Allowed

City Union Bank Limited v. Mrs M Selvi

DRT15 Jul 2025OA/249/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by City Union Bank Limited for the recovery of Rs. 19.22 crores. The court granted a final order permitting the bank to recover the dues including interest from the defaulting borrowers and guarantors jointly and severally, with provisions for asset sanctions to realize the amount.

What did the court decide?

Direction to recover Rs.19.22 crores with interest from respondents; sale of Schedule B properties permitted; recovery certificate to be issued.

City Union Bank Limited versus Mrs M Selvi — Contract and Commercial Disputes | DRT (2025)

¶1

O.A. No. 249 of 2023

¶2

15.07.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 15^th day of July, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 249 of 2022

¶8

CITY UNION BANK LIMITED, Jayakondam Branch, Represented by its Branch Manager, Mr. G. Muthu, No. 51, Sannathi Street, Jayakondam, Ariyalur District – 621 802.

¶9

….Applicant

¶10

-Vs-

¶11

M/s. Sri Kumaran Silks, Represented by its Proprietrix, Mrs. M. Selvi,

¶12

W/o. R. Murugan,

¶13

No. 14, Chidambaram Road, Jayakondam, Udayarpalayam Taluk,

¶14

Ariyalur District – 621 802.

¶15

Mrs. M. Selvi, W/o. R. Murugan,

¶16

Door No. 22-A, Sannathi Street, Jayakondam Post, Udayarpalayam Taluk, Ariyalur District – 621 802.

¶17

Mr. R. Murugan, S/o. Mr. A. Ramanathan,

¶18

Door No. 22-A, Sannathi Street, Jayakondam Post, Udayarpalayam Taluk, Ariyalur District – 621 802.

¶19

Mrs. R. Kanagam, W/o. Mr. A. Ramanathan, Door No. 22-A, Sannathi Street, Jayakondam Post, Udayarpalayam Taluk, Ariyalur District – 621 802.

¶20

O.A. No. 249 of 2023

¶21

¶22

15.07.2025

¶23

Mr. N. Nagaiyan, S/o. Mr. Narayanasamy Chettiyar,

¶24

Door. No. 49 A5, Azhagiri Lane Street, Jayakondam Post, Udayarpalayam Taluk,

¶25

Ariyalur District – 621 802.

¶26

M/s. Sri Amman Textiles, Represented by its Proprietor, Mr. R. Murugan, S/o. Mr. A. Ramanathan,

¶27

Shop No. 56, Chidambaram Road, Jayakondam Post, Udayarpalayam Taluk, Ariyalur District – 621 802. ….. Defendants

¶28

Counsels on record / appeared:

¶29

Counsel for Applicant : M/s. R. Sivaraman

¶30

Defendants 1 to 3 were set ex-parte on 07.10.2022

¶31

: - FINAL ORDER - :

¶32

This Original Application is filed on 04.09.2021 by the applicant bank

¶33

under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 6, jointly and severally for recovery of a total sum of Rs.19,22,01,190/- (Rupees Nineteen Crores Twenty Two Lakhs One Thousand One Hundred and Ninety only) as follows:

¶34

(i) A sum of Rs.70,39,743/- due in respect of OLCC Facility (A/c. No. 512020010022755) from defendants 1 to 4 jointly and severally repayable together with further interest @ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶35

O.A. No. 249 of 2023

¶36

¶37

15.07.2025

¶38

(ii) A sum of Rs.55,07,069 due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080057266) from defendants 1 to 5 jointly and severally repayable together with further interest @ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶39

(iii) A sum of Rs.6,63,33,283/- due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080013254) from defendants 2 to 4 & 6 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶40

(iv) A sum of Rs.1,00,59,176/- due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080019093) from defendants 2 to 4 & 6 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶41

(v) A sum of Rs.7,09,42,904/- due in respect of OLCC Facility – Rs.6,61,28,279/- plus Adhoc Facility – Rs.48,13,925/(A/c. No. 025120000125297) from defendants 2 to 4 &

¶42

6 jointly and severally repayable together with further interest

¶43

O.A. No. 249 of 2023

¶44

15.07.2025

¶45

¶46

@ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶47

(vi) A sum of Rs.2,02,27,734/- due in respect of CUB OSL Term EMI – BR A/c. No. 501812080050514) from defendants 2 to 4 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶48

(vii) A sum of Rs.1,20,91,281/- due in respect of CUB OSL Term EMI – BR A/c. No. 501812080062547) from defendants 2 to 4 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶49

for sale of schedule A mentioned immovable properties, Schedule B mentioned hypothecated assets and for costs of this Original Application.

