Allowed

Tamilnad Mercantile Bank Limited v. Jeganlingam

DRT4 Feb 2025OA/90/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Tamilnad Mercantile Bank Ltd. for recovery of dues totaling Rs.60,93,884.20 with interest from two business concerns and their guarantor, as the defendants did not appear and the claim was unchallenged.

What did the court decide?

Recovery of Rs.60,93,884.20 with interest from respondents jointly and severally; issuance of recovery certificate; liberty to sell hypothecated/schedule properties if amount is not realized.

Tamilnad Mercantile Bank Limited versus Jeganlingam — Banking and Recovery | DRT (2025)

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OA. No. 90 of 2022(E)

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04.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 90 of 2022

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M/s. Tamilnad Mercantile Bank Ltd., Pallavaram Branch

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Chennai – 600 043 Rep by its Senior Manager ….Applicant

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-Vs-

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Mr. J. Jegan Lingam, S/o. Jothipandi, Proprietor M/s. NUCLEUS & M/s.UPSWING P.No. 157/159, Kasi Visalakshi Illam Apartments, Raju Nagar, 1^st Street, Thoraipakkam,

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Chennai – 600 097.

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Ms. T. Subha,

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W/o. J.Jegan Lingam, P.No. 157/159, Kasi Visalakshi Illam Apartments, Raju Nagar, 1^st Street, Thoraipakkam, Chennai – 600 097. ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. N. Somasundaar

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Defendants 1 and 2 were set ex-parte on 08.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 24.06.2021 by the applicant bank 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,

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jointly, severally and co-extensively, for recovery of a total sum of Rs.60,93,884.20p

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OA. No. 90 of 2022(E)

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04.02.2025

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(Rupees Sixty Lakhs Ninety Three Thousand Eight Hundred and Eight Four and Twenty Paise only) as follows:

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(i) A sum of Rs.30,54,573.05p due in respect of Overdraft facility (Loan Account No.210700050900072) together with future interest @ 10.65% p.a. with monthly rests, besides penal interest @ 2% p.a. from the date of filing the OA till the date of realization in full,

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(ii) A sum of Rs.30,39,311.15p due in respect of Overdraft facility (Loan Account No.210700050900078) together with future interest @ 10.40% p.a. with monthly rests, besides penal interest @ 2% p.a. from the date of filing the OA till the date of realization in full,

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for sale of the immovable (Schedule A) and movable properties (Schedule B) morefully described in schedule to OA, for personal decree against defendants 1 and 2 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 Hon‟ble Tribunal.

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The case of the applicant bank is that the 1^st defendant – Proprietor of M/s. Nucleus & M/s. Upswing, engaged in trading of readymade garments of men and women along with accessories including shoes, belts, wallets, jackets etc. had been enjoying credit facilities of Rs.8,00,000/- each with the applicant bank pursuant to creation of equitable mortgage over the OA Schedule “A” immovable properties by 1^st

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defendant on 05.04.2013 upon depositing the original sale deeds dated 07.04.2010, 07.10.2010 and 30.09.2011 with the Pallavaram Branch of the applicant bank as is evident from the memorandum of deposit of title deeds dated 08.04.2013, registered as Document No. 3089/2013 at S.R.O.Padappai, executed by 1^st defendant for the then overall credit facilities of Rs.16,00,000/- .

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It is submitted by applicant bank that on 26.03.2015, the 1^st defendant approached applicant bank seeking financial assistance for his business activity. Consequent upon the closure of the aforementioned credit facilities of Rs.16,00,000/- on 30.03.2015, the 1^st defendant executed a consent letter the same day offering the OA Schedule “A” immovable properties as security for overdraft limit of Rs.24,00,000/- sought to be sanctioned by the applicant to the defendants. Second defendant offered to extend guarantee for the aforesaid credit facility to be availed by first defendant.

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It is submitted that accordingly the applicant bank had sanctioned an Overdraft (TMB SME) Limit of Rs.24,00,000/- to M/s. Nucleus vide its sanction letter dated 30.03.2015. The 1^st defendant had on 30.03.2015 extended the equitable mortgage charge created over the OA Schedule “A” immovable properties on 05.04.2013 as a continuing collateral security for due repayment of the amounts advanced and executed mortgage extension letter and registration of a memorandum of deposit of title deeds dated 30.03.2015 vide Doc. No. 2375/2015 before S.R.O.Padappai.

