Allowed

Tamilnad Mercantile Bank Limited v. M/s Pmt Traders

DRT30 Jun 2026OA/299/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application to recover a loan of Rs. 2,02,81,300 along with interest. The court held that the bank proved its claim through documentary evidence filed as exhibits and directed the defendants to pay the dues within one month.

What did the court decide?

Defendants directed to pay Rs. 2,02,81,300 plus interest at 11.55% p.a. from the date of application until realization with cost.

Tamilnad Mercantile Bank Limited versus M/s Pmt Traders — Banking and Recovery | DRT (2026)

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OA No. 299/2022

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 30^TH DAY OF JUNE, 2026 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No. 299/2022

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Between

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Tamilnad Mercantile Bank Ltd., Usilampatti Branch, No. 93, Madurai Road, Usilampatti, Madurai District – 625 532.

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Rep. By its Branch Manager. ---Applicant Bank

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And

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M/s PMT Traders,

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Rep. by its Prop. Mr. M. Jawahar,

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S/o Muthumani Thevar,

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Door No. 185, Madurai Road,

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Sankar Mill Compound,

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Usilampatti, Madurai District – 625 532.

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Mr. M. Jawahar, S/o Muthumani Thevar, Door No. 185, Madurai Road,

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Sankar Mill Compound,

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Usilampatti, Madurai District – 625 532.

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J. Vinoba, S/o M. Jawahar,

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No. 5/3A, Mayandi Thevar Street, Ward No. 14, Keelapudur,

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Usilampatti, Madurai District – 625 532. ---Defendants

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Counsel for the Applicant Bank : Mr. P. Pethu Rajesh

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Page 1 of 18

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OA No. 299/2022

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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 16.10.2021 to recover from the Defendants a sum of Rs.2,02,81,300/together with interest at the rate of 11.55% p.a. with future interest in respect of Cash Credit Facility Loan from the date of filing of Application till the date of realization with cost and by sale of mortgaged properties, more fully described in Schedules of the application.

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

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The Applicant submitted that the 1^st Defendant is the Proprietary concern and represented by its Proprietor Mr. M. Jawahar son of Muthumani Thevar and arrayed as the 2^nd Defendant. The 1^st Defendant through its Proprietor the 2^nd Defendant herein approached the Applicant Bank for availing a Cash Credit Facility to the tune of Rs.5,00,000/- (Rupees Five Lakhs Only). The request of the 1^st Defendant was accepted and a Cash Credit Facility to the tune of Rs.5,00,000/- (Rupees Five Lakhs Only) was sanctioned on 12.06.2006 to the 1^st Defendant. The interest for the amount advanced is 11% per annum. The wife of the 2^nd Defendant, namely Shanthi stand as a Guarantor for the 1^st Defendant in availing the said facility. The Account Number for the said Cash Credit facility availed by the 1st Defendant through its Proprietor is 070700150950016.

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It is submitted that 2^nd Defendant requested the Applicant Bank to enhanced the said cash Credit facility from Rs.5,00,000/- to Rs.15,00,000/(Rupees Fifteen Lakhs) vide their Sanction Letter dated 21.09.2007. The 2^nd

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Page 2 of 18

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OA No. 299/2022

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Defendant executed a Consent Letter in favour of the Applicant Bank for offering securities and executed a Registered Memorandum of Deposit of Title Deeds on 09.10.2007 Registered as Document No. 3043 of 2007 on the file of the Sub-Registrar. Usilampatti. Through the said document the 2^nd Defendant mortgaged the 1^st and 2^nd item mentioned in the Schedule of Property. Again, the 2^nd Defendant requested the Applicant Bank to enhanced the said cash Credit facility from Rs. 15,00,000/to Rs.22,00,000/-. Applicant Bank also enhanced the limit from Rs.15,00,000/- to Rs.22,00,000/- (Rupees Twenty Two Lakhs) vide their Sanction Letter dated 21.01.2008. The 2^nd Defendant executed a Consent Letter in favour of the Applicant Bank for offering securities and Mortgage Extension Letter on 23.01.2008. Through the Mortgage Extension Letter the 2^nd Defendant Mortgaged Item No.1 and Item No.2 of the Schedule of Property.

