Allowed

City Union Bank Limited v. M Senthilkaniraja

DRT3 Oct 2025OA/144/2023

Case brief

AI extract

What is this about?

The Deputy Recovery Tribunal allowed the bank's application for recovery of over Rs. 6.44 crore against the respondents for defaulted loans including OLCC, ECLGS, and OSL facilities, directing payment with interest and authorizing the sale of mortgaged properties.

What did the court decide?

Directing respondents to pay Rs. 6,44,68,923.76 with interest within one month; granting bank liberty to sell mortgaged movable/immovable properties; directing preparation and issue of Recovery Certif

City Union Bank Limited versus M Senthilkaniraja — Execution and Attachment | DRT (2025)

¶1

OA No. 144/2023

¶2

Fair Order

¶3

IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 03^RD DAY OF OCTOBER, 2025 PRESENT: SEEMA SINHA,

¶4

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

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OA No.144/2023

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Between

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City Union Bank Limited, Kovilpatti Branch, No.794, Main Road, Near Sathya Bhama Theatre, Kovilpatti – 628 501, Thoothukudi District. Rep. By its Branch Manager. ---Applicant Bank

¶8

And

¶9

Mr. M. Senthilkaniraja, S/o S.V.C. Muneeswaran, Pro. M/s Sri Vanni Thangam Food Products, Partner: M/s Anugraha Flour Mills, No.69, Bharathithasan Street, Kovilpatti – 628 501, Thoothukudi District.

¶10

Also at

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Mr. M. Senthilkaniraja, S/o S.V.C. Muneeswaran, Pro. M/s Sri Vanni Thangam Food Products, Partner: M/s Anugraha Flour Mills, No.5C2/6, Rajeev Nagar 2^nd Street, Kovilpatti – 628 501, Thoothukudi District.

Page 1 of 19

OA No. 144/2023

Also at

Mr. M. Senthilkaniraja, S/o S.V.C. Muneeswaran, Pro. M/s Sri Vanni Thangam Food Products, Partner: M/s Anugraha Flour Mills, No.147/6, Rajeev Nagar 3^rd Street, Kovilpatti – 628 501, Thoothukudi District.

¶16

Also at

¶17

Mr. M. Senthilkaniraja, S/o S.V.C. Muneeswaran, Pro. M/s Sri Vanni Thangam Food Products, Partner: M/s Anugraha Flour Mills, No.32, Bharathidasan Street, Kovilpatti – 628 501, Thoothukudi District.

¶18

Mrs. S. Laxmi, W/o M. Senthilkaniraja, Pro. M/s Neha Eddible Products, Partner: M/s Anugraha Flour Mills, No.32, Bharathidasan Street, Kovilpatti – 628 501, Thoothukudi District.

¶19

Also at

¶20

Mrs. S. Laxmi, W/o M. Senthilkaniraja, Pro. M/s Neha Eddible Products, Partner: M/s Anugraha Flour Mills, No.5C2/6, Rajeev Nagar 2^nd Street, Kovilpatti – 628 501, Thoothukudi District.

¶21

Also at

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Mrs. S. Laxmi, W/o M. Senthilkaniraja, Pro. M/s Neha Eddible Products, Partner: M/s Anugraha Flour Mills, No.147/6, Rajeev Nagar 3^rd Street, Kovilpatti – 628 501, Thoothukudi District.

Page 2 of 19

OA No. 144/2023

Also at

Mrs. S. Laxmi, W/o M. Senthilkaniraja, Pro. M/s Neha Eddible Products, Partner: M/s Anugraha Flour Mills, No.32, Bharathidasan Street, Kovilpatti – 628 501, Thoothukudi District. ---Defendants

¶27

Counsel for the Applicant Bank : M/s N. Dilip Kumar, R.M. Ajay Parthiban.

¶28

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 07.01.2023 to recover from the Defendants a sum of Rs.6,44,68,923.76p i.e., (i) Rs.2,91,74,108.81p together with interest at the rate of 11% p.a. with penal interest at the rate of 2%p.a. in respect of OLCC facility (ii) Rs.54,16,662.59p together with interest at the rate of 9.25% p.a. with penal interest at the rate of 2%p.a. in respect of ECLGS facility

¶31

(iii) Rs.38,56,765.20p together with interest at the rate of 8.50% p.a. with penal interest at the rate of 2%p.a. in respect of ECLGS 1.0 (Extension) facility (iv) Rs.60,14,498.27p together with interest at the rate of 10% p.a. with penal interest at the rate of 2%p.a. in respect of OSL Special facility