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The applicant bank submitted that on 30.03.2015, the defendants 1 & 2 had

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counter signed the sanction letter for said advances in token of their acceptance of its

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terms and conditions and executed the following loan and security documents in favour of applicant bank on 30.03.2015:

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(i) Letter of undertaking;

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(ii) Demand promissory note thereby agreeing to repay the loan on demand together with interest at 13% p.a. and at the Bank‟s ruling rate prevailing from time to time with monthly rests;

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(iii) Letter of waiver of presentment of DPN;

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(iv) Take delivery letter to DPN;

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(v) Letter of continuity;

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(vi) Agreement for demand cash credit on the hypothecation of movable properties wherein the 1^st defendant had caused hypothecation and charge to the bank all tangible movable property, stock in trade and goods of the borrower concern morefully setout thereunder as are brought in, stored or be in or about the premises, warehouses or godowns of M/s.Nucleus in 160-C, Old Mahabalipuram Road, opp. Arvind Theatre, Karapakkam, Chennai-600 097 or anywhere else ;

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(vii) Statement of stock of M/s.Nucleus declared by 1^st defendant at the close of its business on 30.03.2015 ;

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(viii) Sole proprietorship letter;

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(ix) Free godown access letter

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(x) Negative lien letter

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(xi) Letter of consent for disclosure of information to CIBIL;

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(xii) Guarantee covering letter executed by 2^nd defendant ;

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(xiii) Agreement of continuing guarantee executed by 2^nd defendant

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(xiv) Letter of consent by 2^nd defendant; and

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(xv) Letter of undertaking.

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It is the further case of applicant bank that on 05.11.2015, the 1st defendantproprietor of M/s. Upswing approached applicant bank seeking for an overdraft facility of Rs.10,00,000/- and executed a consent letter offering the OA Schedule “A” immovable on 11.11.2015. Second defendant offered to extend guarantee for the aforesaid credit facility to be availed by first defendant.

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It is submitted that the applicant bank had sanctioned an Overdraft (TMB SME) Limit of Rs.10,00,000/- to M/s. Upswing vide its sanction letter dated 11.11.2015. The 1^st defendant had on 11.11.2015 extended the equitable mortgage charge created over the OA Schedule “A” immovable properties on 05.04.2013 as a continuing collateral security for due repayment of the amounts advanced or to be advanced to M/s. Upswing and executed mortgage extension letter and registration of a memorandum of deposit of title deeds dated 11.11.2015 vide Doc. No. 8851/2015 S.R.O.Padappai.

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It is submitted that on 30.03.2015, the defendants 1 & 2 had counter signed

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the sanction letter for said advances in token of their acceptance of its terms and conditions and executed the following loan and security documents in favour of applicant bank on 11.11.2015:

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(i) Overdraft undertaking letter; (ii) Letter of Undertaking;

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(iii) Demand promissory note thereby agreeing to repay the loan on demand together with interest at 12.40% p.a. and at the Bank‟s ruling rate prevailing from time to time with monthly rests;

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(iv) Letter of waiver of presentment of DPN;

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(v) Take delivery letter to DPN;

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(vi) Letter of continuity;

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(vii) Agreement for demand cash credit on the hypothecation of movable properties of M/s. Upswing, stored or be in or about the premises, warehouses or godowns in 3/382, OMR Road, Metukuppam, Chennai600 097 or anywhere else ;

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(viii) Statement of stock of M/s. Upswing declared by 1^st defendant at the close of its business on 11.11.2015 ;

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(ix) Sole proprietorship letter;

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(x) Free godown access letter

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(xi) Negative lien letter

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(xii) Letter of consent for disclosure of information to CIBIL;

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(xiii) Guarantee covering letter executed by 2^nd defendant ;

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(xiv) Agreement of continuing guarantee executed by 2^nd defendant

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(xv) Letter of consent by 2^nd defendant; and

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(xvi) Letter of undertaking.

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It is submitted by applicant bank that first defendant M/s Upswing got the

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overdraft limit renewed vide Sanction Letter dated 31.12.2016, which was accepted by defendants 1 and 2 and executed Revival Letter dated 31.12.2016. Further, the first

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defendant had acknowledged the liability on 15.04.2017 in respect of over draft limit of M/s Upswing.

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It is further submitted by applicant bank that first defendant M/s Nucleus got the overdraft limit of Rs.24 lakhs renewed vide Sanction Letters dated 24.03.2016 and 24.03.2017, which was accepted by defendants 1 and 2 and executed Revival Letters dated 24.03.2016 and 24.03.2017. Further, the first defendant had acknowledged the liability on 15.04.2017 in respect of over draft limit of M/s Nucleus.

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The applicant bank submitted that on 26.04.2017, the first defendant, Proprietor of M/s Upswing again approached applicant bank for enhanced Overdraft facility of Rs.24 lakhs, for which second defendant offered to stand as guarantor.

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Considering the said request, the applicant bank had sanctioned with enhanced Overdraft facility (TMB SME) Limit of Rs.24,00,000/- to M/s. Upswing vide its sanction letter dated 27.04.2017

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It is submitted that on 27.04.2017, the defendants 1 & 2 had counter signed the sanction letter for said advance in token of their acceptance of its terms and conditions and executed the following loan and security documents in favour of applicant bank on 27.04.2017:

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(i) Overdraft undertaking letter;

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(ii) Letter of Undertaking;

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(iii) Demand promissory note thereby agreeing to repay the loan on demand together with interest at 11.95% p.a. and at the Bank‟s ruling rate prevailing from time to time with monthly rests;

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(iv) Letter of waiver of presentment of DPN;

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(v) Take delivery letter to DPN;

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(vi) Letter of continuity;

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(vii) Agreement for demand cash credit;

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(viii) Statement of stock of M/s. Upswing declared by 1^st defendant at the close of its business on 27.04.2017;

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(ix) Sole proprietorship letter;

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(x) Free godown access letter

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(xi) Negative lien letter

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(xii) Letter of consent for disclosure of information to CIBIL;

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(xiii) Guarantee covering letter executed by 2^nd defendant ;

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(xiv) Agreement of continuing guarantee executed by 2^nd defendant

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(xv) Letter of consent by 2^nd defendant; and

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(xvii) Letter of undertaking.

