Allowed

Uco Bank v. Lakshminarayanan

DRT26 Mar 2025TA/1160/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application filed under Section 19 of the RDB Act for recovery of dues amounting to Rs.43,85,937/- with interest from four defendants who failed to repay agricultural and housing loans. The bank was granted liberty to sell schedule properties if payment was not made.

What did the court decide?

Recovery of Rs.43,85,937/- with interest and liberty to sell schedule properties for recovery.

Uco Bank versus Lakshminarayanan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1160 of 2023

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26.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1160 of 2023

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(Originally filed before DRT- II, Chennai as OA 168/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1160 of 2023)

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UCO BANK

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Rep. by its Chief Manager, Mr. T. Govindaraj, Asset Management Branch, No.328, Thambu Street,

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Chennai – 600 001. ….Applicant

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-Vs-

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Mr. V. Lakshminarayanan, S/o. Mr. Venkatesan,

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No.98, Pudhu Nagar, Enathirimangalam Post, Panruti Taluk,

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Cuddalore District.

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Mrs. V. Rajakumari, W/o. Mr. Venketesan No. 98, Pudhu Nagar, Enathirimangalam Post Panruti Taluk, Cuddalore District.

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Mr. S. Lakshmanan, Son of Mr. Subramaniyan, No.446, Draupadi Amman Koil Street, Oraiyur Post, Panruti Taluk, Cuddalore – District.

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Mr. K. Sankar, S/o. Mr. Krishnan, Main Road, Enathirimangalam Post Panruti Taluk, Cuddalore District. …..Defendants

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T.A. No. 1160 of 2023

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26.03.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. G.L. Ramshankar 1^st Defendant was set ex-parte on 18.07.2022

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Defendants 2 to 4 were sent ex-parte on 20.06.2022

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: - FINAL ORDER - :

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This original application is filed on 20.01.2020 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 1 to 4, jointly and severally for recovery of a total sum of Rs.43,85,937/- (Rupees Forty Three Lakhs Eighty Five Thousand Nine Hundred and Thirty Seven only) as follows:

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i. A sum of Rs.10,84,119/- due in respect of Kissan Credit Card (CC Account No.15900510005521) together with further interest @ 12.85% p.a., with monthly rests from the date of Application till the date of realization in full;

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ii. A sum of Rs.7,79,175/- due in respect of Kissan Credit Card (CC Account No.15900510005521) together with further interest @ 9.6% p.a., with monthly rests from the date of Application till the date of realization in full;

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iii. A sum of Rs.25,22,643/- due in respect of Term Loan (Housing) (Account No.15900610020869) together with

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T.A. No. 1160 of 2023

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26.03.2025

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further interest @ 14% p.a., with monthly rests from the date of Application till the date of realization in full; for sale of scheduled mentioned property and for costs of this OA

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.168 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.168 of 2020 stood transferred to this Tribunal and renumbered as TA No.1160 of 2023.

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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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It is the case of the Applicant Bank that the 1^st Defendant had approached and requested the applicant bank for sanction of the Agricultural Term Loan and Kisan Credit Card facilities for cultivation of land and submitted necessary loan applications.

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The applicant bank considering the request of the 1^st Defendant, sanctioned a sum of Rs.3,00,000/- and Rs.2,50,000/- towards the Agricultural Term Loan and Kisan Credit Card facilities respectively on 07.07.2011.

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T.A. No. 1160 of 2023

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26.03.2025

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It is submitted by the Applicant Bank that in proof of limit sanctioned the Defendants 1 and 3 has executed the following documents on 07.07.2011 in favour of applicant bank:

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(i) Demand Promissory Note for a sum of Rs.3,00,000/- executed by 1st Defendant,

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(ii) Hypothecation cum Agreement for Agricultural loans for a sum of Rs.3,00,000/- executed by 1st Defendant,

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(iii) Form of Letter of Guarantee for a sum of Rs.3,00,000/executed by 3rd Defendant,

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(iv) Hypothecation cum Agreement for Agricultural Loans for a sum of Rs.2,50,000/- executed by 1st Defendant,

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(v) Form of Letter of Guarantee for a sum of Rs.2,50,000/executed by 3rd Defendant

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It is further submitted by the Applicant Bank that the Defendants 1 and 2 have approached and requested the applicant bank for sanction of the Rural Housing Loan facility and submitted loan application.

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The applicant bank considering the request of the Defendants 1 and 2 sanctioned the loan amount on 08.06.2012 for a sum of Rs.6,00,000/towards the Rural Housing Loan.

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The Applicant Bank submits that in proof of limit sanctioned the Defendants 1, 2 and 4 have executed the following documents in favour of applicant bank:-

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i) On Demand Promissory Note dated 08.06.2012 for a sum of Rs.6,00,000/- executed by Defendants 1 and 2,

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ii) Loan Agreement dated 08.06.2012 for a sum of Rs.6,00,000/executed by Defendants 1 and 2.

