Allowed

Small Industries Development Bank of India v. R Karuppiah Chidambaram Subramanian

DRT22 Apr 2025OA/131/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application for recovery of dues. The court found the claim proved through documentary evidence due to the respondent's ex-parte status, ordering payment of the principal sum plus interest and authorizing the sale of mortgaged properties upon default.

What did the court decide?

Defendants directed to pay Rs. 2,11,63,132.65 with interest at 12.75% p.a.; liberty to sell mortgaged/hypothecated properties on default.

Small Industries Development Bank of India versus R… — Execution and Attachment | DRT (2025)

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OA No. 131/2022

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 22^ND DAY OF APRIL, 2025 PRESENT: SEEMA SINHA,

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[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.131/2022

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Between

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Small Industries DevelopmentBank of India (SIDBI),

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Specialized Asset Recovery Branch (SARB), No.756L, Overseas Towers, Anna Salai, Chennai – 600 002. Rep. By its Asst.Gen.Manager. ---Applicant

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Bank

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And

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Karuppiah Chidambaram Subramanian,

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Prop. M/s Sri Karpagamoorthy Agencies,

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S/o Karuppiah Pillai Chidambaram,

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Old.No.1, New.No.2, Karpaga Vilas,

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Greens Road, Visveswarapuram,

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Karaikudi – 630 002.

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S. Prema,

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W/o Karuppiah Chidambaram Subramanian, Old.No.1, New.No.2, Karpaga Vilas,

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Greens Road, Visveswarapuram,

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Karaikudi – 630 002.

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S. Karpagasivabalan, W/o Karuppiah Chidambaram Subramanian, Old.No.1, New.No.2, Karpaga Vilas,

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Greens Road, Visveswarapuram,

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Karaikudi – 630 002. ---Defendants

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Counsel for the Applicant Bank : R. Pandivel

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Page 1 of 13

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OA No. 131/2022

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This Original Application was heard and fixed for passing final order before me in the presence of the above said Advocate for Applicant Bank and the Defendants having been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the records and having stood over for consideration till this day, this Tribunal delivered the following:

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JUDGEMENT

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1 . This Application has been filed under Sec.19 (1) of the "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" now amended as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 15.11.2021 to recover from the Defendants a sum of Rs. 2,11,63,132.65p together with interest at the rate of 12.75% p.a. with monthly rests in respect of Term loan under the scheme of Secured Business Loan from the date of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.

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2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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The 1^st defendant is carrying on sales and services of two wheelers as dealers of TVS Motor company Limited viz. TVS bikes, mopeds and scooters under the name and style of Sri Karpagamoorthy Agencies has approached the Applicant Bank for availing Term loan for a sum of Rs.2,30,00,000/under the scheme of secured Business Loan, available to the MSMEs in the manufacturing and service sectors for meeting any tangible and intangible business need. The terms and conditions upon which the above credit facility granted to the 1^st defendant was communicated vide letter of Indent dt. 09.01.2014 and the terms and conditions mentioned therein were accepted by the 1^st defendant on 17.01.2014. The 2^nd defendant wife of the 1^st defendant stood as guarantor for the due repayment of the amounts under the aforesaid credit facility. The sanctioned amount was disbursed to the 1^st defendant on execution of the following loan documents such as Loan Agreement, Deed of Hypothecation, Undertaking for overrun, non-disposal of shareholding, etc., General condition-Rupee Loan-GC-2006 executed by the 1^st defendant and Letter of Personal Guarantee, Deed of Guarantee executed by the defendants 2 & 3 in favor of the Applicant Bank dated 17.01.2014. Further the defendants have agreed to repay the loan amount in 114 monthly installments in which first 110 installments at Rs.2,00,000/- each and last 4 installments at Rs.2,50,000/- each with interest at the rate of 12.75% (fixed) p.a. with monthly rests and at such other rates & rests as may be revised by the Applicant Bank from time to time. The defendants

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Page 2 of 13

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OA No. 131/2022

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have also agreed to pay penal interest at the rate of 2%p.a. in case of default.