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It is submitted by applicant bank that the 1^st defendant extended the equitable

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mortgage charge created over the OA Schedule “A” immovable properties on 05.04.2013 as a continuing collateral security for due repayment of the amounts advanced or to be advanced to the 1^st defendant concern M/s. Upswing and executed mortgage extension letter dated 27.04.2017. That apart, the 1^st defendant had executed a Supplemental memorandum of deposit of title deeds dated 15.12.2017 vide Doc. No.

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6663/2017 S.R.O. Padappai confirming inter alia creation/extension of EM charge over the OA Schedule “A” immovable properties as security for due repayment of the overall credit facilities of Rs.48,00,000 (being Rs.24,00,000 each for either of his concerns M/s Nucleus and Upswing) and on 23.04.2018 acknowledged the liability to the applicant pursuant to execution of a letter of confirmation of debit balance in respect of Overdraft A/c No.210700050900078 of M/s. Upswing operated with the applicant bank.

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Upon request of first defendant-proprietor of M/s. Nucleus on 21.03.2018, the applicant bank had sanctioned an Cash credit (stock) TMB SME Limit of Rs.24,00,000/vide its sanction letter dated 22.03.2018. The 1^st defendant on 21.03.2018 had executed a consent letter offering the OA Schedule “A” immovable properties as security for OD/CC limit of Rs.24,00,000 sought to be sanctioned by the applicant to M/s. Nucleus. 2^nd defendant stood as guarantor/co-obligant for the said facility.

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In order to secure the said facility, 1^st defendant on 22.03.2018 had extended the equitable mortgage created over the OA Schedule “A” immovable properties on 05.04.2013 as a continuing collateral security for due repayment of the amounts outstanding towards the credit facility of Rs.24,00,000 advanced or to be advanced to the 1^st defendant concern M/s.Nucleus and confirmed his doing so upon execution of a mortgage extension letter.

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It is submitted that on 22.03.2018, the defendants 1 & 2 had counter signed

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the sanction letter for said advance in token of their acceptance of its terms and conditions and executed the following loan and security documents in favour of applicant bank on 22.03.2018:

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(i) Cash Credit undertaking letter;

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(ii) Letter of Undertaking;

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(iii) Demand promissory note thereby agreeing to repay the loan on demand together with interest at 11.15% p.a. and at the Bank‟s ruling rate prevailing from time to time with monthly rests;

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(iv) Letter of waiver of presentment of DPN;

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(v) Take delivery letter to DPN;

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(vi) Letter of continuity;

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(vii) Agreement for demand cash credit;

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(viii) Statement of stock of M/s. Upswing declared by 1^st defendant at the close of its business on 22.03.2018;

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(ix) Sole proprietorship letter;

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(x) Free godown access letter

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(xi) Negative lien letter

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(xii) Acknowledgment by 1^st defendant regarding charging of interest at monthly rests

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(xiii) Letter of consent for disclosure of information to CIBIL;

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(xiv) Guarantee covering letter executed by 2^nd defendant ;

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(xv) Agreement of continuing guarantee executed by 2^nd defendant

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(xvi) Letter of consent by 2^nd defendant; and

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(xvii) Letter of undertaking.

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The 1^st defendant-proprietor of M/s.Nucleus had acknowledged his liability and on 01.04.2019 and 16.10.2019 executed confirmation of debit balance in relation to Overdraft Account No.210700050900072 operated with the applicant bank.

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It is submitted by applicant bank that upon the request of 1^st defendant - proprietor of M/s. Nucleus on 31.10.2018, the applicant bank had sanctioned an Cash credit (stock) TMB SME Limit of Rs.24,00,000/- vide its sanction letter dated 31.10.2018. The 1^st defendant on 21.03.2018 had executed a consent letter offering the OA Schedule “A” immovable properties as security for OD/CC limit of Rs.24,00,000 sought to be sanctioned by the applicant to M/s. Nucleus. 2^nd defendant stood as guarantor/co-obligant for the said facility.

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In order to secure the said facility, the 1^st defendant on 31.10.2018 extended the equitable mortgage charge created over the OA Schedule “A” immovable properties on 05.04.2013 as a continuing collateral security for due repayment of the amounts outstanding towards the credit facility of Rs.24,00,000 advanced or to be advanced to the 1^st defendant concern M/s. Upswing and confirmed his doing so upon execution of a mortgage extension letter.

