Allowed

Canara Bank v. Yes Leathers

DRT6 Nov 2025OA/123/2022

Case brief

AI extract

What is this about?

In this Original Application under the RDB Act, the Debts Recovery Tribunal adjudicated a recovered debt claim by Canara Bank against a proprietary manufacturing firm and its financial guarantors. Confirming the application as unchallenged and allowing the final order, the Tribunal directed the recovery of a substantial principal sum along with accrued interest from the respondents.

What did the court decide?

Recovery of total sum of Rs.5,28,51,005.78 with interest and costs from the defendants jointly and severally.

Canara Bank versus Yes Leathers — Banking and Recovery | DRT (2025)

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O.A. No. 123 of 2022

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06.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 123 of 2022

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Canara Bank, Kellys Corner Branch, No.207, Purasawalkam High Road, Chennai-600 007, Rep. by its Chief Manager. ….Applicant

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-Vs-

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M/s. Yas Leathers, Rep. by its Proprietor Mr.A.Mohideen Batcha, At No.2, Patnool Sardar Jung Street, Periamet, Chennai-600 003.

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Mr.A.Mohideen Batcha, S/o.Mr.Abdul Khader, At No.38, S.P.Nagar, Second Koodaiparaipatti, Begumpur, Pithalaipatti, Dindigul-624 002.

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Mrs.Yasmine, W/o.Mr.A.Mohideen Batcha, At Old No.34, New No.26, Kalyana Sundaram Street, Perambur, Chennai-600 011. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Kesavan

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Defendants were set ex-parte on 17.06.2022

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O.A. No. 123 of 2022

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06.11.2025

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: - FINAL ORDER - :

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This Original Application is filed on 11.02.2022 by the Applicant Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants jointly and severally for recovery of a total sum of Rs.5,28,51,005.78p (Rupees Five Crores Twenty Eight Lakhs Fifty One Thousand and Five and Seventy Eight Paise Only) as follows;

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(i) A sum of Rs.4,19,94,858.11p due in respect of OD/OCC limit

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(A/c No.0907261010408), repayable together with further interest @ 15.50%, p.a. compounded with monthly rests from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.68,70,836.72p due in respect of GECL Facility (A/c No.0907755000024), repayable together with further interest @ 7.50%, p.a. compounded with monthly rests from the date of filing the OA till date of realization in full;

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(iii) A sum of Rs.39,85,310.95p due in respect of WCTL Facility (A/c No.0907746000016), repayable together with further interest @ 13.90% p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full;

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for sale of immovable property and hypothecated goods more fully

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detailed in Schedule A and B to the OA respectively and for costs of this application;

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the Applicant Bank that the 2^nd defendant is the proprietor of the 1^st defendant and they are trading in semi-finished and finished goat and cow leathers as well as manufacturing / professing of raw leathers at No.2, Patnool Sardar Jung Street, Periamet, Chennai-3, which has been established by the 1^st defendant on 01.04.2013. In order to develop their manufacturing / trading activities, the defendants required working capital by way of ODCC limit. In this connection, the 1^st defendant represented through its Proprietor, the 2^nd defendant herein approached the Applicant bank to grant ODCC limit of Rs.15 Lakhs to meet their working capital requirements. Moreover, the 1^st defendant also specifically agreed to hypothecate the stocks and book debts as prime security as well as agreed to create immovable security in respect of his properties.

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It is submitted by the applicant bank that considering the said request, the applicant bank had sanctioned the said limit under ODCC limit

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for a sum of Rs.15 Lakhs, based on the submission of the loan application on 02.07.2013. The Applicant further states that in furtherance of these developments, necessary request for over draft facility has been submitted by the 1^st defendant on 15.07.2013. At the time of availment of ODCC limit of Rs.15 Lakhs, the defendants have executed the following documents to and in favour of the applicant bank on 15.07.2013:

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(i) Cash Credit Agreement.

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(ii) Pronote for Rs.15 Lakhs.

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(iii) Guarantee covering letter together with Guarantee Agreement by the 2^nd defendant.

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(iv) Guarantee covering letter together with Guarantee Agreement by Mr.Zahir Hussain.

