Allowed

Karur Vysya Bank v. P. S. Sethuraman

DRT19 Sept 2025OA/396/2023

Case brief

AI extract

What is this about?

This Original Application (OA) was filed under the RDB Act, 1993 to recover outstanding term loans. The Debt Recovery Tribunal allowed the application ex-parte, finding the bank's evidence sufficient. The order directs payment of principal with interest rates, allowing sale of mortgaged properties for deficiency.

What did the court decide?

Order directing defendants to jointly and severally pay Rs. 5,49,71,838/- plus interest and authorizing sale of securities for deficiency.

Karur Vysya Bank versus P. S. Sethuraman — Contract and Commercial Disputes | DRT (2025)

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OA No. 396/2023

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 19^TH DAY OF SEPTEMBER, 2025 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.396/2023

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Between

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The Karur Vysya Bank Limited., Asset Recovery Branch, RS.No.170/9, Mattuthavani – Melur Road, Near Mattuthavani Bus Stand, Madurai – 625 107. Rep. By its Senior Manager. ---Applicant Bank

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And

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Mr. P.S. Sethuraman, Prop. M/s Sethumeena Roadways,

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No.C2, Blossom Apartment, 2^nd floor, Kallukadai lane,

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Vattipilayar Kovil Street, Chettimandapam,

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Kumbakonam – 612 001.

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Mrs. M. Banumathi, W/o Mohan, No.418, Ganapathy Nagar, Perumandi, Asoor, Kumbakonam, Tanjavur – 612 001.

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Mr. Thambi Devarathinam- @ K. Devarathinam, S/o Kathirvelan Thevar, D.No.27C, Puliyancherry, Baburajapuram, Kumbakonam Taluk, Thanjavur – 612 302. ---Defendants

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Page 1 of 26

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OA No. 396/2023

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Counsel for the Applicant Bank : M/s P. Madhan Alexandar

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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 19.04.2023 to recover from the Defendants a total sum of Rs.5,49,71,838/- i.e., (i) Rs.47,52,992/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-I (ii) Rs.2,89,492/- together with interest at the rate of 12.15% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-II (iii) Rs.1,72,28,684/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-III (iv) Rs.1,30,54,859/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-IV (v) Rs.25,21,279/- together with interest at the rate of 10.40% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-V (vi) Rs.1,46,24,532/together with interest at the rate of 11.60% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-VI 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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2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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The defendants approached the Applicant Bank for availing Vehicle Loans for their business purpose. After due consideration, the Applicant Bank accepted the request of the defendants and sanctioned the Loan as per the particulars mentioned below.

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S.	Date	Loan Type	Loan Amount
No
1	25.09.15	Term Loan - I(Transport Plus)	Rs.2,00,00,000/-
2	01.12.15	Term Loan – II(Transport Plus New)	Rs. 5,25,000/-,

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Page 2 of 26

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OA No. 396/2023

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3	08.02.16	Term Loan – III(Vehicle SRTO-I)	Rs.2,00,00,000/-
4	19.02.16	Term Loan – IV(Vehicle SRTO-II)	Rs.1,49,00,000/-
5	18.03.16	Term Loan – V(Flexi Mobile New)	Rs. 27,00,000/-
6	15.07.16	Term Loan – VI (KVB Transport Plus Scheme)	Rs. 3,06,00,000/-
7	16.07.16	Bank Guarantee	Rs.25,00,000/-

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Term Loan – I

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In Consideration of the said loan, the letter of sanction along with terms & conditions were communicated to the defendants 1 & 2 by the applicant bank through its sanction letter dt.25.09.15 and the same was duly accepted by the defendants 1 & 2 by counter signing the same on 25.09.15. In consideration of the said loan, the 1^st defendant has executed a Demand Promissory Note on 25.09.15 for a sum of Rs.2,00,00,000/-in favour of the Applicant Bank by promising to repay the loan amount on demand with interest at the rate of 11.90% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1796 744 000 000069], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt.25.09.15 for a sum of Rs.2,00,00,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.4,42,366/- with interest & cost in favour of the applicant Bank. Further the 1ª Defendant promised to repay the loan amount with compound interest at the rate of 11.90%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default.

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RESTRUCTURE OF TERM LOAN - I

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At the request the defendants the applicant bank has restructured the said Term Loan-I by extending the remaining installments of Rs.76,00,380/in the Term Loan-I to be paid in 32 monthly installments. The defendants 1 & 2 have executed two Supplementary Agreements on 29.03.19 for restructure of said loan amount of Rs.2,00,00,000/ in Term Loan-1 by promising to repay the remaining installments of Rs.76,00,380 in 32 monthly installments of Rs.2,70,750/- each with interest at the rate of 11.60% per annum with monthly rest and by promising to repay the loan amount with interest as mentioned in the agreements and at such other rates & rests as may be revised by the applicant bank from time to time.

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OA No. 396/2023

TERMLOAN-II

In Consideration of the said loan, the letter of sanction along with terms & conditions were communicated to the defendants 1 & 2 by the applicant bank through its sanction letter dt.01.12.15 and the same was duly accepted by the defendants 1 & 2 by counter signing the same on 01.12.15. In consideration of the said loan, the 1^st defendant has executed a Demand Promissory Note on 01.12.15 for a sum of Rs.5,25,000/-in favour of the Applicant Bank by promising to repay the loan amount on demand with interest at the rate of 12.40% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1796 743 000 000042], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt.01.12.15 for a sum of Rs.5,25,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.11,785/- with interest & cost in favour of the applicant Bank. Further the 1^st Defendant promised to repay the loan amount with compound interest at the rate of 12.40%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default. By admitting & acknowledging the liabilities the defendants have made payments on 01.06.18 & 29.04.19 and the 1^st defendant executed revival letter on 16.03.21 in favour of the Applicant Bank.