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It is submitted that on 31.10.2018, the defendants 1 & 2 had counter signed

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the sanction letter for said advance in token of their acceptance of its terms and conditions and executed the following loan and security documents in favour of applicant bank on 31.10.2018:

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(i) Cash Credit undertaking letter;

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(ii) Letter of Undertaking;

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(iii) Demand promissory note thereby agreeing to repay the loan on demand together with interest at 10.90% p.a. and at the Bank‟s ruling rate prevailing from time to time with monthly rests;

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(iv) Letter of waiver of presentment of DPN;

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(v) Take delivery letter to DPN;

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(vi) Letter of continuity;

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(vii) Agreement for demand cash credit;

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(viii) Sole proprietorship letter;

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(ix) Free godown access letter

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(x) Negative lien letter

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(xi) Acknowledgment by 1^st defendant regarding charging of interest at monthly rests

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(xii) Letter of consent for disclosure of information to CIBIL;

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(xiii) Guarantee covering letter executed by 2^nd defendant ;

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(xiv) Agreement of continuing guarantee executed by 2^nd defendant

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(xv) Letter of consent by 2^nd defendant; and

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(xvi) Letter of undertaking.

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The 1^st defendant-proprietor of M/s. Upswing had acknowledged his liability and on 02.04.2019 and 16.10.2019 executed confirmation of debit balance in relation to

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Overdraft Account No.210700050900078 operated with the applicant bank.

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The Applicant Bank submits that the Defendants, after availing the said

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facilities, failed to repay the loan amount despite several reminders and thus committed default, resulting in Loan accounts being classified as NPA on

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31.07.2019. The Authorised officer of the applicant bank issued Demand Notice under Section 13(2) of the Act dated 17.10.2019, followed by the Possession Notice dated 23.01.2020, which were all duly served on the defendants. The default in repayment continued and there was no positive response from the defendants. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons were sent to the Defendant Nos.1 and 2 through Registered Post with Acknowledgment, which was duly served. When OA was taken up on 08.06.2022, even after giving sufficient time and despite posting the matter as last chance, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 08.06.2022.

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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, Shri. Majer Hussain, Senior Manager, Pallavaram Branch of 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-138. 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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During the pendency of OA, applicant bank had reported part satisfaction of OA claim in a sum of Rs.10,90,000/- by way of sale of mortgaged property morefully detailed as Item No.1 of „A‟ Schedule on 14.07.2023, Rs.9,10,000/- by way of sale of Item No.3 of A schedule on 17.05.2023, Rs.9,10,000/- by way of sale of Item No.2 of

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A schedule on 04.09.2023 under SARFAESI Act respectively. Accordingly, Exhibits A-1, A-2, A-3, A-4, A-8, A-29 and A-74 were returned to applicant bank under proper acknowledgment as per Act and Rules.

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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 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 Defendants jointly, severally of a total sum of for recovery of a total sum of Rs.60,93,884.20p (Rupees Sixty Lakhs Ninety Three Thousand Eight Hundred and Eight Four and Twenty Paise only) as follows:

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(i) A sum of Rs.30,54,573.05p due in respect of Overdraft facility (Loan Account No.210700050900072) together with future interest @ 10.65% p.a. with monthly rests, besides penal interest @ 2% p.a. from the date of filing the OA till the date of realization in full,

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(ii) A sum of Rs.30,39,311.15p due in respect of Overdraft facility (Loan Account No.210700050900078) together with future interest @ 10.40% p.a. with monthly rests, besides penal interest @ 2% p.a. from the date of filing the OA till the date of realization in full,

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(b) The sum of Rs. Rs.10,90,000/-, Rs.9,10,000/-, Rs.9,10,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower‟s loan account as on the date of realization.

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(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 mentioned hypothecated properties morefully detailed in schedule B and C in the OA;

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(d) Schedule mentioned hypothecated properties in the OA shall be appended to this final order;

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(e) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, defendants 1 and 2 are personally liable for the balance dues;

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(f) 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 defendants 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.

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

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(h) Recovery Certificate shall be drawn up and issued to the 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/-