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It is further submitted by the applicant bank that the defendants had specifically agreed for the terms and conditions referred in the same. In view of the maintenance of the running account, the said limit has to be regularized with interest at 11.45% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to

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pay the additional interest at the rate of 2% per annum compounded monthly in case of default or non-regularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book

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debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The Applicant further submits that during the course of such transactions, the 1^st defendant again approached them to renew with enhancement of the ODCC limit from Rs.15 Lakhs to Rs.75 Lakhs. Taking into consideration of the prime as well as immovable securities, the applicant bank by their sanction memorandum dated 26.10.2013 has agreed for renewal with enhancement with certain terms and conditions and the same has been accepted by the 1^st defendant. Therefore, the 1^st defendant has submitted necessary loan application to avail the said limit.

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The Applicant further states that at the time of renewal with enhancement to an extent of Rs.75 Lakhs, the following documents have been executed by the defendants on 26.10.2013 in favour of applicant bank:

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i) Supplemental agreement.

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ii) Letter of undertaking.

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iii) Pronote for Rs.75 Lakhs.

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iv) Guarantee covering letter together with guarantee agreement by the 3^rd defendant.

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It is submitted that the defendants have specifically agreed for the terms and conditions referred in the same. In view of the maintenance of

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the running account, the said limit has to be regularized with interest at 12.95% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account.

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The 1^st defendant had submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit. As such, the limit was tenable upto 15.07.2014. The 3rd defendant also submitted the particulars of her guarnateeship on 26.10.2013.

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The Applicant further submits that as the 1^st defendant has developed his manufacturing / trading activities, the said ODCC limit has to be renewed with enhancement from Rs.75 Lakhs to Rs.95 Lakhs. Taking into consideration of the existing prime and collateral securities, the said ODCC limit has been renewed with enhancement for a sum of Rs.95 lakhs, vide sanction memorandum dated 28.08.2014. Thus, the said limit was tenable for a period of one year i.e., upto 14.07.2015. Therefore, the 1^st defendant has submitted necessary loan application on 28.08.2014 to consider his request. At the time of availment of the ODCC limit to the extent of Rs.95

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lakhs, the following documents have been executed by the defendants on 28.08.2014.

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i) Common hypothecation agreement.

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ii) Pronote for Rs.20 Lakhs.

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iii) Guarantee covering letter together with guarantee agreement by the 2^nd defendant.

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iv) Guarantee covering letter together with guarantee agreement by the 3^rd defendant.

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v) Acknowledgement of debt and security by the 1^st defendant.

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The defendants have specifically agreed for the terms and conditions referred in the said agreement. In view of the maintenance of the running account, the said limit has to be regularized with interest at 12.95% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as

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per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The Applicant further states that during the course of such transactions and in view of the expiry of the said limit, it has to be renewed with enhancement from Rs.95 lakhs to 150 Lakhs. Thus, the sanction memorandum dated 20.08.2015 has been issued with certain terms and conditions which was accepted by the 1^st defendant. In view of the acceptance of the sanction memorandum by the 1^st defendant the said limit has been enhanced from Rs.95 lakhs to Rs.150 Lakhs based on the execution of the following documents to and in favour of the applicant on 29.08.2015.

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i) Letter of renewal.

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ii) Supplemental common hypothecation agreement.

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iii) Guarantee covering letter together with guarantee agreement by the 2nd defendant.

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iv) Guarantee covering letter together with guarantee agreement by the 3rd defendant.

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v) Acknowledgement of debt and security.

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Thus, the defendants have specifically agreed for the terms and conditions referred in the agreement. In view of the maintenance of the running account, the said limit has to be regularized with interest at 11.65% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The

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defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The Applicant further submits that the working capital limit under OCC/ODCC has been again renewed with enhancement from Rs.150 Lakhs to Rs.240 Lakhs, based on the request made by the 1^st defendant. As such, the ODCC limit has been renewed with enhancement from Rs.150 lakhs to Rs.240 Lakhs based on the sanction memorandum dated 29.08.2016, which was tenable upto 29.08.2017. In this regard, the 1^st defendant has submitted necessary loan application on 31.08.2016. At the time of renewal with enhancement to the extent of Rs.240 lakhs, the following documents have been executed by the defendants to and in favour of the applicant bank on 31.08.2016.

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i) Letter of renewal.

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ii) Supplemental common hypothecation agreement.

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iii) Pronote for Rs.240 Lakhs.

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iv) Guarantee covering letter together with guarantee agreement by the 3rd defendant.

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v) Acknowledgement of debt and security by the 1st defendant.