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It is further submitted that the 1^st Defendant renewed the said cash Credit facility for a sum of Rs.22,00,000/-. The Applicant Bank also renewed to the sum of Rs.22,00,000/- (Rupees Twenty Two Lakhs) vide their Sanction Letter dated 10.10.2011. The 2^nd Defendant executed a Consent Letter in favour of the Applicant Bank for offering securities and Mortgage Extension Letter on 27.10.2011. Through the Mortgage Extension Letter the 2^nd Defendant Mortgaged Item No.1 and Item No.2 of the Schedule Mentioned Property. To mortgage the Property mentioned in Item No.3 of the schedule of property the 2^nd Defendant executed a Registered Memorandum of Deposit of Title Deeds on 19.05.2011 Registered as Document No.1732 of 2011 on the file of the Sub-Registrar, Usilampatti. It is further submitted that the 2^nd Defendant requested the Applicant Bank to enhanced the said cash Credit facility from Rs.22,00,000/- to Rs. 48,00,000/- (Rupees Fourth Eight Lakhs) and a Key Loan to the tune of Rs. 75,00,000/- (Rupees Seventy Five Lakhs). The request of the 1st Defendant is accepted and said Cash Credit limit as well as the Key Loan Limit was granted. The Cash Credit Limit availed by the 1^st Defendant through its Proprietor was enhanced by the Applicant Bank from Rs. 22,00,000/- to Rs.48,00,000/(Rupees Forty Eight Lakhs) vide their Sanction Letter dated 12.12.2014. A

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Page 3 of 18

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OA No. 299/2022

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Mortgage Extension Letter was also executed by the 1^st Defendant through its Proprietor on 12.12.2014 extending the earlier Mortgages. Through the Mortgage Extension Letter the 2^nd Defendant extended the Mortgage property mentioned in Item No.1 to 3 of the Schedule of Property in favour of the Applicant Bank. It is submitted that the 2^nd Defendant requested the Applicant Bank to Renew the said cash Credit facility for a sum of Rs.48,00,000/- (Rupees Fourth Eight Lakhs) and a Key Loan to the tune of RS.75,00,000/- (Rupees Seventy Five Lakhs). The request of the 1^st Defendant is accepted and said Cash Credit limit as well as the Key Loan Limit was extended. The 2^nd Defendant executed a Mortgage Extension Letter in favour of the Applicant Bank dated 20.11.2015 and extending the Mortgage of the Property as stated in Item No.1 to 3 of the Schedule Mentioned Property.

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It is further submitted that the 2^nd Defendant requested the Applicant Bank to enhanced the said cash Credit facility from Rs.48,00,000/- to Rs.1,50,00,000/- (Rupees One Crore and Fifty Lakh). The Applicant Bank accepted the said request and extended the Cash Credit limit Facility from Rs.48,00,000/- to Rs.1,50,00,000/- (Rupees One Crore and Fifty Lakh) vide their Sanction Letter dated 21.07.2016. The 2^nd Defendant executed a Mortgage Extension Letter dated 21.07.2016 by extending the earlier Mortgages. Through the Mortgage Extension Letter the 2^nd Defendant extended the Mortgage extending the mortgaging of his property mentioned in Item No.1 to 3 of the Schedule of Property in favour of the Applicant Bank. Apart from Item No.1 to 3 of the Schedule mentioned property the 2^nd Defendant also mortgaged the property mentioned at Item No.4 in the Schedule of Property with the Applicant Bank which belongs to his father Muthumani Thevar vide a Registered Partition Deed dated 22.01.1997 Registered as Document No.78 of 1997 on the file of the Sub-Registrar, Usilampatti. The said property after the demise of his father came to the 2^nd Defendant by inheritance as a only son of his father. The 2^nd Defendant also executed a Memorandum of Deposit of Title Deeds dated 21,07.2016 Registered as Document No.2828 of 2016 on the file of the Sub Registrar, Usilampatti through which the Original Sale Deed sands in the name of the

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Page 4 of 18

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OA No. 299/2022 2^nd Defendant for the Property mentioned from Item No.1 to 4 of the Schedule of Property was Deposited before the Applicant Bank.

