Allowed

City Union Bank Limited v. Manimaran

DRT12 Aug 2026OA/101/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by City Union Bank against the legal heirs of a deceased borrower. The Tribunal upheld the bank's claim for recovery of dues and ordered sale of mortgaged and hypothecated assets to satisfy the debt.

What did the court decide?

Recovery of Rs.31,13,953/- with interest at 13.25% p.a. and penal interest of 2%. Liberty to sell mortgage assets and recover balance from personal assets.

City Union Bank Limited versus Manimaran — Banking and Recovery | DRT (2026)

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O.A. No.101 of 2023

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12.08.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 12^th day of August, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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ORIGINAL APPLICATION No.101 of 2023

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City Union Bank, Chennai-600 002 Represented by its Branch Manager No.149, T.S.R. Big street, Kumbakonam “GANI COMPLEX” Sivan Koil North Street, Thirumakkottai- 614 017,

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Thiruvarur District ….Applicant

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-Vs-

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Mr. Manimaran Thangavel, (Legal heir of Late P. Thangavel and Late T. Jeyam)

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S/o Late P. Thangavel 1/54, Vaniyath street, Mannargudi taluk, Painaganadu, Thiruvarur district- 614 020

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Mr. Muthu Thangavel (Legal heir of Late P. Thangavel and Late T. Jeyam) S/o Late P. Thangavel

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1/54, Vaniyath street, Mannargudi taluk,

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Painaganadu, Thiruvarur District- 614 020 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant: M/s. Hasmukh S Surana

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Defendants 1 and 2 were set ex-parte on 03.10.2023

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: - FINAL ORDER- :

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This Original Application is filed on 29.04.2023 by the applicant bank

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under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of

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a total sum of Rs.31,13,953/- (Rupees Thirty One Lakhs Thirteen

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Thousand Nine Hundred and Fifty Three only) due in respect of Loan A/c No. 030012000386561 repayable together with further interest @13.25% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full, for sale of immovable property and hypothecated assets morefully detailed in Schedule A and B to the OA and for costs of this OA.

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Brief Facts of the case:

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

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It is the case of the applicant bank that they had extended financial assistance as requested by Mr. P. Thangavel, for which one Mrs. T. Jeyam along with the 1^st defendant stood as co-obligant/s for purchase of Tractor. Further, Mr.P.Thangavel, along with the 1^st defendant herein had created equitable mortgage over the schedule ‘A’ mentioned property. Accordingly the applicant bank under loan A/c No. 030012000386561 sanctioned a sum of Rs.4,67,000/- to the defendants.

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It is submitted by the applicant bank that to evidence the aforesaid credit facility, the defendants have executed the following documents in favour of applicant bank:

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a) Sanction ticket dated 15.12.2007

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b) On Demand Promissory note dated 29.12.2007 executed by the

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defendants

c) Hypothecation (machinery) agreement dated 29.12.2007 executed by Late P. Thangavel

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d) Agreement of hypothecation of vehicles dated dated 29.12.2007 executed by Late P. Thangavel

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e) Registered memorandum of deposit of title deed dated 24.12.2007 executed by Late P. Thangavel along with the 1^st defendant infavour of the applicant bank.

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f) Letter of revival for secured advances along with confirmation of balance dated 10.12.2010 executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.

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g) Letter of revival for secured advances along with confirmation of balance dated 11.10.2013 executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.

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h) Letter of revival for secured advances along with confirmation of balance dated 02.05.2016 executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.

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i) Letter of revival for secured advances along with confirmation of balance dated 07.01.2019 executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.

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j) Letter of revival for secured advances along with confirmation of balance dated 03.01.2022 executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.

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The applicant bank submits that apart from executing the aforesaid

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documents like Demand Promissory Note and other loan documents, Mr.P. Thangavel along with the 1^st defendant, on 24.12.2007, had expressed their willingness to offer their unencumbered property as security to the loan availed by them and Mr. P. Thangavel along with the 1^st defendant herein had executed a registered Memorandum of Deposit of Title Deeds on 24.12.2007. Thus Mr. P. Thangavel along with the 1^st defendant had created equitable mortgage in favour of the applicant bank with respect to schedule ‘A’ mentioned properties for the loan availed by them.