TERM LOAN - III

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OA No. 396/2023

demand with interest at the rate of 11.75% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1151 743 00 000 1103], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt. 08.02.16 for a sum of Rs.2,00,00,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.4,42,366/- with interest & cost in favour of the applicant Bank. Further the 1^st Defendant promised to repay the loan amount with compound interest at the rate of 11.75%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default. The 2^nd defendant agreed to stand as continuing guarantor for the repayment of the loan with interest & costs and executed an Agreement of Guarantee dt.08.02.16 in favour of the applicant bank.

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RESTRUCTURE OF TERM LOAN - III

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At the request the defendants the applicant bank has restructured the said Term Loan-III by extending the remaining installments of Rs.1,14,69,933.27p in the Term Loan-III to be paid in 32 monthly installments. The defendants 1 & 2 have executed two Supplementary Agreements on 29.03.19 for restructure of said loan amount of Rs.2,00,00,000/ in Term Loan-III by promising to repay the remaining installments of Rs.1,14,69,933.27p in 32 monthly installments of Rs.4,17,400/- each with interest at the rate of 11.60% per annum with monthly rest and by promising to repay the loan amount with interest as mentioned in the agreements and at such other rates & rests as may be revised by the applicant bank from time to time.

¶42

The 1 defendant executed a Hypothecation of Existing Motor Vehicle Agreements dt.29.03.19 for the remaining installment in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule here under and by agreeing to repay the loan amount as per the conditions enumerated in the agreement with interest & cost in favour of the applicant Bank. The defendants purchased 5 New Ashok Leyland Commercial Vehicle and the applicant bank has right of Hypothecation over all the 5 Vehicle. Subsequently, Out of 5 Vehicle, 3 Vehicles released from Hypothecation Charges and the Right of Hypothecation continues for the remaining 2 Vehicles which are fully described in the 'A' Schedule hereunder along with Certificate of Registration. By admitting & acknowledging the liabilities the

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OA No. 396/2023

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1" defendant has executed revival letter on 16.03.21 in favour of the Applicant Bank.

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TERM LOAN - IV

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In Consideration of the said loan, the letter of sanction along with terms & conditions were communicated to the defendants 1 & 2 by the applicant bank through its sanction letter dt.19.02.16 and the same was duly accepted by the defendants 1 & 2 by counter signing the same on 19.02.16. In consideration of the said loan, the 1^st defendant has executed a Demand Promissory Note on 19.02.16 for a sum of Rs.1,49,00,000/-in favour of the Applicant Bank by promising to repay the loan amount on demand with interest at the rate of 11.75% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1151 743 000 001128], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt.19.02.16 for a sum of Rs.1,49,00,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.3,29,563/- with interest & cost in favour of the applicant Bank. Further the 1^st Defendant promised to repay the loan amount with compound interest at the rate of 11.75%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default. The 2^nd defendant agreed to stand as continuing guarantor for the repayment of the loan with interest & costs and executed an Agreement of Guarantee dt.08.02.16 in favour of the applicant bank.

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RESTRUCTURE OF TERM LOAN – IV

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At the request the defendants the applicant bank has restructured the said Term Loan-III by extending the remaining installments of Rs.85,25,905.19p in the Term Loan-IV to be paid in 32 monthly installments. The defendants 1 & 2 have executed two Supplementary Agreements on 29.03.19 for restructure of said loan amount of Rs.2,00,00,000/ in Term Loan-IV by promising to repay the remaining installments of Rs.85,25,905.19p in 32 monthly installments of Rs.3,12,041/- each with interest at the rate of 11.60% per annum with monthly rest and by promising to repay the loan amount with interest as mentioned in the agreements and at such other rates & rests as may be revised by the applicant bank from time to time.

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Page 6 of 26

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OA No. 396/2023

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The 1 defendant executed a Hypothecation of Existing Motor Vehicle Agreements dt.29.03.19 for the remaining installment in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule here under and by agreeing to repay the loan amount as per the conditions enumerated in the agreement with interest & cost in favour of the applicant Bank. The defendants purchased 4 New Ashok Leyland Commercial Vehicle and the applicant bank has right of Hypothecation over all the 4 Vehicle. Subsequently, Out of 4 Vehicle, 2 Vehicles released from Hypothecation Charges and the Right of Hypothecation continues for the remaining 2 Vehicles which are fully described in the 'A' Schedule hereunder along with Certificate of Registration. By admitting & acknowledging the liabilities the 1" defendant has executed revival letter on 16.03.21 in favour of the Applicant Bank.

