The 1st defendant was a borrower, 2nd defendant a guarantor/Mortgager approached the Applicant Bank for availing Cash Credit Hypothecation Loan for Agriculture purpose for a sum of Rs.10,00,000/-. After due consideration, the Applicant Bank accepted the request of the defendant and sanctioned the Cash Credit Hypothecation Loan of Rs. 10,00,000/- after executing necessary documents in favour of the Applicant Bank. The defendant executed necessary loan documents in favour of the applicant bank. Further, Defendant agreed to repay the loan together with interest at the rate of 13.75% p.a. plus penal interest at the rate of 2%p.a. together with costs and charges and also agreed to pay interest as and when it is changed from time to time by the Applicant Bank. The 2nd defendant had deposited the Original Title deeds of his immovable property with the applicant bank as security for the due repayment of the loan availed by the 1st defendant and also executed Memorandum of deposit of Title deeds on 13.02.2011 as Doc.No.4334/2011, SRO Vallam. The defendant had executed Balance and security confirmation letter on 12.09.2017 and 8.09.2020 in favour of the Applicant bank. After availing the loan, the defendant was not regular in the matter of repayment. The defendant made several promises, but he failed to keep up his promises.
