Allowed

Canara Bank v. S. Bhuvaneshwari

DRT7 Oct 2025OA/42/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Canara Bank for recovery of dues totaling Rs. 27,77,063/- along with interest and costs from the legal heirs of the deceased borrower, who had defaulted on a farm machinery loan secured by an equitable mortgage and hypothecated assets.

What did the court decide?

Recovery of Rs. 27,77,063/- plus interest at 12.15% p.a. and costs from the estate of the deceased borrower; liberty to sell Schedule A (immovable property) and Schedule B (vehicles).

Canara Bank versus S. Bhuvaneshwari — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 42 of 2022

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07.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 42 of 2022

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Canara Bank Thathanur Branch Rep. by its Manager Jayankondam – Trichy By-pass Main Road Udayarpalayam Taluk, Ariyalur District – 621 804 ….Applicant -Vs-

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Mrs. S. Bhuvaneshwari, W/o (Late) Shri. A. Singaravel No.1/107, Thathanur Pottangadu Village Main Road, Thathanur West, Udayarpalayam Taluk Ariyalur District - 621 804.

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Ms. S. Ishwarya, D/o (Late) Shri. A. Singaravel No.1/107, Thathanur Pottangadu Village Main Road, Thathanur West, Udayarpalayam Taluk Ariyalur District - 621 804.

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Mr. S. Manikandan, S/o (Late) Shri. A. Singaravel No.1/107, Thathanur Pottangadu Village Main Road, Thathanur West, Udayarpalayam Taluk Ariyalur District - 621 804.

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Ms. S. Surya, S/o (Late) Shri. A. Singaravel No.1/107, Thathanur Pottangadu Village Main Road, Thathanur West, Udayarpalayam Taluk Ariyalur District - 621 804. …..Defendants

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O.A. No. 42 of 2022

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07.10.2025

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Counsels on record / appeared:

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Counsel for Applicant : Mr. M. Muthukumaran

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Defendants were set ex-parte on 17.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 28.01.2022 by the Applicant Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants jointly and severally for recovery of a total sum of Rs.27,77,063/- (Rupees Twenty Seven Lakhs Seventy Seven Thousand and Sixty Three Only) due in respect of Farm Machinery Loan facility (Account No.0763856012344) repayable together with further interest @ 12.15% p.a. compounded with halfyearly rests and penal interest @2% p.a. from the date of filing the OA, till date of realization in full, from and out of the estate of deceased Shri A. Singaravel, for sale of immovable property morefully detailed in Schedule A and hypothecated vehicle morefully detailed in schedule B to the OA, and for costs of this application.

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Brief Facts of the case:

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

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O.A. No. 42 of 2022

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07.10.2025

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It is the case of the Applicant Bank that Shri. A. Singaravel had approached them on 02.01.2006 for availing Farm Machinery Loan of Rs. 5,50,000/- with an Application for Agricultural Credit – Short Term/ Term Loan dated 02.01.2006 for purchase of Eicher 485 SDI model SAE (47 HP) Tractor, Trailer, Cultivator, Gauge Wheel, Level Plate, Trailer and annexed the following documents with loan application:

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(i) 29.12.2005 – Quotation by Sri Shanmugam Eicher for Tractor

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(ii) 29.12.2005 – Quotation by Raj & Raj Tractor Works for Accessories

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(iii) 29.12.2005 – Quotation by Maris Engineering for Trailer

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It is submitted by the applicant bank that after considering Shri. A. Singaravel’s potentials, his immovable properties, applicant bank had granted Farm Machinery Loan of Rs. 5,50,000/- to him vide Appraisal Report dated 18.01.2006 and Sanction Memorandum strictly adhered by Shri. A. Singaravel. The borrower availed a Farm Machinery Loan of Rs.5,50,000/- from Agricultural Loans on 18.01.2006.

