C.S. No.214 of 2021

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 07.12.2022

CORAM

THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

C.S.No.214 of 2021

and A.No.2276 of 2021

M/s.United Overseas Finance Limited,

having its Registered Office at

Chopra Chamber, No:160, Ramanaicken Street,

Nungambakkam, Chennai-600 034,

rep. By its Authorised Signatory,

Mr.G.N.Bhuvaneswaran

... Plaintiff

vs.

1.Mr.P.S.Suresh (Since deceased)

Son of late Subburam Naidu.

2.Mrs.S.Anitha

Wife of Mr.Suresh

3.Mr.E.Pandian,

Son of Mr.Ethiraj

4.Ms.S.Eswini (minor)

Rep.by her mother and natural guardian

Mrs.Anitha, wife of Mr.Suresh

5.Mrs.Shantha

W/o.Mr.Subburam Naidu

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C.S. No.214 of 2021

(Defendants 4 and 5 are brought on record as

legal heirs of the deceased 1^st defendant as

per order dated 17.09.2021 in A.No.3131 of 2021) ... Defendants

PRAYER: Plaint filed under Order IV Rule 1 andOrder XXXVII Rule 1 of

the Rules of the High Court Madras in its Original Side read with Order

XXXIV of the Code of Civil Procedure, 1908 prayed to pass a jdugment

and decree:-

(a) directing the first, second and the third defendants to pay to this

Plaintiff a sum of Rs.10,,043,721/- (comprising a sum of Rs.36,63,000/-

towards the Principal; a sum of Rs.63,80,721/- towards interest and other

charges till 29.02.2020) being the amount due and payable under the Loan

Agreements cited supra within the time stipulated by this Hon'ble Court;

(b) Pay further interest @ 18% P.A. From 01.03.2020 till date of

realisation;

(c) in the event of failure of the first, second and the third defendants

to pay th amount in compliance of the orders of this Hon'ble Court, permit

the Plaintiff to sell the mortgaged properties more fully described in the

Schedule hereunder so as to realize the amount due;

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C.S. No.214 of 2021

(d) If the sale proceeds are not sufficient to satisfy the decree, to pass

personal decree against the first, second and the third defendants;

(e) directing the contesting defendants to pay to the plaintiff the cost

of this action.

For Plaintiff

: Mr.R.Umashankar for

M/s.Sri & Shankar Associates

For Defendants

: Set Ex parte

**********

J U D G M E N T

The plaintiff is a financial institution. The first defendant availed of

credit facilities from the plaintiff under multiple loan agreements.

Defendants 2 and 3 were the guarantors in relation to such credit facilities.

Upon default by the defendants in servicing obligations under the loan

agreements, notices were issued by the plaintiff to defendants 1 to 3 on

16.12.2016 and 30.10.2019. Upon defendants 1 to 3 failing to make

payments demanded under the said notices, the present suit is filed.

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C.S. No.214 of 2021

2. After the institution of the suit, the first defendant passed away. His

class I legal heirs are the second, fourth and fifth defendants. Consequently,

the fourth and fifth defendants were impleaded since the wife of the

deceased was already the second defendant in the suit.

3. Summons was served on all the defendants. Since the defendants

did not enter appearance in spite of receipt of suit summons, by order dated

01.04.2022, the defendants were set ex parte. Thereafter, the matter was

posted before the learned Master for recording the ex parte evidence of the

plaintiff.

4. The plaintiff examined Mr.G.N.Bhuvaneswaran, authorized

signatory, as PW1. In course of the examination-in-chief of PW1, 10

documents, which are listed at the foot of the judgment, were exhibited as

Exs.P1 to P10.

5. Learned counsel for the plaintiff invited my attention to the loan

agreements, which were exhibited as Exs.P1, P3 to P6. With specific

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C.S. No.214 of 2021

reference to the schedule thereto, he pointed out that the agreed rate of

interest was 13% p.a.