Allowed

Uco Bank v. S Kavitha

DRT26 Mar 2026OA/340/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by UCO Bank against seven defendants for recovery of loan dues. The court held that the bank's documentary evidence proved the non-repayment of agricultural term and KCC loans despite no appearance from the defendants, directing repayment of principal and interest.

What did the court decide?

Defendants directed to pay Rs.29,05,706/- principal along with 6% interest on agricultural term and KCC loans within one month. Liberty to sell mortgaged/hypothecated properties in case of default.

Uco Bank versus S Kavitha — Contract and Commercial Disputes | DRT (2026)

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OA No. 340/2022

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 26^TH DAY OF MARCH, 2026 PRESENT: SEEMA SINHA,

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

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OA No.340/2022

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Between

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UCO Bank, 1/147, Main Road, Somarasampettai, Tiruchirapalli – 620 102. Rep. By its Branch Manager.

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---Applicant Bank

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And

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Mrs. S. Kavitha,

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W/o K. Suresh, No.1, Palaniyappa Illam, Rajaji Street, Renga Nagar, Srirangam, Tiruchirapalli District.

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Mrs. N. Amirtham, W/o Natesan, 5/6, Mela Street, Adhavathur, Somarasampettai (po), Srirangam Taluk, Tiruchirapalli District.

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Mr. V. Selvam, S/o Veeramuthu, 5/76, East Street, Adhavathur, Somarasampettai (po), Srirangam Taluk, Tiruchirapalli District.

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Page 1 of 11

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OA No. 340/2022

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Mr. P. Ramesh @ Balasubramanian, S/o Pitchaimuthuraj @ Pitchai, No.C.37, 6^th Street, West Extension, Thillai Nagar, Tiruchirapalli.

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Mr. P. Om Prakash, S/o Pitchaimuthuraja @ Pitchai, No.C.37, 6^th Street, West Extension, Thillai Nagar, Tiruchirapalli.

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Mrs. P. Kamalam, W/o Pitchaimuthuraja @ Pitchai, No.C.37, 6^th Street, West Extension, Thillai Nagar, Tiruchirapalli.

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Ms. K. Lathalakshmi, No.C.37, 6^th Street, West Extension, Thillai Nagar, Tiruchirapalli. ---Defendants

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Counsel for the Applicant Bank : M/s S. Ganesan, N. Chinnanallan

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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 17.02.2022 to recover from the Defendants a total sum of Rs.29,05,706/i.e., (i) Defendants 1,4 and 5 to pay a sum of Rs.20,15,812/- together with interest at the rate of 12.7% p.a. with half yearly rests in respect of Agricultural Term Loan

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Page 2 of 11

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OA No. 340/2022

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(ii) Defendants 2,4 and 5 to pay a sum of Rs.4,07,650/- together with interest at the rate of 9% p.a. with half yearly rests in respect of KCC

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(iii) Defendants 3,4 and 5 to pay a sum of Rs.4,82,244/- together with interest at the rate of 9% p.a. with half yearly rests in respect of 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.

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

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Loan to 1st Defendant (Rs.10,00,000)

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The Applicant Bank, carrying on banking business at Somarasampettai, Tiruchirappalli District, granted an Agricultural Credit Term Loan of ₹10,00,000 to the 1^st Defendant on 20.03.2014. The 1^st Defendant approached the bank, applied for the loan, and availed it on the same date.

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For this loan, the 1st Defendant executed all necessary documents such as Demand Promissory Note, Letter of Waiver, Letter of Continuity, and Deed of Hypothecation Agreement. He agreed to repay the loan with interest at 11.2% per annum with half-yearly rests and 2% penal interest in case of default.

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Defendants 4 to 7 stood as guarantors by executing letters of guarantee. The loan was secured by an equitable mortgage created by Defendants 4 and 5 by depositing their title deeds with the bank, confirming their property as collateral security.

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Second Loan & Mortgage Extension (Rs.11,00,000)

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After clearing the earlier loan, the 1st Defendant applied for another Agricultural Credit Term Loan of Rs.11,00,000 on 29.07.2015, which was sanctioned and availed on the same day.

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The 1st Defendant again executed required loan documents including promissory note, waiver letter, continuity letter, and hypothecation agreement. He agreed to repay the loan with interest at 10.7% per annum and 2% penal interest.

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The property already mortgaged by Defendants 4 and 5 was extended as security for this loan also. They had originally created the mortgage in 2004 and later executed memorandum and extension documents, including an extension of equitable mortgage in 2016. Defendants 4 and 5 also executed fresh guarantee letters for this loan.

