Allowed

Tamilnad Mercantile Bank Limited v. M s Sri Varatha Vinayagar Transport

DRT10 Dec 2025OA/94/2024

Case brief

AI extract

What is this about?

In this Original Application, the Debt Recovery Tribunal allowed the bank's claim for recovery of outstanding loan dues and interest from the Defendants based on submitted documentary evidence. The court directed recovery of the balance amount after adjusting the sale proceeds from the mortgaged property and directed future interest calculation.

What did the court decide?

Directing defendants to pay Rs. 7,41,590.91 plus interest from the date of sale proceeds till realization; liberty to sell movable properties if funds are insufficient.

Tamilnad Mercantile Bank Limited versus M s Sri… — Contract and Commercial Disputes | DRT (2025)

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OA No. 94/2024

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 10^TH DAY OF DECEMBER, 2025 PRESENT: SEEMA SINHA,

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[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.94/2024

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Between

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Tamilnad Mercantile Bank Ltd., Thoothukudi SME Branch, 48 C & D, Brayant Nagar, 7^th Street Middle, Thoothukudi – 628 008. Rep. By its Branch Manager.

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---Applicant Bank

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And

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M/s Sri Varatha Vinayagar Transport,

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92B/1, VM Kovil Street,

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Thoothukudi – 628 002.

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Mr. G. Kannan,

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No.12A/3, 5^th Street, Sundaravelpuram, Thoothukudi – 628 002.

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Mrs. Selvakumari, W/o Kannan, No.12A/3, 5^th Street, Sundaravelpuram, Thoothukudi – 628 002.

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Mr. Arun Ambalavanan,

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S/o Paramasivan, No.4/75/4B, Dhanasekara Nagar, Thoothukudi – 628 002. ---Defendants

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Page 1 of 13

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OA No. 94/2024

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Counsel for the Applicant Bank : M/s P. Pethu Rajesh

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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 22.01.2024 to recover from the Defendants a total sum of Rs.27,46,590.91p i.e., (i) Rs.21,22,496.53p together with interest at the rate of 13.60% p.a. with penal interest at the rate of 2%p.a. in respect of Over Draft Credit Facility and (ii) Rs.6,24,094.38p together with interest at the rate of 9.25%p.a. with penal interest at the rate of 2%p.a. in respect of Working Capital Term Loan (GECL) 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.

¶24

2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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Over Draft Facility Availed by the 1^st Defendant through its Partners the 1^st and 2^nd Defendant in Account No.430700060750049

¶26

The 1^st Defendant is a Partnership concern carrying on business in dealing with Lorry Transport Hiring Services and duly represented by its Partners the 2^nd and 4^th Defendants herein. The 2^nd to 3^rd Defendants stands personally guarantors for the Credit Facility Availed by the 1^st Defendant with the Applicant Bank and liable for the default if any committed by the 1^st Defendant. Further, all the Defendants are jointly as well as severally liable for the transaction made by and on behalf of the 1^st Defendant with the Applicant Bank.

¶27

The 1^st Defendant through its Partners the 2^nd and 4^th Defendant requested to grant Over Draft facility from the Applicant Bank to the tune of Rs.20,00,000-/- and the same was sanctioned on 20.11.2020. The Account Number for the said facility is 430700060750049. The period of repayment of the said facility is 12 month from the date of the sanction. The said sanction intimation was duly acknowledged by the 1^st Defendant through its Partners the 2^nd and 4^th Defendant with the other Guarantor the 3^rd

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Page 2 of 13

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OA No. 94/2024

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Defendant with the terms and conditions and Annexure of General Conditions and Undertaking enclosed with the said Sanction Intimation. The rate of interest for the said facility is 10.45% per annum apart from that the 1^st Defendant has to pay a penal interest of 2% per annum if committed default in repaying the outstanding in the said facility as agreed. On 20.11.2020, the 2^nd and 4^th Defendant executed a letter in favour of the Applicant Bank declaring that the 1^st Defendant is the Partnership concern. On 20.11.2020, the 1^st Defendant through its Partners the 2^nd and 4^th Defendant herein executed a requisition letter to avail the limit granted to the tune of Rs.20,00,000-/-.