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The defendants have offered their properties described in Schedule “B” hereunder as security. The 1^st defendant created mortgage over the 1^st item of schedule “B” Mortgage property and thereby executed a registered indenture of mortgage dt.21.01.14 in favor of the applicant bank which was registered with SRO Tirupathur (Karaikudi) as doc.No.136/2014. Further all the defendants deposited their Title deeds on 17.01.14 with the Applicant bank with an intention to create an Equitable Mortgage over the item Nos.2 to 5 of “B” Schedule mortgage properties. To that effect and by confirming the same, the defendants executed a Registered Memorandum of Deposit of Title deeds dt.21.01.14 pertaining to the said properties in favor of the applicant bank which was registered with SRO Tirupattur as Doc.No.137/2014. The defendants by admitting & acknowledging their liabilities have made payments on various dates & executed Balance Confirmation Letter dt.11.01.18 in favor of the Applicant Bank.

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After availing the loan, defendants were not regular in the matter of repayment. The defendants made several promises, but they failed to keep up their promises. In the circumstances the Applicant bank has classified the loan as “NPA” on 06.02.19 and thereafter the Applicant Bank issued recall notice on 20.06.19 to repay the entire outstanding liability under the Term Loan and issued Demand notice dt.20.07.20. Despite repeated demands and reminders, made by the Applicant Bank, the Defendants have failed and neglected to repay and adjust their liability. Hence, the Applicant Bank has filed the OA for recovery from the defendants of a sum of Rs. 2,11,63,132.65p together with interest at the rate of 12.75% p.a. with monthly rests in respect of Term loan under the scheme of Secured Business Loan from the date of Application till the date of realization with cost. The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

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List of Documents

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Annexure – I

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Loan Documents executed by the Defendants

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S. No.	Date	Description of document		Exhibits
1.	09.01.14	Letter of Intent containing Terms Conditions executed by the 1^stdefendant favor of the Applicant Bank	& in	Ex.No.A-01
2.	17.01.14	Loan Agreement executed by the defendant in favor of the Applicant Bank	1^st	Ex.No.A-02

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Page 3 of 13

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OA No. 131/2022

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3.	17.01.14	Deed of Hypothecation executed by the 1^st defendant in favor of the Applicant Bank	Ex.No.A-03
4.	17.01.14	Undertaking for overrun, non-disposal of shareholding, etc., executed by the 1^st defendant in favor of the Applicant Bank	Ex.No.A-04
5.	17.01.14	General condition – Rupee Loan – GC-2006 executed by the 1^stdefendant in favor of the ApplicantBank	Ex.No.A-05
6.	17.01.14	Letter of personal guarantee executed by the defendants 2 & 3 in favor of the Applicant Bank	Ex.No.A-06
7.	17.01.14	Deed of Guarantee executed by the defendants 2 & 3 in favor of the Applicant Bank	Ex.No.A-07
8.	21.01.14	Indenture of Mortgage executed by the 1^st defendantin favoroftheApplicantBank	Ex.No.A-08
9.	21.01.14	Registered Memorandum of Deposit of Title deeds executed by defendants in favor of the ApplicantBank	Ex.No.A-09
10.	17.01.14	Notarized declaration cum undertaking executed by the 1^stdefendant in favor of the ApplicantBank	Ex.No.A-10
11.	17.01.14	Notarized declaration cum undertaking executed by the 1^stdefendant in favor of the ApplicantBank	Ex.No.A-11
12.	17.01.14	Notarized declaration cum undertaking executed by the 2^nddefendant in favor of the Applicant Bank	Ex.No.A-12
13.	17.01.14	Notarized declaration cum undertaking executed by the 3^rddefendant in favor of the ApplicantBank	Ex.No.A-13
14.	11.01.18	Balance confirmation Letter executed by defendantin favoroftheApplicantBank	Ex.No.A-14
15.	20.06.19	Recall notice issued by the Applicant Bank to the defendants	Ex.No.A-15
16.	20.07.20	Demand notice issued by the Applicant Bank to the defendants	Ex.No.A-16
17.	07.07.21	Notice of Invocation of Guarantee issued by the Applicant Bank to the defendants	Ex.No.A-17
18.	---	Statement of Accounts maintained by the Applicant Bank in regular course & conduct ofthe business	Ex.No.A-18

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List of Documents

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Annexure – II

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Title deeds deposited by the defendants with regard to Item Nos. 2 to 5 of “B” Schedule Mortgage Properties