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 04^th day of February, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1 : Shri. Majer Hussain, Senior Manager, Pallavaram Branch of applicant bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	EXHIBITS No.
1	Sale Deed in respect of Plot No.375 executed in favour of 1^st defendant registered as Doc No. 1499/2010 SRO,Padappai. Dated 07.04.2010	A-1
2	Sale Deed in respect of Plot No.583 executed in favour of 1^st defendant registered as Doc No. 5124/2010 SRO,Padappai along with English translated version dated 07.10.2010	A-2
	Sale Deed in respect of Plot No.181 executed in favour of 1^st
3	defendant registered as Doc No. 6195/2011 SRO,Padappai along with Englishtranslatedversiondated 30.09.2011	A-3
4	Memorandum of Deposit of title deeds executed by 1^stdefendant registered as Doc.No.3089/2013 SRO, Padappai dated 08.04.2013	A-4
5	Consent Letter executed by 1^stdefendant offering his immovable property as security for Overdraft Limit of Rs.24 lakhs sought to be sanctioned to M/s Nucleus by the Applicant. Dated 30.03.2015	A-5
6	Consent Letter executed by 2^nddefendant offering personal guarantee for Overdraft Limit of Rs.24 lakhs sought to be sanctioned to M/s Nucleus by the Applicant dated 26.03.2015- dated 30.03.2015	A-6
7	Mortgage Extension Letter executed by 1^stdefendant towards extension of credit to M/s Nucleus in pursuance of credit application dated 30.03.2015	A-7
	Memorandum of Deposit of title deeds executed by
8	1^stdefendant registered as Doc.No.2375/2015 SRO, Padappai dated 30.03.2015	A-8
	Sanction communication relating to Overdraft (TMB SME
9	)limit of Rs.24,00,000/- issued by the applicant to M/s Nucleus and countersigned by the defendants1&2dated 30.03.2015	A-9
10	Letter of undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Overdraft (TMB SME) Limit of Rs.24,00,000/-	A-10
11	Demand Promissory Note for Rs.24,00,000/- executed by 1^st Defendant dated 30.03.2015	A-11
12	Letter of waiver of presentment of DPN for Rs.24,00,000/- executed by1^stDefendant dated 30.03.2015	A-12
13	Take delivery letter to DPN of Rs.24,00,000/- executed by 1^st Defendant dated 30.03.2015	A-13
14	Letter of continuity executed by 1^stdefendant dated 30.03.2015	A-14
15	Agreement for demand cash credit on the hypothecation of movable properties executed by1^st defendant dated 30.03.2015	A-15

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16	Statement of Stock of M/s Nucleus hypothecated to the Applicant. dated 30.03.2015	A-16
17	Sole Proprietorship letter executed by 1^stdefendant dated 30.03.2015	A-17
18	Letter granting free access to godown executed by 1^st Defendant dated 30.03.2015	A-18
19	Negativelien letterexecuted by1^st defendant dated 30.03.2015	A-19
20	Letter of consent executed by 1^stdefendant authorizing the bank to disclose information and data relating to his default dated 30.03.2015	A-20
21	Guarantee Covering letter executed by 2^nddefendant. dated 30.03.2015	A-21
22	Agreement of continuing guarantee executed by 2^nddefendant in relation to Overdraft limit of Rs.24,00,000/- accommodated to 1^st defendant dated 30.03.2015	A-22
23	Letter of consent executed by 2^nddefendant authorizing the bank to disclose information and data relating to her default dated 30.03.2015	A-23
24	Undertaking letter executed by 2^nddefendant to keep the security intact dated 30.03.2015	A-24
25	Consent Letter executed by 1^stdefendant offering his immovable property as security for Overdraft Limit of Rs.10 lakhs sought to be sanctioned to M/s Upswing by the Applicant. Dated 11.11.2015	A-25
	Consent Letter executed by 2^nddefendant offering personal
26	guarantee for Overdraft Limit of Rs.10 lakhs sought to be sanctioned to M/s Upswing by the Applicant. Dated 11.11.2015	A-26
	Sanction communication relating to Overdraft (TMB SME
27	)limit of Rs.10,00,000/- issued by the applicant and countersigned by the defendants1&2 Dated11.11.2015	A-27
28	Mortgage Extension Letter executed by 1^stdefendant towards extension of credit to M/s Upswing in pursuance of credit application dated 05.11.2015 Dated 11.11.2015	A-28
29	Memorandum of Deposit of title deeds executed by 1^stdefendant registered as Doc.No.8851/2015, SRO, Padappai Dated11.11.2015	A-29
30	Overdraft undertaking letter executed by 1^stdefendant in respect of the sanctioned Overdraft (TMBSME)Limit of Rs.10,00,000/-	A-30
31	Letter of undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Overdraft (TMB SME) Limit of Rs.10,00,000/-Dated 11.11.2015	A-31
32	Demand Promissory Note for Rs.10,00,000/- executed by 1^st Defendant Dated 11.11.2015	A-32
33	Letter of waiver of presentment of DPN for Rs.10,00,000/- executed by 1^stDefendant Dated 11.11.2015	A-33
34	Take delivery letter to DPN of Rs.10,00,000/- executed by 1^st Defendant Dated 11.11.2015	A-34
35	Letter of continuity executed by 1^stdefendant Dated 11.11.2015	A-35
36	Agreement for demand cash credit on the hypothecation of movable properties executed by 1^stdefendant Dated 11.11.2015	A-36