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It is further submitted that the 2^nd Defendant requested the Applicant Bank to Renew the said cash Credit facility to the tune of Rs.1,50,00,000/(Rupees One Crore and Fifty Lakh). The request of the 1^st Defendant is accepted by the Applicant Bank and said Cash Credit limit Facility to the tune of Rs.1,50,00,000/- (Rupees One Crore and Fifty Lakh) was renewed vide their Sanction Letter dated 14.09.2007. The 2^nd Defendant executed a Consent Letter consenting to give securities dated 14.09.2017 and a Mortgage Extension Letter dated 14.09.2017 extending the earlier Mortgages. Through the Mortgage Extension Letter the 2^nd Defendant extended the Mortgage of his property mentioned in Item No.1 to 4 of the Schedule of Property in favour of the Applicant Bank. The 3^rd Defendant also executed a Consent Letter, Consenting to stand as Guarantor for the Cash Credit Facility availed by the 1st Defendant through its Proprietor and a Guarantee Deed dated 14.09.2017. It is further submitted that the 2^nd Defendant requested the Applicant Bank to Renew the said cash Credit facility to the tune of Rs. 1,50,00,000/- (Rupees One Crore and Fifty Lakh). The request of the 1^st Defendant is accepted by the Applicant Bank and said Cash Credit limit Facility to the tune of Rs.1,50,00,000/- (Rupees One Crore and Fifty Lakh) was renewed vide their Sanction Letter dated 31.10.2018. On 31.10.2018, the 1^st Defendant through its Proprietor submitted a requisition to the Applicant Bank requesting to avail the renewed Cash Credit Limit to the tune of Rs.1,50,00,000/- (Rupees One Crore and Fifty Lakh). The interest for the said facility availed is 11.55% per annum. The 1^st Defendant executed a Promissory Note as security for the said facility on 31.10.2018. Apart from the said Promissory Note, the 1^st Defendant through its Proprietor executed an Agreement for Demand Cash Credit on the Hypothecation of Movable Properties and Letter of Hypothecation of Books Debts - Loans in favour of the Applicant Bank and an Undertaking Letter to keep the security mortgaged intact dated 31.10.2018. The 1^st Defendant through its Proprietor executed a Consent Letter consenting to give securities dated 31.10.2018 and a Mortgage Extension Letter dated

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Page 5 of 18

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OA No. 299/2022

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31.10.2018 extending the earlier Mortgages. Through the Mortgage Extension Letter the 2^nd Defendant extended the Mortgage extending the mortgaging of his property mentioned in Item No.1 to 4 of the Schedule of Property in favour of the Applicant Bank covered under the Registered Sale Deed in his favour Registered as Document No.1659 of 2006 dated 12.07.2006 Registered on the file of the Sub-Registrar, Usilampatti (Item No.1 of the Schedule of Property), Registered Sale Deed in his favour Registered as Document No.265 of 2006 dated 08.02.2006 Registered on the file of the Sub-Registrar, Usilampatti (Item No.2 of the Schedule of Property) Registered Sale Deed dated 26.06.2007 Registered as Document No. 1921 of 2007 on the file of the Sub-Registrar, Usilampatti (Item No.3 of the Schedule of Property) and Registered Partition Deed dated 22.01.1997 Registered as Document No.78 of 1997 on the file of the Sub-Registrar, Usilampatti through which his father Muthumani Thevar obtained the property and on his demise as a only son to his father the defendant inherited the said property (Item No.4 of the Schedule of Property). The 3^rd Defendant also executed a Consent Letter, Consenting to stand as Guarantor for the Cash Credit Facility availed by the 1^st Defendant through its Proprietor, Guarantee Covering Letter and a Guarantee Deed dated 14.09.2017 for the Cash Credit Facility availed by the 1^st Defendant through its Proprietor.