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iii) Letter of Guarantee dated 08.06.2012 for a sum of Rs.6,00,000/- executed by the 4^th Defendant.

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The Applicant Bank submits that at the time of availing the said loan facilities, the defendants have agreed to repay the Amounts along with interest at the rate of 14% per annum and in case of default the Defendants have also agreed to interest, as per norms and guidelines prescribed by the Reserve Bank of India.

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It is submitted by the Applicant Bank that the Defendants 1 and 2 have deposited title deeds in favour of the applicant bank by a creation of Equitable Mortgage and collateral Security for the Agricultural Loan and Kisan Credit Card to a total sum extent of Acre 2.58 ½ cents comprised in Dry Old Survey No. 237/3 and New Survey No. 83/3, Dry Old Survey No.237/2 and New Survey No.87/10, Dry Old Survey No.215/1 and New Survey No. 84/1 situated at Enathirimangalam Village, Cuddalore District within the Sub Registration District of Pudupet, towards the loan dues.

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It is further submitted by the Applicant Bank that the Defendants 1 and 2 have deposited title deeds in favour of the applicant bank by a

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creation of Equitable Mortgage and collateral security for the Rural Housing Loan to an extent of 1749 Sq.Ft. out of Acre 0.11 ¾ cents out of acre 0.75 cents comprised in Old Survey No.178,179 corresponding Grama Natham New survey No.100/1 out of Hectare 0.30.0 corresponding Natham Re Survey No.178/4, 0.0162 out of 1.1432 Sq. Meter in Natham Re Survey No. 178/4 situated at Enathirimangalam Village, Cuddalore District within the Sub Registration District of Pudupet, towards the loan dues.

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The Applicant bank submitted that the 1^st Defendant executed Memorandum of deposit of title deeds (agricultural purpose) dated 07.07.2011 to and in favour of applicant, registered as Doc. No.1217 if 2011 on the file of the Sub Registrar Office, Pudupet. Subsequently the 1^st Defendant has executed another Memorandum of deposit of title deeds dated 31.12.2012 in favour of Applicant Bank, Registered as Document No.1094 of 2012, on the file of sub Registrar Office, at Pudupet.

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It is submitted that the said loan amount was agreed to be repaid, together with interest. The title deeds and other documents in respect of schedule mentioned properties have been deposited with the applicant bank with an intention to create an equitable mortgage towards discharge of the liabilities.

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The Applicant Bank submitted that the defendants had utilized the

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facility from time to time but have failed and neglected to pay the interest and outstanding dues on its respective due dates. The applicant bank had repeatedly sent reminders, requests and demands and provided several opportunities to the defendants for regularization of their account by making payments of the due amount as per the agreement. Since the 1^st defendant had failed to regularize the same, the loan account was classified as NPA on 31.03.2014 terms of RBI guidelines. The Applicant Bank through its Authorised Officer had initiated SARFAESI proceedings by issuing 13(2) Notices on the Defendants dated 07.06.2016, followed by the Possession Notice under Section 13(4) and tried to bring the schedule mentioned property for sale. As defendants miserably failed to make repayments in the aforesaid loan account, 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 Defendants 1 to 4 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1, returned with the endorsement as “Refused”, summons to D-3 returned as “left” and summons to D-4 was awaited. Applicant bank had caused paper publication of notice in respect of D-3 and D-4 and filed proof thereof. Although D-1 is represented by counsel, D-1 did not choose to file written statement despite availing substantial number of adjournments. When OA was taken up on 20.06.2022 even after giving sufficient time, there was no appearance or representation

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from the defendants 2 to 4. Hence, Defendants 2 to 4 were placed exparte on 20.06.2022 and D-1 was paced ex-parte on 18.07.2022.

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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, Mr. K. Hemanth Kumar, Chief Manager, Asset Management Branch, Chennai 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-25 . 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 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 against the defendants 1 to 4, jointly and severally for recovery of a total sum of Rs.43,85,937/- (Rupees Forty Three Lakhs Eighty Five Thousand Nine Hundred and Thirty Seven only) as follows:

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i. A sum of Rs.10,84,119/- due in respect of Kissan Credit

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T.A. No. 1160 of 2023

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26.03.2025

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Card (CC Account No.15900510005521) together with further interest @ 12.85% p.a., with monthly rests from the date of Application till the date of realization in full;

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ii. A sum of Rs.7,79,175/- due in respect of Kissan Credit

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Card (CC Account No.15900510005521) together with further interest @ 9.6% p.a., with monthly rests from the date of Application till the date of realization in full;

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iii. A sum of Rs.25,22,643/- due in respect of Term Loan (Housing) (Account No.15900610020869) together with further interest @ 14% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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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 mentioned immovable properties more fully detailed in the OA schedule.