¶50

Brief Facts of the case:

¶51

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.

¶52

It is the case of the Applicant Bank that upon further request made by the 1^st defendant namely M/s. Sri Kumaran Silks, represented by its

¶53

O.A. No. 249 of 2023

¶54

15.07.2025

¶55

¶56

Sole Proprietrix namely Mrs. M. Selvi, being the 2^nd defendant and Mrs. M. Selvi and Mr. R. Murugan the 2^nd and 3^rd defendant stood as coapplicants, the Applicant Bank had extended financial assistance for working capital requirements. The 2^nd 3^rd & 4^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan A/c No: 512020010022755, sanctioned a sum of Rs.1,00,00,000/- to the defendants.

¶57

The Applicant submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/processed/ agreed :-

¶58

(a) Sanction Ticket dated 08.06.2018;

¶59

(b) On Demand Promissory Note dated 12.06.2018 for Rs.1,00,00,000/- executed by 1^st 2^nd & 3^rd defendants;

¶60

¶61

(d) Guarantee Agreement dated 12.06.2018 executed individually by the 2^nd 3^rd & 4^th defendants;

¶62

The Applicant submits that upon further request made by the 1^st defendant namely M/s. Sri Kumaran Silks, represented by its Sole Proprietrix namely Mrs. M.Selvi, being the 2^nd defendant and Mrs. M. Selvi and Mr. R. Murugan, the 2^nd & 3^rd defendants stood as co-applicants, the Applicant Bank had extended financial assistance for working capital

¶63

O.A. No. 249 of 2023

¶64

15.07.2025

¶65

¶66

requirements. The 2^nd 3^rd 4^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan A/c No: 501812080057266, sanctioned a sum of Rs.1,00,00,000/- to the defendants.

¶67

The Applicant Bank submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/ processed/agreed:-

¶68

(a) Sanction Ticket dated17.10.2019;

¶69

(b) On Demand Promissory Note dated18.10.2019 for Rs. 1,00,00,000/- executed by 1^st 2^nd & 3^rd defendants;

¶70

¶71

(d) Guarantee Agreement dated18.10.2019 executed individually by the 2^nd 3^rd 4^th & 5^th defendants;

¶72

The Applicant submits that upon request made by the 6^th defendant namely M/s.Sri Amman Textiles, represented by its Sole Proprietor namely Mr. R. Murugan, being the 3^rd defendant and Mrs. M.Selvi and Mr. R. Murugan, the 2^nd & 3^rd defendants stood as co-applicants, the Applicant Bank had extended financial assistance for working capital requirements. The 4^th defendant individually stood as Guarantor for the above credit facilities. The Applicant Bank under Loan A/c No 501812080013254,

¶73

O.A. No. 249 of 2023

¶74

15.07.2025

¶75

¶76

sanctioned a sum of Rs.6,50,00,000/- to the defendants.

¶77

The Applicant Bank submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/

¶78

processed/agreed:

¶79

(a) Sanction Ticket dated 16.09.2015

¶80

(b) On Demand Promissory Note dated 23.09.2015 for Rs.6,50,00,000/- executed by 6^th 2^nd & 3^rd defendants;

¶81

¶82

(d) Guarantee Agreement dated 23.09.2015 executed individually by the 2^nd 3^rd & 4^th defendants:

¶83

(e) Letter of Revival dated 24.07.2018 along with Confirmation of Balance dated 24.07.2018 executed by the 2^nd 3^rd & 4^th defendants in favour of the Applicant Bank;

¶84

The Applicant submits that upon further request made by the 6^th defendant namely M/s. Sri Amman Textiles, represented by its Sole Proprietor namely Mr. R. Murugan, being the 3rd defendant and Mrs. M.Selvi and Mr. R. Murugan, the 2^nd & 3^rd defendants stood as coapplicants, the Applicant Bank had extended financial assistance for Working capital requirements. The 2^nd 3^rd and 4^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank

¶85

O.A. No. 249 of 2023

¶86

¶87

15.07.2025

¶88

under Loan A/c No: 501812080019093, sanctioned a sum of 1,00,00,000/- to the defendants.