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Thus, the defendants have specifically agreed for the terms and conditions referred in the same. In view of the maintenance of the running account, the said limit has to be regularized with interest at 12.15% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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It is submitted by the Applicant states that the 1^st defendant again requested to renew the said limit by submitting necessary request to the applicant bank on 27.02.2018. Taking into consideration of his request as well as availability of the existing prime and collateral security, the same been renewed for a sum of Rs.240 Lakhs, based on the sanction memorandum dated 27.02.2018 with certain terms and conditions, which has been accepted by the 1^st defendant. Thus, the tenability of the said limit was upto 29.08.2018. At the time of renewal of the said limit, necessary loan documents have been executed by the defendants to and in favour of the applicant bank on 27.02.2018.

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i) Letter of renewal.

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ii) Letter from the guarantor whenever limits are renewed.

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Thus, the defendants have specifically agreed for the terms and conditions referred in the said Agreement. In view of the maintenance of the running account, the said limit has to be regularized with interest at 10.85% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The applicant further submits that during the course of their business, the 1^st defendant had again submitted further proposal to enhance the existing working capital / OCC under ODSME scheme from Rs.240 lakhs to Rs.320 Lakhs. Considering all the aspects, the applicant bank by their sanction memorandum dated 30.11.2018 has agreed to renew with enhancement to the extent of Rs.320 Lakhs with certain terms and conditions. Thus, the said limit was tenable till 29.11.2019.

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The Applicant further states that at the time of renewal with enhancement of the said OD/OCC limit, the following documents have been executed by the defendants on 07.12.2018 in favour of applicant bank:

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i) Letter of renewal.

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ii) Link letter in respect of enhancement of credit facilities.

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iii) Common hypothecation agreement together with annexures.

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iv) Pronote for Rs.80 Lakhs.

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v) Guarantee covering letter together with guarantee agreement by the 3^rd defendant.

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vi) Acknowledgement of debt and security by the 1^st defendant.

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Thus, the defendants have specifically agreed for the terms and conditions referred in the same. In view of the maintenance of the running account, the said limit has to be regularized with interest at 11.25% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant has submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The Applicant further states that in the course of such business transactions with the applicant bank, the 1^st defendant again required the said limit to be renewed with enhancement from Rs.320 lakhs to Rs.360

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Lakhs, wherein the sub-limit under ODBD limit of Rs.2 Crores has been granted based on the sanction memorandum dated 19.03.2020. As such, the said limit was tenable till 25.02.2021.

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The Applicant further states that at the time of renewal with enhancement of the aforesaid limit, the 2^nd defendant has confirmed that he is the proprietor of the 1^st defendant based on the submission of the letter of proprietorship on 19.03.2020. At the time of renewal with enhancement from Rs.320 Lakhs to Rs.360 Lakhs, the following documents have been executed by the defendants to and in favour of the applicant bank on 19.03.2020:

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i) Letter of renewal.

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ii) Link letter to be obtained when the enhancement is consider.

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iii) Pronote for Rs.40 lakhs.

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iv) Supplemental common hypothecation agreement.

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v) Guarantee covering letter together with guarantee agreement by the 2^nd defendant.

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vi) Guarantee covering letter together with guarantee agreement by the 3^rd defendant.

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vii) Link letter to be obtained from the borrower / guarantor whose limit is getting renewed on or after 01.10.2019 (enclosure-III).

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viii) Agreement regarding advances against book debts as prime security.

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Thus, the defendants have specifically agreed for the terms and conditions referred in the same. In view of the maintenance of the running account, the said limit has to be regularized with interest at 11.25% per annum compounded monthly over and above the said rate of interest. As such, the rate of interest charged herein may change from time to time as per the guidelines issued by the RBI and head office circulars. The defendants also specifically undertook to pay the additional interest at the rate of 2% per annum compounded monthly in case of default or nonregularization of the said loan account. Moreover, the 1^st defendant had submitted the stocks statement and book debt statements and thereby agreed to hypothecate the same as prime security towards the said limit.

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The Applicant further states that at the time of availment of OCC/ODBD limit for a sum of Rs.75 Lakhs by the 1^st defendant herein, the 2^nd defendant who is the absolute and lawful owner of the various properties, which is more fully described in the A-Schedule hereunder, has deposited the title deeds in respect of the said properties on 11.02.2014 and the same was registered as document No.686/2014 in SRO

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Nagalnaickenpatti, which was registered with the Sub-Registrar office of Dindigul.

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The Applicant further states that at the time of enhancement of the said limit upto maximum limit of Rs.240 lakhs, again the 2^nd defendant who is the absolute and lawful owner of the A-Schedule mentioned properties, has confirmed the continuance of the securities, based on the execution of the Supplemental Memorandum of deposit of title deeds dated 08.08.2016, vide document No.3623/2016 in SRO Nagalnaickenpatti.