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TERM LOAN - V

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In Consideration of the said loan, the letter of sanction along with terms & conditions were communicated to the defendants 1 & 2 by the applicant bank through its sanction letter dt.18.03.16 and the same was duly accepted by the defendants 1 & 2 by counter signing the same on 18.03.16. In consideration of the said loan, the 1^st defendant has executed a Demand Promissory Note on 18.03.16 for a sum of Rs.27,00,000/-in favour of the Applicant Bank by promising to repay the loan amount on demand with interest at the rate of 10.62% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1151 792 000 000091], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt.18.03.16 for a sum of Rs.27,00,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.45,735.20p with interest & cost in favour of the applicant Bank. Further the 1^st Defendant promised to repay the loan amount with compound interest at the rate of 10.65%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default. The 2^nd defendant agreed to stand as continuing guarantor for the repayment of the loan with interest & costs and executed an Agreement of Guarantee dt.18.03.16 in favour of the applicant bank. By admitting & acknowledging the liabilities the defendants have made payments on 28.12.18 and the 1^st defendant had executed revival letter on 16.03.21 in favour of the Applicant Bank.

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OA No. 396/2023

TERM LOAN - VI

In Consideration of the said loan, the letter of sanction along with terms & conditions were communicated to the defendants 1 & 2 by the applicant bank through its sanction letter dt.15.07.16 and the same was duly accepted by the defendants 1 & 2 by counter signing the same on 15.07.16. In consideration of the said loan, the 1^st defendant has executed a Demand Promissory Note on 15.07.16 for a sum of Rs.3,06,00,000/-in favour of the Applicant Bank by promising to repay the loan amount on demand with interest at the rate of 12.40% Per annum with monthly rest or at such other rates & rests as may be revised by the Applicant Bank from time to time vide AC No. 1151 744 000 000570], the 1 defendant executed a Hypothecation of Motor Vehicle Agreement dt.15.07.16 for a sum of Rs.3,06,00,000/- in favour of the Applicant Bank containing various terms & conditions by hypothecating the vehicle which are fully described in the 'A' Schedule hereunder along with Certificate of Registration and by agreeing to repay the loan amount in 60 monthly installments of Rs.5,65,435/- with interest & cost in favour of the applicant Bank. Further the 1^st Defendant promised to repay the loan amount with compound interest at the rate of 12.40%per annum with monthly rest or at such other rates as may be revised by the applicant bank from time to time with penal interest at the rate of 3% per annum in case of default. The 2^nd defendant agreed to stand as continuing guarantor for the repayment of the loan with interest & costs and executed an Agreement of Guarantee dt.15.07.16 in favour of the applicant bank.

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RESTRUCTURE OF TERM LOAN - VI

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At the request the defendants the applicant bank has restructured the said Term Loan-VI by extending the remaining installments of Rs.1,80,26,317.03p in the Term Loan-VI to be paid in 37 monthly installments. The defendants 1 & 2 have executed two Supplementary Agreements on 29.03.19 for restructure of said loan amount of Rs.3,06,00,000/ in Term Loan-VI by promising to repay the remaining installments of Rs.1,80,26,317.03p in 37 monthly installments of Rs.5,08,200/- each with interest at the rate of 11.60% per annum with monthly rest and by promising to repay the loan amount with interest as mentioned in the agreements and at such other rates & rests as may be revised by the applicant bank from time to time.

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OA No. 396/2023

agreeing to repay the loan amount as per the conditions enumerated in the agreement with interest & cost in favour of the applicant Bank. The defendants purchased 7 New Ashok Leyland Commercial Vehicle and the applicant bank has right of Hypothecation over all the 7 Vehicle. Subsequently, Out of 7 Vehicle, 5 Vehicles released from Hypothecation Charges and the Right of Hypothecation continues for the remaining 2 Vehicles which are fully described in the 'A' Schedule hereunder along with Certificate of Registration. By admitting & acknowledging the liabilities the 1" defendant has executed revival letter on 16.03.21 in favour of the Applicant Bank.

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BANK GUARANTEE

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At the request of the 1^st defendant the applicant bank sanctioned the Bank Guarantee (non-fund based credit limit) to the limit of Rs.25,00,000/to the 1^st defendant. In consideration of the said Bank Guarantee, the 1^st defendant issued request letter & undertaking letter to the applicant bank. The 1st defendant executed a letter of indemnity (Counter Guarantee) dt.16.07.16 in favour of the applicant bank containing various terms & conditions for guaranteeing the payment of the beneficiary M/s Dalmia cements Bharath limited and further the 1^st defendant agreed to repay the bank guarantee to the applicant bank. The beneficiary M/s Dalmia cements Bharath limited may invoke the bank Guarantee at any time and in case, default of the 1^st defendant to repay the Bank guarantee, the bank guarantee amount will merge with any of the Term loan or an overdraft account will be opened and further interest may charge at the rates & rests as may be revised by the applicant bank from time to time.

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COMMON TO ALL LOANS

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In consideration of the above said loan, the defendants have offered his properties which are fully mentioned in the "B" Schedule hereunder as Security and thereby they deposited their Title Deeds on 25.09.15, 08.02.16, 15.07.16 & 23.03.17 with the Applicant Bank pertaining to their properties, with an intention to create an Equitable Mortgage over the said properties. To evidence the said fact as well as by confirming the same, the defendants have executed four separate Registered Memorandum of Deposit of title deeds dt.06.10.15, 18.02.16, 15.07.16 & 23.03.17 pertaining to the said properties in favour of the Applicant Bank. Thus the applicant bank is a mortgagee entitled to proceed against the mortgaged properties for recovery of loan.

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On the default of the defendants in repayment of the above said loans, the applicant bank sold one of the mortgage property situated at Coimbatore

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OA No. 396/2023

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District under Sarfaesi Proceedings and issued sale certificate dt.08.11.22 and appropriated the sale amount in the concerned loan account. Further the applicant bank demanded the defendants various times for the balance outstanding amounts. The Applicant Bank submits that the defendants have not repaid the loans as agreed and promised by them. Thus the defendants have committed default in repaying the loan amount with interest & costs.