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It is further submitted that the Defendants are not prompt in his repayment of the Loan amount with interest from the date of availing the said Cash Credit Facility. As on 12.10.2021, the total outstanding that the Defendants have to pay as per the calculation of the Applicant bank for the said Loan Account is Rs.2,02,81,300 -/- (Two Crore Two Lakh Eighty One Thousand Three Hundred) with future interest till the date of payment of the entire loan amount. Since, the Defendants had defaulted in repayment, the assets mortgaged with the Applicant bank consequently declared as NonPerforming Asset by the bank on 23.01.2020. While availing the said loan the 1^st Defendant mortgaged the Schedule Mentioned Property. The 1^st Defendant deposited the original title deeds of the schedule of property with the intent to create mortgage of property towards the advances availed by them. The Defendants are liable to repay the loan with interest and cost

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Page 6 of 18

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OA No. 299/2022

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from and through their belongings and the immovable properties of defendants is more fully described in Schedule of Property mentioned here under by Applicant bank. It is submitted that the Loans and interest rate applicable for the above said Cash Credit Facility is agreed by way of above said documents. As per the RBI guidelines, the bank is charging the interest, for which the Defendants executed the documents in favour of the bank. As the Defendants agreed for all the terms and conditions, the Applicant bank sanctioned the above said loan. The Defendants also agreed to pay interest at the rate at applicable rates for each loan or at such other rates as may be revised by the bank from time to time.

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For availing the loan, the 1^st Defendant deposited the original title deeds of the property more fully described in Schedule of Property with Applicant bank.

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Details of Mortgage

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Mortgagor : 01. M/s. PMT Traders, Represented by its Proprietor,

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M. Jawahar. S/o. Muthumani Thevar, Door No. 185, Madurai Road, Sankar Mill Compound, Usilampatti-625532, Madurai District.

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M. Jawahar. S/o. Muthumani Thevar, Door No.185, Madurai Road, Sankar Mill Compound, Usilampatti-625532, Madurai District.

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J. Vinoba, S/o. M. Jawahar.

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5/3A, Mayandi Thevar Street, Ward No. 14, Keelapudur, Usilampatti-625532, Madurai District.

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Mortgagee : Tamilnad Mercantile Bank Limited, Usilampatti Branch, 93, Madurai Road, Usilampatti, Madurai District-625532, Represented by its Branch Manager.

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Details of the property Mortgaged : As per Schedule of Property

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It is submitted that after availing the loan, the Defendants who executed the Memorandum of Deposit of Title Deed had failed to take care of

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Page 7 of 18

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OA No. 299/2022

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the repayment of the amount due. The Defendants are irregular in the repayment and he failed to repay the due amount in spite of various reminders made by the bank officials. There is a huge outstanding from the Defendants which they failed to repay. Hence the Applicant is filing the present application seeking a relief before this Hon'ble Tribunal to recover the dues by enforcing the attachment/auction sale of the Immovables. The Defendants is liable to pay a sum of Rs.2,02,81,300-/- (Two Crore Two Lakh Eighty One Thousand Three Hundred) with future interest till the date of payment of the entire loan amount as on 12.10.2021 with future interest till the date of payment of the entire loan amount. On the basis of the documents produced, the Defendants are liable and the applicant bank is entitled to recover the loan, with subsequent interest and cost from the Defendants and from their assets and by sale of application schedule mentioned property. The copies of the statement of accounts certified under Bankers Books of Evidence Act are produced herewith. The Defendants are liable to pay the balance due amount with applicable rate of interest together with penal interest at the rate of 2%. As the Defendants had committed default in repayment, the applicant is entitled to charge penal interest. Therefore, the rate of interest charged and capitalization of unpaid interest are calculated as permitted by RBI and do not run counter to RBI directives. It is further submitted that Item No.1 to 4 of the property mentioned in the Schedule of Property are secured assets which was mortgaged by the 2^nd Defendant in favour of the Applicant Bank through the Registered Memorandum of Deposit of Title Deeds stated above.

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STATEMENT OF ACCOUNTS :-

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The Applicant Bank submits that the balance amount (mentioned in Rupees) due to the Applicant Bank as on 08.10.2021 towards Loan Account No. 070700150950016 is to a sum of Rs.2,02,81,300 -/- (Two Crore Two Lakh Eighty One Thousand Three Hundred) with future interest till the date of payment of the entire loan amount with future interest till the date of payment of the entire loan amount.

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Page 8 of 18

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OA No. 299/2022 After availing the loan, defendants were not regular in the matter of repayment. The defendants made several promises, but they failed to keep up their promises.