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The Applicant further states that the 2^nd and 3^rd defendants who are the absolute and lawful joint owners of the properties, which is more fully described in the A-Schedule hereunder, have again confirmed about the existing securities in respect of the loan availed by the 1^st defendant under Supplemental memorandum of deposit of title deeds dated 04.12.2018, vide document No.6004/2018 in SRO Nagalnaickenpatti.

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The Applicant further states that the defendants 2 & 3, while at the time of renewal with enhancement of the said limit, on the request of the 1^st defendant upto the maximum limit of Rs.3,75,00,000/-, again the 2^nd and 3^rd defendants have confirmed the existing mortgages to and in favour of the applicant bank under Supplemental memorandum of deposit of title deeds dated 04.07.2020, vide document No.2943/2020 in SRO Nagalnaickenpatti.

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It is submitted by the applicant bank that in the course of such developments, the 1^st defendant has submitted loan application on 15.06.2020 to grant Working Capital Term Loan to the extent of Rs.64 Lakhs in order to build up current assets and to meet operational liabilities as well as to restart the business etc. Taking into consideration of the developments and various other factors, the applicant by their sanction memorandum under GECL scheme dated 26.06.2020, granted such facility to facilitate the 1^st defendant to overcome the crisis which was created under the lock down in connection with the corona virus. Accordingly, the existing aggregate limit of Rs.3,60,00,000/- has been enhanced to Rs.4,24,00,000/- and thereby the defendants have executed the Supplemental Common Hypothecation Agreement and specifically agreed for the terms and conditions referred in the same, followed by execution of the guarantee covering letter and guarantee agreements by the 2^nd and 3^rd defendants. As such the fresh working capital term loan of Rs.64 Lakhs was granted under GECL scheme without prejudice to the existing loan documents.

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The Applicant further states that subsequent to availing of loan, despite the various developments, the 1^st defendant could not keep up his commitment for the reasons best known to them, inspite of the continuous demand and request made by the applicant bank on various occasions. In the meantime, in view of the lock down announced by the respective

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Governments in connection with the corona virus, the RBI has given necessary guidelines to the borrowers to utilize the opportunity for restructuring the loan availed by them. Accordingly, the 1^st defendant has submitted draft letter of undertaking from the guarantor for restructuring of loan on 26.03.2021.

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The applicant bank submits that the previous GECL loan account of Rs.64 lakhs, vide A/c.No.0907755000024, has been included in the scheme apart from granting of WCTL limit of Rs.48,60,000/vide A/c.No.0907746000016. As such, as per the terms and conditions of restructuring scheme, the said loan under GECL has to be repaid with interest at 7.50% per annum compounded monthly and WCTL limit of Rs.48,60,000/- has to be repaid with interest at 9.55% per annum compounded monthly with repayment period of 5 years without Nil holiday. Moreover, the 1^st defendant also confirmed the existing of the loan documents by executing the Acknowledgement of Debt and Security on 26.03.2021.

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The Applicant further states that despite the various helping hand extended by the applicant bank to the 1^st defendant to regain from the crisis, they could not keep up their promise for the reasons best known to them. Therefore, the entire steps taken by the applicant bank to recover the liabilities in the said loan account from the defendants ended in vain.

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Consequently, the loan accounts were classified as Non-Performing Assets (NPA) on 30.06.2021 in accordance with RBI guidelines. Subsequently, the applicant bank found that they cannot recover the liability, they have decided to proceed on the secured properties, belonging to the defendants 2 & 3, by issuance of the notice underSec.13(2) of the SARFAESI Act on 07.07.2021 and thereby granted 60 days time to settle the entire liability under the aforesaid limits, followed by the Possession Notice on 23.09.2021. Despite repeated reminders and demands, the defendants did not come forward to repay the dues. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, summons to defendants 1 to 3 returned unserved with postal endorsement as ‘left’. However, private notice sent to D-2 and D3 was duly served. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 17.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 17.06.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. S. Dineshkumar, Manager representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-85 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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During the pendency of OA, Applicant Bank had filed a memo reporting sale of Item Nos.3, 4 and 9 of Scheduled A properties belonging to 2nd defendant herein, by way of E-auction under SARFAESI Act held on 18.09.2023 for a sum of Rs.15,02,000/-, on 30.12.2022 for a sum of Rs,19,95,000/- and on 17.07.2023 for a sum of Rs.2,80,000/- respectively, thus the applicant bank had realized a total sum of Rs.37,77,000/- as against the outstanding dues. Accordingly, part satisfaction of sum of Rs.37,77,000/was duly recorded vide order dated 15.12.2023 and documents marked as Ex A-60, A-61 and A-62 were returned to applicant bank on 02.01.2024 under proper acknowledgement.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.5,28,51,005.78p (Rupees

