O.P.No.388 of 2012

O.P.No.388 of 2012

RESERVED ON:

19.04.2022

PRONOUNCED ON:

27.04.2022

P.VELMURUGAN.,J

This Original Petition has been filed by the petitioner to determine the

liability and direct the respondents 1 to 4 herein to pay jointly and severally a

sum of Rs.100,79,159.09/- (Rupees One Crore Seventy nine thousand one

hundred and fifty nine and nine paise only) to the Petitioner/Corporation with

interest at the rate of 18.75% per annum from the date of the petition till the

date of realization in full and to order sale of 'A' schedule properties herein

towards the realization of the abovesaid sum and to enforce the liability of the

respondents towards the realization of the abovesaid sum.

2. Petitioner is the Tamil Nadu Industrial Investment Corporation

Limited. The first respondent is the borrower and the respondents 2 to 4 are the

guarantors.

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O.P.No.388 of 2012

3. Facts of the case is in brief, are that the first respondent approached

the Petitioner/Corporation to sanction a loan for the purchase of one Tanker

Lorry from M/s.Sundaram Motors, Chennai. The petitioner/Corporation also

sanctioned transport loan for a sum of Rs.4,54,000/- [Rupees Four lakhs and

Fifty four thousand only] during the year 1996 towards the chasis, body

building, etc., The petitioner/Corporation issued a loan sanction order to the

first respondent in the same year. The first respondent hypothecated the Tanker

lorry bearing Reg.No.TN-02-C-2867, for which the respondents 2 to 4

mortgaged the 'A' schedule properties, by depositing the title deeds on

15.03.1996. On 15.03.1996, the respondents 2 to 4 executed a Deed of

Guarantee for due repayment of the loan. The first respondent agreed to repay

the loan in 57 monthly installments with interest at the rate of 18.75% per

annum. The first respondent did not repay the monthly installments, inspite of

several reminders. Since the first respondent failed to repay the loan as

undertaken by him, the hypothecated vehicle was seized by the petitioner/

Corporation on 15.09.1998 and the same was auctioned for a sum of

Rs.4,08,000/-. One Ekambaram, who was the highest bidder, took delivery of

the vehicle on 07.09.1999. Thereafter, the said Ekambaram filed O.P.No.208

of 2000 before the District Consumer Forum alleging deficiency in service by

RTO, Chennai and non-issuance of Registration Certificate/Transfer of

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O.P.No.388 of 2012

ownership by the petitioner/Corporation. Since the highest bidder/Ekamabaram

surrendered the said vehicle, the petitioner/Corporation refunded the entire bid

amount to Ekambaram on 09.02.2000. The petitioner/Corporation filed an

appeal before the State Consumer Forum and the State Consumer Forum, by

order dated 03.04.2007, directed the petitioner/Corporation to pay a sum of

Rs.3,000/- to the said Ekambaram as compensation. Meanwhile, the first

respondent also filed the Original Suits in O.S.No.59 of 1999 and O.S.No.5844

of 1999 before the City Civil Court, Chennai to return the vehicle and not to

transfer the ownership. The petitioner/Corporation agreed to return back the

vehicle to the first respondent and the same was also returned. Hence, the first

respondent had withdrawn the said suits. After taking over the vehicle from the

petitioner/Corporation, the first respondent neither repaid the loan amount nor

surrendered the vehicle as undertaken by him and the vehicle was also not

traceable for seizure. Hence, the first respondent was liable to pay a sum of

Rs.10,79,897.09/- as on 22.01.2021. A demand notice was also sent on

22.05.2002 to the first respondent, calling upon him to repay the balance

amount of Rs.14,56,603.09/-. The first respondent acknowledged the liability

of loan in his letters dated 23.04.2003 and 03.06.2003. The first respondent

filed Writ Petit