¶32

(v) Rs.99,99,090.23p together with interest at the rate of 12.25% p.a. with penal interest at the rate of 2%p.a. in respect of Secured OD without DP facility

¶33

(vi) Rs.1,00,07,798.66p together with interest at the rate of 11% p.a. with penal interest at the rate of 2%p.a. in respect of OLCC facility from the date of filing 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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Page 3 of 19

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OA No. 144/2023

¶36

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

¶37

The 1^st defendant is the proprietor of M/s. Sri Vanni Thangam Food Products and one of the Partners of M/s. Anugraha Flour Mills involves in business of distribution of food products at Thoothukudi District. 2^nd defendant is the Proprietor of M/s. Neha Eddible Prodducts and one of the Partners in M/s. Anugraha Flour Mills. They had approached the applicant bank seeking various credit facilities for their business needs. The 1^st defendant being the proprietor of M/s. Sri Vanni Thangam Food Products had approached the applicant bank seeking Cash Credit facility of Rs.3,00,00,000/- (Rupees Three Crores Only) for their business needs. The applicant bank also sanctioned the said loan and credit sanction advice was made to them on 20.08.2017.

¶38

In consideration of OLCC facility defendants 1 and 2 had executed a Demand Promissory Note on 21.08.2017 for a sum of Rs.3,00,00,000/(Rupees Three Crores Only) in favour of the Applicant Bank as a continuing security promising to repay the loan amount together with MCLR 11% P.A with monthly rests. On 21.08.2017 defendants had executed letter of continuity for the operation of the loan account and they had accepted all the terms and conditions of the bank. On 21.08.2017 the defendants had executed draft consent letter and undertaking letter with regard to the credit facility availed. On 21.08.2017 defendants had executed Agreement of loan and hypothecation and thereby they had accepted with all the terms and conditions and they had hypothecated all the stocks of food products stored in the premises with regard to the properties mentioned in "A" Schedule.

¶39

The 1 defendant had deposited his title deeds with the applicant bank and Memorandum of deposit of title deeds was made on 05.01.2021 in Doc No. 98 of 2021 with regard to the properties mentioned in "B" Schedule. On 02.06.2020 the defendants executed letter of revival in favour of the applicant bank with regard to the credit facility availed.

¶40

ECLGS LOAN FACILITY Ac No. 501812080076176

¶41

The 1^st defendant had approached the applicant bank seeking ECLGS loan facility of Rs.60,00,000/-(Rupees Sixty Lakhs Only) for business needs. The applicant bank also sanctioned the said loan and credit sanction advice was made to them. In consideration of ECLGS facility defendants had executed a Demand Promissory Note on 04.11.2020 for a sum of Rs.60,00,000/- (Rupees Sixty Lakhs Only) in favour of the Applicant Bank as a continuing security promising to repay the loan amount on with prevailing MCLR rate minimum of 9.25% from time to time with monthly

¶42

Page 4 of 19

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OA No. 144/2023

¶44

rests. On 04.11.2020 defendants had executed letter of undertaking for the operation of the loan account and he had accepted all the terms and conditions of the bank. On 04.11.2020 defendants herein had executed loan agreement and thereby they had agreed with all the terms and conditions to repay the term loan of Rs.60,00,000/- (Rupees Sixty Lakhs Only) in 36 monthly instalment of Rs.1,91,497.28/- from the date of availing the credit facility. The defendants also agreed to pay penal interest at 2% over and above the contractual rate of interest in the event of default in payment of installment amounts. The defendants had executed guarantee agreement with regard to the Term Loan facility availed by them.

¶45

OSL SPECIAL LOAN FACILITY Ac No. 501812080079853

¶46

The 1^st defendant had approached the applicant bank seeking ECLGS loan facility of Rs.55,00,000/-(Rupees Fifty Five Lakhs Only) for business needs. The applicant bank also sanctioned the said loan and credit sanction advice was made to them. In consideration of OSL SPECIAL facility defendants had executed a Demand Promissory Note on 05.07.2021 for a sum of Rs.55,00,000/- (Rupees Fifty Five Lakhs Only) in favour of the Applicant Bank as a continuing security promising to repay the loan amount on with prevailing MCLR rate minimum of 10% from time to time with monthly rests. On 05.07.2021 defendants had executed letter of undertaking for the operation of the loan account and he had accepted all the terms and conditions of the bank. On 05.07.2021 defendants herein had executed loan agreement and thereby they had agreed with all the terms and conditions to repay the term loan of Rs.55,00,000/- (Rupees Fifty Five Lakhs Only) in Bullet Repayment of Rs.55,00,000/- within 6 months from the date of availing the credit facility. The defendants also agreed to pay penal interest at 2% over and above the contractual rate of interest in the event of default in payment of installment amounts. The defendants had executed guarantee agreement with regard to the Term Loan facility availed by them.