¶31

The 1^st Defendant through its Partners the 2^nd and 4^th Defendants executed on 20.11.2020 the following document for the following purpose:

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(i) Letter agreeing and accepting the present rate of interest as 10.45% and accepting of the automatic revision or change in the rate of interest fixed.

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(ii) An Agreement for Demand Cash Credit on the Hypothecation of Movable Properties to the tune of Rs.20,00,000/-.

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(ii) Promissory Note to the tune of Rs.20,00,000-/-.

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(iii) Letter of Hypothecation of Books – Debts

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(iv) Acknowledgment of Debts dated 17.08.2021 and 05.04.2022 Confirming the outstanding towards the account as on 31.03.2021 and 31.03.2022.

¶37

The 2^nd and 4^th Defendants (Partner of the 1^st Defendant Firm) jointly executed the following document on 20.11.2020 in favour of the Applicant Bank:

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(i) Memorandum of Deposit of Title Deeds executed in favour of the Applicant Bank.

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(ii) Consent Letter to stand as Guarantor for the Credit Facility availed by the 1^st Defendant

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(iii) Guarantee Covering Letter for the Credit Facility Availed by the 1^st Defendant.

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(iv) Undertaking letter to keep the security intact in case of mortgage of immovable properties with other terms and conditions.

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(iv) Mortgage Extension Letter

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Page 3 of 13

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OA No. 94/2024

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(v) Acknowledgment of Debts dated 12.10.2021 and 13.10.2022 confirming the outstanding towards the account as on 30.09.2021 and 30.09.2022.

¶46

The 3^rd Defendant executed a Consent Letter and a Guarantee Covering Letter on 20.11.2020 for consenting to stand as a Personal Guarantor for the Financial Assistance availed by the 1^st Defendant from the Applicant Bank.

¶47

2^nd & 3^rd and 4^th Defendant jointly executed the following documents in favour of the Applicant Bank:

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(i) Joint and Several Guarantee Forms in favour of the Applicant Bank on 20.11.2020.

¶49

(ii) Declaration Cum Affidavit dated 20.11.2020 agreeing for the terms and conditions stated in it in respect of the maintenance of the properties.

¶50

(3) For the credit facility availed by the 1^st Defendant the 2^nd & 3^rd Defendant executed a Registered Memorandum of Deposit of Title Deeds in favour of the Applicant Bank on 20.11.2023 and the same came to be registered as document in Doc No.3536 of 2020 on the file of the No.1, Joint Sub Registrar, Thoothukudi. By virtue of the said document the 2^nd & 3^rd Defendant mortgaged the property mentioned in the schedule which they entitle by the Registered Sale Deed executed by S. Ganesan in their favour on 28.08.2006 and registered as a document in Doc.No.1515 of 2006 on the file of the No.1, Joint Sub Registrar, Thoothukudi. In the said property the 2^nd & 3^rd Defendants constructed a house by getting Building Plan Approval from the Commissioner Thoothukudi City Municipal Corporation dated 30.03.2010.

¶51

Renewed Over Draft Facility Availed by the 1^st Defendant through its Partners the 2^nd and 4^th Defendants in Account No.430700060750049

¶52

The 1^st Defendant through its Partners the 2^nd & 4^th Defendants requested to Renew the Over Draft facility from the Applicant Bank to the tune of Rs.20,00,000-/- and the same was sanctioned on 18.05.2022. The period of repayment of the said facility is 12 month from the date of the sanction. The said sanction was acknowledge by the Defendant the Partnership Firm, the 2^nd and 4^th Defendants the Partners of the Firm and the 3^rd Defendant the Guarantor for the said transaction along with the terms and conditions and Annexure of General Conditions and Undertaking enclosed with the Sanction Intimation. On 16.06.2022, the 1^st Defendant through its Partners the 2^nd & 4^th Defendants herein executed a Requisition