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Five Crores Twenty Eight Lakhs Fifty One Thousand and Five

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and Seventy Eight Paise Only) as follows;

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(i) A sum of Rs.4,19,94,858.11p due in respect of OD/OCC limit (A/c No.0907261010408), repayable together with further interest @ 15.50%, p.a. compounded with monthly rests from the date of filing the OA till date of realization in full;

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(b) The sum of Rs.37,77,000/- realised by way of sale under SARFAESI Act in respect of Item Nos.3, 4 and 9 of Schedule A is

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directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the immovable properties viz., Item Nos.1,2,5 to 8 & 10 and hypothecated assets morefully detailed in Schedule A and B to the OA respectively.

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(d) OA Schedule A and B shall be appended to this final order.

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from

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the date of receipt of this final order.

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

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A copy of this order be communicated to the parties concerned.

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Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 06^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Dinesh Kumar, Manager representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Dated	Description of Documents	Exhibit No.
1.	02.07.2013	Loan application by the 1^stdefendant.	A-1
2.	15.07.2013	Request for over draft facility by the 1^stdefendant.	A-2
3.	15.07.2013	Cash credit agreement by the 1^st defendant.	A-3
4.	15.07.2013	Pronote for Rs.15 Lakhs.	A-4
5.	15.07.2013	Guarantee covering letter together with guarantee agreement by the 2^nd defendant.	A-5
6.	15.07.2013	Guarantee covering letter together with guarantee agreement by Mr.Zahir Hussain.	A-6
7.	26.10.2013	Sanction memorandum issued by the applicant bank.	A-7
8.	26.10.2013	Loan application by the 1^stdefendant.	A-8
9.	26.10.2013	Supplemental agreement by the 1^st defendant.	A-9
10.	---	Letter of undertaking by the 1^st defendant.	A-10
11.	26.10.2013	Pronote for Rs.75 Lakhs.	A-11
12.	26.10.2013	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-12

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13.	26.10.2013	Particulars of the guarantee (3^rd defendant).	A-13
14.	28.08.2014	Sanction memorandum issued by the applicant bank.	A-14
15.	28.08.2014	Loan application by the 1^stdefendant.	A-15
16.	28.08.2014	Common hypothecation agreement by the 1^stdefendant.	A-16
17.	28.08.2014	Pronote for Rs.20 Lakhs.	A-17
18.	28.08.2014	Guarantee covering letter together with guarantee agreement by the 2^nd defendant.	A-18
19.	28.08.2014	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-19
20.	28.08.2014	Acknowledgement of debt and security by the 1^stdefendant.	A-20
21.	20.08.2015	Sanction memorandum issued by the applicant.	A-21
22.	29.08.2015	Letter of renewal by the 1^st defendant.	A-22
23.	29.08.2015	Supplemental common hypothecation agreement by the 1^st defendant.	A-23
24.	29.08.2015	Guarantee covering letter together with guarantee agreement by the 2^nd defendant.	A-24
25.	29.08.2015	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-25
26.	29.08.2015	Acknowledgement of debt and security by the 1^stdefendant.	A-26
27.	29.08.2016	Sanction memorandum issued by the applicant.	A-27
28.	---	Loan application by the applicant.	A-28
29.	31.08.2016	Letter of renewal by the 1^st defendant.	A-29
30.	31.08.2016	Supplemental common hypothecation agreement by the 1^st defendant.	A-30
31.	31.08.2016	Pronote for Rs.2,40,00,000/-.	A-31
32.	31.08.2016	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-32