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Page 4 of 13

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OA No. 131/2022

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S. No.	Date	Description of document	Exhibits
1.	07.08.92	Registered Sale deed executed by Meiammai in favor of K.Karuppiah (Doc.No.807/92), Sub-Registrar, Thiruppattur	Ex.No.A-19
2.	18.06.02	Registered Mortgage deed executed by Karuppaiah & Maragatham in favor of Sivagangai District, Central Co-Operative Bank (Doc.No.949/02), Sub Registrar, Thiruppattur	Ex.No.A-20
3.	18.05.05	Registered discharge receipt executed by Sivagangai District, Central Co-Operative Bank in favor of Karuppaiah & Maragatham (Doc.No.778/05), Sub Registrar, Thiruppattur	Ex.No.A-21
4.	05.10.07	Registered Sale deed executed by Karuppiah in favor of Prema (Doc.No.2439/07), Sub- Registrar,Thiruppattur	Ex.No.A-22
5.	29.10.13	Patta issued by Head Quarters Deputy Thasildar, Tiruppathur Taluk in favor of Prema	Ex.No.A-23
6.	01.04.87	Registered Sale deed executed by C.Chinniah in favor of Jeyaseelan (Doc.No.350/87), Sub- Registrar,Thiruppattur	Ex.No.A-24
7.	25.11.93	Registered Sale deed executed by Antony @ Ayyavu Udaiyar in favor of Arunachalam (Doc.No.963/93), Sub-Registrar, Thiruppattur	Ex.No.A-25
8.	12.01.94	Registered Sale deed executed by K. Karuppiah in favor of M. Arunachalam (Doc.No.23/94), Sub-Registrar,Thiruppattur	Ex.No.A-26
9.	12.01.94	Registered Sale deed executed by Ganapathy in favor of M. Arunachalam (Doc.No.24/94), Sub-Registrar,Thiruppattur	Ex.No.A-27
10.	15.09.94	Registered Sale deed executed by M. Arunachalam in favor of G. Jeyaseelan (Doc.No.1004/94), Sub-Registrar, Thiruppattur	Ex.No.A-28
11.	12.03.04	Registered Sale deed executed by G. Jeyaseelan in favor of KR.CT.Subramanian (Doc.No.532/04), Sub-Registrar, Thiruppattur	Ex.No.A-29
12.	13.11.13	Registered Gift Settlement deed executed by KR.CT.Subramanian in favor of S. Karpagasivabalan (Doc.No.3683/13), Sub- Registrar,Thiruppattur	Ex.No.A-30
13.	----	Application of Patta Transfer submitted to theThasildar,Thiruppattur	Ex.No.A-31

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OA No. 131/2022

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14.	04.07.11	General Power deed executed by T. Ganesan in favor of KR.CT.Subramanian (Adjudication No.137/11),Sub-Registrar,Karaikudi	Ex.No.A-32
15.	25.08.11	Registered Sale deed executed by Power agent KR.CT.Subramanian in favor of S. Karpagasivabalan (Doc.No.3010/11), Sub- Registrar, Thiruppattur	Ex.No.A-33
16.	17.11.03	Unregistered family arrangement memorandum entered into between Sundaravalli & 6 others	Ex.No.A-34
17.	12.12.03	Patta Transfer order issued by Thasildhar, thiruppattur Taluk standing in the name of KR.CT.Subramanian	Ex.No.A-35
18.	07.04.12	Death Certificate of V.Chinniah issued by Birth & Death Registrar, Dindigul Taluk	Ex.No.A-36
19.	30.01.12	Legal heir Certificate of V.Chinnaiah issued by Thasildar, Thiruppattur	Ex.No.A-37
20.	30.10.13	Registered Sale deed executed by C.Alagu in favor of KR.CT.Subramanian (Doc.No.3548/13), Sub Registrar, Thiruppattur	Ex.No.A-38
21.	30.10.13	Patta issued by Head Quarters Deputy Thasildar,Tiruppathur Taluk	Ex.No.A-39
22.	24.10.13	Patta issued by Head Quarters Deputy Thasildar,Tiruppathur	Ex.No.A-40
23.	27.09.13	Survey Sketch for S.Nos.535, 576 and 533 in Sirukoodalpatti Village issued by the VAO, Sirukoodalpatti Group, Thiruppattur Taluk	Ex.No.A-41
24.	18.10.13	No objection certificate issued by the Thasildar, Thiruppattur Taluk	Ex.No.A-42
25.	29.10.13	No objection certificate issued by the Thasildar, Thiruppattur Taluk	Ex.No.A-43
26.	20.11.13	Certificate issued by VAO, Sirukoodalpatti Group, Revenue Inspector Ilayathakudi and Zonal Deputy Tahsildar, Thiruppattur Taluk regardinglocationof Property	Ex.No.A-44

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Schedule of Properties

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Schedule- ‘A’ – Hypothecated Goods of the 1^st Defendant

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Plant, Machinery, Office equipment, Tools, Spares, Tools and Accessories, Office equipment, computers, Furniture, Fixtures and all other assets etc., acquired under the project and installed, stored and kept at Karpaga Vilas, Old.No.1, New No.2, Greens Road, Visveswarapuram, Karaikudi – 630 002, Sivagangai District.