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Page 3 of 11

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OA No. 340/2022

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Loans to 2nd and 3rd Defendants (Rs.3,00,000 each)

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The 2nd Defendant availed a KCC Agricultural Loan of Rs.3,00,000 on 05.08.2014 and executed necessary documents such as hypothecation agreement, promissory note, waiver letter, and continuity letter. She agreed to repay the loan with interest at 7% per annum and 2% penal interest.

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Similarly, the 3rd Defendant availed another KCC Agricultural Loan of Rs.3,00,000 on 04.05.2016 and executed the required loan documents under similar terms.

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For both these loans, Defendants 4 and 5 acted as guarantors and executed guarantee letters. The same mortgaged property was extended as collateral security by executing extension of equitable mortgage.

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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. The Defendants failed to repay the loan amounts as agreed and violated the terms and conditions of the loan agreements. As a result, all loan accounts became irregular and were classified as NonPerforming Assets (NPA).

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The Applicant Bank maintained proper accounts in the regular course of business. As per the bank’s records, the outstanding dues are:

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Rs.20,15,812 for the 1st Defendant

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Rs.4,07,650 for the 2nd Defendant

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Rs.4,82,244 for the 3rd Defendant

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Thus, the total outstanding amount payable by the Defendants is Rs.29,05,706.

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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 total sum of Rs.29,05,706/- i.e., (i) Defendants 1,4 and 5 to pay a sum of Rs.20,15,812/- together with interest at the rate of 12.7% p.a. with half yearly rests in respect of Agricultural Term Loan (ii) Defendants 2,4 and 5 to pay a sum of Rs.4,07,650/- together with interest at the rate of 9% p.a. with half yearly rests in respect of KCC

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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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Page 4 of 11

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OA No. 340/2022

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S. No.	Date	Description of document	Exhibits
1	20.03.2014	Loan Application submitted by the 1 st Defendant for Agricultural Credit Term Loan of Rs. 10,00,000/-	Ex.No.A-01
2	20.03.2014	Demand Promissory Note for a sum of Rs.10,00,000/- executed by the 1st Defendant	Ex.No.A-02
3	20.03.2014	Letter of Waiver executed by the 1st Defendant	Ex.No.A-03
4	20.03.2014	Letter of continuity executed by the 1st Defendant for a sum of Rs. 10,00,000/-	Ex.No.A-04
5	20.03.2014	Deed of Hypothecation cum Agreement for Agricultural loan for a sum of Rs. 10,00,000/-executed by the1stDefendant	Ex.No.A-05
6	20.03.2014	Letter of Guarantee executed by the Defendants 4 to 7 for a sum of Rs. 10,00,000/-	Ex.No.A-06
7	29.07.2015	Loan Application submitted by the 1st Defendant for Agricultural Credit Term Loan on Rs. 11,00,000/-	Ex.No.A-07
8	29.07.2015	Sanction Letter accepted by the 1st Defendant for the Agricultural Credit Term Loanof Rs.11,00,000/-	Ex.No.A-08
9	29.07.2015	Demand Promissory Note for a sum of Rs. 11,00,000/-executed by the1stDefendant	Ex.No.A-09
10	29.07.2015	Letter of Waiver executed by the 1st Defendantfora sumof Rs.11,00,000/-	Ex.No.A-10
11	29.07.2015	Letter of continuity executed by the 1st Defendant for a sum of Rs. 11,00,000/-	Ex.No.A-11
12	29.07.2015	Deed of Hypothecation cum Agreement for Agricultural loans executed by the 1st Defendantfor asumof Rs. 11,00,000/-	Ex.No.A-12
13	29.07.2015	Letter of Guarantee executed by the Defendants4 and 5	Ex.No.A-13
14	05.08.2014	Loan Application submitted by the 2nd Defendant for KCC Agricultural Credit Loans of a sum of Rs.3,00,000/-	Ex.No.A-14
15	05.08.2014	Hypothecation cum Agreement for Agricultural loans executed by the 2nd Defendant for a sum of Rs.3,00,000/-	Ex.No.A-15
16	05.08.2014	Demand Promissory Note executed by the 2nd Defendant for a sum of Rs.3,00,000/-	Ex.No.A-16
17	05.08.2014	Letter of Waiver executed bythe 2nd	Ex.No.A-17