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06.11.2025

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33.	31.08.2016	Acknowledgement of debt and security by the 1^stdefendant.	A-33
34.	27.02.2018	Loan application by the 1^stdefendant.	A-34
35.	27.02.2018	Sanction memorandum issued by the applicant.	A-35
36.	27.02.2018	Letter of renewal by the 1^st defendant.	A-36
37.	---	Letter from the guarantor whenever limits are renewed.	A-37
38.	30.11.2018	Sanction memorandum issued by the applicant.	A-38
39.	07.12.2018	Letter of renewal by the 1^st defendant.	A-39
40.	07.12.2018	Link letter in respect of enhancement by the 1^stdefendant.	A-40
41.	07.12.2018	Common hypothecation agreement by the 1^stdefendant.	A-41
42.	07.12.2018	Pronote for Rs.80 Lakhs.	A-42
43.	07.12.2018	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-43
44.	07.12.2018	Acknowledgement of debt and security by the 1^stdefendant.	A-44
45.	19.03.2020	Sanction memorandum issued by the applicant.	A-45
46.	19.03.2020	Letter of proprietorship by the 1^st defendant.	A-46
47.	19.03.2020	Letter of renewal by the 1^st defendant.	A-47
48.	19.03.2020	Link letter in respect of enhancement by the 1^stdefendant.	A-48
49.	19.03.2020	Pronote for Rs.40 lakhs.	A-49
50.	19.03.2020	Supplemental common hypothecation agreement by the 1^st defendant.	A-50
51.	19.03.2020	Guarantee covering letter together with guarantee agreement by the 2^nd defendant.	A-51
52.	19.03.2020	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-52
53.	19.03.2020	Link letter in respect of renewal by the 1^stdefendant.	A-53

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06.11.2025

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54.	19.03.2020	Agreement regarding advances against book debts as prime security by the 1^stdefendant.	A-54
55.	04.12.2018	Supplemental memorandum of deposit of title deeds, executed by the defendants 2 & 3 to and in favour of the applicant, vide document No.6004/2018 in SRO Nagalnaickenpatti.	A-55
56.	04.07.2020	Supplemental memorandum of deposit of title deeds, executed by the defendants 2 & 3 to and in favour of the applicant, vide document No.2943/2020 in SRO Nagalnaickenpatti.	A-56
57.	08.08.2016	Supplemental memorandum of deposit of title deeds, executed by the defendants 2 & 3 to and in favour of the applicant, vide document No.3623/2016 in SRO Nagalnaickenpatti.	A-57
58.	26.12.2016	Sale deed in favour of the 2^nd defendant, vide document No.2854/2016 in JSRO, Dindigul, together with English translation.	A-58
59.	27.08.2013	Sale deed in favour of the 2^nd defendant, vide document	A-59
		No.4164/2013 in SRO Nagalnaickenpatti, together with English translation.
60.	09.05.2014	Sale deed in favour of the 2^nd defendant, vide document	A-60
		No.2218/2014 in SRO Nagalnaickenpatti, together with English translation.
61.	11.12.2014	Sale deed in favour of the 2^nd defendant, vide document	A-61
		No.6092/2014 in SRO Nagalnaickenpatti, together with English translation.
62.	01.11.2011	Sale deed in favour of the 2^nd defendant, vide document No.7021/2011 in SRO	A-62

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06.11.2025

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		Nagalnaickenpatti, together with English translation.
63.	03.11.2015	Sale deed in favour of the 2^nd defendant, vide document No.5594/2015 in JSRO, Dindigul, together with English translation.	A-63
64.	15.06.2020	Loan application by the 1^stdefendant.	A-64
65.	26.06.2020	Offer letter by the 1^stdefendant.	A-65
66.	26.06.2020	Offer letter under GECL by the 1^st defendant.	A-66
67.	---	Undertaking letter by the 1^st defendant.	A-67
68.	26.06.2020	Sanction memorandum under GECL issued by the applicant.	A-68
69.	09.07.2020	Supplemental common hypothecation agreement executed by the 1^stdefendant to and in favour of the applicant bank.	A-69
70.	09.07.2020	Guarantee covering letter together with guarantee agreement by the 2^nd defendant.	A-70
71.	09.07.2020	Guarantee covering letter together with guarantee agreement by the 3^rd defendant.	A-71
72.	26.03.2021	Draft letter of undertaking from the guarantor.	A-72
73.	26.03.2021	Debt restructuring agreement by the 1^stdefendant.	A-73
74.	26.03.2021	Acknowledgement of debt and security by the 1^stdefendant.	A-74
75.	07.07.2021	Notice under Sec.13(2) of the SARFAESI Act issued by the applicant to the defendants.	A-75
76.	23.09.2021	Possession notice issued by the applicant to the defendants in respect of the A-Schedule mentioned properties.	A-76
77.	17.08.2022	Letter of acceptance issued by the applicant in respect of Item No.5 of the A-Schedule property.	A-77
78.	18.08.2022	Letter of confirmation issued by the Applicant in respect of Item No.5 of the A-Schedule property.	A-78

