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IN THE COURT OF SUBORDINATE JUDGE, RASIPURAM

PRESENT:- THIRU.P.DEENADAYALAN, B.SC., B.L.
SUBORDINATE JUDGE,
RASIPURAM.

FRIDAY, THE 05 TH DAY OF JANUARY, 2024

ORIGINAL SUIT No. 271/2023

(CNR NO.TNNM09-000937-2023)

TamilNadu Grama Bank Pattanam

Branch, represented by its
Power of Attorney P.Gopalakannan .. Plaintiff
/vs/
1. Care Karuppannasamy Joint Liability Group
represented by its president Alamelu and treasurer Poongodi

2. A.Alamelu
3. C. Poongodi
4. K.Selvi
5. S.Senbagavalli ..Defendants

On 24.11.2023, this suit is came up before me for final hearing in the presence
of Thiru. R.T.Elango Counsel appearing for the Plaintiff and defendants having been
called absent and set exparte and upon hearing plaintiff side and on perusal of case
records, this court delivers the following:-
JUDGMENT

The suit has been filed by the plaintiff to direct the defendants to pay a sum of
Rs.1,19,296/- with subsequent interest at the rate of 13 % Per Annum from the date
of suit till realization with cost and to grant such other relief as the Hon'ble Court
deems fit.
2. Brief facts of the Plaint averments would run is as follows:-
The Plaintiff Bank body corporate constituted under the regional rural bank
Act 1979 carrying on banking business and having its head office at Salem and one of
its branch office at Pattanam branch, 162/3, Middle Street, Pattanam Post, Rasipuram
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Taluk, Namakkal District. The plaintiff bank is doing banking business as per the
banking regulation act and the rules framed by the reserve bank of India from time to
time. The plaintiff bank advance the loans on different head considering the needs
and necessity of the customers. As per Ministry of Finance notification 28.01.2019
Pallavan Grama Bank and pandiyan grama bank amalgamated as “Tamil Nadu Grama
Bank”.
2.2. The 1 st defendant is the self-group running in the name of the “Care
Arthanareeswara”, the 2 to 5 defendants are the members of the 1 st defendant. The
defendants passed a resolution for small business for joint liability group members to
avail loan/credit facility of Rs. 1,00,000/-. The defendants submitted the application
dated 28.09.2017 made by the defendants for joint liability group loan for their micro
enterprises. The Plaintiff bank sanctioned the loan to the defendants for a sum of Rs.
1,00,000/-. On 28.09.2017 the defendants have executed a demand promissory note
agreement for financing of joint liability group (D 102 A) and interse agreement to be
executed by the members of the joint liability group (D 102A) in favour of the
plaintiff bank. The defendants have agreed to repay the loan amount with interest at
the rate of 13% p.a. and also agreed to repay the loan amount in 60 monthly
installments as mentioned in the agreement.
2.3 That the defendants availed the loan facilities as already stated as per the
books of accounts of the plaintiff bank, the account No. 10030876089 became NPA
on 15.05.2019 and there is an outstanding of Rs. 1,19,296/- as on 05.08.2023. Having
availed the above loan, inspite of repeated demands by the plaintiff bank, the
defendants has failed to repay the amount as per the agreement.
2.4. The defendants were irregular in repayment of the loan amount. As per
the account maintained by the plaintiff in the regular course of business, the plaintiff
submits that the defendants were committed default in paying the dues. Due to the
default of the defendants, there remains an outstanding liability in the defendant loan
account Rs.. 1,19,296/- as on 05.08.2023. as per the account statement produced by
the plaintiff bank. The plaintiff demanded the defendants to pay the amount, they
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have not come forward to pay dues. The defendants have executed acknowledge of
debt on 24.09.2020 for the above said loan. Hence, the plaintiff bank sent the legal
notices to the defendants on 12.11.2021. Since, they have not repaid the loan as
agreed upon and it has become necessary to file this suit against defendants. Hence,
the suit.
2.5. Since the plaintiff bank is Regional Rural bank controlled by the Reserve
Bank of India under Banking Act the defendants not entitled to the benefits under any
Debt Reliefs Act.
3. Defendants called absent and set exparte.