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Despite repeated demands made by the Applicant Bank the defendants did not take any sincere steps to discharge the loan. Hence, the Applicant Bank has filed the OA for recovery of a total sum of Rs.5,49,71,838/- i.e., (i) Rs.47,52,992/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-I (ii) Rs.2,89,492/- together with interest at the rate of 12.15% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-II (iii) Rs.1,72,28,684/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-III (iv) Rs.1,30,54,859/- together with interest at the rate of 10.30% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-IV (v) Rs.25,21,279/- together with interest at the rate of 10.40% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-V (vi) Rs.1,46,24,532/together with interest at the rate of 11.60% p.a. with monthly rests plus penal interest at the rate of 3%p.a. in respect of Term Loan-VI from the date of filing of Application till the date of realization with cost.

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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 – Annexure – I

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Loan Documents

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Term Loan – I

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S. No.	Date	Description of document	Exhibits
1	25.09.15	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank	Ex.No.A-01
2	25.09.15	Demand Promissory note executed by 1^st defendant in favour of Applicant bank	Ex.No.A-02
3	25.09.15	Hypothecation of Motor vehicle Agreement executed by1^stdefendant in favour of	Ex.No.A-03

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		Applicant bank
4	12.10.15	Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q- 7074	Ex.No.A-04
5	12.10.15	Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q- 7147	Ex.No.A-05
6	12.10.15	Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q- 7161	Ex.No.A-06
7	12.10.15	Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q- 7186	Ex.No.A-07
8	25.09.15	Agreement of Guarantee executed by the 2^nd defendant in favour of Applicant bank	Ex.No.A-08
9	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-09
10	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-10
11	29.03.19	Agreement of Hypothecation for existing vehicle executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-11
12	16.03.21	Revival Letter executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-12
13	----	Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business	Ex.No.A-13

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Term Loan – II

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S. No.	Date	Description of document	Exhibits
14	01.12.15	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank	Ex.No.A-14
15	01.12.15	Demand Promissory note executed by 1^st defendant in favour of Applicant bank	Ex.No.A-15
16	01.12.15	Hypothecation of Motor vehicle Agreement executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-16
17	22.01.16	Registration Certificate for Mahindra Bolero bearingRegistration No.TN-68-R-1944	Ex.No.A-17
18	01.12.15	Agreement of Guarantee executed by the 2^nd defendant in favour of Applicant bank	Ex.No.A-18
19	16.03.21	Revival Letter executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-19

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20	---	Statement	of Accounts maintained by	the	Ex.No.A-20
		Applicant conduct of	Bank in regular course the business	and

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Term Loan – III

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S. No.	Date	Description of document	Exhibits
21	08.02.16	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank	Ex.No.A-21
22	08.02.16	Demand Promissory note executed by 1^st defendant in favour of Applicant bank	Ex.No.A-22
23	08.02.16	Hypothecation of Motor vehicle Agreement executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-23
24	24.02.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R- 3576	Ex.No.A-24
25	24.02.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R- 3661	Ex.No.A-25
26	08.02.16	Agreement of Guarantee executed by the 2^nd defendantin favourof Applicant bank	Ex.No.A-26
27	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-27
28	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-28
29	29.03.19	Agreement of Hypothecation for existing vehicle executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-29
30	16.03.21	Revival Letter executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-30
31	----	Statement of Accounts maintained by the Applicant Bank in regular course and conduct ofthe business	Ex.No.A-31

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Term Loan – IV

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S. No.	Date	Description of document	Exhibits
32	19.02.16	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour	Ex.No.A-32
		of Applicant bank
33	19.02.16	Demand Promissorynote executed by1^st	Ex.No.A-33

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		defendant in favour of Applicant bank
34	19.02.16	Hypothecation of Motor vehicle Agreement executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-34
35	03.03.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R- 4386	Ex.No.A-35
36	03.03.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R- 4503	Ex.No.A-36
37	19.02.16	Agreement of Guarantee executed by the 2^nd defendantin favourof Applicant bank	Ex.No.A-37
38	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-38
39	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-39
40	29.03.19	Agreement of Hypothecation for existing vehicle executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-40
41	16.03.21	Revival Letter executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-41
42	----	Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business	Ex.No.A-42

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Term Loan – V

¶95

S. No.	Date	Description of document	Exhibits
43	29.03.19	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank	Ex.No.A-43
44	29.03.19	Demand Promissory note executed by 1^st defendant in favour of Applicant bank	Ex.No.A-44
45	29.03.19	Hypothecation of Motor vehicle Agreement executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-45
46	11.04.16	Registration Certificate for Toyota Fortuner vehicle bearingRegistration No.TN-68-T-7777	Ex.No.A-46
47	18.03.16	Agreement of Guarantee executed by the 2^nd defendantin favourof Applicant bank	Ex.No.A-47
48	16.03.21	Revival Letter executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-48
49	---	Statement of Accounts maintained by the Applicant Bank in regular course and	Ex.No.A-49