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OA No. 340/2022

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		Defendant for a sum of Rs.3,00,000/-
18	05.08.2014	Letter of Continuity executed by the 2nd Defendantfor asumof Rs.3,00,000/-	Ex.No.A-18
19	05.08.2014	Letter of guarantee executed by the Defendants4 and 5	Ex.No.A-19
20	04.05.2016	Loan Application submitted by the 3rd Defendant for Agricultural Credit Term Loan of Rs.3,00,000/-	Ex.No.A-20
21	04.05.2016	Sanction Letter accepted by the 3rd Defendant for the KCC Agricultural Credit Term Loan of Rs.3,00,000/-	Ex.No.A-21
22	04.05.2016	Hypothecation cum Agreement for Agricultural loans executed by the 3rd Defendantfora sumof Rs.3,00,000/-	Ex.No.A-22
23	04.05.2016	Demand Promissory Note executed by the 3rdDefendantfora sumof Rs.3,00,000/-	Ex.No.A-23
24	04.05.2016	Letter of Waiver executed by the 3rd Defendantfora sumof Rs.3,00,000/-	Ex.No.A-24
25	04.05.2016	Letter of Continuity executed by the 3rd Defendantfora sumof Rs.3,00,000/-	Ex.No.A-25
26	04.05.2016	Letter of Guarantee executed by the Defendant4and 5	Ex.No.A-26
27	26.06.1991	Registered Will deed in the name of the Defendants 4 and 5 having Document No.48/1991 in respect of the schedule mentionedpropertyand otherproperties	Ex.No.A-27
28	08.10.2004	Letter of Confirmation of Deposit of title deeds in respect of the schedule mentioned propertyexecuted bythe Defendants 4 and 5	Ex.No.A-28
29	05.08.2014	Letter of extension of EM by the Defendants 4and 5	Ex.No.A-29
30	29.07.2015	Letter of extension of EM by the Defendants 4and 5	Ex.No.A-30
31	04.05.2016	Letter of extension of EM by the Defendants 4 and 5	Ex.No.A-31
32	04.05.2016	Letter of extension of EM by the Defendants 4 and 5	Ex.No.A-32
33	22.07.2005	Registered Memorandum of Deposit of title deeds having Document Registration No. 3331 of 2005 inrespect of the schedule mentioned property and executed by the Defendants 4 and 5 infavour of the Applicant Bank	Ex.No.A-33
34	20.03.2014 To 08.02.2022	Statement of Accounts of the 1st Defendant for the Agricultural Credit Term Loan of a sum of Rs. 10,00,000/- and renewed for Rs.11,00,000/-	Ex.No.A-34
35	05.08.2014 To 08.02.2022	Statement of Accounts of the 2nd Defendant's KCC Agricultural Credit Term Loanof Rs.3,00,000/-	Ex.No.A-35

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Page 6 of 11

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OA No. 340/2022

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36 04.05.2016 Statement of Accounts of the 3rd Defendant's Ex.No.A-36 To KCC Agricultural Term Loan of Rs.3,00,000/08.02.2022

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DESCRIPTION OF PROPERTY

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ITEM NO.1

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Tiruchirapalli Registration District, Woraiyur Sub District, Tiruchirapalli Revenue District Adhavathur Panchayat in Adhavathur East Village, in Survey No.298/3A an extent of 48 cents within the following boundaries:-

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South of the Property of Velalargal land West of the Irrigation Channel and Thogaimalai Road North of the Properties in Survey No.298/3B

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East of the North-South Melapettai Road

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The new Survey Number is 40/3A, including the Rice Mill constructed thereon admeasuring 1992 sq.ft Asbestoss roof Building and admeasuring 1960 sq.ft R.C.C. Roof Building including the machineries in the said Rice Mill including the electricity connection and all the amenities provided thereon.

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

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He has stated in his affidavit that the defendants has availed Agricultural Term Loan and 2 KCC loans 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-07 in support of its claim in the OA.

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OA No. 340/2022

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The Loan Application submitted by the 1 st Defendant for Agricultural Credit Term Loan of Rs. 10,00,000/- has been marked as Ex.No.A-01, Demand Promissory Note for a sum of Rs.10,00,000/- executed by the 1st Defendant has been marked as Ex.No.A-02, Letter of Waiver executed by the 1st Defendant has been marked as Ex.No.A-03, Letter of continuity executed by the 1st Defendant for a sum of Rs. 10,00,000/- has been marked as Ex.No.A-04, Deed of Hypothecation cum Agreement for Agricultural loan for a sum of Rs. 10,00,000/-executed by the 1st Defendant has been marked as Ex.No.A-05, Letter of Guarantee executed by the Defendants 4 to 7 for a sum of Rs. 10,00,000/- has been marked as Ex.No.A-06, Loan Application submitted by the 1st Defendant for Agricultural Credit Term Loan on Rs. 11,00,000/- has been marked as Ex.No.A-07, Sanction Letter accepted by the 1st Defendant for the Agricultural Credit Term Loan of Rs. 11,00,000/has been marked as Ex.No.A-08, Demand Promissory Note for a sum of Rs. 11,00,000/- executed by the 1st Defendant has been marked as Ex.No.A-09, Letter of Waiver executed by the 1st Defendant for a sum of Rs. 11,00,000/has been marked as Ex.No.A-10.