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Page 4 of 13

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OA No. 94/2024

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Letter to avail the loan facility. On the same day the 1^st , 2^nd & 4^th Defendants executed a Over Draft Continuity Letter and Promissory note executed on 20.11.2020 for a sum of Rs. 20, 00,000-/- shall operate as continuing security for the said overdraft account and the same may be operated as security for the ultimate balance with interest payable. The 1^st to 4^th Defendant also executed a Revival Letter dated 16.06.2022 and reviewed the following documents:

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(i) Demand Promissory Note dated 20.11.2020 for Rs.20,00,000-/-

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(ii) Letter of waiver dated 20.11.2020 for Rs.20,00,000-/-

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(iii) Take Delivery Letter dated 20.11.2020 for Rs.20,00,000-/-

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(iv) OD Continuity letter dated 20.11.2020 for Rs. 20,00,000-/-

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(v) Agreement of Hypothecation of Book Debts dated 20.11.2020 for Rs.20,00,000-/-

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(vi) Book Debts power of attorney dated 20.11.2020

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(vii) Memorandum of Deposit of Title Deeds dated 20.11.2020

¶63

The 2^nd , 3^rd and 4^th Defendant executed a Consent Letter dated 16.06.2022 to stand as Guarantor. The 2^nd and 3^rd Defendant also executed a Mortgage Extension Letter dated 16.06.2022 and extended the mortgage made by them with the Applicant Bank in respect of the Suit Schedule mentioned property.

¶64

Working Capital Term Loan (Guaranteed Emergency Credit Line) availed by the 1^st Defendant through its Partners the 2^nd and 4^th Defendant in Account No.430700460100084

¶65

The 1^st Defendant Partnership Firm through its Partner the 2^nd and 4^th Defendant approached the Applicant Bank with the request to grant Working Capital Term Loan (GECL) to the tune of Rs.6,00,000/-. The request of the 1^st Defendant was accepted and a sum of Rs.6.00,000-/- was sanctioned to the 1^st Defendant on 19.11.2021. The period of repayment of the said facility is 36 Equal Monthly Installment. The Defendants have to pay a sum of Rs.16,667-/- for each installment which commence from 19.12.2022 and ends on 19.11.2025. The initial rate of interest is 9.25% and will be changed as per the Bank's ruling rate prevailing from time to time with monthly rest. Apart from that the Defendants has to pay a penal interest of 2% if committed default in repaying the outstanding in the said

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Page 5 of 13

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OA No. 94/2024

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facility as agreed. The said sanction intimation was duly acknowledged by all the Defendants. The 3^rd Defendant stands as personal guarantor for the said transaction. The 2^nd and 4^th Defendant apart from being the partner of the 1^st Defendant Firm also stands as a Guarantor.

¶69

On 19.11.2021, the 1^st , 2^nd and 4^th Defendant executed the following document:

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(i) Requisition to avail the Term Loan Sanctioned.

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(ii) Promissory Note to the tune of Rs.6,00,000-/-

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(iii) Article of Agreement with terms and conditions

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(iv) Letter of Hypothecation of Book Debts and Loans

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(v) Letter of Undertaking for Payment of Installments

¶75

On 19.11.2021, the 2^nd & 3^rd Defendant executed the following document:

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(i) Consent Letter for consenting to stand as a Personal Guarantor for the Financial Assistance availed by the 1^st Defendant.

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(ii) Guarantee Covering Letter

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(iii) Undertaking letter to keep the security intact in case of Mortgage.

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(iv) Mortgage Extension Letter, extending the mortgage in respect of the schedule mentioned property dated 20.11.2020

¶80

On 19.11.2021, the 4^th Defendant executed the following document:

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(i) Consent Letter for consenting to stand as a Personal Guarantor

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(ii) Guarantee Covering Letter

¶83

On 19.11.2021, the 2^nd & 4^th Defendant executed the following document:

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(1) Joint and Several Guarantee Form

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(ii) Undertaking Letter to abide by the terms and conditions stated in it.