¶47

ECLGS 1.0 (EXTENSION) LOAN FACILITY Ac No. 501812080088531

¶48

The 1^st defendant had approached the applicant bank seeking ECLGS 1.0 (EXTENSION) loan facility of Rs.35,90,000/- (Rupees Thirty Five Lakhs Ninety Thousand Only) for business needs. The applicant bank also sanctioned the said loan and credit sanction advice was made to them.

¶49

In consideration of ECLGS 1.0 (EXTENSION) facility defendants had executed a Demand Promissory Note on 30.03.2022 for a sum of Rs.35,90,000/- (Rupees Thirty Five Lakhs Ninety Thousand Only) in favour of the Applicant Bank as a continuing security promising to repay the loan

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Page 5 of 19

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OA No. 144/2023

¶52

amount on with prevailing MCLR rate minimum of 8.50% from time to time with monthly rests. On 30.03.2022 defendants had executed letter of undertaking for the operation of the loan account and he had accepted all the terms and conditions of the bank. On 30.03.2022 defendants herein had executed loan agreement and thereby they had agreed with all the terms and conditions to repay the term loan of Rs.35,90,000/- (Rupees Thirty Five Lakhs Ninety Thousand Only) in 36 monthly instalment of Rs.1,13,327/from the date of availing the credit facility. The defendants also agreed to pay penal interest at 2% over and above the contractual rate of interest in the event of default in payment of installment amounts. The defendants also had executed guarantee agreement with regard to the Term Loan facility availed by them.

¶53

M/s. Neha Eddible Food Products 512120020012812:-

¶54

The 2^nd defendant being the proprietor of M/s. Neha Eddible Food Products_had approached the applicant bank seeking Cash Credit facility of Rs.1,00,00,000/- (Rupees One Crores Only) for their business needs. The applicant bank also sanctioned the said loan and credit sanction advice was made to them on 19.06.2018. In consideration of OLCC facility defendants 1 and 2 executed a Demand Promissory Note on 19.06.2018 for a sum of Rs.1,00,00,000/- (Rupees One Crores Only) in favour of the Applicant Bank as a continuing security promising to repay the loan amount together with MCLR 12.25% P.A with monthly rests. On 19.06.2018 defendants had executed letter of continuity for the operation of the loan account and he had accepted all the terms and conditions of the bank. The defendant had draft consent letter and undertaking letter with regard to the credit facility availed. On 21.08.2017 defendant had executed Agreement of loan and hypothecation and thereby they had accepted with all the terms and conditions and they had hypothecated all the stocks of food products stored in the premises with regard to the properties mentioned in "A" Schedule.

¶55

The 1^st defendant had deposited his title deeds with the applicant bank and Memorandum of deposit of title deeds was made on 05.01.2021 in Doc No. 98 of 2021 with regard to the properties mentioned in "B" Schedule. On 05.05.2021 the defendants had executed letter of revival in favour of the applicant bank with regard to the credit facility availed.

¶56

M/s. Anugraha Flour Mills 512020010020022:

¶57

The 1^st and 2^nd defendant were the partners of M/s. Anugraha Flour Mills had approached the applicant bank seeking Cash Credit facility of Rs.1,00,00,000/- (Rupees One Crores Only) for their business needs. The applicant bank also sanctioned the said loan and credit sanction advice was

¶58

Page 6 of 19

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OA No. 144/2023

¶60

made to them on 20.08.2017. I n consideration of OLCC facility defendants 1 and 2 executed a Demand Promissory Note on 21.08.2017 for a sum of Rs.1,00,00,000/- (Rupees One Crores Only) in favour of the Applicant Bank as a continuing security promising to repay the loan amount together with MCLR 11% P.A with monthly rests. On 21.08.2017 defendants had executed letter of continuity for the operation of the loan account and he had accepted all the terms and conditions of the bank. The defendant had draft consent letter and undertaking letter with regard to the credit facility availed. The defendant had executed Agreement of loan and hypothecation and thereby they had accepted with all the terms and conditions and they had hypothecated all the stocks of food products stored in the premises with regard to the properties mentioned in "A" Schedule.

