluk, Villupuram District.

S. No. Nature Survey Extent in Acres / Cents Hectares Document No.

1. Dry

2 Acres 44 cents

Boundaries for property comprised in Survey No.448/4 East by : Land of Muniya Padayatchi West by : Land of Koliyanuran North by : Lands of Veerasamy & Muniyathal South by : Land of Mannankatti

S. No. Nature Survey Extent in Acres / Cents Hectares Document No.

2. Dry

0 Acre 31 cents 0.12.5

3. Dry

0 Acre 86 cents 0.35.0

Including granite well, 5 HP Electric Motor Pumpset, S.C. No.12 & Security deposit. S. No. Nature Survey Extent in Acres / Cents Hectares Document No.

Dry

0 Acre 36 cents 0.14.5

5. Dry

0 Acre 32 cents 0.13.0

6. Dry

0 Acre 59 cents 0.24.0

7. Dry

1 Acre 16 cents out of 2 Acres 32 cents 0.94.0

Boundaries for property comprised in Survey No.410/2 East by : Tharisu Land in Survey No.170/1 West by : Land of Sengeni North by : Lands of Pavunambal South by : Land of Meyyan Vagaira Total extent 6 Acres and 04 cents The above properties are situated within the Registration District of Villupuram and Sub Registration District of Anniyur Sd/-