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04.02.2025

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37	Statement of Stock of M/s Upswing hypothecated to the Applicant. Dated 11.11.2015	A-37
38	Sole Proprietorship letter executed by 1^stdefendant Dated 11.11.2015	A-38
39	Letter granting free access to godown executed by 1^st Defendant Dated 11.11.2015	A-39
40	Negativelien letterexecuted by1^st defendantDated11.11.2015	A-40
41	Letter of consent executed by 1^stdefendant authorizing the bank to disclose information and data relating to his default Dated 11.11.2015	A-41
42	Guarantee Covering letter executed by 2^nddefendant. Dated 11.11.2015	A-42
43	Agreement of continuing guarantee executed by 2^nddefendant in relation to Overdraft limit of Rs.10,00,000/- accommodated to 1^st defendant Dated 11.11.2015	A-43
44	Letter of consent executed by 2^nddefendant authorizing the bank to disclose information and data relating to her default Dated 11.11.2015	A-44
45	Undertaking letter executed by 2^nddefendant to keep the security intactDated11.11.2015	A-45
46	Sanction communication relating to renewed Overdraft (TMB SME )limit of Rs.24,00,000/- issued by the applicant to M/s Nucleus and countersigned by the defendants 1 & 2 dated 24.03.2016	A-46
47	Revival letter in respect of overdraft limit of Rs.24,00,000/- accommodated to M/s Nucleus executed by defendants 1 & 2. dated 24.03.2016	A-47
48	Sanction communication relating to renewed Overdraft (TMB SME )limit of Rs.10,00,000/- issued by the applicant to M/s Upswing and countersigned by the defendants1&2	A-48
49	Revival letter in respect of overdraft limit of Rs.10,00,000/- accommodated to M/s.Upswing executed by defendants 1 & 2. dated 31.12.2016	A-49
50	Sanction communication relating to renewed Overdraft (TMB SME) limit of Rs.24,00,000/- issued by the applicant to M/s Nucleus and countersigned by the defendants1&2 Dated24.03.2017	A-50
51	Revival letter in respect of overdraft limit of Rs.24,00,000/- accommodated to M/s Nucleus executed by defendants 1 & 2. Dated 24.03.2017	A-51
	Confirmation of Debit Balance in relation to Overdraft
52	Account No.210700050900072 of M/s Nucleus executed by 1^st defendant Dated 15.04.2017	A-52
	Confirmation of Debit Balance in relation to Overdraft
53	Account No.210700050900078 of M/s Upswing executed by 1^st defendant dated15.04.2017	A-53
54	Consent Letter executed by 1^stdefendant offering his immovable property as security for Overdraft Limit of Rs.24 lakhs sought to be sanctioned to M/s Upswing by the Applicant.	A-54
	Consent Letter executed by 2^nddefendant offering personal
55	guarantee for Overdraft Limit of Rs. 24 lakhs sought to be sanctioned toM/s Upswing by theApplicant. Dated27.04.2017	A-55

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56	Sanction communication relating to Overdraft (TMB SME )limit of Rs.24,00,000/- issued by the applicant to M/s Upswing and countersigned by the defendants 1 & 2 Dated 27.04.2017	A-56
57	Overdraft undertaking letter executed by 1^stdefendant in respect of the sanctioned Overdraft (TMB SME) Limit of Rs.24,00,000/- Dated 27.04.2017	A-57
58	Letter of undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Overdraft (TMB SME) Limit of Rs.24,00,000/-Dated 27.04.2017	A-58
59	Demand Promissory Note for Rs.24,00,000/- executed by 1^st Defendant dated 27.04.2017	A-59
60	Letter of waiver of presentment of DPN for Rs.24,00,000/- executed by 1^stDefendant dated 27.04.2017	A-60
61	Take delivery letter to DPN of Rs.24,00,000/- executed by 1^st Defendant dated 27.04.2017	A-61
62	Letterofcontinuity executed by1^st defendant dated27.04.2017	A-62
63	Agreement for demand cash credit on the hypothecation of movable properties executed by1^st defendant dated27.04.2017	A-63
64	Statement of Stock of M/s Nucleus hypothecated to the Applicant. dated27.04.2017	A-64
65	Sole Proprietorship letter executed by 1^stdefendant dated 27.04.2017	A-65
66	Letter granting free access to godown executed by 1^st Defendant dated27.04.2017	A-66
67	Negative lien letter executed by 1^stdefendant dated 27.04.2017	A-67
68	Letter of consent executed by 1^stdefendant authorizing the bank to disclose information and data relating to his default dated 27.04.2017	A-68
69	Guarantee Covering letter executed by 2^nddefendant. dated 27.04.2017	A-69
70	Agreement of continuing guarantee executed by 2^nddefendant in relation to Overdraft limit of Rs.24,00,000/- accommodated to 1^st defendant dated 27.04.2017	A-70
71	Letter of consent executed by 2^nddefendant authorizing the bank to disclose information and data relating to her default dated 27.04.2017	A-71
72	Undertaking letter executed by 2^nddefendant to keep the security intact dated 27.04.2017	A-72
73	Mortgage Extension Letter executed by 1^stdefendant towards extension of credit to M/s Upswing in pursuance of credit application dated26.04.2017-dated27.04.2017	A-73
74	Supplemental Memorandum of Deposit of Title Deeds executed by 1^stdefendant registered as Doc.No. 6663/2017, SRO, Padappai Dated	A-74
75	Letter of Request submitted by M/s Nucleus for sanctioning of cash credit limit of Rs.24 lakhs accompanied by application form.dated 21.03.2018	A-75