¶61

The 1^st defendant had deposited his title deeds with the applicant bank and Memorandum of deposit of title deeds was made on 05.01.2021 in Doc No. 98 of 2021 with regard to the properties mentioned in "B" Schedule. The defendants had executed letter of revival in favour of the applicant bank with regard to the credit facility availed.

¶62

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.

¶63

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 of a sum of Rs.6,44,68,923.76p i.e., (i) Rs.2,91,74,108.81p together with interest at the rate of 11% p.a. with penal interest at the rate of 2%p.a. in respect of OLCC facility (ii) Rs.54,16,662.59p together with interest at the rate of 9.25% p.a. with penal interest at the rate of 2%p.a. in respect of ECLGS facility

¶64

¶65

(v) Rs.99,99,090.23p together with interest at the rate of 12.25% p.a. with penal interest at the rate of 2%p.a. in respect of Secured OD without DP facility

¶66

(vi) Rs.1,00,07,798.66p together with interest at the rate of 11% p.a. with penal interest at the rate of 2%p.a. in respect of OLCC facility from the date of filing of Application till the date of realization with cost a sum of Rs. 14,75,471/- together with interest at the rate of 13.5% p.a. with

¶67

Page 7 of 19

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OA No. 144/2023

¶69

compounded Yearly rests in respect of Term Loan from the date of Application till the date of realization with cost.

¶70

The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

¶71

S. No.	Date	Description of document	Exhibits
1	20.08.2017	Sanction letter	Ex.No.A-01
2	21.08.2017	Demand PromissoryNote	Ex.No.A-02
3	21.08.2017	Letter of Continuity	Ex.No.A-03
4	21.08.2017	Undertakingletter	Ex.No.A-04
5	21.08.2017	Consent letter	Ex.No.A-05
6	21.08.2017	Consent letter of Borrower and Guarantor	Ex.No.A-06
7	21.08.2017	Hypothecation Agreement	Ex.No.A-07
8	02.06.2020	Letter of Revival	Ex.No.A-08
9	02.06.2020	Confirmation of Balance	Ex.No.A-09
10	29.10.2020	Sanction letter	Ex.No.A-10
11	04.11.2020	Demand PromissoryNote	Ex.No.A-11
12	04.11.2020	Undertakingletter	Ex.No.A-12
13	04.11.2020	Undertakingletter	Ex.No.A-13
14	04.11.2020	Consent letter of Borrower and Guarantor	Ex.No.A-14
15	04.11.2020	Loan Undertaking	Ex.No.A-15
16	04.11.2020	Consent letter	Ex.No.A-16
17	04.11.2020	Undertakingfor EMI	Ex.No.A-17
18	05.07.2021	Sanction letter	Ex.No.A-18
19	05.07.2021	Demand PromissoryNote	Ex.No.A-19
20	05.07.2021	Undertakingletter	Ex.No.A-20
21	05.07.2021	Consent letter of Borrower and Guarantor	Ex.No.A-21
22	05.07.2021	Loan Undertaking	Ex.No.A-22
23	05.07.2021	Consent letter	Ex.No.A-23
24	05.07.2021	Undertakingfor EMI	Ex.No.A-24
25	25.03.2022	Sanction letter	Ex.No.A-25
26	30.03.2022	Demand PromissoryNote	Ex.No.A-26
27	30.03.2022	Undertakingletter	Ex.No.A-27
28	30.03.2022	Consent letter of Borrower and Guarantor	Ex.No.A-28
29	30.03.2022	Loan Undertaking	Ex.No.A-29
30	30.03.2022	Consent letter	Ex.No.A-30
31	30.03.2022	Undertakingfor EMI	Ex.No.A-31
32	19.06.2018	Sanction letter	Ex.No.A-32
33	19.06.2018	Demand PromissoryNote	Ex.No.A-33
34	19.06.2018	Undertakingletter	Ex.No.A-34
35	19.06.2018	Consent letter of Borrower and Guarantor	Ex.No.A-35