¶89

The Applicant submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/

¶90

processed/agreed :-

¶91

(a) Sanction Ticket dated 21.05.2016;

¶92

(b) On Demand Promissory Note dated 21.05.2016 for Rs.1,00,00,000/- executed by 6^th 2^nd & 3^rd defendants;

¶93

¶94

(d) Guarantee Agreement dated 21.05.2016 executed individually by the 2^nd 3^rd & 4^th defendants;

¶95

(e) Letter of Revival dated 16.03.2019 along with Confirmation of Balance dated 16.03.2019 executed by the 2^nd 3^rd and 6^th defendants in favour of the Applicant Bank;

¶96

The Applicant submits that upon further request made by the 6^th defendant namely M/s. Sri Amman Textiles, represented by its Sole Proprietor namely Mr. R. Murugan, being the 3^rd defendant and Mrs. M. Selvi and Mr. R. Murugan, the 2^nd & 3^rd defendants stood as co-applicants, the Applicant Bank had extended financial assistance for working capital requirements. The 2^nd 3^rd & 4^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan

¶97

O.A. No. 249 of 2023

¶98

¶99

15.07.2025

¶100

A/c No: 025120000125297, sanctioned a sum of Rs.5,50,00,000/- to the defendants.

¶101

The Applicant submits that to evidence the aforesaid credit facility

¶102

the following documents were signed/executed/submitted/processed/ agreed :-

¶103

(a) Renewed Sanction Ticket dt. 22.01.2020;

¶104

(b) On Demand Promissory Note dated 18.11.2017 for Rs.5,50,00,000/- executed by 6^th 2^nd & 3rd defendants;

¶105

¶106

(d) Guarantee Agreement dated 18.11.2017 executed individually by the 2^nd 3^rd & 4^th defendants;

¶107

(e) Letter of Revival dated 01.06.2020 along with Confirmation of Balance dated 01.06.2020 executed by the 2^nd 3^rd & 6^th defendants in favour of the Applicant;

¶108

The Applicant submits that upon request made by the 3^rd defendant, namely Mr. R. Murugan and the 2^nd defendant Mrs. M. Selvi, stood as coapplicant, the Applicant Bank had extended financial assistance for Working capital requirements. The 2^nd 3^rd & 4^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan A/c. No. 501812080050514, sanctioned a sum of

¶109

O.A. No. 249 of 2023

¶110

¶111

15.07.2025

¶112

Rs.1,80,00,000/- to the defendants.

¶113

The Applicant submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/processed/ agreed :-

¶114

(a) Sanction Ticket dated 26.03.2019;

¶115

(b) On Demand Promissory Note dated 27.03.2019 for Rs.1,80,00,000/- executed by 2^nd & 3^rd defendants;

¶116

¶117

The Applicant submits that upon further request made by the 3^rd defendant, namely Mr. R. Murugan and the 2^nd defendant Mrs. M. Selvi, stood as co-applicant, the Applicant Bank had extended financial assistance for Working capital requirements. The 2^nd 3^rd 4^th & 5^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan A/c No: 501812080062547, sanctioned a sum of Rs.1,00,00,000/- to the defendants. The 4^th defendant is being represented by its P.O.A. namely Mrs. R. Murugan, the 3^rd defendant herein who was executed necessary loan documents.

¶118

The Applicant submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/processed/ agreed:-

¶119

O.A. No. 249 of 2023

¶120

15.07.2025

¶121

¶122

(a) Sanction Ticket dated 28.03.2020;

¶123

(b) On Demand Promissory Note dated 30.03.2020 for Rs.1,00,00,000/- executed by 2^nd & 3^rd defendants;

¶124

¶125

The Applicant submits that upon further request made by the the 6th Defendant namely M/s. Sri Amman Textiles, represented by its Sole Proprietor namely Mr. R. Murugan being, the 3rd defendant and Mrs. M. Selvi and Mr. R. Murugan, the 2^nd & 3^rd defendants stood as co-applicants, the Applicant Bank had extended financial assistance for Working capital requirements. The 2^nd 3^rd 4^th & 5^th defendants individually stood as Guarantors for the above credit facilities. The Applicant Bank under Loan A/c No: 025120000125297, sanctioned a sum of Rs.40,00,000/- to the defendants. The 4^th defendant is being represented by its P.O.A. namely Mrs. R. Murugan, the 3^rd defendant herein who was executed necessary loan documents on her behalf.