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It is further submitted that in view of the Hypothecation Agreement dated 29.12.2007 executed by Mr. P. Thangavel, the applicant bank has also got charge over the movables more particularly detailed in schedule ‘B’ hereunder and the said tractor bearing Registration No. TN 50 X 0450 hypothecated with the applicant bank is presently not traceable despite the best efforts made by the applicant bank.

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The applicant bank submits it is necessary to state that Mrs.T.Jeyam passed away on 19.12.2014 and Mr. P. Thangavel had passed away on 26.11.2017 and as per the Hindu Succession Act, 1956 the schedule ‘A’ mentioned property devolved upon only his legal heirs namely Manimaran Thangavel (Son) and Muthu Thangavel (Son). Accordingly, the 1^st defendant apart from individually being liable, the defendants being the legal heirs of deceased Mrs. T. Jeyam and Mr. P. Thangavel are liable to satisfy the amounts due to the applicant bank to the extent of the estate inherited by them on the death of Mrs. T. Jeyam and Mr. P. Thangavel.

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The applicant bank submits that the defendants with respect to the

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aforesaid credit facility had neither repaid the amount nor settled their dues inspite of various demands made by the applicant bank. The defendants failed and neglected to comply with and adhere to the terms and conditions of the credit facilities. Several requests were made to the defendants to repay the said loan amounts and regularize the account maintained by them. Consequently, the loan account of the defendants were classified as Non-Performing Asset (NPA) on 29.09.2009. In pursuance to the default committed by them, the defendants have failed to repay the outstanding amount to the applicant bank. The applicant bank submits that a sum of Rs.31,13,953/- is due and payable by the defendants as on 27.04.2023 together with interest. This amount is due to the applicant bank and the defendants are liable to pay the sum with interest on contractual rates with monthly rests from the date of filing until realization. Despite repeated requests and demands, defendants did

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not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was served in respect of D-1 and D-2, No representation from Defendants. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 03.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 03.10.2023.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. G. Ramesh, Branch Manager of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-19 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 03.10.2023, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

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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 1 and 2 jointly and severally, a total sum of Rs.31,13,953/(Rupees Thirty One Lakhs Thirteen Thousand Nine Hundred

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and Fifty Three only) due in respect of Loan A/c No. 030012000386561 repayable together with further interest @13.25% p.a. with monthly rests along with penal interest @2% 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 immovable property and hypothecated assets morefully detailed in Schedule A and B respectively morefully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property and hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of

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the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to

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disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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(e) The applicant bank shall file the latest memo of calculation of

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OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the 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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(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(g) 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 12^th day of August, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. G. Ramesh, Branch Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	15.12.2007	Sanction ticket	A-1
2.	29.12.2007	On Demand Promissory note executed by the defendants	A-2
3.	29.12.2007	Hypothecation (machinery) agreement executed by the P.Thangavel along with the 1^stdefendant	A-3
4.	29.12.2007	Agreement of hypothecation of vehicles executed by the 1^stdefendant	A-4
5.	10.12.2010	Letter of revival for secured advances along with confirmation of balance executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.	A-5
6.	11.10.2013	Letter of revival for secured advances along with confirmation of balance executed by the defendants Late P.Thangavel, (Late) T.Jayam and the 1^st defendant herein.	A-6
7.	02.05.2016	Letter of revival for secured advances along with confirmation of balance executed by the defendants	A-7
8.	07.01.2019	Letter of revival for secured advances along with confirmation of balance executed by the defendants	A-8
9	03.01.2022	Letter of revival for secured advances along with confirmation of balance executed by the defendants	A-9
10	24.12.2007	Registered memorandum of deposit of title deed executed by the Mr.P.Thangavel along with the 1^stdefendant infavour of the applicant bank	A-10
11	01.04.1979	Sale deed executed by Thangavelu Arumai Nattar infavour of Thangavelu Arumai Nattar, registered as Doc.No. 934 of 1979 in the office of the Sub Registrar, Ullikkottai	A-11
12	21.07.1988	Partition deed executed between Pethapermal Arumai Nattar’s sons, Thangavelu, Vembayan and daughter in law Pushpavalli wherein Schedule-A is	A-12
		allotted to P. Thangavel, B Schedule allotted to Vembayam and C Schedule