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Page 8 of 19

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OA No. 144/2023

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36	19.06.2018	Loan Undertaking	Ex.No.A-36
37	19.06.2018	Letter of Continuity	Ex.No.A-37
38	05.05.2021	Letter of Revival	Ex.No.A-38
39	05.05.2021	Confirmation of Balance	Ex.No.A-39
40	20.08.2017	Sanction letter	Ex.No.A-40
41	21.08.2017	Demand PromissoryNote	Ex.No.A-41
42	21.08.2017	Undertakingletter	Ex.No.A-42
43	21.08.2017	Consent letter of Borrower and Guarantor	Ex.No.A-43
44	21.08.2017	Loan Undertaking	Ex.No.A-44
45	21.08.2017	Letter of Continuity	Ex.No.A-45
46	21.08.2017	Hypothecation Agreement	Ex.No.A-46
47	02.06.2020	Letter of Revival	Ex.No.A-47
48	02.06.2020	Confirmation of Balance	Ex.No.A-48
49	05.01.2021	Memorandum of Deposit of Title deeds	Ex.No.A-49
50	02.12.2016	Sale deed in Doc.No.6682 of 2016	Ex.No.A-50
51	02.12.2016	Sale deed in Doc.No.41 of 2012	Ex.No.A-51
52	10.06.2010	Sale deed in Doc.No.4786 of 2010	Ex.No.A-52
53	29.06.2012	Sale deed in Doc.No.6927 of 2012	Ex.No.A-53
54	03.07.2015	Sale deed in Doc.No.4640 of 2015	Ex.No.A-54
55	03.07.2015	Sale deed in Doc.No.4641 of 2015	Ex.No.A-55
56	03.07.2015	Sale deed in Doc.No.4642 of 2015	Ex.No.A-56
57	03.07.2015	Sale deed in Doc.No.4643 of 2015	Ex.No.A-57
58	03.07.2015	Sale deed in Doc.No.4644 of 2015	Ex.No.A-58
59	03.07.2015	Sale deed in Doc.No.4645 of 2015	Ex.No.A-59
60	03.12.2008	Sale deed in Doc.No.11009 of 2008	Ex.No.A-60
61	23.10.2009	Sale deed in Doc.No.8991 of 2009	Ex.No.A-61
62	----	Loan account statement	Ex.No.A-62

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"A" SCHEDULE

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HYPOTHECATED GOODS

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All the stocks, trade and all goods stored at the premises of defendant and the godowns and warehouse of the defendants.

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" B" SCHEDULE

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DESCRIPTION OF THE IMMOVABLE PROPERTY

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ITEM I

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Vacant Land situated at Palayamkottai Registration District, Sub registaration District of Kovilpatti, Kovilpatti Panchayat Union,

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Page 9 of 19

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OA No. 144/2023

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Manthithoppu Panchayat, Manthithoppu Village, New S.No. 225/4 land measuring 2 Acres 98 Cents in the following boundaries

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North by Land belongs to Mr. Vanimuthupillai East by Land belongs to Mr. C. MadasamyPalraj South by East - West Odai West by Land belongs to Mr. Vanimuthupillai

¶86

ITEM II

¶87

Land and building situated at Palayamkottai Registration District, Sub registration Circle of Kovilpatti, Pandavarmangalam Village, S.No. 5962A2A1A1 before Sub Division 596/2A land with building in Door No. 147/6 measuring 2370 Sq Feet in the following boundaries

¶88

North by Land sold to Mr Varatharajan and Jega Jothi Varatharajan East by House belongs to Mr. Jeyabal and Mr Varatharaj Vagaiyara South by 20 feet wide East-West 3rd street West by Land and building belongs to Mr. Murugesapandian

¶89

Measurement

¶90

East-West on the North 39.50 Feet East-West on the South 39.50 Feet North-South on the West 60 Feet North-South on the East 60 Feet

¶91

ITEM III

¶92

Land and building situated at Palayamkottai Registration District, Sub registration District of Kovilpatti, Kovilpatti Municipality Limit, Kovilpatti Town, Previous Ward No.8 and Ward No. 14, 26, now New Ward No. 31, Sasthrinagar 1^st street, Kovilpatti previous adangal No. 125/2, New S.No. 590/1A measuring 1 Acre 06 Cents, S.No.590/4A, measuring 1 Acre 04 cents, S.No. 590/1B measuring 1 Acre 06 Cents, S.No. 590/4B, measuring 1 Acre 04 Cents totally measuring 4 Acre 20 Cents was promoted as layout by dividing into many plots in which western side of plot No. 30 measuring 1510.031 Sq Feet equal to 140.285 Sq Metre equal to 3.466 cents in the following boundaries

¶93

North by 20 Feet Wide East - West Theru East by Eastern Side of Plot Number 30 belongs to Chellammal South by Plot No.25 belongs to Senthilkumar Vagaiyara West by Plot No. 29