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06.11.2025

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79.	17.08.2022	Letter of acceptance issued by the applicant in respect of Item No.6 of the A-Schedule property.	A-79
80.	18.08.2022	Letter of confirmation issued by the Applicant in respect of Item No.6 of the A-Schedule property.	A-80
81.	12.07.2022	Sale certificate issued by the Applicant to and in favour of Mr.A.Saleem, S/o.Mr.Anifa, in respect of Item No.7 of the A-Schedule property.	A-81
82.	30.06.2022	Sale certificate issued by the Applicant to and in favour of Mr.N.Balamurugan, in respect of Item No.8 of the A-Schedule property.	A-82
83.	11.02.2022	Statement of Account in respect of OD/OCC Limit.	A-83
84.	11.02.2022	Statement of Account in respect of GECL.	A-84
85.	11.02.2022	Statement of Account in respect of WCTL.	A-85
86.	19.08.2017	Power of attorney of Mr.S.Dinesh Kumar, Manager, Canara Bank, Kellys Corner Branch, Chennai.	A-86

¶220

Witness Examined for the Defendants: -Nil-

¶221

List of Documents Exhibited for the Defendants: -Nil –

¶222

SCHEDULE ‘A’

¶223

ITEM -1 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 26.12.2016, vide document No.2854/2016 in JSRO-1, Dindigul):

¶224

Plot No.C:

¶225

All the piece and parcel of Land and Residential Building existing – In Dindigul District, Dindigul Town, Joint-I Sub-Registrar Office Dindigul, MVM Nagar, Ward No.2,T.S.No.562, Plot No.C (Southern Part), Old Door No.118/1, New No.24, wherein land measuring 700 sq.feet and residential

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O.A. No. 123 of 2022

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06.11.2025

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building measuring (GF – 690 + FF – 690 + SF – 272) sq.feet. Total build up area 1652 sq.feet.

¶230

Boundaries:

¶231

North – Plot belonging to Shanmugavalli

¶232

South – Plot belonging to Mahalakshmi

¶233

East – Plot Nos.31 & 33

¶234

West – 20 ft width North-South Road

¶235

Extent of Land:

¶236

East – West on the both sides – 40 feet

¶237

South – North on the both sides – 17½ feet

¶238

ITEM -2 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 27.08.2013, vide document No.4164/2013 in SRO, Nagalnaickenpatti):

¶239

Plot No.33 & 34:

¶240

All the piece and parcel of Land existing – in Dindigul District, Dindigul Taluk, Nagal Naickenpatti Sub-Registrar Office, Adiyanoothu Village, Asai Nagar, comprised in Survey No.637/2, Plot No.33, measuring 768 ¾ sq.feet & Plot No.34, measuring 793 ¾ sq.feet, totally measuring 1562 ½ sq.feet. Boundaries:

¶241

North – 17 feet wide East West Road

¶242

South – Plot Nos.17 & 18

¶243

East – Plot No.32

¶244

West – Plot No.35

¶245

Extent of Land - Plot No.33:

¶246

East – West on the both sides – 25 feet

¶247

South – North on the Eastern side – 30 ¼ feet

¶248

South – North on the Western side – 31 ¼ feet

¶249

Extent of Land - Plot No.34:

¶250

East – West on the both sides – 25 feet

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O.A. No. 123 of 2022

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06.11.2025

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South – North on the Eastern side – 31 ¼ feet

¶255

South – North on the Western side – 32 ¼ feet

¶256

ITEM -5 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 28.06.2010, vide document No.4055/2010 in SRO, Nagalnaickenpatti):

¶257

Plot No.20

¶258

All the piece and parcel of Land and Buildings existing and / or to be constructed thereon in Dindigul District, Athur Taluk, Nagal Naickenpatti Sub-Registrar Office, Dindigul Batlagundu Road, Kuttiapatti Pirivu, Pillayarnatham Village, comprised in S.No.85/4, New Sub-Division S.No.85/4B1 Plot No.20 – measuring 2400 sq.feet. Boundaries:

¶259

North – East-West 20 ft common road

South – Plot No.28

East – Plot No.21

West – Plot No.19

Extent of Land

East – West on the Northern side – 40 feet

¶265

East – West on the Southern side – 40 feet

¶266

South – North on the Eastern side – 60 feet

¶267

South – North on the Western side – 60 feet

¶268

ITEM -6 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 21.05.2014, vide document No.2581/2014 in JSRO-2, Dindigul):

¶269

Plot No.11

¶270

All the piece and parcel of Land and Buildings existing and / or to be constructed thereon at CVS Nagar, Thottanoothu Village, Dindigul Taluk,

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06.11.2025

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Dindigul District, comprised in S.No.663/3C, New S.No.663/3C9, Plot No.11 (Part Southern portion) Land measuring 1240 sq.feet. Boundaries:

¶275

North – Plot No.11 part northern portion

¶276

South – Plot No.12

¶277

East – Property in S.No.662

¶278

West – 24 ft width North South Road

¶279

Extent of Land

¶280

East – West on both sides – 64 feet

¶281

South – North on the Eastern side – 19 ¾ feet

¶282

South – North on the Western side – 19 feet

¶283

Totalling 1240 sq.feet.