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OA No. 131/2022

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Schedule- ‘B’ – Mortgaged Properties

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Item No.1 (Property belonging to 1^st Defendant)

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Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, a land measuring 19 Cents (0.07.5 Hectares) in RS.No.535/5 & buildings constructed thereon within the following boundaries.

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On the North : Land belonging to Ganesan On the East : Land belonging to K.R.C.T. Subramanian On the South : Land belonging to K.R.C.T. Subramanian On the West : Land belonging to Temple

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Item No.2 (Property belonging to 1^st Defendant vide Annexure-II of Title Deeds)

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(i) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, land measuring 21 Cents (0.08.5 Hectares) in RS.No.576/3A and buildings constructed thereon within the following boundaries.

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On the North	: Property belonging to C. Subramanian
On the East	: Property belonging to C. Subramanian
On the South	: Karpagamoorthy Layout Plots
On the West	: Property belonging to C. Subramanian

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(ii) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, land measuring 19 Cents (0.07.5 Hectares) in RS.No.576/3B and buildings constructed thereon within the following boundaries.

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On the North : Property belonging to C. Subramanian On the East : Property belonging to C. Subramanian On the South : Karpagamoorthy Layout Plots On the West : Property belonging to Subramanian

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(iii) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, land measuring 33 Cents (0.13.5 Hectares) in RS.No.576/1E and buildings constructed thereon within the following boundaries.

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OA No. 131/2022

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On the North : Property belonging to Karpagamoorthy On the East : Property belonging to C. Subramanian On the South : Karpagamoorthy Layout Plots On the West : Property belonging to K.Karuppiah

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(iv) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, a land measuring 23 Cents (0.09.5 Hectares) in RS.No.576/3C and buildings constructed thereon within the following boundaries.

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On the North : Land belonging to K.R.C.T. Subramanian On the East : Land belonging to K.R.C.T. Subramanian On the South : Land belonging to K.R.C.T. Subramanian On the West : Land belonging to K.R.C.T. Subramanian

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Item No.3

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(Property belonging to 2^nd Defendant vide Annexure-II of Title Deeds)

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(i) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, a land measuring 12 Cents (0.05.0 Hectares) in RS.No.533/2 and buildings constructed thereon within the following boundaries.

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On the North : Property	belonging to Karuppiah
On the East : Property	belonging to Somasundaram
On the South : Property	belonging to K.R.C.T. Subramanian
On the West : Property	belonging to Ramasubramanian

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Item No.4

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(Property belonging to 3^rd Defendant vide Annexure-II of Title Deeds)

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(i) Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, land measuring 15 Cents (0.06.0 Hectares) out of 0.07.5 Hectares in RS.No.535/3A and another land measuring 15 Cents (0.06.0 Hectares) out of 0.08.5 Hectares in RS.No.535/3B and another land measuring 43 Cents (0.17.5 Hectares) out of 0.25.5 Hectares in RS.No.535/6B and land measuring 8.5 cents (0.03.5 Hectares) out of 0.08.5 Hectares in RS.No.576/3D totaling 1 acre 1^1/2 cents and buildings constructed thereon within the following boundaries.

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On the North	: Madurai to Karaikudi East-West Main Road
On the East	: House site belonging to Sri Karpagamoorthy
On the South	: House site belonging to Sri Karpagamoorthy

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OA No. 131/2022

On the West

: Vacant Site belonging to KR.CT.Subramanian

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Item No.5

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(Property belonging to 3^rd Defendant vide Annexure-II of Title Deeds)

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Sivagangai District, Karaikudi Registration District, Thiruppattur Sub Registration District, Sirukoodalpatti Group, Pillaiyarpatti Village, within limits of Thiruppattur Town, a land measuring 20 Cents (0.08.0 Hectares) in RS.No.535/4 and buildings constructed thereon within the following boundaries.