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Measurement

East-West on the North 29^1/4 Feet East-West on the South 29^1/4 Feet North-South on the West 52.50 Feet North-South on the East 50^3/4 Feet

¶98

ITEM IV

¶99

¶100

North by	Land and building belongs to Nadar Uravinmurai Sangam and East-West Common Wall
East by	House bearing Door No 19 belongs to Thangaraj and South – North common wall
South by	House of chinnasamy Nadar and South North 4^1/2feet wide common pathway
West by	House belongs to Avudaiappan Chettiyar Vagaiyara and South North common wall

¶101

Measurement

¶102

East-West on the North 10 Feet East-West on the South 9^1/4 Feet North-South on the West 44 Feet North-South on the East 44 Feet

¶103

ITEM V-A

¶104

Land and building situated at Palayamkottai Registration District, Kovilpatti Sub registration District, Kovilpatti Sub registration circle, Kovilpatti Panchayat Union, Manthithoppu Panchayat Limit, S.No. 350/1A, 350/1B, 350/3 in the following boundaries

¶105

North by 20 feet wide East-West Road East by 20 feet wide South-North road South by Plot No. 16,5 West by Plot No. 10

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Extent

Plot No.8

East-West on the North 25 Feet East-West on the South 36 Feet South North on the East 53 Feet South North on the West 50 Feet

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Plot No.9

¶112

East-West on the North 30 Feet East-West on the South 30 Feet South-North on the West 49.50 Feet South-North on the East 50 Feet

¶113

ITEM V-B

¶114

Land and building situated at Palayamkottai Registration District, Kovilpatti Sub registration District, Kovilpatti Sub registration circle, Kovilpatti Panchayat Union, Manthithoppu Panchayat Limit S.No. 350/1A, 350/1B, 350/3 in the following boundaries

¶115

North by Plot No. 8, 9, 10, 11 and 12 East by 20 feet wide South- North road South by 20 feet wide East - West road West by Kovilpatti to kuramalai Road

¶116

Extent

¶117

Plot No. 13

¶118

East-West on the North 58 Feet East-West on the South 40.75 Feet South-North on the West 51 Feet South North on the East 48.50 Feet

¶119

Plot No. 14

¶120

East-West on the North 30 Feet East-West on the South 30 Feet South-North on the West 48.50 Feet South North on the East 49.25 Feet

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Plot No. 15

East-West on the North 30 Feet East-West on the South 30 Feet South-North on the West 49.25 Feet South-North on the East 50 Feet

¶125

Plot No. 16

¶126

East-West on the North 36 Feet East-West on the South 32 Feet South-North on the West 50 Feet South North on the East 51.75 Feet

¶127

ITEM VI

¶128

Land and building situated at Palayamkottai Registration District, Kovilpatti Sub registration District, Kovilpatti Sub registration circle, Kovilpatti Panchayat Union, Manthithoppu Panchayat Limit S.No. 350/1A, 350/1B, 350/3 in the following boundaries

¶129

North by East-West Road East by South-North Odai South by East-West Odai West by Kovilpatti to Kurumalai Road

¶130

Extent

¶131

Western side of Plot No.65 East-West on the North 37.25 Feet East-West on the South 37.25 Feet South-North on the West 74.50 Feet

¶132

South-North on the East 92 Feet

¶133

Eastern side of Plot No.65

¶134

East-West on the North 0 Feet East-West on the South 54 Feet South-North on the West 92 Feet South-North on the East 124 Feet

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Plot No.66

East-West on the North 30 Feet East-West on the South 30 Feet South-North on the West 73.75 Feet South-North on the East 74.50 Feet

¶139

Plot No.67

¶140

East-West on the North 65.25 Feet East-West on the South 40 Feet South-North on the West 84 Feet South North on the East 73.75 Feet

¶141

ITEM VII-A

¶142

Land and building situated at Palayamkottai Registration District, Kovilpatti Sub registration District, Kovilpatti Sub registration circle, Kovilpatti Town, Kovilpatti Municipality Limit Previous Ward No.8 and Ward No. 14, 26 now new Ward No. 31, Sasthri Nagar 1^st street, Kovilpatti previous adangal No. 125/2, New Survey No. 590/1A measuring 1 Acre 06 Cents, S.No. 590/4A measuring 1 Acre 04 Cents, S.No. 590/1B measuring 1 Acre 06 Cents, S.No. 590/4B, measuring 1 Acre 04 Cents totally measures 4 Acre 20 cents was promoted as layout in which plot no.28 measuring 3.925 cents in the following boundaries