4. On considering the plaint averments and documents, the following

issues are framed at the time of judgement :-
(a) Whether the Plaintiff is entitled for the suit claim a sum of
Rs.1,19,296/- together with interest and cost as prayed for ?
(b) To what other relief ?
5.The Branch Manager of Plaintiff Bank is examined as PW.1 and Ex.A.1 to
Ex. A.12 were marked on the plaintiff's side.
6.Answering for Issues (a) and (b) :-
Plaintiff side heard. Records perused. The Branch Manager of Plaintiff Bank
viz; Gopalakannan is examined as PW.1 and reiterated the plaint averments during
his evidence.
7. The 1 st defendant is the self-group running in the name of the Care
Arthanareeswaran the 2 to 5 defendants are the members of the 1 st defendant.
Resolution by joint liability Group members on 28.09.2017 vide Ex.A1. On
28.09.2017 the defendants had applied to the plaintiff bank for loan to a tune of Rs.
1,00,000/- Vide Ex.A2. Ex.A3 is the loan sanction letter dated 28.09.2017 goes to
show that a sum of Rs.1,00,000/- was sanctioned to the defendants with rate of
interest at 13% p.a. Ex.A4 is the demand promissory note dated 28.09.2017. Ex.A5
is the loan agreement executed by the defendants in favour of bank agreeing to repay
the debt with interest with a minimum of 13% per annum on 28.09.2017. Ex.A6.
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interse agreement executed by joint liability group members on 28.09.2017. Ex. A7

is document delivery letter dated 28.09.2017. Ex. A8 are acknowledgements of debt
and security given by the defendants on 24.09.2020 respectively. Ex.A9 Legal Notice
issued by the plaintiff bank to the defendants dated 12.11.2021. Ex.A10 Served
acknowledgement of legal notice issue to the 3 rd defendant on 13.11.2021. Ex.A.11
Returned postal cover of 2 and 4 th and 5 th defendants on 15.11.2021, 16.11.2021
and 13.11.2021. Ex.A 12 is the Bank Statement of loan account of the defendants
along with 2 A certificate on 5.08.2023.
8. In this case, summons served on defendants and they called absent and
set exparte. Since the defendants had not come forward to refute the contention of
the plaintiff, this Court draws adverse inference against them.
9. On the other hand, Plaintiff has substantiated the loan amount by the 1st
defendant from oral and documentary evidence Ex.A.1 to Ex.A.12 and evidence of
PW.1 would disclose that defendants had borrowed educational loan amount and
deliberately failed to remit outstanding interest and deposit the overdue amount in the
Loan Account. Hence, this Court hold that the plaintiff Bank is entitled for suit
claim. Accordingly, the issues (a) and (b) are answered.
In the result, the suit is decreed with cost. Defendants are directed to pay a
sum of Rs.1,19,296/- to the Plaintiff Bank being the suit claim together with interest
at the rate of 13. % Per Annum from the date of suit till date of decree and
subsequent interest @ 6 % Per annum till the date of realization.
Dictated to the steno-typist, typed by her directly on computer, corrected and
pronounced by me in the Open Court dated this the 05 th day of January 2024.
Digitally signed by
P P DEENADAYALAN
DEENADAYALAN Date: 2024.01.05
18:20:23 +0530

Subordinate Judge,
Rasipuram.
Appendix:-
List of Plaintiff's side Witnesses:-

PW.1 - Thiru.Gopalakannan Branch Manager of Plaintiff Bank.

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List of Plaintiff's side Exhibits:-

Ex.A.1 28.09.2017 Resolution by joint liability group members (Original)

Ex.A.2 28.09.2017 Application for joint liability group members (Original)
Ex.A.3 28.09.2017 Sanction of Joint Liability Group loan (Original)
Ex.A.4 28.09.2017 Demand Promissory note (Original)
Ex.A.5 28.09.2017 Agreement for joint liability group members (Original)
Ex.A.6 28.09.2017 Interse Agreement executed by joint liability group
members (Original)
Ex.A.7 28.09.2017 Documents delivery letter (Original)
Ex.A.8 24.09.2020 Acknowledge of Debt (Original)
Ex.A.9 12.11.2021 Legal Notice - 4 sent to the defendants by the plaintiff
bank (Office copy)
Ex.A 10 13.11.2021 Poongodi Acknowledgements (Original)
Ex.A 11 15.11.2021, Alamelu, Selvi, Senbagavalli Returned Postal cover -3
16.11.2021, (Original)
13.11.2021
Ex.A 12 05.08.2023 Statement of Account with 2 A Certificate (Computer
copy)

List of Defendant side Witnesses & Documents: NIL

Digitally signed by P
P DEENADAYALAN
DEENADAYALAN Date: 2024.01.05
18:20:35 +0530
Subordinate Judge,
Rasipuram.
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Subordinate Court,
Rasipuram.

Draft/Fair Judgement
O.S. 271/2023
Dt: 05.01.2024