¶126

The Applicant submits that to evidence the aforesaid credit facility the following documents were signed/executed/submitted/

¶127

processed/agreed:

¶128

(a) Sanction Letter dated 17.12.2019;

¶129

(b) On Demand Promissory Note dated 26.12.2019 for

¶130

O.A. No. 249 of 2023

¶131

¶132

15.07.2025

¶133

Rs.40,00,000/- executed by 2^nd 3^rd & 6^th defendants;

¶134

¶135

(d) Guarantee Agreement dated 26.12.2019 executed individually by the 2^nd 3^rd & 4^th defendants;

¶136

It is submitted by the Applicant that apart from executing the aforesaid loan documents, like Demand promissory notes and other loan documents, the 2^nd 3^rd 4^th & 5^th defendants herein had executed the Memorandum of Deposit of Title Deeds as detailed below:

¶137

Sl. No.	Mortgage executed by	Date of Equitable Mortgage/Date of Extension	Document Registration No. (if any)
1.	Mrs. M. Selvi W/o Mr. R. Murugan	21.02.2017 27.03.2019 18.10.2019	262 of 2017 789 of 2019 2436 of 2019
		17.06.2016	1213 of 2016
2.	Mr. R. Murugan S/o. Mr. A. Ramanathan	11.07.2016 17.11.2017 11.06.2018 27.03.2019	1372 of 2016 2440 of 2017 1385 of 2018 789 of 2019
		18.10.2019	2436 of 2019
3.	Mr. N. Nagaiyan S/o. Mr. Narayanasamy	18.10.2019	2437 of 2019

¶138

respectively with respect to the O.A. schedule property. Thus, the 2^nd 3^rd 4^th & 5^th defendants herein had created equitable mortgage in respect of

¶139

the unencumbered property as collateral for proper repayment of the credit facilities availed by the defendants, in favour of the Applicant Bank,

¶140

O.A. No. 249 of 2023

¶141

¶142

15.07.2025

¶143

which is more fully described below in Schedule "A" hereunder. Also, the Defendants by virtue of the hypothecation agreement executed in favour of the Applicant Bank, the Applicant Bank holds a charge over the movable properties as morefully described in the Schedule "B" hereunder.

¶144

The Applicant submits that the defendants after availing the aforesaid credit facilities they had neither repaid the amount nor settled their dues in spite of various demands made by the Applicant Bank on several occasions. The defendants failed and neglected to comply with and adhere to the terms and conditions of the credit facilities. The applicant bank states that in spite of several requests which were made to the defendants to repay the total due amounts or regularize the account maintained by them. Due to the default committed by the defendants, the loan accounts of the defendants were classified as NPA on 29.02.2020. The defendants pursuant to the default committed by them, they had made certain payments and the Applicant bank have partially discharged the property in the name of Mrs. M. Selvi and Mrs. R. Kanagam after marking NPA. (Old S.No.188/2, 607/25, D.No.55/B, Devanga Middle Street, Jayankondam 2475.72 Sq.ft. owned by Mrs. M. Selvi and Residential Plot No. S.No. 74/1, Sengunthapuram First Street, Jayankondam 4984 Sq.ft. owned by Mrs. R. Kanagam). The defendants till date have not discharged their total liability. The defendants had miserably failed and neglected to repay the aforesaid loan amounts.

¶145

O.A. No. 249 of 2023

¶146

15.07.2025

¶147

¶148

Subsequent to the default committed by the defendants, the applicant bank had issued Demand Notice dt. 06.11.2020 under section 13(2) of the SARFAESI ACT, 2002, to the Defendants herein to repay the entire debts due to the Applicant Bank. The Applicant Bank submits that a sum of Rs.19,22,01,190/- (Rupees Nineteen Crores Twenty Two Lakhs One Thousand One Hundred and Ninety only) is due and payable by the defendants, as on 02.09.2021 together with interest. This amount is due to the Applicant Bank and the defendants are liable to pay the sum with interest on contractual rates with monthly rests from the date of filing until realization. Hence the present Original Application (OA) is filed by applicant bank for recovery of its amounts due from defendants.

¶149

After the filing of the OA, summons were sent to the defendants 1 to 6 through Registered Post with Acknowledgment Due, which is served in respect of defendants 1 to 6. When OA was taken up on 07.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 6 were placed ex-parte on 07.10.2022.

¶150

Heard the submissions of Applicant Bank and perused the records.

