Allowed

Canara Bank v. a Christopher Jenkins, Prop Jesus Margin Free Store

DRT7 Jan 2026OA/554/2022

Case brief

AI extract

What is this about?

The Deputy President of the Debts Recovery Tribunal allowed the Original Application filed by Canara Bank. The court found the defendants' absence did not disprove the bank's claim supported by affidavit and documents, ordering recovery of loan dues with interest.

What did the court decide?

Defendants ordered to jointly/severally pay Rs.44,65,184.44p with interest; liberty to sell mortgaged properties; recovery certificate to be prepared.

Canara Bank versus a Christopher Jenkins, Prop Jesus Margin… — Banking and Recovery | DRT (2026)

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OA No. 554/2022

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 07^TH DAY OF JANUARY, 2026 PRESENT: SEEMA SINHA,

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

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OA No.554/2022

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Between

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Canara bank, Thuckalay Branch, P.B.No.21/37-L 1^st Floor, Vasantham Main Road, Thuckkalay – 629 175, Kanyakumari District. Rep. By its Senior Manager. ---Applicant Bank

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And

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Mr. A. Christopher Jenkins,

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S/o Ambrose,

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Prop. Jesus Margin Free Store,

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5 34 C/2 Adakkachivilai,

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Arunakkal road,

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Mulagaumoodu Kalkulam,

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Kanyakumari – 629 167.

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Also at:

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Mr. A. Christopher Jenkins,

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S/o Ambrose, 5 42C Adakkachivilai, Mulagaumoodu Kalkulam, Kanyakumari – 629 167.

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Page 1 of 9

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OA No. 554/2022

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Mrs. M. Sutha, W/o Christopher Jenkins, 5 42C Adakkachivilai, Mulagaumoodu Kalkulam, Kanyakumari – 629 167. ---Defendants

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Counsel for the Applicant Bank : M/s C. Deepak,

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M. Vengatesh, M. Chandra Sekar

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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 27.06.2022 to recover from the Defendants a sum of Rs.44,65,184.44p i.e., (i) Rs.17,68,398.40p together with interest at the rate of 10.35% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Canara Mortgage (ii) Rs.20,90,416/- together with interest at the rate of 18.25% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Open Cash Credit (iii) Rs.6,06,370.04p together with interest at the rate of 7.90% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of GECL from the date of filing of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.

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

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The Defendant had approached the applicant bank on 01.12.2017 to avail a loan and the applicant has sanctioned a loan to the tune of Rs.25,00,000/- as an CANARA MORTGAGE on 28.12.2017 with the Rate of Interest fixed at 11.30%p.a. of Repayment in 84 Equated Monthly installments of Rs.43,201 /- each and the defendant had accepted the sanction and executed the Term Loan Agreement on 30.12.2017.

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The defendant applied another loan of Micro & Small enterprises on 19.3.2020 and the same was sanctioned by applicant to the tune of

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Page 2 of 9

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OA No. 554/2022

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Rs.20,00,000/- as an OCC on 21.3.2020 with the Rate of Interest fixed at 9.70% of tenability till 20.3.2021.

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In consideration of loan facilities, that the defendant had executed a cash credit agreement and the Request for Overdraft Facilities was executed by defendant on 30.3.2020 and also executed a Pro-Note on 30.3.2020 and the 2^nd defendant had executed the Guarantee Covering Letter along with Guarantee Agreement on 30.3.2020. The defendant had renewed the loan of Micro small & Medium Enterprises on 20.3.2021 and the applicant has sanctioned the said loan to the tune of Rs. 20,00,000/- as OCC on 20.3.2021 with the Rate of Interest fixed at 8.55% of tenability till 19.3.2022. In consideration of loan facilities, the defendant had executed a letter of renewal on 20.3.2021 and the defendant had executed a request for Letter of Proprietorship on 20.3.2021 and also executed the Acknowledgement of Debt and Security on 20.3.2021

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The defendant had applied another loan like Micro Small & Medium enterprises on 30.10.2021 and the same was sanctioned by applicant to the tune of Rs. 5,80,000/ as an GECL on 30.10.2021 with the Rate of Interest fixed at 7.50% of Repayment 36 months, Rs.16,111/-. In consideration of loan facilities, that the Agreement Cum Deed of Hypothecation was executed by defendant on 2.11.2021 and the defendant has executed the Pro-Note on 2.11.2021 and the 2nd defendant has executed the Guarantee Covering Letter along with Guarantee Agreement on 2.11.2021. In consideration of loan facilities, the defendant had executed the Memorandum of Deposit of Title Deeds Doc No.8/2018 on 29.12.2017, Doc No. 1294/2020 on 24.3.2020 and Doc No.1241/2022 on 7.3.2022.