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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 sum of Rs.2,02,81,300/- together with interest at the rate of 11.55% p.a. with future interest in respect of Cash Credit Facility Loan from the date of filing of Application till the date of realization with cost.

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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	21.07.2016	Sanction Intimation given by the Applicant Bank to the 1^stand 3^rddefendant intimating the Sanction of the Cash Credit Facility for a sum Rs. 1,50,00,000/-	Ex. No. A-01
2	21.07.2016	Requisition made by the 1^stDefendant through its Proprietor to the Applicant Bank to avail the Cash Credit Facility for sum a of Rs. 1,50,00,000/-	Ex. No. A-02
3	21.07.2016	Promissory Note to the tune of Rs. 1,50,00,000/- given as security by the 1^st Defendant through its Proprietor in favour of the Applicant Bank.	Ex. No. A-03
4	21.07.2016	Agreement for Demand Agreement for Cash Credit on the Hypothecation of Movable Properties executed by the 1^stDefendant through its Proprietor.	Ex. No. A-04
5	21.07.2016	Letter of Hypothecation of Book- Debts- Loans executed by the 2^ndDefendant through its Proprietor in favour of the Applicant Bank.	Ex. No. A-05
6	21.07.2016	Undertaking Letter to keep the Security as mortgaged executed by the 2^ndDefendant in favour of the Applicant Bank.	Ex. No. A-06
7	21.07.2016	Mortgage Extension Letter executed by the 2^ndDefendant in favour of the Applicant	Ex. No. A-07

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		Bank
8	21.07.2016	Consent Letter executed by the 3^rd Defendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No. A-08
9	21.07.2016	Guarantee Covering Letter executed by the 3^rdDefendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No. A-09
10	21.07.2016	Deed of Guarantee executed by the 3rd Defendant in favour of the Applicant Bank.	Ex. No. A-10
11	21.07.2016	Memorandum of Deposit of Title Deeds executed by the 2^ndDefendant in favour of the Applicant Bank Registered as Document No. 2828 of 2016 on the file of the Sub- Registrar, Usilampatti Evidencing the mortgage of Item No.1 to 4 of the Schedule Mentioned Property.	Ex. No. A-11
12	14.09.2017	Sanction Intimation given by the Applicant Bank to the 1^stDefendant intimating the Sanction of the Renewed Cash Credit Facilityfora sumof Rs.1,50,00,000/-	Ex. No. A-12
13	14.09.2017	Requisition made by the 1^stDefendant through its Proprietor to the Applicant Bank to avail the Renewed Cash Credit Facility for a sum of Rs. 1,50,00,000/-	Ex. No. A-13
14	14.09.2017	Promissory Note to the tune of Rs. 1,50,00,000/- given as security by the 1^st Defendant through its Proprietor in favour of the Applicant Bank.	Ex. No. A-14
15	14.09.2017	Agreement for Demand Cash Credit on the Hypothecation of Movable Properties executed by the 1st Defendant through its Proprietor.	Ex. No. A-15
16	14.09.2017	Letter of Hypothecation of Book- Debts- Loans executed by the 2^ndDefendant through its Proprietor in favour of the Applicant Bank.	Ex. No. A-16
17	14.09.2017	Undertaking Letter to keep the Security as mortgaged executed by the 2^ndDefendant in favour of the Applicant Bank.	Ex. No. A-17
18	14.09.2017	Consent Letter executed by the 2^nd Defendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No. A-18