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76	Consent Letter executed by 1^stdefendant to offer his immovable property as security for Overdraft/Cash Credit Limit of Rs.24 lakhs sought to be sanctioned to M/s Nucleus by the Applicant. 21.03.2018	A-76
77	Consent letter executed by 2^nddefendant offering personal guarantee for Overdraft /Cash Credit Limit of Rs. 24 lakhs sought to be sanctioned to M/s Upswing by the Applicant. 21.03.2018	A-77
78	Mortgage Extension Letter executed by 1^stdefendant towards extension of credit to M/s Nucleus in pursuance of credit application dated21.03.2018-dated22.03.2018	A-78
79	Sanction communication relating to Cash Credit (TMB SME )limit of Rs.24,00,000/- issued by the applicant to M/s Nucleus and countersigned by the defendants 1 & 2 dated 22.03.2018	A-79
80	Cash Credit undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Cash Credit (TMB SME) Limit of Rs.24,00,000/-dated 22.03.2018	A-80
81	Undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Cash Credit (TMB SME) Limit of Rs.24,00,000/-dated22.03.2018	A-81
82	Demand Promissory Note for Rs.24,00,000/- executed by 1^st Defendant dated22.03.2018	A-82
83	Letter of waiver of presentment of DPN for Rs.24,00,000/- executed by1^stDefendant dated22.03.2018	A-83
84	Take delivery letter to DPN of Rs.24,00,000/- executed by 1^st Defendant dated22.03.2018	A-84
85	Letter of continuity executed by 1^stdefendant dated 22.03.2018	A-85
86	Agreement for demand cash credit on the hypothecation of movable properties executed by 1^stdefendant dated 22.03.2018	A-86
87	Statement of Stock of M/s Nucleus hypothecated to the Applicant. dated 22.03.2018	A-87
88	Sole Proprietorship letter executed by 1^stdefendant dated 22.03.2018	A-88
89	Free accessletterexecuted by1^stDefendant dated22.03.2018	A-89
90	Negative lien letter executed by 1^stdefendant dated 22.03.2018	A-90
91	Acknowledgement by 1^stdefendant to the Applicant‟s Notification as regards charging of interest on monthly rests. dated 22.03.2018	A-91
92	Letter of consent executed by 1^stdefendant authorizing the bank to disclose information and data relating to his default dated 22.03.2018	A-92
93	Guarantee Covering letter executed by 2^nddefendant. dated 22.03.2018	A-93
94	Agreement of continuing guarantee executed by 2^nddefendant in relation to Cash Credit limit of Rs.24,00,000/- accommodated to 1^st defendant dated 22.03.2018	A-94
95	Letter of consent executed by 2^nddefendant authorizing the bank to disclose information and data relating to her default dated 22.03.2018	A-95
96	Undertaking letter executed by 2^nddefendant to keep the security intact dated22.03.2018	A-96

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97	Confirmation of Debit Balance in relation to Overdraft Account No.210700050900078 of M/s Upswing executed by 1^st defendant dated 23.04.2018	A-97
98	Letter of Request submitted by M/s Upswing for sanctioning of cash credit limit of Rs.24 lakhs accompanied by application form.dated 31.10.2018	A-98
99	Consent Letter executed by 1^stdefendant to offer his immovable property as security for Cash Credit Limit of Rs.24 lakhs sought to be sanctioned to M/s Upswing by the Applicant.	A-99
	Consent letter executed by 2^nddefendant offering personal
100	guarantee for Cash Credit Limit of Rs. 24 lakhs sought to be sanctioned toM/s Upswing by theApplicant.31.10.2018	A-100
101	Mortgage Extension Letter executed by 1^stdefendant towards extension of credit to M/s Upswing in pursuance of credit application dated 31.10.2018	A-101
102	Sanction communication relating to Cash Credit (TMB SME )limit of Rs.24,00,000/- issued by the applicant to M/s Upswing and countersigned by the defendants 1 & 2 dated 31.10.2018	A-102
103	Cash Credit undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Cash Credit (TMBSME)Limit of Rs.24,00,000/-dated 31.10.2018	A-103
104	Undertaking executed by 1^stdefendant agreeing to abide by the Rules and Regulations of the sanctioned Cash Credit (TMB SME) Limit of Rs.24,00,000/-dated 31.10.2018	A-104
105	Demand Promissory Note for Rs.24,00,000/- executed by 1^st Defendant dated 31.10.2018	A-105
106	Letter of waiver of presentment of DPN for Rs.24,00,000/- executed by 1^stDefendant dated 31.10.2018	A-106
107	Take delivery letter to DPN of Rs.24,00,000/- executed by 1^st Defendant dated 31.10.2018	A-107
108	Letter of continuity executed by 1^stdefendant dated 31.10.2018	A-108
109	Agreement for demand cash credit on the hypothecation of movable properties executed by1^st defendant dated 31.10.2018	A-109
110	Sole Proprietorship letter executed by 1^stdefendant dated 31.10.2018	A-110
111	Letter granting free access to godown executed by 1^st Defendant dated 31.10.2018	A-111
112	Negative lien letter executed by 1^stdefendant dated 31.10.2018	A-112
113	Acknowledgement by 1^stdefendant to the Applicant‟s Notification as regards charging of interest on monthly rests. dated 31.10.2018	A-113
114	Letter of consent executed by 1^stdefendant authorizing the bank to disclose information and data relating to his default dated 31.10.2018	A-114
115	Guarantee Covering letter executed by 2^nddefendant. dated 31.10.2018	A-115
116	Agreement of continuing guarantee executed by 2^nddefendant in relation to Cash Credit limit of Rs.24,00,000/- accommodated to 1^st defendant dated 31.10.2018	A-116