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Page 6 of 13

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OA No. 94/2024

¶88

For the Working Capital Term Loan under Guaranteed Emergency Credit Line sanctioned in favour of the 1^st Defendant, the 2^nd and 3^rd Defendant executed a separate Registered Agreement relating to Deposit of Title Deeds for Additional / Enhanced Loan for Rs. 6, 00,000/- and the same Registered as a Document in Doc No.4542 of 2021 on the file of the No.1, Joint Sub Registrar, Tuticorin.

¶89

After availing the two Credit Facilities, the Defendants are not prompt in repaying the same and hence both the loan accounts become Non Performing Asset on 19.07.2023. Since, the amount due is not serviced by the Defendants even after the account becomes Non Performing Assets, the Applicant Bank issued Demand Notice under Section 13(2) of the SARFAESI Act on 05.08.2023.

¶90

Despite repeated demands and reminders, made by the Applicant Bank, the Defendants have failed and neglected to repay and adjust their liability. Hence, the Applicant Bank has filed the OA for recovery of a total sum of Rs.27,46,590.91p i.e., (i) Rs.21,22,496.53p together with interest at the rate of 13.60% p.a. with penal interest at the rate of 2%p.a. in respect of Over Draft Credit Facility and (ii) Rs.6,24,094.38p together with interest at the rate of 9.25%p.a. with penal interest at the rate of 2%p.a. in respect of Working Capital Term Loan (GECL) from the date of filing of Application till the date of realization with cost.

¶91

During the pendency of the Original Application, the property mentioned in the schedule was sold through SARFAESI proceedings on 16.03.2024 to S. Esakkimuthu son of Shanmugasundaram Alias Anbuross residing at 12A/2, Sundaravelpuram 5th Street, Thoothukudi - 628002 for a sum of Rs.20,05,000/- Copy of the Sale Notice dated 06.02.2024 and Sale Certificate dated 02.05.2024 registered before the Joint -1 Sub Registrar, Thoothukudi as a document in Doc No. 1615 of Ex A46 and 457 2024 is enclosed herewith (Document No.46 & 47). The said Sale Certificate stands in the name of the successful bidder and hence Xerox copy of the same is enclosed. Since, the property was now sold to the successful bidder, the Original MODTD and Sale Deed filed as Document No.19 and Document No.20 was handed over to the Successful bidder and the certified copy of the same is enclosed herewith.

¶92

The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

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S. No.	Date	Description of document	Exhibits
1	20.11.2020	Sanction Intimation	Ex.No.A-01