¶151

To prove the case of the Applicant Bank, Sh. Chandragupthan, Branch Manager of the Applicant Bank, has filed his Affidavit by way of

¶152

O.A. No. 249 of 2023

¶153

15.07.2025

¶154

¶155

evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-55 . 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.

¶156

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.1,10,00,000/- remitted by defendants and properties belonging to 2^nd defendant Mrs. Selvi – Item No.1 of Schedule A and property belonging to 5^th defendant Mr. Nagaiyan - Item No.3 of Schedule A property were discharged vide Discharge Receipt bearing Doc No.3105 of 2002 dated 28.10.2022.

¶157

Applicant bank had reported part satisfaction of OA claim in a sum of Rs.9,75,10,000/- by way of sale of Item No. 2 of Schedule – A immovable properties under SARFAESI Act on 29.11.2024 by way of public auction. Accordingly, part satisfaction of sum of Rs.10,85,10,000/(Rs.1,10,00,000/- + Rs.9,75,10,000/-) is duly recorded vide order dated 22.05.2025 and documents marked as Ex A-37 to A-47 were returned to the applicant bank on 27.05.2025 under proper acknowledgment.

¶158

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:

¶159

O.A. No. 249 of 2023

15.07.2025

: O R D E R :

26. The OA is allowed with costs,

¶164

(a) The applicant bank is allowed to recover from the Defendants jointly and severally for recovery of a total sum of Rs.19,22,01,190/- (Rupees Nineteen Crores Twenty Two Lakhs One Thousand One Hundred and Ninety only) as follows:

¶165

(i) A sum of Rs.70,39,743/- due in respect of OLCC Facility (A/c. No. 512020010022755) from defendants 1 to 4 jointly and severally repayable together with further interest @ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶166

(ii) A sum of Rs.55,07,069 due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080057266) from defendants

¶167

1 to 5 jointly and severally repayable together with further interest @ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶168

(iii) A sum of Rs.6,63,33,283/- due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080013254) from defendants

¶169

2 to 4 & 6 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2%

¶170

O.A. No. 249 of 2023

¶171

15.07.2025

¶172

¶173

penal interest from the date of filing till the date of realisation in full;

¶174

(iv) A sum of Rs.1,00,59,176/- due in respect of CUB OSL Term EMI – BR (A/c. No. 501812080019093) from defendants

¶175

2 to 4 & 6 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶176

(v) A sum of Rs.7,09,42,904/- due in respect of OLCC Facility – Rs.6,61,28,279/- plus Adhoc Facility – Rs.48,13,925/(A/c. No. 025120000125297) from defendants 2 to 4 & 6 jointly and severally repayable together with further interest @ 12% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶177

(vi) A sum of Rs.2,02,27,734/- due in respect of CUB OSL Term EMI – BR A/c. No. 501812080050514) from defendants

¶178

2 to 4 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full;

¶179

(vii) A sum of Rs.1,20,91,281/- due in respect of CUB OSL Term EMI – BR A/c. No. 501812080062547) from defendants

¶180

O.A. No. 249 of 2023

¶181

¶182

15.07.2025

¶183

2 to 4 jointly and severally repayable together with further interest @ 13% p.a. with monthly rests besides 2% penal interest from the date of filing till the date of realisation in full; along with costs of this application.

¶184

(b) The sum of Rs.10,85,10,000/- realized by applicant bank by towards part satisfaction of the OA claim is directed to be given credit to the borrower’s loan account as on the date of realization.

¶185

(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 schedule B mentioned hypothecated properties morefully detailed in the OA schedule.

¶186

¶187

(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants 2 to 5 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 2 to 5 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 to 5.

¶188

(e) The applicant bank shall file the latest memo of calculation of

¶189

O.A. No. 249 of 2023

¶190

¶191

15.07.2025

¶192

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 Defendants to the applicant bank.

¶193

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶194

(g) Recovery Certificate shall be drawn up and issued to the

¶195

Recovery Officer in terms of the final order.