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Applicant Bank submitted that, without prejudice to rights of Applicant to demand repayment of entire facility from Shri. A. Singaravel at any time, he had undertaken to repay availed Farm Machinery Loan in 8 yearly instalments of Rs. 70,000/- together with interest at 10% p.a. compounded with half-yearly rests or at such rates as may be revised

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from time to time by the directives of RBI.

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It is submitted by the applicant bank that Shri. A. Singaravel had deposited title deeds with Jayakondam Branch of Applicant, being a notified area, relating to his properties being agricultural lands measuring and more fully described in Schedule – A to this original Application with an intention to create equitable mortgage. The fact of deposit of title deeds on 02.01.2006 at Jayakondam Branch and creation of equitable mortgage in favour of applicant on 02.01.2006 by Shri. A. Singaravel has been confirmed by him through the following documents:

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A. Letter by Applicant to Jayakondam’s branch dated 02.01.2006

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B. Letter evidencing deposit of title deeds dated 05.01.2006

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The document conveying title on Shri. A. Singaravel is settlement deed dated 21.11.2005 registered as Doc. No. 1666 of 2005 at the office of Sub-Registrar, Udayarpalayam. Shri. A. Singaravel had purchased Tractor, Trailer and other accessories from farm Machineries Loan advanced to him and had hypothecated the Tractor and Trailer with Applicant, which has been endorsed in Form of Certificate of Registration dated 13.02.2006 for Tractor and Form of Certificate of Registration dated 13.02.2006 for Trailer, both issued by Assistant Registering Authority, Perambalur. The details of Tractor and Trailer are as given and more fully described in Schedule – B to the OA.

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O.A. No. 42 of 2022

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07.10.2025

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It is submitted by the applicant bank that subsequent to availing of loan, Shri. A. Singaravel had just a few payments made other than encashing 2 FDRs for Rs. 2,57,844/- & Rs. 9,725/-, which were given credit into loan account on 17.07.2008 and 24.07.2008. These amounts were not just sufficient even to service their interest and when asked, Shri. A. Singaravel gave some unconvincing reasons citing nature and other consequences relating to agriculture. Shri. A. Singaravel had acknowledged liabilities of debt on various dates in Farm Machinery Loan Account bearing No. 0763856012344 and executed Acknowledgement of Debt and Security on 17.02.2008, 21.06.2011, 22.01.2014, 17.03.2016 and 10.02.2017respectively, in favour of Applicant confirming balance in Farm Machinery Loan Account Number 0763856012344 and also extended equitable mortgage originally created on 02.01.2006. Shortly thereafter, Shri. A. Singaravel expired on 15.04.2017, leaving behind the defendants 1 to 4 as his legal heirs, which is evident from Form No.6, Death Certificate dated 28.04.2017 issued by the Registrar (Birth & Death), Thathanur (West), Ariyalur District.

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It is submitted that the Applicant had taken steps to seize hypothecated vehicles being Tractor and Trailer when all efforts taken out by them to make Shri. A. Singaravel to repay loan instalments had failed despite several personal visits and requests. When applicant had found that Shri. A. Singaravel will not come forward to repay loan amount from

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his actions, Farm Machinery Loan Account of Shri. A. Singaravel had been classified as a Non-Performing Asset (NPA) on 29.03.2021 in accordance with RBI guidelines. The Applicant had further recalled said loan and the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, which are duly served to all the defendants. When OA was taken up on 17.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 4 were placed ex-parte on 17.06.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. S. Balasubramanian, Senior Manager representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-19 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this

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Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a sum of Rs.27,77,063/- (Rupees Twenty Seven Lakhs Seventy Seven Thousand and Sixty Three Only) due in respect of Farm Machinery Loan facility (Account No.0763856012344) repayable together with further interest @ 12.15% p.a. compounded with half-yearly rests and penal interest @2% p.a. from the date of filing the OA, till date of realization in full along with costs, from and out of the estate of deceased Shri A. Singaravel.

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(b) 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 A and B mentioned immovable property and hypothecated assets respectively.