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conduct of the business

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Term Loan – VI

¶100

S. No.	Date	Description of document	Exhibits
50	15.07.16	Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank	Ex.No.A-50
51	15.07.16	Demand Promissory note executed by 1^st defendant in favour of Applicant bank	Ex.No.A-51
52	15.07.16	Hypothecation of Motor vehicle Agreement executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-52
53	29.07.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-S- 4543	Ex.No.A-53
54	29.07.16	Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-S- 4511	Ex.No.A-54
55	15.07.16	Agreement of Guarantee executed by the 2^nd defendantin favourof Applicant bank	Ex.No.A-55
56	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-56
57	29.03.19	Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank	Ex.No.A-57
58	29.03.19	Agreement of Hypothecation for existing vehicle executed by 1^stdefendant in favour of Applicant bank	Ex.No.A-58
59	16.03.21	Revival Letter executed by 1^stdefendant in favourof Applicant bank	Ex.No.A-59
60	----	Statement of Accounts maintained by the Applicant Bank in regular course and conduct ofthe business	Ex.No.A-60

¶101

Bank Guarantee

¶102

S. No.	Date	Description of document	Exhibits
61	16.07.16	Request letter issued by 1^stdefendant to the Applicant bank	Ex.No.A-61
62	16.07.16	Undertaking letter issued by 1^stdefendant to	Ex.No.A-62
		the Applicant bank
63	16.07.16	Letter of Indemnityexecuted by1^stdefendant	Ex.No.A-63

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¶105

to the Applicant bank

¶106

Common to All Loans

¶107

S. No.	Date	Description of document	Exhibits
64	06.10.15	Registered Memorandum of Deposit of Title deeds executed by 1^stdefendant in favour of Applicant bank(Doc.No.4813/2015)	Ex.No.A-64
65	18.02.16	Registered Memorandum of Deposit of Title deeds executed by 1^st& 3^rddefendant in favour of Applicant bank(Doc.No.705/2016)	Ex.No.A-65
66	15.07.16	Registered Memorandum of Deposit of Title deeds executed by 1^st& 2^nddefendant in favour of Applicant bank(Doc.No.1696/2016)	Ex.No.A-66
67	23.03.17	Registered Memorandum of Deposit of Title deeds executed by 1^stdefendant in favour of Applicant bank(Doc.No.1133/17)	Ex.No.A-67
68	08.11.22	Registered Sale Certificate executed by the Applicant bank in favour of Sri Golden Steels,a PartnershipFirm(Doc.No.9292/22)	Ex.No.A-68

¶108

LIST OF DOCUMENTS – ANNEXURE – II

¶109

Title Deeds deposited by the 1^st & 3^rd defendant with regard to Item No.I of ‘B’ Schedule Mortgage Property

¶110

S. No.	Date	Description of document	Exhibits
69	22.10.80	Unregistered will executed by Kalyanaraman in favour of Krishnan	Ex.No.A-69
70	29.11.85	Death Certificate of Late.Kalyanaraman issued byKumbakonam Municipality	Ex.No.A-70
71	09.12.94	Extract of Chitta issued by VAO, Baburajapuram standing in the name of Kalyanaraman	Ex.No.A-71
72		Extract of Adangal for fasli 1403 issued by VAO, Baburajapuram standing in the name of Kalyanaraman	Ex.No.A-72
73	---	FMB Sketch issued byVAO, Baburajapuram	Ex.No.A-73
74	19.12.90	Registered Sale deed executed by Krishnan in favour of Thambi Devarathinam @ Devarathinam(Doc.No.2316/90)	Ex.No.A-74
75	04.06.96	Patta Transfer order issued byZonal deputy	Ex.No.A-75

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¶113

		Tahsildar Kumbak name of Devarathin	onam am	standing in the
76	25.11.15	Registered Sale Devarathinam in (Doc.No.5362/15)	Deed favour	executed by of Sethuraman	Ex.No.A-76
77	25.11.15	Registered general Devarathinam in (Doc.No.5363/15)	power favour	Deed executed by of Sethuraman	Ex.No.A-77

¶114

LIST OF DOCUMENTS – ANNEXURE – III

¶115

Title Deeds deposited by the 2^nd defendant with regard to Item No.II of ‘B’ Schedule Mortgage Property

¶116

S. No.	Date	Description of document	Exhibits
78	22.06.60	Registered Sale Deed executed by Subramani & others in favour of Ganapathy (Doc.No.1891/60)	Ex.No.A-78
79	19.09.60	Registered Sale Deed executed by Sundarambal & others in favour of Govindasamy (Doc.No.2772/60)	Ex.No.A-79
80	27.08.03	Patta Transfer order issued by Zonal deputy Tahsildar Kumbakonam standing in the name of Jeya Kumaravel	Ex.No.A-80
81	26.12.03	Registered Sale Deed executed by Ganapathy & others in favour of Vasumathi (Doc.No.1947/03)	Ex.No.A-81
82	03.04.06	Patta Pass Book issued by Zonal deputy Tahsildar, Kumbakonam standing in the name of Vasumathi	Ex.No.A-82
83	----	Extract of Adangal for fasli 1424 issued by VAO, Kallapuliyur standing in the name of Vasumathi	Ex.No.A-83
84	24.02.16	Registered Sale Deed executed by Vasumathi in favourofSethuraman(Doc.No.407/16)	Ex.No.A-84
85	28.07.60	Registered deed of Exchange executed between Pitchai & others(Doc.No.1947/60)	Ex.No.A-85
86	26.12.03	Registered Sale Deed executed by Ganapathy in favour of Vasumathi(Doc.No.1929/03)	Ex.No.A-86
87	24.02.16	Registered Sale Deed executed by Vasumathi in favour of Banumathi(Doc.No.406/16)	Ex.No.A-87
88	24.02.16	Registered general power Deed executed by Banumathi in favour of Sethuraman (Doc.No.408/16) LIST OF DOCUMENTS – ANNEXURE – IV	Ex.No.A-88

