INDIAN BANK Vs. POONACHI ESTATE

JUDGEMENT

(1.) This Civil Revision Petition is directed against the order dated 17 May, 2005 in U.R.A.No.7 of 2005 on the file of Debts Recovery Appellate Tribunal, Chennai setting aside the ex parte decree dated 5 January, 2000 in T.A.No.918 of 1997 and directing the Debts Recovery Tribunal to dispose of the Original Application afresh on merits.

(2.) M/s. Indian Bank, Pollachi Branch - the revision petitioner herein sanctioned financial assistance to respondents 1 and 2 under term loan scheme for raising coffee crops and other plantation crops in their estate at Pollachi. The Bank disbursed a sum of Rs.3,08,000/- on 3 November 1980 after securing equitable mortgage of the property, which is the subject matter of the revision petition.

(3.) The respondents 1 and 2 (hereinafter referred to as "borrowers") failed to honour their commitments. This made the Bank to file a suit before the learned Subordinate Judge, Udumalpet in O.S.No.295 of 1995 claiming a decree for a sum of Rs.13,08,286.75 with interest at 18.50% per annum. The borrowers entered appearance in the said suit and took time to file written statement. Since written statement was not filed before the prescribed date, the learned Subordinate Judge was pleased to declare the borrowers ex parte on 5 July 1996.