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19	14.09.2017	Mortgage Extension Letter executed by the 2^ndDefendant in favour of the Applicant Bank	OA No. Ex. No.	299/2022 A-19
20	14.09.2017	Guarantee Covering Letter executed by the 3^rdDefendant in favour of the Applicant Bank to stand as Guarantee for the facility availed by the1^stDefendant.	Ex. No.	A-20
21	14.09.2017	Consent Letter executed by the 3^rd Defendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No.	A-21
22	14.09.2017	Deed of Guarantee executed by the 3^rd Defendant in favour of the Applicant Bank.	Ex. No.	A-22
23	31.10.2018	Sanction Intimation given by the Applicant Bank to the 1^st and 3^rd Defendant intimating the Sanction of the Renewed Cash Credit Facility for a sum of Rs. 1,50,00,000/-	Ex. No.	A-23
24	31.10.2018	Requisition made by the 1^stDefendant through its Proprietor to the Applicant Bank to avail the Renewed Cash Credit Facility for a sum of Rs. 1,50,00,000/-	Ex. No.	A-24
25	31.10.2018	Promissory Note to the tune of Rs.1,50,00,000/- given as security by the 1^stDefendant through its Proprietor in favour of the Applicant Bank.	Ex. No.	A-25
26	31.10.2018	Agreement for Demand Cash Credit on the Hypothecation of Movable Properties executed by the 1st Defendant through its Proprietor.	Ex. No.	A-26
27	31.10.2018	Letter of Hypothecation of Book- Debts- Loans executed by the 2^ndDefendant through its Proprietor in favour of the Applicant Bank.	Ex. No.	A-27
28	31.10.2018	Undertaking Letter to keep the Security as mortgaged executed by the 2^ndDefendant in favour of the Applicant Bank.	Ex. No.	A-28
29	31.10.2018	Consent Letter executed by the 2^nd Defendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No.	A-29
30	31.10.2018	Mortgage Extension Letter executed by the 2^ndDefendant in favour of the Applicant Bank	Ex. No.	A-30
31	31.10.2018	Consent Letter executed by the 3^rd Defendant in favour of the Applicant Bank to stand as Guarantee for the facility availed bythe 1^stDefendant.	Ex. No.	A-31
32	31.10.2018	Guarantee CoveringLetter executed bythe	Ex. No.	A-32

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		3^rdDefendant in favour of the Applicant Bank to stand as Guarantee for the facility availed by the1^stDefendant.
33	31.10.2018	Deed of Guarantee executed by the 3^rd Defendant in favour of the Applicant Bank. Ex.	No. A-33
34	22.01.1997	Registered partition deed executed the by 2^ndDefendants father Muthumani Thevar andhis brother Ayyarkali Thevar. Ex.	No. A-34
35	12.08.2005	Death Certificate of the 2^ndDefendant’s Father Ex.	No. A-35
36	29.12.2015	Legal Heir Certificate in the name of the 2nd Defendant ondeathof hisfather Ex.	No. A-36
37	12.07.2006	Registered Sale Deed in favour of the 1^st Defendant Registered as Document No.1659 of 2006 on the file of Usilampatti the Sub- Registrar,Usilampatti. Ex.	No. A-37
38	08.02.2006	Registered Sale Deed in favour of the 1^st Defendant Registered as Document No.265 of 2006 on the file of the Sub-Registrar, Usilampatti Ex.	No. A-38
39	26.06.2007	Registered Sale Deed in favour of the 1^st Defendant Registered as Document No.1921 of 2007 on the file of the Sub-Registrar, Usilampatti Ex.	No. A-39
40	12.10.2021	Statement of Accounts. Ex.	No. A-40

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SCHEDULE OF PROPERTIES

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Item No.1

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(1) Madurai District, Periyakullam Registration District, Usilampatti Sub District, Usilampatti Municipality, Usilampatti Village, Patta No. 1445 Nanja Land in S.No.178/14, Eastern 14½ Cents of land out on the eastern side of 20 Cents on the Eastern side

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Bounded by

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North - Thedamani Land

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East - Land belong to Muthumani

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South - Land in S.No.178/17 measuring 15% Cents.

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West - East-West 20 Feet Width South - North Common Pathway Laid

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down by Selvi and Virumayee Vagaiyara.

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(2) Madurai District, Periyakullam Registration District, Usilampatti Sub District, Usilampatti Municipality, Usilampatti Village, Patta No.1445 Nanja Land in S.No.178/17, Northern 154 Cents out of the 18% Cents at Northern Portion

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excluding 3½ cents of East West 10 feet South North Pathway out of the Western side 22 Cents out of the Total Extent of 52 Cents of land in the Eastern Side.

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Bounded by

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North - Land in S. No. 178/14 and Muthumani Land East - Land in S.No.178/16 and Oorani South - Land belong to Selvi and Jegadeesan

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West - East West 20 Feet Width South North common Pathway Laid down by Selvi and Virumayee..

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Measuring to the total extent of 2695 Sq. Feet.