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On the	North	: Land belonging to	K.R.C.T. Subramanian
On the	East	: Land belonging to	K.R.C.T. Subramanian
On the	South	: Land belonging to	K.R.C.T. Subramanian
On the	West	: Land belonging to	Devasthanam

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3 . On the other hand, Notices were issued to Defendants and since from the beginning of the case, there was no representation on behalf of the Defendants. Hence, Defendants were set ex-parte.

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4. Now the main point for consideration before me is as to whether the Applicant has been able to prove his case on his own leg?

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Having gone through the affidavit of the applicant and the documents filed by them and also considering the submission of the counsel for the Applicant, I find that the Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. Pravin Kumar, who is the Asst. General Manager of the Applicant Bank.

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He has stated in his affidavit that the defendants has availed Term Loan from the Applicant Bank, but they failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-44 in support of its claim in the OA.

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The Letter of Intent containing Terms & Conditions executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A01, Loan Agreement executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-02, Deed of Hypothecation executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-03, Undertaking for overrun, non-disposal of shareholding, etc., executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-04, General condition – Rupee Loan – GC-2006 executed by the 1st defendant in favor of the Applicant Bank has been marked as

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Ex.No.A-05, Letter of personal guarantee executed by the defendants 2 & 3 in favor of the Applicant Bank has been marked as Ex.No.A-06, Deed of Guarantee executed by the defendants 2 & 3 in favor of the Applicant Bank has been marked as Ex.No.A-07, Indenture of Mortgage executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-08, Registered Memorandum of Deposit of Title deeds executed by defendants in favor of the Applicant Bank has been marked as Ex.No.A-09, Notarized declaration cum undertaking executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-10.

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Notarized declaration cum undertaking executed by the 1st defendant in favor of the Applicant Bank has been marked as Ex.No.A-11, Notarized declaration cum undertaking executed by the 2nd defendant in favor of the Applicant Bank has been marked as Ex.No.A-12, Notarized declaration cum undertaking executed by the 3rd defendant in favor of the Applicant Bank has been marked as Ex.No.A-13, Balance confirmation Letter executed by defendant in favor of the Applicant Bank has been marked as Ex.No.A-14, Recall notice issued by the Applicant Bank to the defendants has been marked as Ex.No.A-15, Demand notice issued by the Applicant Bank to the defendants has been marked as Ex.No.A-16, Notice of Invocation of Guarantee issued by the Applicant Bank to the defendants has been marked as Ex.No.A-17, Statement of Accounts maintained by the Applicant Bank in regular course & conduct of the business has been marked as Ex.No.A-18, Registered Sale deed executed by Meiammai in favor of K.Karuppiah (Doc.No.807/92), Sub-Registrar, Thiruppattur has been marked as Ex.No.A19, Registered Mortgage deed executed by Karuppaiah & Maragatham in favor of Sivagangai District, Central Co-Operative Bank (Doc.No.949/02), Sub Registrar, Thiruppattur has been marked as Ex.No.A-20.

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Registered discharge receipt executed by Sivagangai District, Central Co-Operative Bank in favor of Karuppaiah & Maragatham (Doc.No.778/05), Sub Registrar, Thiruppattur has been marked as Ex.No.A-21, Registered Sale deed executed by Karuppiah in favor of Prema (Doc.No.2439/07), SubRegistrar, Thiruppattur has been marked as Ex.No.A-22, Patta issued by Head Quarters Deputy Thasildar, Tiruppathur Taluk in favor of Prema has been marked as Ex.No.A-23, Registered Sale deed executed by C.Chinniah in favor of Jeyaseelan (Doc.No.350/87), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-24, Registered Sale deed executed by Antony @ Ayyavu Udaiyar in favor of Arunachalam (Doc.No.963/93), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-25, Registered Sale deed executed by K. Karuppiah in favor of M. Arunachal am (Doc.No.23/94), SubRegistrar, Thiruppattur has been marked as Ex.No.A-26, Registered Sale deed executed by Ganapathy in favor of M. Arunachalam (Doc.No.24/94), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-27, Registered

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Sale deed executed by M. Arunachalam in favor of G. Jeyaseelan (Doc.No.1004/94), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-28, Registered Sale deed executed by G. Jeyaseelan in favor of KR.CT.Subramanian (Doc.No.532/04), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-29, Registered Gift Settlement deed executed by KR.CT.Subramanian in favor of S. Karpagasivabalan (Doc.No.3683/13), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-30.