¶196

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

¶197

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

¶198

(Dictated to Steno (Ponmalar), transcribed by him, corrected, signed and pronounced by me on this the 15^th day of July, 2025)

¶199

ANNEXURES

¶200

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶201

AW-1: Sh. Chandragupthan, Branch Manager of the Applicant Bank

¶202

Exhibits on the part of the Applicant:

¶203

Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	08.06.2018	Sanction Ticket dated 08.06.2018	A-1

¶204

O.A. No. 249 of 2023

¶205

¶206

15.07.2025

¶207

2.	12.06.2018	On demand promissory note for Rs. 1,00,00,000/- executed by the 1^st2^nd & 3^rddefendants	A-2
3.	12.06.2018	Agreement of loan cum hypothecation executed by the 1^stdefendant	A-3
4.	12.06.2018	Guarantee Agreement executed	A-4
		individually by 2^nd3^rd& 4^thdefendants
	Loa	n A/c. No. 501812080057266
5.	17.10.2019	Sanction Ticket dated 17.10.2019	A-5
6.	18.10.2019	On demand promissory note for Rs. 1,00,00,000/- executed by the 1^st2^nd & 3^rddefendants	A-6
7.	18.10.2019	Agreement of loan cum hypothecation executed by the 1^stdefendant	A-7
8.	18.10.2019	Guarantee Agreement executed	A-8
		individually by 2^nd3^rd& 4^thdefendants
	Loa	n A/c. No. 501812080013254
9.	16.09.2015	Sanction Ticket dated 16.09.2015	A-9
10.	23.09.2015	On demand promissory note for Rs. 6,50,00,000/- executed by the 6^th2^nd & 3^rddefendants	A-10
11.	23.09.2015	Agreement of loan cum hypothecation executed by the 6^thdefendant	A-11
12.	23.09.2015	Guarantee Agreement executed individually by 2^nd3^rd& 4^thdefendants	A-12
13.	24.07.2018	Letter of Revival along with Confirmation of balance executed by the 2^nd3^rd& 4^thdefendants in favour	A-13
		of the Applicant Bank
	Loa	n A/c. No. 501812080019093
14.	21.05.2016	Sanction Ticket dated 16.09.2015	A-14
15.	21.05.2016	On demand promissory note for Rs. 1,00,00,000/- executed by the 6^th2^nd & 3^rddefendants	A-15
16.	21.05.2016	Agreement of loan cum hypothecation executed by the 6^thdefendant	A-16
17.	21.05.2016	Guarantee Agreement executed individually by 2^nd3^rd& 4^thdefendants	A-17

¶208

O.A. No. 249 of 2023

¶209

¶210

15.07.2025

¶211

18.	16.03.2019 Loa	Letter of Revival along with Confirmation of balance executed by the 2^nd3^rd& 4^thdefendants in favour of the Applicant Bank n A/c. No. 025120000125297	A-18
19.	22.01.2020	Renewed Sanction Ticket	A-19
20.	18.11.2017	On demand promissory note for Rs. 5,50,00,000/- executed by the 6^th2^nd & 3^rddefendants	A-20
21.	18.11.2017	Agreement of loan cum hypothecation executed by the 6^thdefendant	A-21
22.	18.11.2017	Guarantee Agreement executed individually by 2^nd3^rd& 4^thdefendants	A-22
23.	01.06.2020	Letter of Revival along with Confirmation of balance executed by the 2^nd3^rd& 4^thdefendants in favour	A-23
	Loa	of the Applicant Bank n A/c. No. 501812080050514
24.	26.03.2019	Sanction Ticket	A-24
25.	27.03.2019	On demand promissory note for Rs.1,80,00,000/- executed by the 2^nd & 3^rddefendants	A-25
26.	27.03.2019	Guarantee Agreement executed	A-26
		individually by 2^nd3^rd& 4^thdefendants
	Loa	n A/c. No. 501812080062547
27.	28.03.2019	Sanction Ticket	A-27
28.	30.03.2019	On demand promissory note for Rs.1,00,00,000/- executed by the 2^nd & 3^rddefendants	A-28
29.	30.03.2019	Guarantee Agreement executed	A-29
		indiidll b 2^nd3^rd4^th& 5^th
	Loa	vuay y defendants n A/c. No. 025120000125297
30.	17.12.2019	Sanction Ticket	A-30
31.	26.12.2019	On demand promissory note for Rs.40,00,000/- executed by the 6^th2^nd & 3^rddefendants	A-31
32.	26.12.2019	Agreement of loan cum hypothecation executed by the 6^thdefendant	A-32
33.	26.12.2019	Guarantee Agreement executed individually by 2^nd3^rd& 4^thdefendants	A-33