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(3) Madurai District, Periyakullam Registration District, Usilampatti Sub District, Usilampatti Municipality, Usilampatti Village, Patta No.1445 Nanja Land in S.No.178/16 measuring 9 cents 0.03.5 Hectare Bounde by

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North - Muthumani Land East - Oorani South - Oorani West - Land in S.No.178/17 measuring 15% Cents.

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Measuring to the total extent of 2695 Sq. Feet.

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Item No.2

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Madurai District, Periyakullam Registration District, Usilampatti Sub District, Usilampatti Municipality. Usilampatti Village, Nanja Land in S.No.178/15 Southern 21 Cents out of the Eastern 32 Cents out of 65 Cents 0.26.5 Hectare

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Bounded by

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North - Ramesh Land East - Raja@ Veeranan Vagaiyara Land South - Mayandi Thevar Nanja Land West - Jawahar Land

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Now the New S.No.178/15C measuring 0.13.0 Hectare on the Southern

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Side in T.S.No.19/18-2 in Ward 1 Block 36.

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Item No.3

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Madurai District, Periyakullam Registration District, Usilampatti TS-Ward, Block No. 36 SNOM Sub District, Usilampatti Municipality, Usilampatti Village, T.S Ward, Block No. 36 S. No. 19/20B, Nanja Land in S.No.178/17 to the extent of 2180 Sq feet

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OA No. 299/2022

Bounded by

North - Jawahar Land

East - Oorani

South - Land belongs to Tami Selvi W/o.Ganesan

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West - 20 feet width South North Common Pathway.

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East-West on the Northern Side 52 Feet East-West on the Southern Side 57 Feet South North on the Eastern Side 40 Feet SouthNorth on the Western Sid 40 Feet Measuring to the total extent of 2180 Sq. Feet.

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Item No.4

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Madurai District, Periyakullam Registration District, Usilampatti Sub District, Usilampatti Municipality, Usilampatti Village, Nanja Land in Re.S.No.178/15 comprised in Patta No.2071, to the extent of 65 Cents out of which the Western Portion to the extent of 33 Cents out of which the Southern Side of Western Portion the common well to the extent of 1 Cents, except this well portion the remaining portion to the extent of 32 Cents, at present comprised in Patta No.1544, S.No.178/15B to the extent of 0.13.0 Hect or 32 Cent, Usilampatti Village, Usilampatti Taluk, Madurai District, within the jurisdiction of the Usilampatti Sub-Registrar, Usilampatti, Periyakulam Registration District, Madurai District..

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Bounded by

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North - The land belong to Vanitha East - The Partition land allotted to Ayyarkalai South - The land belong to Mayandi Thevar

¶116

West - The Land belongs to Mayandi Thevar and Common Well.

¶117

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.

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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?

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5. 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

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find that the Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. M. Vijay, who is the Senior Manager of the Applicant Bank.

¶123

He has stated in his affidavit that the defendants had availed Cash Credit Facility Loan 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 signed by the defendants at the time of sanctioning the loan amount, which have been marked as Exhibits No. A-01 to A-40 in support of its claim in the OA.

¶124

I perused the documents filed by the Applicant Bank and I find that Sanction Intimation letter dated 21.07.2016 given by the Applicant Bank to the 1^st and 3^rd defendant intimating the Sanction of the Cash Credit Facility for a sum Rs. 1,50,00,000/- has been marked as Ex. No. A-01. Requisition made on 21.07.2016 by the 1st Defendant through its Proprietor to the Applicant Bank to avail the Cash Credit Facility for sum a of Rs. 1,50,00,000/- has been marked as Ex. No. A-02. Promissory Note and Agreement for Demand Cash Credit on the Hypothecation of Movable properties executed by the 1^st defendant on 21.07.2016 have been marked as Ex. Nos. A-03 & A-04. On 21.07.2016, 2^nd Defendant executed the Letter of Hypothecation of Book-debts-Loans, Undertaking Letter to keep the security as Mortgaged and Mortgage Extension Letter in favour of the Applicant Bank have been marked as Ex. Nos. A-05 to A-07. Further, 3^rd defendant executed the consent Letter, Guarantee covering Letter and deed of Guarantee in favour of the Applicant Bank have been marked as Ex. Nos. A-08 to A-10. Memorandum of Deposit of Titled Deeds executed by the 2^nd defendant in favour of the Applicant Bank has been marked as Ex. Nos. A-11.