¶102

Application of Patta Transfer submitted to the Thasildar, Thiruppattur has been marked as Ex.No.A-31, General Power deed executed by T. Ganesan in favor of KR.CT.Subramanian (Adjudication No.137/11), SubRegistrar, Karaikudi has been marked as Ex.No.A-32, Registered Sale deed executed by Power agent KR.CT.Subramanian in favor S. Karpagasivabalan (Doc.No.3010/11), Sub-Registrar, Thiruppattur has been marked as Ex.No.A-33, Unregistered family arrangement memorandum entered into between Sundaravalli & 6 others has been marked as Ex.No.A34, Patta Transfer order issued by Thasildhar, thiruppattur Taluk standing in the name of KR.CT.Subramanian has been marked as Ex.No.A-35, Death Certificate of V.Chinniah issued by Birth & Death Registrar, Dindigul Taluk has been marked as Ex.No.A-36, Legal heir Certificate of V.Chinnaiah issued by Thasildar, Thiruppattur has been marked as Ex.No.A-37, Registered Sale deed executed by C.Alagu in favor of KR.CT.Subramanian (Doc.No.3548/13), Sub Registrar, Thiruppattur has been marked as Ex.No.A-38, Patta issued by Head Quarters Deputy Thasildar, Tiruppathur Taluk has been marked as Ex.No.A-39, Patta issued by Head Quarters Deputy Thasildar, Tiruppathur has been marked as Ex.No.A-40.

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¶104

Survey Sketch for S.Nos.535, 576 and 533 in Sirukoodalpatti Village issued by the VAO, Sirukoodalpatti Group, Thiruppattur Taluk has been marked as Ex.No.A-41, No objection certificate issued by the Thasildar, Thiruppattur Taluk has been marked as Ex.No.A-42, No objection certificate issued by the Thasildar, Thiruppattur Taluk has been marked as Ex.No.A43, Certificate issued by VAO, Sirukoodalpatti Group, Revenue Inspector Ilayathakudi and Zonal Deputy Tahsildar, Thiruppattur Taluk regarding location of Property has been marked as Ex.No.A-44. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶105

As the Defendants remained ex-parte, the claim of the Applicant Bank is neither disproved nor dislodged and goes on record as proved. Accordingly 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.

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OA No. 131/2022

¶108

So far the claim of interest is concerned, it is a well settled Law that the Tribunal has got powers to award pendente lite interest in view of the Judgment of the Hon’ble Supreme Court in N.M. Veerapa Vs Canara Bank (reported in AIR 98(1), 1101 & in Central bank of India Vs Ravindra and OS (AIR, 2001(1), 3095).

¶109

Therefore, this Original Application is allowed. The Applicant Bank is entitled for a final order on the following lines:-

¶110

The Applicant Bank is entitled to recover from the Defendants, a sum of Rs. 2,11,63,132.65p together with interest at the rate of 12.75% p.a. with half yearly rests in respect of Term loan under the scheme of Secured Business Loan from the date of Application till the date of realization with cost. Accordingly, it is hereby

¶111

ORDERED

¶112

(a) That the Defendants are directed to pay jointly/severally a sum of Rs. 2,11,63,132.65p together with interest at the rate of 12.75% p.a. with half yearly rests in respect of Term loan under the scheme of Secured Business Loan from the date of Application till the date of realization with cost within one month from the date of receipt of this order.

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(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the movable / immovable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

¶114

(c) If the sale proceeds are not sufficient, after defraying the expenses of such sale, for the payment of all such amounts, the defendants are jointly/severally liable to pay the amount of such deficiency with interest mentioned above until realization.

¶115

(d) Any amount remitted during the course of this proceedings shall be given due credit, to the loan account of the defendants.

¶116

(e) Recovery Certificate be prepared, as per the directions given above, and issue accordingly. A copy of the order is to be communicated to the parties concerned, immediately.

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(f) It is further ordered that the Applicant Bank shall file cost memo within a period of one month from the date of receipt of this order, so as to prepare the recovery certificate with cost for the Term loan under secured

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Page 12 of 13

¶119

OA No. 131/2022

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business loan scheme and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.

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Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 22nd April, 2025.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 06.05.2025

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Page 13 of 13

Small Industries Development Bank of India v. R Karuppiah Chidambaram Subramanian

Case brief

What is this about?

What did the court decide?

Small Industries Development Bank of India v. R Karuppiah Chidambaram Subramanian

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

Case details

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