¶212

O.A. No. 249 of 2023

¶213

¶214

15.07.2025

¶215

	Mortgage	/Charge created by the Defendants
34.	21.02.2017	Registered Extension of Memorandum of Deposit of Title Deeds (262 of 2017) executed by the 2^nddefendant	A-34
35.	27.03.2019	Registered Extension of Memorandum of Deposit of Title Deeds (789 of 2019) executed by the 2^nd 3^rd & 4^th defendants	A-35
36.	18.10.2019	Registered Extension of Memorandum of Deposit of Title Deeds (2436 of 2019) executed by the 2^nd3^rd& 4^th defendants	A-36
37.	17.06.2016	Registered Extension of Memorandum of Deposit of Title Deeds (1213 of 2016) executed by the 2^nd3^rd& 4^th defendants	A-37
38.	11.07.2016	Registered Extension of Memorandum of Deposit of Title Deeds (1372 of 2016) executed by the 2^nd3^rd& 4^th defendants	A-38
39.	17.11.2017	Registered Extension of Memorandum of Deposit of Title Deeds (2440 of 2017) executed by the 2^nd3^rd& 4^th defendants	A-39
40.	11.06.2018	Registered Extension of Memorandum of Deposit of Title Deeds (1385 of 2018) executed by the 2^nd3^rd& 4^th defendants	A-40
41.	18.10.2019	Registered Extension of Memorandum of Deposit of Title Deeds (2437 of 2019) executed by the 5^thdefendant	A-41
42.	23.08.2010	Registered Sale Deed executed by Kalaiselvan to and in favour of Murugan under Doc. No. 1552 of 2010	A-42
43.	23.08.2010	Registered Sale Deed executed by Samandam in favour of Murugan under Doc. No. 1553 of 2010	A-43
44.	20.11.2012	Registered Sale Deed executed by Abdul Majeed in favour of Murugan under Doc. No. 1708 of 2012	A-44
45.	20.11.2012	Registered Sale Deed executed by Abdul Majeed in favour of Murugan under Doc. No. 1709 of 2012	A-45

¶216

O.A. No. 249 of 2023

¶217

¶218

15.07.2025

¶219

46.	30.04.2014	Registered Sale Deed executed Abdul Majeed in favour of Muru under Doc. No. 711 of 2014	by gan	A-46
47.	30.04.2014	Registered Sale Deed executed Abdul Majeed in favour of Muru under Doc. No. 712 of 2014	by gan	A-47
	Legal/De	mand Notice sent to the Defend	ants
48.	06.11.2020	Notice issued u/s 13(2) of SARFEASI Act, 2002 by the Appli Bank to the defendants	the cant	A-48
		Statement of Account
49.	--	OLCC A/c. No. 51202001002275 M/s. Sri Kumaran Silks	5 –	A-49
50.	--	CUB OSL Term EMI – BR A/c. 501812080057266 - M/s. Sri Kum Silks	No. aran	A-50
51.	--	CUB OSL Term EMI – BR A/c. 501812080013254 – M/s. Sri Am Textiles	No. man	A-51
52.	--	CUB OSL Term EMI – BR A/c. 501812080019093 – M/s. Sri Am Textiles	No. man	A-52
53.	--	(i) OLCC A/c. No. 0251200001252 M/s. Sri Amman Textiles (ii) ADHOC FACILITY A/c. 025120000125297 - M/s. Sri Am Textiles	97 - No. man	A-53
54.	--	CUB OSL Term EMI – BR A/c. 501812080050514–Mr. R. Muruga	No. n	A-54
55.	--	CUB OSL Term EMI – BR A/c. 501812080062547–Mr. R. Muruga	No. n	A-55

¶220

Witness Examined for the Defendants: -Nil-

¶221

List of Documents Exhibited for the Defendants: -Nil –

¶222

SCHEDULE-B (MOVABLE PROPERTIES)

¶223

Property owned by the 1^st defendant M/s. Sri Kumaran Silks, represented by its Proprietrix Mrs. Selvi W/o. R. Murugan

¶224

O.A. No. 249 of 2023

¶225

¶226

15.07.2025

¶227

Hypothecation of all types of textile goods like Sarees, Shirts, Pants etc., stored at M/s. Sri Kumaran Silks No. 14, Chidambaram Road, Jayakondam, Udayarpalayam (Taluk), Ariyalur District – 621 802.

¶228

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

City Union Bank Limited v. Mrs M Selvi

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Mrs M Selvi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus M/s. Iris Scans

Saminathan versus Uco Bank

R Shanthi versus Tata Capital Limited

E Damodharan versus City Union Bank Limited

Bank of India versus Aanda Raman

Kotak Mahindra Bank Limited versus Mr D Balaji