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		allotted to Pushpavalli registered as Doc. No. 414 of 1988
13	12.07.1999	Sale deed executed by Rengasamy Sedurayar infavour of Manimaran registered as Doc No. 516 of 1999 in the office of Sub Registrar, Ullikkotai	A-13
14.	15.05.2006	Sale deed executed by T.Manimaran in favour of Kaliaperumal S/o Seenan seeni and Marimuthu S/o Rasu Sedurayar registered as Doc.No.1240 of 1999 in the office Sub-Registrar, Ullikkotai	A-14
15.	25.01.2008	R.C. Book pertaining to the tractor bearing Reg No. TN 50 X 0572	A-15
16.	12.12.2014	Death certificate of T.Jeyam	A-16
17.	30.11.2017	Death certificate of P. Thangavel	A-17
18.	06.03.2020	Legal heirship certificate of P. Thangavel	A-18
19.		Statement of account pertaining to Loan A/c No. 030012000386561 along with memorandum of interest calculation	A-19

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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SCHEDULE OF PROPERTY

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[MORTGAGED TO THE APPLICANT BANK]

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[PROPERTY OWNED BY THE 1^ST DEFENDANT AND UPON DEATH OF LATE T.JEYAM AND P. THANGAVEL INHERITED BY THE 2^ND DEFENDANT HEREIN]

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Pattukottai Registration district Ullikkottai Sub Registry, Mannargudi

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Taluk, 36 Painganadu Village

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S. No	Survey No	Classification of Land	A.C.	Name of the Property Owner
1	85-2A	C.M.P Nanjai full	0.30	Manimaran
2	85-4A	C.M.P Nanjai full	0.22	Manimaran
3	85-5A	C.M.P Nanjai full	0.22	Manimaran
4	85-6A	C.M.P Nanjai full	0.30	Manimaran
5	85-4C	C.M.P Nanjai full	0.03	Manimaran
6	85-6B	C.M.P Nanjai full	0.07	Manimaran

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7	85-9	C.M.P Nanjai full	0.33	Manimaran
8	85-10A	C.M.P Nanjai full	0.37	Manimaran

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Boundaries of Item No. 5 to 8

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Manimaran and Marimuthu land on North, Thirumeni Vaikal on East,

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Godandam land on south and Godandam Thakaliki land on West

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9 86-1 Punjai Part	0.74	Thangavelu

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Bounded by

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Government Road on North, Punjai Tharasu on East, Ganapathi Arumai

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Nattar and Godandam Thakaliki land on South and Godandam Thakaliki

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land on West

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10	92-3A	C.M.P Nanjai full	1.64	Thangavelu
11	92-3b	C.M.P Nanjai full	0.08	Thangavelu
12	1023-3a	C.M.P Nanjai full	0.74	Thangavelu
13	86-17	C.M.P Nanjai full	0.26	Thangavelu
	TOT	AL	5.30

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SCHEDULE-B PROPERTY (HYPOTHECATED TO THE APPLICANT BANK)

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Registration No : TN 50 X 0572 Class vehicle : Tractor (Agriculture) Maker’s Name : EICHER TRACTORS LTD Type of Body : OPEN Year of Manufacture : 2008 Number of cylinders : 3 Chassis No : 914311515365 Engine No : 514327235000

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Horse Power : 42 Seating capacity : 1 Unladen weight : 1900 Colour : Green

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

City Union Bank Limited v. Manimaran

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Manimaran

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

Parties & counsel

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Case details

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