¶143

North by 20 feet wide East-West Theru East by Plot No.29 South by Plot No. 27 belongs to Senthil Kumar West by Municipal School

¶144

Extent

¶145

East-West on the North 31.25 Feet East-West on the South 31.50 Feet North-South on the West 53.50 Feet North-South on the East 55.50 Feet

ITEM VII- B

Page 14 of 19

OA No. 144/2023

Adangal No. 125/2, New Survey No. 590/1A measuring 1 Acre 06 Cents, S.No. 590/4A measuring 1 Acre 04 Cents, S.No. 590/1B measuring 1 Acre 06 Cents, S.No. 590/4B, measuring 1 Acre 04 Cents totally measures 4 Acre 20 cents was promoted as layout in which plot no.29 measuring 3.847 cents in the following boundaries

¶151

North by 20 feet wide East-West Theru East by Plot No.30 South by Plot No. 26 belongs to Senthil Kumar West by Plot No.28

¶152

Extent

¶153

East-West on the North 31.75 Feet East-West on the South 31.50 Feet North-South on the West 53.50 Feet North-South on the East 52.50 Feet

¶154

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.

¶155

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?

¶156

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. S. Subramanian, who is the Branch Manager of the Applicant Bank.

¶157

He has stated in his affidavit that the defendants has availed OLCC, ECLGS, OSL Special facility, ECLGS 1.0 (Extension), Secured OD without DP facility and OLCC facility 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-62 in support of its claim in the OA.

¶158

The Sanction letter has been marked as Ex.No.A-01, Demand Promissory Note has been marked as Ex.No.A-02, Letter of Continuity has been marked as Ex.No.A-03, Undertaking letter has been marked as Ex.No.A-04, Consent letter has been marked as Ex.No.A-05, Consent letter of Borrower and Guarantor has been marked as Ex.No.A-06, Hypothecation

¶159

Page 15 of 19

¶160

OA No. 144/2023

¶161

Agreement has been marked as Ex.No.A-07, Letter of Revival has been marked as Ex.No.A-08, Confirmation of Balance has been marked as Ex.No.A-09, Sanction letter has been marked as Ex.No.A-10.

¶162

The Demand Promissory Note has been marked as Ex.No.A-11, Undertaking letter has been marked as Ex.No.A-12, Undertaking letter has been marked as Ex.No.A-13, Consent letter of Borrower and Guarantor has been marked as Ex.No.A-14, Loan Undertaking has been marked as Ex.No.A-15, Consent letter has been marked as Ex.No.A-16, Undertaking for EMI has been marked as Ex.No.A-17, Sanction letter has been marked as Ex.No.A-18, Demand Promissory Note has been marked as Ex.No.A-19, Undertaking letter has been marked as Ex.No.A-20.

¶163

The Consent letter of Borrower and Guarantor has been marked as Ex.No.A-21, Loan Undertaking has been marked as Ex.No.A-22, Consent letter has been marked as Ex.No.A-23, Undertaking for EMI has been marked as Ex.No.A-24, Sanction letter has been marked as Ex.No.A-25, Demand Promissory Note has been marked as Ex.No.A-26, Undertaking letter has been marked as Ex.No.A-27, Consent letter of Borrower and Guarantor has been marked as Ex.No.A-28, Loan Undertaking has been marked as Ex.No.A-29, Consent letter has been marked as Ex.No.A-30.

¶164

The Undertaking for EMI has been marked as Ex.No.A-31, Sanction letter has been marked as Ex.No.A-32, Demand Promissory Note has been marked as Ex.No.A-33, Undertaking letter has been marked as Ex.No.A-34, Consent letter of Borrower and Guarantor has been marked as Ex.No.A-35, Loan Undertaking has been marked as Ex.No.A-36, Letter of Continuity has been marked as Ex.No.A-37, Letter of Revival has been marked as Ex.No.A38, Confirmation of Balance has been marked as Ex.No.A-39, Sanction letter has been marked as Ex.No.A-40.

¶165

The Demand Promissory Note has been marked as Ex.No.A-41, Undertaking letter has been marked as Ex.No.A-42, Consent letter of Borrower and Guarantor has been marked as Ex.No.A-43, Loan Undertaking has been marked as Ex.No.A-44, Letter of Continuity has been marked as Ex.No.A-45, Hypothecation Agreement has been marked as Ex.No.A-46, Letter of Revival has been marked as Ex.No.A-47, Confirmation of Balance has been marked as Ex.No.A-48, Memorandum of Deposit of Title deeds has been marked as Ex.No.A-49, Sale deed in Doc.No.6682 of 2016 has been marked as Ex.No.A-50.