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Page 7 of 13

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OA No. 94/2024

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2	20.11.2020	PartnershipDeclaration Letter	Ex.No.A-02
3	20.11.2020	Requisition to avail the loan	Ex.No.A-03
4	20.11.2020	Letter accepting the rate of interest fixed as per RLLR Policy	Ex.No.A-04
5	20.11.2020	Promissorynote	Ex.No.A-05
6	20.11.2020	Letter of Hypothecation of Book Debts - Loans	Ex.No.A-06
7	20.11.2020	Memorandum of Deposit of Title Deeds	Ex.No.A-07
8	20.11.2020	Consent Letter	Ex.No.A-08
9	20.11.2020	Guarantee CoveringLetter	Ex.No.A-09
10	20.11.2020	Undertaking letter to keep the security intact in case of Mortgage of Immovable Properties	Ex.No.A-10
11	20.11.2020	Consent Letter	Ex.No.A-11
12	20.11.2020	Guarantee CoveringLetter	Ex.No.A-12
13	20.11.2020	Joint and Several Guarantee Form	Ex.No.A-13
14	20.11.2020	Declaration Cum Affidavit	Ex.No.A-14
15	17.08.2021	Acknowledgment of Debts	Ex.No.A-15
16	05.04.2022	Acknowledgment of Debts	Ex.No.A-16
17	12.10.2021	Acknowledgment of Debts	Ex.No.A-17
18	13.10.2022	Acknowledgment of Debts	Ex.No.A-18
19	20.11.2020	Memorandum of Deposit of Title Deeds	Ex.No.A-19
20	28.08.2006	Sale Deed stand in the name of the 2^ndand 3^rdDefendant for the Schedule Mentioned Property	Ex.No.A-20
21	16.06.2022	Sanction Intimation Letter	Ex.No.A-21
22	16.06.2022	Requisition to avail the loan	Ex.No.A-22
23	16.06.2022	Over Draft ContinuityLetter	Ex.No.A-23
24	16.06.2022	Revival Letter	Ex.No.A-24
25	16.06.2022	Mortgage Extension Letter	Ex.No.A-25
26	16.06.2022	Consent Letter	Ex.No.A-26
27	16.06.2022	Consent Letter	Ex.No.A-27
28	19.11.2021	Sanction Intimation	Ex.No.A-28
29	19.11.2021	Requisition to avail the loan	Ex.No.A-29
30	19.11.2021	Promissorynote	Ex.No.A-30
31	19.11.2021	Article of Agreement	Ex.No.A-31
32	19.11.2021	Letter of Hypothecation of Book Debts	Ex.No.A-32
33	19.11.2021	Letter of Undertaking for payment of Installments	Ex.No.A-33
34	19.11.2021	Consent Letter	Ex.No.A-34
35	19.11.2021	Guarantee CoveringLetter	Ex.No.A-35
36	19.11.2021	Undertaking letter to keep the security intact in case of Mortgage of Immovable Properties	Ex.No.A-36
37	19.11.2021	Mortgage Extension Letter	Ex.No.A-37
38	19.11.2021	Consent Letter	Ex.No.A-38

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Page 8 of 13

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OA No. 94/2024

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39	19.11.2021	Guarantee CoveringLetter	Ex.No.A-39
40	19.11.2021	Joint and Several Guarantee Form	Ex.No.A-40
41	19.11.2021	Undertakingletter	Ex.No.A-41
42	19.11.2021	Agreement Relating to Deposit of Title Deeds for Additional/Enhanced Loan	Ex.No.A-42
43	05.08.2023	Demand Notice Under Section 13(2) of the SARFAESI Act	Ex.No.A-43
44	---	Statement of Account for Account No. 430700060750049	Ex.No.A-44
45	---	Statement of Account for Account No. 430700460100084	Ex.No.A-45
46	06.02.2024	Sale Notice	Ex.No.A-46
47	02.05.2024	Registered Sale Certificate	Ex.No.A-47

¶100

SCHEDULE – B

¶101

Current Assets, Stocks, Hypothecated Goods, Book Debts, Outstanding, Money receivables, claims and bills due and owing to the Defendants in the name of the defendants.

¶102

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.

¶103

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?

¶104

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. Chairmandurai, who is the Senior Manager of the Applicant Bank.

¶105

He has stated in his affidavit that the defendants has availed Overdraft credit facility and Working capital Term Loan facility (GECL) 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-47 in support of its claim in the OA.

¶106

The Sanction Intimation has been marked as Ex.No.A-01, Partnership Declaration Letter has been marked as Ex.No.A-02, Requisition to avail the loan has been marked as Ex.No.A-03, Letter accepting the rate of interest fixed as per RLLR Policy has been marked as Ex.No.A-04, Promissory note

¶107

Page 9 of 13

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OA No. 94/2024

¶109

has been marked as Ex.No.A-05, Letter of Hypothecation of Book Debts - Loans has been marked as Ex.No.A-06, Memorandum of Deposit of Title Deeds has been marked as Ex.No.A-07, Consent Letter has been marked as Ex.No.A-08, Guarantee Covering Letter has been marked as Ex.No.A-09, Undertaking letter to keep the security intact in case of Mortgage of Immovable Properties has been marked as Ex.No.A-10.