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117	Letter of consent executed by 2^nddefendant authorizing the bank to disclose information and data relating to her default dated 31.10.2018	A-117
118	Undertaking letter executed by 2^nddefendant to keep the security intact dated 31.10.2018	A-118
	Confirmation of Debit Balance in relation to Overdraft
119	Account No.210700050900072 of M/s Nucleus executed by 1^st defendant dated 01.04.2019	A-119
	Confirmation of Debit Balance in relation to Overdraft
120	Account No.210700050900078 of M/s Upswing executed by 1^st defendant dated 02.04.2019	A-120
	Confirmation of Debit Balance in relation to Overdraft
121	Account No.210700050900078 of M/s Upswing executed by 1^st defendant dated16.10.2019	A-121
	Confirmation of Debit Balance in relation to Overdraft
122	Account No.210700050900072 of M/s Nucleus executed by 1^st defendant dated16.10.2019	A-122
123	Demand Notice U/s.13 (2) of SARFAESI Act issued by Authorised Officer of Applicant Bank in respect of M/s.Nucleus to defendants 1 and 2 acknowledged to have been received by 1^stdefendant on 16.11.2019. Dated17.10.2019	A-123
124	Demand Notice U/s.13(2) of SARFAESI Act issued by Authorised Officer of Applicant Bank in respect of M/s.Nucleus to defendants 1 and 2 acknowledged to have been received by 2^nddefendant on 16.11.2019 dated17.10.2019	A-124
125	Demand Notice U/s.13 (2) of SARFAESI Act issued by Authorised Officer of Applicant Bank in respect of M/s.Upswing to defendants 1 and 2 acknowledged to have been received by 1^stdefendant on 16.11.2019. dated 17.10.2019	A-125
126	Demand Notice U/s.13(2) of SARFAESI Act issued by Authorised Officer of Applicant Bank in respect of M/s.Upswing to defendants 1 and 2 acknowledged to have been received by 2^nddefendant on 16.11.2019 dated 17.10.2019	A-126
127	Possession Notice issued by Authorized Officer of applicant bank. Dated 23.01.2020	A-127
128	Postal acknowledgement of 1^stdefendant Dated27.01.2020	A-128
129	Postal acknowledgement of 2^nddefendant Dated 27.01.2020	A-129
130	Postalacknowledgement of 1^st defendantDated27.01.2020	A-130
131	Postal acknowledgement of 2^nddefendant Dated 27.01.2020	A-131
132	Possession Notice published in Deccan Chronicle (English Daily) Dated 30.01.2020	A-132
133	Possession Notice published in Dinakaran (Tamil Daily) dated 30.01.2020	A-133
134	Sale Notice issued by Authorized Officer of applicant bank Dated 25.01.2021	A-134
135	Postal acknowledgement of 1^stdefendant dated 30.01.2021	A-135
136	Postal acknowledgement of 2^nddefendant 30.01.2021	A-136
137	Statement of Account in respect of Account No.210700050900072 of M/s.Nucleus	A-137

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Statement of Account in respect of Account No.210700050900078 138 of M/s.Upswing

¶241

A-138

¶242

SCHEDULE OF PROPERTIES

¶243

SCHEDULE – ‘B’ MOVABLE ASSETS/GOODS (HYPOTHECA)

¶244

All tangible movable property, stock in trade and goods of the borrower concern as are brought in, stored or be in or about the premises, warehouses or godowns of M/s.NUCLEUS in 160-C, Old Mahabalipuram Road, opp. Arvind Theatre, Karapakkam, Chennai-600 097 or anywhere else.

¶245

SCHEDULE – ‘C’ MOVABLE ASSETS/GOODS (HYPOTHECA)

¶246

All tangible movable property, stock in trade and goods of the borrower concern as are brought in, stored or be in or about the premises, warehouses or godowns of M/s.UPSWING in 3/439A,opp.ASV Suntech Park, Old Mahabalipuram Road, Metukuppam, Chennai- 600 097 or anywhere else.

¶247

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

Tamilnad Mercantile Bank Limited v. Jeganlingam

Case brief

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Tamilnad Mercantile Bank Limited v. Jeganlingam

Case brief

What is this about?

What did the court decide?

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