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Title Deeds deposited by the 1^st defendant with regard to Item No.III of ‘B’ Schedule Mortgage Property

¶120

S. No.	Date	Description of document	Exhibits
89	----	Patta Passbook issued by Zonal Deputy Tahsildar Kumbakonam standing in the name of Balasubramanian	Ex.No.A-89
90	21.09.11	Computerized Patta issued by head Quarters Deputy Tahsildar, Kumbakonam standing in the name of Balasubramanian	Ex.No.A-90
91	---	Possession Certificate issued by VAO, Kallapuliyur Village standing in the name of Balasubramanian	Ex.No.A-91
92	26.11.15	Extract of Adangal for fasli 1424 issued by VAO, Kumarangakudi standing in the name of Balasubramanian	Ex.No.A-92
93	26.11.15	FMB sketch issued byVAO, Kumarangakudi	Ex.No.A-93
94	27.11.15	Registered Sale Deed executed by Balasubramanian in favour of Sethuraman (Doc.No.5394/15)	Ex.No.A-94

¶121

SCHEDULE OF PROPERTY

¶122

“A” SCHEDULE – HYPOTHECATED GOODS

¶123

i) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-Q-7074 & Bearing Chassis No.MBIJADFCOFRVM6188 & BS III Engine No. FWHZ420446

¶124

ii) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-Q-7147 & Bearing Chassis No.MBIJADFC3FRVM6380 & BS III Engine No. FVHZ421944

¶125

III) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-Q-7161 & Bearing Chassis No.MBIJADFC9FRVM6187 & BS III Engine No. FVHZ420445

¶126

iv) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-Q-7186 & Bearing Chassis No.MBIJADFC6FRVM7801 & BS III Engine No. FVHZ420449

¶127

v) Brand New Bolero Maxi TRU P 2WD MDI PS bearing Registration No.TN-68-Q-1944 & Bearing Chassis No.MA1ZT2GLKF2L20929 & Engine No. GLF4K71852

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vi) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-R-3576 & Bearing Chassis No.MBIJADFD2GRFN4564 & BS III Engine No. GFHZ401835

¶131

vii) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-R-3661 & Bearing Chassis No.MBIJADFD2GRFN4564 & BS III Engine No. GFHZ401835

¶132

viii) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-R-4386 & Bearing Chassis No.MBIJADFD2GRFN4564 & BS III Engine No. GFHZ401835

¶133

ix) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-R-4503 & Bearing Chassis No.MBIJADFD2GRFN4564 & BS III Engine No. GFHZ401835

¶134

x) Brand New Toyatoo Fortuner (4X2AT) bearing Registration No.TN-68T-7777 & Bearing Chassis No.MHJLIJV61040489680216 & Engine No.LKDU847930

¶135

xi) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-S-4543 & Bearing Chassis No.MBIJADFD8GRBP1759 & BS III Engine No. GBHZA11876

¶136

xii) Brand New Multi Axle Goods Vehicle Ashok Leyland fully build tipper fitted with ‘H’ series bearing Registration No.TN-68-S-4511 & Bearing Chassis No.MBIJADFD4GRBP2097 & BS III Engine No. GCHZA09624 All are parked at No.C2, Blossom Apartment, 2^nd Floor, Kallukadai Lane, Vattipilayar Kovil Street, Chettimandapam, Kumbakonam – 612 001 and at also No.66, Uppukara Street, Kumbakonam, Tanjavore District – 612 001.

¶137

“B” SCHEDULE – MORTGAGE PROPERTY

¶138

ITEM No.I (Property belonging to 1^st & 3^rd defendants – vide Annexure – II for Title deeds)

¶139

Tanjavore District, Kumbakonam Registration District, Kumbakonam Sub Registry, kumbakonam Taluk, Baburajapuram, a land measuring 27,678 Sq.ft comprised in Old RS.No.262/8 corresponding to new RS.No.262/8G corresponding to new RS.No.262/8G1 within the following boundaries

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On the North : Property belonging to Seshathri & Harijana Street Pathway On the East : Property belonging to Seshathri & Channel On the South : Pathway of Melakottaiyur & Harijana Street On the West : Property belonging to Sivalingam & others

¶143

: Property belonging to Sivalingam & others

¶144

ITEM No:II (Property belonging to 2^nd defendant – vide Annexure – III for Title deeds)

¶145

i) Tanjavore District, Kumbakonam Registration District, Thiruvidaimaruthur Sub Registry, kumbakonam Taluk, Kallapuliyur Village, a land measuring 32 Cents comprised in RS.No.29/7B within the following boundaries

¶146

On the North : Property belonging to Mathvarayar Chatram On the East : Property belonging to Mathvarayar Chatram On the South : Property belonging to Ganapathy On the West : Channel

¶147

ii) Tanjavore District, Kumbakonam Registration District, Thiruvidaimaruthur Sub Registry, kumbakonam Taluk, Kallapuliyur Village, a land measuring 28 Cents comprised in RS.No.29/8B within the following boundaries

¶148

On the North : Property belonging to Ganapathy & another On the East : Property belonging to Mathvarayar Chatram On the South : Property belonging to Mathvarayar Chatram On the West : Channel

¶149

ITEM No.III (Property belonging to 1^st defendant – vide Annexure – IV for Title deeds)

¶150

Tanjavore District, Kumbakonam Registration District, Kumbakonam Sub Registry, kumbakonam Taluk, Kallur Village, a land measuring 850 Sq.mt or 21 cents comprised in RS.No.121/6 within the following boundaries

¶151

On the North : Road On the East : Property belonging to Maruthammbal On the South : Property belonging to JMB Ganesaiyer On the West : Property belonging to Tharmavalli & others

¶152

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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¶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. Dhandapani, who is the Chief Manager of the Applicant Bank.

