T. MARAGATHAM Vs. BANK OF MADURA LTD.
LAWS(DR)-2006-3-12
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on March 06,2006

T. Maragatham and Ors. Appellant
VERSUS
BANK OF MADURA LTD. Respondents

JUDGEMENT

K. Gnanaprakasam, J. - (1.) THIS appeal is directed as against the order dated 30.12.2004 in TA No. 559/2001, passed by the DRT -II at Chennai.
(2.) THE defendants 5 to 9 in the OA, who are the L.Rs. of the 4th defendant, have preferred this appeal. The respondent Bank filed the suit for recovery of Rs. 28,89,943.61 together with future interest at the contract rate. The 1st defendant in the OA, viz. Sri Palaniappa Transports, was a firm owning fleet of lorries and was carrying on business as carriers. The defendants 2 to 4 were the partners of the 1st defendant firm. The 4th defendant viz. S. Thiyagarajan, was in charge of the 1st defendant firm at Madras. The appellants who are defendants 5 to 9, are the legal heirs of the 4th defendant viz. S. Thiyagarajan, and defendants 10 to 12 are the legal heirs of the 2nd defendant viz. R.M. S. Chockalingam.
(3.) AT the request of the 1st defendant firm, various facilities were granted by the plaintiff Bank. The 1st defendant firm had the loans on equitable mortgage, and by hypothecation of lorries. The defendants also subscribed to various chits conducted by the Chits Department of the plaintiff Bank and priced those chits and received the price money on the security of their lorries and by extending the mortgage over the immovable properties in respect of the chit transaction, In the above said manner, the defendants availed first loan from the Godown Street Branch of the Plaintiff Bank on 21,11.1973 for Rs, 4,90,000/ - and executed a Promissory Note for the said amount agreeing to repay the same together with interest @6% p.a. over and above the rate of the Reserve Bank of India (RBI), with a minimum of 13% p.a. with quarterly rests. That in respect of the said loan, the respondent Bank made a claim of Rs. 9,46,929.07. The 1st defendant also availed the second loan from the plaintiff's Godown Street Branch on 3.8.1974, for a sum of Rs. 2,50,000/ - and executed promissory note, promising to repay the same together with interest @ 8% p.a, over and above the RBI rate with a minimum of 17% p.a. with quarterly rests. That in respect of the said loan, the defendants are liable to pay a sura of Rs. 6,19,277.42. The defendants have also borrowed Rs. 1,03,0007 - on 16.7,1973, by hypothecating lorry TMI -2043, Rs. 71,8457 - on 17.8.1974 by hypothecating lorry TNU -6548, Rs. 1,20,9557 - on 27.8.1974 by hypothecating lorry MYA -7351, Rs. 1,01,5007 - on 30.8.1974 by hypothecating lorry TNU -6640, and Rs. 1,21,0907 - on 27.8.1974 by hypothecating lorry MYA -7353. In respect of hypothecation of lorries, the defendant are liable to pay a sum of Rs. 3,61,534.67. That in respect of the amounts subscribed to the chits conducted on various dates in Thambu Chetty Street Branch, the defendants are liable to pay a sum of Rs. 3,65,4007 -. That in respect of the Chits Subscribed in Kutchery Road, Mylapore Branch, the defendants are liable to pay Rs. 4,18,991.25. That in respect of the Chits subscribed in the Coimbatore Branch, the defendants are liable to pay Rs. 1,08,577.40. That in respect of the chits subscribed in Rajapalayam Branch, the defendants are liable to pay Rs. 69,283,80. That in all these accounts, the defendants were found liable to pay a sum of Rs. 28,89,943.61 for which the respondent Bank filed the suit and the same was decreed. Aggrieved by the same, this appeal has been filed. I have heard the learned Advocate for the appellants and respondent.;


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