¶110

Consent Letter has been marked as Ex.No.A-11, Guarantee Covering Letter has been marked as Ex.No.A-12, Joint and Several Guarantee Form has been marked as Ex.No.A-13, Declaration Cum Affidavit has been marked as Ex.No.A-14, Acknowledgment of Debts has been marked as Ex.No.A-15, Acknowledgment of Debts has been marked as Ex.No.A-16, Acknowledgment of Debts has been marked as Ex.No.A-17, Acknowledgment of Debts has been marked as Ex.No.A-18, Memorandum of Deposit of Title Deeds has been marked as Ex.No.A-19, Sale Deed stand in the name of the 2nd and 3rd Defendant for the Schedule Mentioned Property has been marked as Ex.No.A-20.

¶111

Sanction Intimation Letter has been marked as Ex.No.A-21, Requisition to avail the loan has been marked as Ex.No.A-22, Over Draft Continuity Letter has been marked as Ex.No.A-23, Revival Letter has been marked as Ex.No.A-24, Mortgage Extension Letter has been marked as Ex.No.A-25, Consent Letter has been marked as Ex.No.A-26, another Consent Letter has been marked as Ex.No.A-27, Sanction Intimation has been marked as Ex.No.A-28, Requisition to avail the loan has been marked as Ex.No.A-29, Promissory note has been marked as Ex.No.A-30.

¶112

Article of Agreement has been marked as Ex.No.A-31, Letter of Hypothecation of Book Debts has been marked as Ex.No.A-32, Letter of Undertaking for payment of Installments has been marked as Ex.No.A-33, Consent Letter has been marked as Ex.No.A-34, Guarantee Covering Letter has been marked as Ex.No.A-35, Undertaking letter to keep the security intact in case of Mortgage of Immovable Properties has been marked as Ex.No.A-36, Mortgage Extension Letter has been marked as Ex.No.A-37, Consent Letter has been marked as Ex.No.A-38, Guarantee Covering Letter has been marked as Ex.No.A-39, Joint and Several Guarantee Form has been marked as Ex.No.A-40.

¶113

Undertaking letter has been marked as Ex.No.A-41, Agreement Relating to Deposit of Title Deeds for Additional/Enhanced Loan has been marked as Ex.No.A-42, Demand Notice Under Section 13(2) of the SARFAESI Act has been marked as Ex.No.A-43, Statement of Account for Account No. 430700060750049 has been marked as Ex.No.A-44, Statement of Account for Account No. 430700460100084 has been marked as Ex.No.A-

¶114

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OA No. 94/2024

¶116

45, Sale Notice has been marked as Ex.No.A-46, Registered Sale Certificate has been marked as Ex.No.A-47. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶117

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.

¶118

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).

¶119

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 ".

¶120

Therefore, this Original Application is allowed . After deduction of sale proceeds the Applicant Bank is entitled for a final order on the following lines:-

¶121

The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.7,41,590.91p i.e., together with interest at the rate of 13.60%p.a. in respect of Over Draft Credit facility from the date of Sale proceeds (16.03.2024) till the date of realization with cost. Accordingly, it is hereby

Page 11 of 13

OA No. 94/2024

ORDERED

(a) That the Defendants are directed to pay jointly/severally a sum of Rs.7,41,590.91p i.e., together with interest at the rate of 13.60%p.a. in respect of Over Draft Credit facility from the date of Sale proceeds (16.03.2024) till the date of realization with cost within one month from the date of receipt of this order.

¶126

(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the movable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

¶127

(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.

¶128

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

¶129

(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.

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OA No. 94/2024

¶132

(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 Overdraft credit facility and Working capital Term Loan facility (GECL) 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.

¶133

Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 10^th December, 2025.

¶134

Sd/- (SEEMA SINHA) PRESIDING OFFICER

¶135

Uploaded on 17.12.25

¶136

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Tamilnad Mercantile Bank Limited v. M s Sri Varatha Vinayagar Transport

Case brief

What is this about?

What did the court decide?

Tamilnad Mercantile Bank Limited v. M s Sri Varatha Vinayagar Transport

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

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