¶157

He has stated in his affidavit that the defendants has availed Term loan-I, Term loan-II, Term loan-III, Term loan-IV, Term loan-V, Term loan-VI 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-94 in support of its claim in the OA.

¶158

The Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A01, Demand Promissory note executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-02, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-03, Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q-7074 has been marked as Ex.No.A-04, Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q-7147 has been marked as Ex.No.A-05, Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q-7161 has been marked as Ex.No.A-06, Registration certificate for Ashok Leyland Vehicle bearing Registration No. TN-68-Q-7186 has been marked as Ex.No.A-07, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-08, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-09, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-10.

¶159

The Agreement of Hypothecation for existing vehicle executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-11, Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-12, Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-13, Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-14, Demand Promissory note executed by 1st defendant

¶160

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in favour of Applicant bank has been marked as Ex.No.A-15, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-16, Registration Certificate for Mahindra Bolero bearing Registration No.TN-68-R-1944 has been marked as Ex.No.A17, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-18, Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-19, Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-20.

¶163

The Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A21, Demand Promissory note executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-22, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-23, Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R-3576 has been marked as Ex.No.A24, Registration Certificate for Mahindra Bolero bearing Registration No.TN68-R-3661 has been marked as Ex.No.A-25, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-26, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A27, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-28, Agreement of Hypothecation for existing vehicle executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-29, Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-30.

¶164

The Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-31, Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-32, Demand Promissory note executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-33, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-34, Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R-4386 has been marked as Ex.No.A-35, Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-R-4503 has been marked as Ex.No.A-36, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-37, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-38, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-39, Agreement of Hypothecation for existing vehicle

¶165

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executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-40.

¶168

The Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-41, Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-42, Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-43, Demand Promissory note executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-44, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-45, Registration Certificate for Toyota Fortuner vehicle bearing Registration No.TN-68-T-7777 has been marked as Ex.No.A-46, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-47, Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-48, Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-49, Sanction letter along with terms & conditions countersigned by defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-50.

¶169

The Demand Promissory note executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-51, Hypothecation of Motor vehicle Agreement executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-52, Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-S-4543 has been marked as Ex.No.A53, Registration Certificate for Ashok Leyland Vehicle bearing Registration No.TN-68-S-4511 has been marked as Ex.No.A-54, Agreement of Guarantee executed by the 2nd defendant in favour of Applicant bank has been marked as Ex.No.A-55, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A56, Supplementary Agreement executed by the defendants 1 & 2 in favour of Applicant bank has been marked as Ex.No.A-57, Agreement of Hypothecation for existing vehicle executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-58, Revival Letter executed by 1st defendant in favour of Applicant bank has been marked as Ex.No.A-59, Statement of Accounts maintained by the Applicant Bank in regular course and conduct of the business has been marked as Ex.No.A-60.

¶170

The Request letter issued by 1st defendant to the Applicant bank has been marked as Ex.No.A-61, Undertaking letter issued by 1st defendant to the Applicant bank has been marked as Ex.No.A-62, Letter of Indemnity executed by 1st defendant to the Applicant bank has been marked as Ex.No.A-63, Registered Memorandum of Deposit of Title deeds executed by

¶171

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1st defendant in favour of Applicant bank (Doc.No.4813/2015) has been marked as Ex.No.A-64, Registered Memorandum of Deposit of Title deeds executed by 1st & 3rd defendant in favour of Applicant bank (Doc.No.705/2016) has been marked as Ex.No.A-65, Registered Memorandum of Deposit of Title deeds executed by 1st & 2nd defendant in favour of Applicant bank (Doc.No.1696/2016) has been marked as Ex.No.A66, Registered Memorandum of Deposit of Title deeds executed by 1st defendant in favour of Applicant bank (Doc.No.1133/17) has been marked as Ex.No.A-67, Registered Sale Certificate executed by the Applicant bank in favour of Sri Golden Steels, a Partnership Firm (Doc.No.9292/22) has been marked as Ex.No.A-68, Unregistered will executed by Kalyanaraman in favour of Krishnan has been marked as Ex.No.A-69, Death Certificate of Late.Kalyanaraman issued by Kumbakonam Municipality has been marked as Ex.No.A-70.