¶284

ITEM -7 (Belongs to Mrs.Yasmine, Sale deed dated 19.11.2009, vide document No.6640/2009 in JSRO-2, Dindigul):

¶285

Plot No.38

¶286

All the piece and parcel of Land and Buildings existing and / or to be constructed thereon in Dindigul District, Dindigul Joint-II Sub-Registrar Office, Dindigul Town, 3^rd Ward, Batlagundu Road, on the eastern side of Kudaiparaipatti in TS No.570/4, the land measuring 1.13 acres in TS No.570/5, the land measuring 1.17 acres, totaling 2.30 acres of land were divided into house sites under the name and style of SP Nagar (Previously known as Siddiq and Palanichamy Nagar) in New TS No.570/5, the Plot No.38 land measuring 1435 ½ sq.feet and (Building GF 1400 sqft + FF 1400 sq.ft + SF 30 feet.

¶287

Boundaries:

¶288

North – Plot No.39

¶289

South – Plot No.37 in TS No.570/4 & 5 belonging to Mohammed Illiyas

¶290

& Hussainara

¶291

East – South-North common pathway with a width of 20 ft

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06.11.2025

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West – Land in TS No.570/2

¶296

Extent of Land

¶297

East – West on the Northern side – 41 ½ feet

¶298

East – West on the Southern side – 38 ¼ feet South – North on the both sides – 36 feet

¶299

Totalling 1435 ½ sq.feet.

¶300

ITEM -8 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 08.09.2014, vide document No.4360/2014 in SRO, Nagalnaickenpatti):

¶301

Plot No.8

¶302

All the piece and parcel of Land and Buildings existing and / or to be constructed thereon in Dindigul District, Dindigul Taluk, Adiyanoothu Village, Cauvery Nagar, comprised in S.No.482/1A2, Plot No.8 – land measuring 2400 sq.feet.

¶303

Boundaries:

¶304

North – 20 ft width East-West Road

¶305

South – 20 ft width East-West Road

¶306

East – Plot No.7

¶307

West – 25 ft width East-West Road

¶308

Extent of Land

¶309

East – West on both sides – 40 feet

¶310

South – North on both sides – 60 feet

¶311

ITEM -10 (Belongs to Mr.A.Mohideen Batcha, Sale deed dated 03.11.2015, vide document No.5594/2015 in JSRO-2, Dindigul):

¶312

Plot No.52

¶313

All the piece and parcel of Land and Buildings existing and / or to be constructed thereon in Dindigul District, Dindigul Joint-II Sub-Registrar

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O.A. No. 123 of 2022

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06.11.2025

¶317

Office, Dindigul Taluk, Sinthalagundu Village, the land measuring 45 cents in S.No.789/2, 45 cents in S.No.789/3 were divided into plots. S.No.789/2 and 789/3, the land measuring 6780 sq.ft. Boundaries:

¶318

North – East-West 20 ft Road left by Mohammed Siddiq and property

¶319

belongs to Mohammed Siddiq.

¶320

South – Property belongs to Mohammed Kani

¶321

East – Odai

¶322

West – Property measuring 11,400 sq.ft sold to Wahith by Mohammed Siddiq.

¶323

Extent of Land

¶324

East – West on the Northern side – 108 feet

¶325

East – West on the Northern side – 118 feet

¶326

South – North on the Eastern side – 60 feet

¶327

South – North on the Western side – 60 feet

¶328

The property lies within the jurisdiction of office of Dindigul Joint-II SubRegistration Office.

¶329

SCHEDULE – B

¶330

(Belongs to the 1^st defendant)

¶331

Hypothecation of stocks and book debts lying at No.2, Patnool Sardar Jung Street, Periamet, Chennai-600 003.

¶332

Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Canara Bank v. Yes Leathers

Case brief

What is this about?

What did the court decide?

Canara Bank v. Yes Leathers

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

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