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The Letter of continuity executed by the 1st Defendant for a sum of Rs. 11,00,000/- has been marked as Ex.No.A-11, Deed of Hypothecation cum Agreement for Agricultural loans executed by the 1st Defendant for a sum of Rs. 11,00,000/- has been marked as Ex.No.A-12, Letter of Guarantee executed by the Defendants 4 and 5 has been marked as Ex.No.A-13, Loan Application submitted by the 2nd Defendant for KCC Agricultural Credit Loans of a sum of Rs.3,00,000/- has been marked as Ex.No.A-14, Hypothecation cum Agreement for Agricultural loans executed by the 2nd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-15, Demand Promissory Note executed by the 2nd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-16, Letter of Waiver executed by the 2nd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-17, Letter of Continuity executed by the 2nd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-18, Letter of guarantee executed by the Defendants 4 and 5 has been marked as Ex.No.A-19, Loan Application submitted by the 3rd Defendant for Agricultural Credit Term Loan of Rs.3,00,000/- has been marked as Ex.No.A-20.

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The Sanction Letter accepted by the 3rd Defendant for the KCC Agricultural Credit Term Loan of Rs.3,00,000/- has been marked as Ex.No.A-21, Hypothecation cum Agreement for Agricultural loans executed by the 3rd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-22, Demand Promissory Note executed by the 3rd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-23, Letter of Waiver executed by the 3rd Defendant for a sum of Rs.3,00,000/- has been marked as Ex.No.A-24, Letter of Continuity executed by the 3rd Defendant for a sum

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OA No. 340/2022

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of Rs.3,00,000/- has been marked as Ex.No.A-25, Letter of Guarantee executed by the Defendant 4 and 5 has been marked as Ex.No.A-26, Registered Will deed in the name of the Defendants 4 and 5 having Document No.48/1991 in respect of the schedule mentioned property and other properties has been marked as Ex.No.A-27, Letter of Confirmation of Deposit of title deeds in respect of the schedule mentioned property executed by the Defendants 4 and 5 has been marked as Ex.No.A-28, Letter of extension of EM by the Defendants 4 and 5 has been marked as Ex.No.A29, Letter of extension of EM by the Defendants 4 and 5 has been marked as Ex.No.A-30.

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The Letter of extension of EM by the Defendants 4 and 5 has been marked as Ex.No.A-31, Letter of extension of EM by the Defendants 4 and 5 has been marked as Ex.No.A-32, Registered Memorandum of Deposit of title deeds having Document Registration No. 3331 of 2005 in respect of the schedule mentioned property and executed by the Defendants 4 and 5 infavour of the Applicant Bank has been marked as Ex.No.A-33, Statement of Accounts of the 1st Defendant for the Agricultural Credit Term Loan of a sum of Rs. 10,00,000/- and renewed for Rs.11,00,000/- has been marked as Ex.No.A-34, Statement of Accounts of the 2nd Defendant's KCC Agricultural Credit Term Loan of Rs.3,00,000/- has been marked as Ex.No.A-35, Statement of Accounts of the 3rd Defendant's KCC Agricultural Term Loan of Rs.3,00,000/- has been marked as Ex.No.A-36. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶80

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.

¶81

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).

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

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Page 9 of 11

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OA No. 340/2022

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The Applicant Bank is entitled to recover from the Defendants, a total sum of Rs.29,05,706/- i.e., (i) Defendants 1,4 and 5 to pay a sum of Rs.20,15,812/- together with simple interest at the rate of 6% p.a. in respect of Agricultural Term Loan

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(ii) Defendants 2,4 and 5 to pay a sum of Rs.4,07,650/- together with simple interest at the rate of 6% p.a. in respect of KCC

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(iii) Defendants 3,4 and 5 to pay a sum of Rs.4,82,244/- together with simple interest at the rate of 6% p.a. in respect of from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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ORDERED

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(a) That the Defendants are directed to pay jointly/severally a total sum of Rs.29,05,706/- i.e., (i) Defendants 1,4 and 5 to pay a sum of Rs.20,15,812/together with simple interest at the rate of 6% p.a. in respect of Agricultural Term Loan

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(ii) Defendants 2,4 and 5 to pay a sum of Rs.4,07,650/- together with simple interest at the rate of 6% p.a. in respect of KCC

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(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the movable / 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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OA No. 340/2022

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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.

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(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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(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 Agricultural Term Loan and 2 KCC loans 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 T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 26^th March, 2026.

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Sd/-

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(SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 04.04.26

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Uco Bank v. S Kavitha

Case brief

What is this about?

What did the court decide?

Uco Bank v. S Kavitha

Case brief

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What did the court decide?

What the court decided

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