¶174

The Extract of Chitta issued by VAO, Baburajapuram standing in the name of Kalyanaraman has been marked as Ex.No.A-71, Extract of Adangal for fasli 1403 issued by VAO, Baburajapuram standing in the name of Kalyanaraman has been marked as Ex.No.A-72, FMB Sketch issued by VAO, Baburajapuram has been marked as Ex.No.A-73, Registered Sale deed executed by Krishnan in favour of Thambi Devarathinam @ Devarathinam (Doc.No.2316/90) has been marked as Ex.No.A-74, Patta Transfer order issued by Zonal deputy Tahsildar Kumbakonam standing in the name of Devarathinam has been marked as Ex.No.A-75, Registered Sale Deed executed by Devarathinam in favour of Sethuraman (Doc.No.5362/15) has been marked as Ex.No.A-76, Registered general power Deed executed by Devarathinam in favour of Sethuraman (Doc.No.5363/15) has been marked as Ex.No.A-77, Registered Sale Deed executed by Subramani & others in favour of Ganapathy (Doc.No.1891/60) has been marked as Ex.No.A-78, Registered Sale Deed executed by Sundarambal & others in favour of Govindasamy (Doc.No.2772/60) has been marked as Ex.No.A-79, Patta Transfer order issued by Zonal deputy Tahsildar Kumbakonam standing in the name of Jeya Kumaravel has been marked as Ex.No.A-80.

¶175

The Registered Sale Deed executed by Ganapathy & others in favour of Vasumathi (Doc.No.1947/03) has been marked as Ex.No.A-81, Patta Pass Book issued by Zonal deputy Tahsildar, Kumbakonam standing in the name of Vasumathi has been marked as Ex.No.A-82, Extract of Adangal for fasli 1424 issued by VAO, Kallapuliyur standing in the name of Vasumathi has been marked as Ex.No.A-83, Registered Sale Deed executed by Vasumathi in favour of Sethuraman (Doc.No.407/16) has been marked as Ex.No.A-84, Registered deed of Exchange executed between Pitchai & others (Doc.No.1947/60) has been marked as Ex.No.A-85, Registered Sale Deed executed by Ganapathy in favour of Vasumathi (Doc.No.1929/03) has been

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marked as Ex.No.A-86, Registered Sale Deed executed by Vasumathi in favour of Banumathi (Doc.No.406/16) has been marked as Ex.No.A-87, Registered general power Deed executed by Banumathi in favour of Sethuraman (Doc.No.408/16) has been marked as Ex.No.A-88, Patta Passbook issued by Zonal Deputy Tahsildar Kumbakonam standing in the name of Balasubramanian has been marked as Ex.No.A-89, Computerized Patta issued by head Quarters Deputy Tahsildar, Kumbakonam standing in the name of Balasubramanian has been marked as Ex.No.A-90.

¶179

The Possession Certificate issued by VAO, Kallapuliyur Village standing in the name of Balasubramanian has been marked as Ex.No.A-91, Extract of Adangal for fasli 1424 issued by VAO, Kumarangakudi standing in the name of Balasubramanian has been marked as Ex.No.A-92, FMB sketch issued by VAO, Kumarangakudi has been marked as Ex.No.A-93, Registered Sale Deed executed by Balasubramanian in favour of Sethuraman (Doc.No.5394/15) has been marked as Ex.No.A-94. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶180

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.

¶181

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).

¶182

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 ".

¶183

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

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¶186

The Applicant Bank is entitled to recover from the Defendants, a total sum of Rs.5,49,71,838/- i.e., (i) Rs.47,52,992/- together with interest at the rate of 10.30% p.a. with half yearly rests in respect of Term Loan-I

¶187

(ii) Rs.2,89,492/- together with interest at the rate of 12.15% p.a. with

¶188

half yearly rests in respect of Term Loan-II

¶189

(iii) Rs.1,72,28,684/- together with interest at the rate of 10.30% p.a.

¶190

with half yearly rests in respect of Term Loan-III

¶191

(iv) Rs.1,30,54,859/- together with interest at the rate of 10.30% p.a.

¶192

with half yearly rests in respect of Term Loan-IV

¶193

(v) Rs.25,21,279/- together with interest at the rate of 10.40% p.a.

¶194

with half yearly rests in respect of Term Loan-V

¶195

(vi) Rs.1,46,24,532/- together with interest at the rate of 11.60% p.a. with half yearly rests in respect of Term Loan-VI from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

¶196

ORDERED

¶197

(a) That the Defendants are directed to pay jointly/severally a total sum of Rs.5,49,71,838/- i.e., (i) Rs.47,52,992/- together with interest at the rate of 10.30% p.a. with half yearly rests in respect of Term Loan-I

¶198

(ii) Rs.2,89,492/- together with interest at the rate of 12.15% p.a. with

¶199

half yearly rests in respect of Term Loan-II

¶200

(iii) Rs.1,72,28,684/- together with interest at the rate of 10.30% p.a.

¶201

with half yearly rests in respect of Term Loan-III

¶202

(iv) Rs.1,30,54,859/- together with interest at the rate of 10.30% p.a.

¶203

with half yearly rests in respect of Term Loan-IV

¶204

(v) Rs.25,21,279/- together with interest at the rate of 10.40% p.a.

¶205

with half yearly rests in respect of Term Loan-V

¶206

¶207

(b) In case of default of payment by the above mentioned Defendants,

¶208

the Applicant Bank is at liberty to sell the movable / immovable properties

¶209

Page 25 of 26

¶210

OA No. 396/2023

¶211

more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

¶212

(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.

¶213

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

¶214

(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.

¶215

(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-I, Term loan-II, Term loan-III, Term loan-IV, Term loan-V, Term loan-VI 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.

¶216

Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 19^th September, 2025.

¶217

Sd/- (SEEMA SINHA) PRESIDING OFFICER

¶218

Uploaded on 30.09.2025

¶219

Page 26 of 26

Karur Vysya Bank v. P. S. Sethuraman

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. P. S. Sethuraman

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

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