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After receiving the loan amount, the Defendants were not regular in repaying the loan and consequently defaulted in repayment as promised to the Applicant. The Applicant was insisting for repayment of loan amount and Defendants have been giving one reason or other to evade from repaying and the Loan has become NPA on 31.3.2022. The defendant did not adhere to the terms of repayment despite demands. In spite of several demands made by the Applicant, the defendant failed and neglected to settle the amount. The defendant did not adhere to the terms of repayment. The defendant visited the Branch and executed Acknowledgement of Debt and Security dated 20.3.2021 in favor of the Plaintiff and thereby acknowledged the liability due and payable to the Applicant.

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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.44,65,184.44p i.e., (i) Rs.17,68,398.40p together with interest at the rate

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Page 3 of 9

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OA No. 554/2022

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of 10.35% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Canara Mortgage (ii) Rs.20,90,416/- together with interest at the rate of 18.25% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Open Cash Credit (iii) Rs.6,06,370.04p together with interest at the rate of 7.90% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of GECL 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	01.12.2017	Loan Application	Ex.No.A-01
2	28.12.2017	Sanction Memorandum	Ex.No.A-02
3	30.12.2017	Term Loan Agreement	Ex.No.A-03
4	19.03.2020	Application form for Loans to Micro & Small enterprises	Ex.No.A-04
5	21.03.2020	Sanction Memorandum	Ex.No.A-05
6	30.03.2020	Cash Credit Agreement	Ex.No.A-06
7	30.03.2020	Request for Overdraft Facilities	Ex.No.A-07
8	30.03.2020	Pro-Note	Ex.No.A-08
9	30.03.2020	Guarantee Covering Letter along with GuaranteeAgreement of M.Sutha	Ex.No.A-09
10	20.03.2021	Application from for Loans to Micro Small & Medium Enterprises	Ex.No.A-10
11	20.03.2021	Sanction	Ex.No.A-11
12	20.03.2021	Letter of Renewal	Ex.No.A-12
13	20.03.2021	Letter of Proprietorship	Ex.No.A-13
14	20.03.2021	Acknowledgement of Debt and Security	Ex.No.A-14
15	30.10.2021	Application from for Loans to Micro Small & Medium Enterprises	Ex.No.A-15
16	30.10.2021	Sanction Memorandum	Ex.No.A-16
17	02.11.2021	Agreement Cum Deed of Hypothecation	Ex.No.A-17
18	02.11.2021	Pro-Note	Ex.No.A-18
19	02.11.2021	Guarantee Covering Letter along with GuaranteeAgreement of M.Sutha	Ex.No.A-19
20	23.09.2003	Registered Settlement E Deed in favour of ChirstopherJenkinsDocNo.3166/2003	Ex.No.A-20
21	29.12.2017	Registered Memorandum of Deposit of title DeedsDocNo.8/2018	Ex.No.A-21
22	24.03.2020	Registered Supplemental E Memorandum of Deposit of title Deeds Doc No. 1294/2020	Ex.No.A-22
23	07.03.2022	Registered Memorandum of Deposit of title Deeds doc No. 1241/2022	Ex.No.A-23

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Page 4 of 9

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OA No. 554/2022

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24 01.09.2021 Statement of Accounts Maintained by the Ex.No.A-24 applicant bank in regular course and conduct of business

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SCHEDULE OF PROPERTIES

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"A" SCHEDULE - HYPOTHECATION

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Hypothecation of Retail Stocks

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"B" SCHEDULE - Mortgaged Properties

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State : TamilNadu District : Kanyakumari Reg District : Kanyakumari Sub Reg Registry : Eraneil Taluk : Kalkulam Village : Thiruvithancode (Now Mulagamoodu) Re Survey No : 32/7 Old Survey No : 2422, 2423 Extent : 10 cents Building No. : 5-42B, 42C, 42D, 42E, 42G and 42H

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Boundries

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East : Properties of Kumarakan and Anthonimuthu (Now Anthoni Muthu) West : Property of Siria Pushpam Thiresammal (Now pathway) North : Properties of Siria Pushpam Thiresammal (Now site of Church) South : Road

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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. S. Anish Babu, who is the Senior Manager of the Applicant Bank.