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(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the

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intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

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

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

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Recovery Officer in terms of the final order.

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

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Sd/PRESIDING OFFICER, DRT-III, CHENNAI

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(S.V. GOWRAMMA)

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 07^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Balasubramanian, Senior Manager representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl.	Description of Documents	Exhibit
No.		No.
1.	Application for Agricultural Credit – Short Term/	A-1
	Term Loan by Shri. A. Singaravel dated
	02.01.2006.
2.	Quotation by Sri Shanmugam Eicher for Tractor	A-2

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	dated 29.12.2005.
3.	Quotation by Raj & Raj Tractor works for Accessories dated 29.12.2005.	A-3
4.	Quotation by Maris Engineering for Trailer dated 29.12.2005.	A-4
5.	Appraisal Report by Applicant dated 18.01.2006.	A-5
6.	Sanction Memorandum by Applicant dated 18.01.2006.	A-6
7.	Memorandum of Agreement for Agricultural Loans by Shri. A. Singaravel to Applicant dated 18.01.2006.	A-7
8.	Letter by Applicant to Jayakondam’s branch dated 02.01.2006.	A-8
9.	Letter evidencing deposit of Title deeds by Shri. A. Singaravel dated 05.01.2006.	A-9
10.	Settlement Deed – A. Singaravel – Doc. No.1666/2005 with gist of translation dated 21.11.2005.	A-10
11.	Form of Certificate of Registration – Tractor dated 13.02.2006.	A-11
12.	Form of Certificate of Registration – Trailer dated 13.02.2006.	A-12
13.	Acknowledgement of Debt and Security – Shri. A. Sinagaravel dated 17.02.2008.	A-13
14.	Acknowledgement of Debt and Security – Shri. A. Sinagaravel dated 21.06.2011.	A-14
15.	Acknowledgement of Debt and Security – Shri. A. Sinagaravel dated 22.01.2014.	A-15
16.	Acknowledgement of Debt and Security – Shri. A. Sinagaravel dated 17.03.2016.	A-16
17.	Acknowledgement of Debt and Security – Shri. A. Sinagaravel dated 10.02.2017.	A-17
18. 19.	Death Certificate of Shri. A. Singaravel dated 28.04.2017. Statement of Accounts	A-18 A-19

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:- SCHEDULE – A -:

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All that piece and parcel of agricultural lands measuring an aggregate extent of 2 Acres and 68 Cents comprised in various Survey Numbers of Thathanur Pottangadu Village, Udayarpalayam Taluk, Ariyalur

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District

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SI	Nature	Survey No.	Acres	Hectares
No.
1.	Punjai	621/3D	0.33	0.13.5
2.	Punjai	621/4	1.90	Out of 0.79.0

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Boundaries for property in S. No. 621/4

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North by : Land belonging to Smt. Pounammal

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South by : Lands belonging to Ulaganathan and Murugesan

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East by : Vaari

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West by : Lands belonging to Subramanian, Krishnamurthy

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SI No.	Nature	Survey No.	Acres	Hectares
3.	Punjai	621/5	0.45	0.18.0
		Total Extent:	2.68 Cents

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The above properties are situated within the Registration district of Ariyalur and Sub-Registration District of Udayarpalayam.

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:- SCHEDULE – B -:

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Movables belonged to Shri. A. Singaravel

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	Tractor	Trailer
Name of vehicle	Eicher Tractor 47 HP	Maris Engineering Works
Model	Eicher 485 SDI	Trailer

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Branch Name	Eicher Tractors Ltd	Maris Engineering Works
Registration No.	TN46D5901	TN46D5889
Chassis No.	911511554160	ME035FEB2006
Engine No.	500527225238	NIL
Colour	Green/Red	Green
Year	2005	2006

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

Canara Bank v. S. Bhuvaneshwari

Case brief

What is this about?

What did the court decide?

Canara Bank v. S. Bhuvaneshwari

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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