¶166

The 1^st Sale deed in Doc.No.41 of 2012 has been marked as Ex.No.A51, 2^nd Sale deed in Doc.No.4786 of 2010 has been marked as Ex.No.A-52, 3^rd Sale deed in Doc.No.6927 of 2012 has been marked as Ex.No.A-53, 4^th

¶167

Page 16 of 19

¶168

OA No. 144/2023

¶169

Sale deed in Doc.No.4640 of 2015 has been marked as Ex.No.A-54, 5^th Sale deed in Doc.No.4641 of 2015 has been marked as Ex.No.A-55, 6^th Sale deed in Doc.No.4642 of 2015 has been marked as Ex.No.A-56, 7^th Sale deed in Doc.No.4643 of 2015 has been marked as Ex.No.A-57, 8^th Sale deed in Doc.No.4644 of 2015 has been marked as Ex.No.A-58, 9^th Sale deed in Doc.No.4645 of 2015 has been marked as Ex.No.A-59, 10^th Sale deed in Doc.No.11009 of 2008 has been marked as Ex.No.A-60, 11^th Sale deed in Doc.No.8991 of 2009 has been marked as Ex.No.A-61, Loan account statement Ex.No.A-62. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶170

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.

¶171

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).

¶172

So far the penal interest is concerned Hon'ble supreme court stated in the said judgement as followed " Though interest can be capitalised on the anology that the interest falling due on the accrued date and remaining unpaid, partakes the character of amount advanced on that date, yet penal interest, which is charged by way of penalty for non payment, cannot be capitalized. Further interest, i.e interest on interest, whether simple, compound or penal, cannot be claimed on the amount of penal interest. Penal interest cannot be capitalized. It will be opposed to public policy ".

¶173

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

¶174

The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.6,44,68,923.76p i.e., (i) Rs.2,91,74,108.81p together with interest at the rate of 11% p.a. in respect of OLCC facility (ii) Rs.54,16,662.59p together with interest at the rate of 9.25% p.a. in respect of ECLGS facility

¶175

(iii) Rs.38,56,765.20p together with interest at the rate of 8.50% p.a. in respect of ECLGS 1.0 (Extension) facility

¶176

Page 17 of 19

¶177

OA No. 144/2023

¶178

(iv) Rs.60,14,498.27p together with interest at the rate of 10% p.a. in respect of OSL Special facility

¶179

(v) Rs.99,99,090.23p together with interest at the rate of 12.25% p.a. in respect of Secured OD without DP facility

¶180

(vi) Rs.1,00,07,798.66p together with interest at the rate of 11% p.a. in respect of OLCC facility from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

¶181

ORDERED

¶182

(a) That the Defendants are directed to pay jointly/severally a sum of Rs.6,44,68,923.76p i.e., (i) Rs.2,91,74,108.81p together with interest at the rate of 11% p.a. in respect of OLCC facility

¶183

(ii) Rs.54,16,662.59p together with interest at the rate of 9.25% p.a. in respect of ECLGS facility

¶184

(iii) Rs.38,56,765.20p together with interest at the rate of 8.50% p.a. in respect of ECLGS 1.0 (Extension) facility

¶185

(iv) Rs.60,14,498.27p together with interest at the rate of 10% p.a. in respect of OSL Special facility

¶186

(v) Rs.99,99,090.23p together with interest at the rate of 12.25% p.a. in respect of Secured OD without DP facility

¶187

(vi) Rs.1,00,07,798.66p together with interest at the rate of 11% p.a. in respect of OLCC facility from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.

¶188

(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.

¶189

(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.

¶190

Page 18 of 19

¶191

OA No. 144/2023

¶192

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

¶193

(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.

¶194

(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 OLCC, ECLGS, OSL Special facility, ECLGS 1.0 (Extension), Secured OD without DP facility and OLCC facility 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.

¶195

Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 03^rd October, 2025.

¶196

Sd/- (SEEMA SINHA) PRESIDING OFFICER

¶197

Uploaded on 15.10.2025

¶198

Page 19 of 19

City Union Bank Limited v. M Senthilkaniraja

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. M Senthilkaniraja

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Cases cited

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