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OA No. 554/2022

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He has stated in his affidavit that the defendants has availed Canara Mortgage, Open Cash Credit and GECL from the Applicant Bank, but they failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-24 in support of its claim in the OA.

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The Loan Application has been marked as Ex.No.A-01, Sanction Memorandum has been marked as Ex.No.A-02, Term Loan Agreement has been marked as Ex.No.A-03, Application form for Loans to Micro & Small enterprises has been marked as Ex.No.A-04, Sanction Memorandum has been marked as Ex.No.A-05, Cash Credit Agreement has been marked as Ex.No.A-06, Request for Overdraft Facilities has been marked as Ex.No.A07, Pro-Note has been marked as Ex.No.A-08, Guarantee Covering Letter along with Guarantee Agreement of M.Sutha has been marked as Ex.No.A09, Application from for Loans to Micro Small & Medium Enterprises has been marked as Ex.No.A-10.

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The Sanction has been marked as Ex.No.A-11, Letter of Renewal has been marked as Ex.No.A-12, Letter of Proprietorship has been marked as Ex.No.A-13, Acknowledgement of Debt and Security has been marked as Ex.No.A-14, Application from for Loans to Micro Small & Medium Enterprises has been marked as Ex.No.A-15, Sanction Memorandum has been marked as Ex.No.A-16, Agreement Cum Deed of Hypothecation has been marked as Ex.No.A-17, Pro-Note has been marked as Ex.No.A-18, Guarantee Covering Letter along with Guarantee Agreement of M.Sutha has been marked as Ex.No.A-19, Registered Settlement E Deed in favour of Chirstopher Jenkins Doc No.3166/2003 has been marked as Ex.No.A-20.

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The Registered Memorandum of Deposit of title Deeds Doc No. 8/2018 has been marked as Ex.No.A-21, Registered Supplemental E Memorandum of Deposit of title Deeds Doc No. 1294/2020 has been marked as Ex.No.A22, Registered Memorandum of Deposit of title Deeds doc No. 1241/2022 has been marked as Ex.No.A-23, Statement of Accounts Maintained by the applicant bank in regular course and conduct of business has been marked as Ex.No.A-24. 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.

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OA No. 554/2022

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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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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 ".

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Therefore, this Original Application is allowed . The Applicant

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Bank is entitled for a final order on the following lines:-

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The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.44,65,184.44p i.e., (i) Rs.17,68,398.40p together with interest at the rate of 10.35% p.a. with half yearly rests in respect of Canara Mortgage (ii) Rs.20,90,416/- together with interest at the rate of 18.25% p.a. with half yearly rests in respect of Open Cash Credit (iii) Rs.6,06,370.04p together with interest at the rate of 7.90% p.a. with half yearly rests in respect of GECL from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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OA No. 554/2022

ORDERED

(a) That the Defendants are directed to pay jointly/severally a sum of Rs.44,65,184.44p i.e., (i) Rs.17,68,398.40p together with interest at the rate of 10.35% p.a. with half yearly rests in respect of Canara Mortgage (ii) Rs.20,90,416/- together with interest at the rate of 18.25% p.a. with half yearly rests in respect of Open Cash Credit (iii) Rs.6,06,370.04p together with interest at the rate of 7.90% p.a. with half yearly rests in respect of GECL 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.

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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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(d) Any amount remitted during the course of this proceedings shall

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be given due credit, to the loan account of the defendants.

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OA No. 554/2022

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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 Canara Mortgage, Open Cash Credit and GECL and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.

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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 07^th January, 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 13.01.26

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Canara Bank v. a Christopher Jenkins, Prop Jesus Margin Free Store

Case brief

What is this about?

What did the court decide?

Canara Bank v. a Christopher Jenkins, Prop Jesus Margin Free Store

Case brief

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