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Further Sanction Intimation letter dated 14.09.2017 given by the Applicant Bank to the 1^st defendant intimating the Sanction of the Renewed Cash Credit Facility for a sum Rs. 1,50,00,000/- has been marked as Ex. No. A-12. Requisition made on 14.09.2017 by the 1st Defendant through its Proprietor to the Applicant Bank to avail the Cash Credit Facility for sum a of Rs. 1,50,00,000/- has been marked as Ex. No. A-13. Promissory Note and Agreement for Demand Cash Credit on the Hypothecation of Movable properties executed by the 1^st defendant on 14.09.2017 have been marked as Ex. Nos. A-14 & A-15. On 14.09.2017, 2^nd Defendant executed the Letter of Hypothecation of Book-debts-Loans, Undertaking Letter to keep the security as Mortgaged, Consent Letter and Mortgage Extension

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Letter in favour of the Applicant Bank have been marked as Ex. Nos. A-16 to A-19. On 14.09.2017, 3^rd defendant executed the consent Letter, Guarantee covering Letter and deed of Guarantee in favour of the Applicant Bank have been marked as Ex. Nos. A-20 to A-22.

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Further, Sanction Intimation letter dated 31.10.2018 given by the Applicant Bank to the 1^st and 3^rd defendant intimating the Sanction of the Renewed Cash Credit Facility for a sum Rs. 1,50,00,000/- has been marked as Ex. No. A-23. Requisition made on 31.10.2018 by the 1st Defendant through its Proprietor to the Applicant Bank to avail the Cash Credit Facility for sum a of Rs. 1,50,00,000/- has been marked as Ex. No. A-24. Promissory Note and Agreement for Demand Cash Credit on the Hypothecation of Movable properties executed by the 1^st defendant on 31.10.2018 have been marked as Ex. Nos. A-25 & A-26. On 31.10.2018, 2^nd Defendant executed the Letter of Hypothecation of Book-debts-Loans, Undertaking Letter to keep the security as Mortgaged, Consent Letter and Mortgage Extension Letter in favour of the Applicant Bank have been marked as Ex. Nos. A-27 to A-30. On 31.10.2018, 3^rd defendant executed the consent Letter, Guarantee covering Letter and deed of Guarantee in favour of the Applicant Bank have been marked as Ex. Nos. A-31 to A-33. Registered Partition Deed executed by the 2^nd defendant in favour of the Applicant Bank has been marked as Ex. Nos. A-34. Death Certificate of the 2^nd Defendant’s Father and Legal Heir Certificate in the name of 2^nd Defendant have been marked as Ex. Nos. A-35 & A-36. Registered Sale Deed Document No. 1659/2006 dated 12.07.2006, Registered Sale Deed Document No. 265/2006 dated 08.02.2006 and Registered Sale Deed Document No. 1921/2007 dated 26.06.2007 have been marked as Ex. Nos. A-37 to A-39. Statement of Accounts has been marked as Ex. Nos. A-40. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

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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.

¶131

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

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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).

¶135

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 ".

¶136

Therefore, this Original Application is allowed. The Applicant Bank is entitled for a final order on the following lines:-

¶137

The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.2,02,81,300/- together with interest at the rate of 11.55% p.a. with future interest in respect of Cash Credit Facility Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

¶138

ORDERED

¶139

(a) That the Defendants are directed to pay jointly/severally for a sum of Rs.2,02,81,300/- together with interest at the rate of 11.55% p.a. with future interest in respect of Cash Credit Facility Loan from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.

¶140

(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the immovable 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.

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(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.

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

¶145

(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.

¶146

(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 Term loan and the Kisan Credit Card Facility 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.

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Dictated to Typist (SKP), taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 08^th June, 2026.

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Sd/-

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(SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 02.07.2026

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Tamilnad Mercantile Bank Limited v. M/s Pmt Traders

Case brief

What is this about?

What did the court decide?

Tamilnad Mercantile Bank Limited v. M/s Pmt Traders

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

Coram

Case details

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