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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

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

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(f) 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/(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 26^th day of March, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. K. Hemanth Kumar, Chief Manager, Asset Management Branch, Chennai

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Application for Agricultural Credit short Term loan submitted by the defendants. 07.07.2011	A-1
2.	Loan Sanction Advice by the Applicant Bank and Attestation Memo 07.07.2011	A-2
3.	Demand Promissory Note for Rs.3,00,000/- executed by the 1^stdefendant 07.07.2011	A-3

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4.	Hypothecation cum Agreement for Agricultural Loans executed by the defendant 07.07.2011	A-4
5.	Form of Letter of Guarantee executed by the 3^rd defendant 07.07.2011	A-5
6.	Loan Application for Agricultural Credit short term loan executed by the defendant 07.07.2011	A-6
7.	Hypothecation cum Agreement for Agricultural Loans executed by the 1^st defendant 07.07.2011	A-7
8.	Short Term Agricultural Loan executed by the 1^st defendant 07.07.2011	A-8
9	Form of Letter of Guarantee executed by the 3^rd defendant 07.07.2011	A-9
10	Loan Application Form under Uco Bank Shelter Scheme submitted by the defendants	A-10
11	Sanction of Rural Housing Loan by the Applicant Bank to the defendants and Attestation memo 08.06.2012	A-11
12	Demand Promissory Note for Rs.6,00,000/- executed by the 1^stdefendant 08.06.2012	A-12
13	Loan agreement executed by the defendant executed by 1^stdefendant 08.06.2012	A-13
14	Letter of Guarantee executed by the 4^th defendant 08.06.2012	A-14
15	Sale deed registered as Doc. No.2015 of 2009, SRO Pudupet in favour of the 1^stdefendant 14.10.2009	A-15
16	Sale deed registered as doc.no.1508 of 2011, SRO, Pudupet, in favour of the 1^stDefendant 08.08.2011	A-16
17	Deposit of Title Deeds to the Applicant bank by the 1^stDefendant. 30.06.2011	A-17
18	Memorandum of Deposit of Title Deed executed by Mr.V.Lakshminarayanan, in favour of the Applicant bank, registered as Doc.No. 1217 of 2011 on the file of Sub Registrar Office, Pudupet.	A-18
19	Deposit of Title deeds to the Applicant bank by the 1^stdefendant 30.05.2012	A-19
20	Memorandum of Deposit of Title deed executed by Mr. V. Lakshminarayanan in favour of the Applicant Bank, registered as Doc.No.1094 of	A-20

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	2012, on the file of Sub Registrar Office, at pudupet. 31.05.2012
21	Notice Issued Under Section 13(2) of SARFAESI Act 07.06.2016	A-21
22	Legal Notice issued by the Applicant Bank to Defendant 21.12.2017	A-22
23	Possession Notice issued by the Applicant Bank Under Section 13(4) SARFAESI Act. 17.09.2018	A-23
24	Sale Notice issued by the bank 11.02.2019	A-24
25	Statement of Accounts of the Applicant Bank	A-25

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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 OF IMMOVABLE PROPERTY -:

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Item No: 1

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(Property mortgaged for Agricultural Term Loan and Kissan Credit Card)

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Dry Old Survey No.237/3 Acre 0.67 ½ cents out of Acre 1.35 cents corresponding New Survey No.83/3 hec 0.26.0

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Boundaries: West of the land of Kuppusamy Udayar, East of the land of Parvathi, South of the land of Manickam Pillai and North of the land of Kaliyamoorthy

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Dry Old Survey No.237/2 Acre 1.24 cents corresponding New Survey No.87/10 Hec. 0.51.0

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Dry Old Survey No.215/1 Acre 0.67 cents out of Acre 2.01 cents corresponding New survey No.84/1 Hec. 0.26.5 out of Hec. 0.87.0

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Boundaries:- East, West, North of the land of Rajakumari and South of the lank of Ranganatha Udayar

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All above lands situated at Enathirimangalam Village, Cuddalore District within the sub Registration District of Pudupet

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Item No.2

(Property mortgaged for Rural Housing Loans)

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Cuddalore Registration District Pudupet Sub Registry, Enathirimangalam Village, the house site admeasuring North South 2 ¾ Feet, and East West 84 ¼ Feet =1749 Sq.Ft. out of Acre 0.11 ¾ cents out of Acre 0.75 cents comprised in Old survey No.178,179 corresponding Grama Natham New Survey No.100/1 out of Hectare 0.30.0 corresponding Natham Re Survey No. 178/4, 0.0162 out of 0.0432 Sq. meter in natham Re Survey No.178/4

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Boundaries:-

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South of: Seenivasa Chettiar and Rajendra Chettiar’s Site

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North of: Reddy Street

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East of: Janakiraman’s Site and

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West of: Ganesa Ayyar’s Site

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

Uco Bank v. Lakshminarayanan

Case brief

What is this about?

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Uco Bank v. Lakshminarayanan

Case brief

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