Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Shanthi

DRT23 Apr 2025OA/128/2022

Case brief

AI extract

What is this about?

DRT allowed an original application filed by a bank for recovery of vehicle loan dues. The court granted the principal amount, interest, and rights to sell the hypothecated vehicle due to the respondent's default and failure to contest the ex-parte hearing.

What did the court decide?

Recovery of Rs. 21,08,460/- plus interest at 10.25% p.a. and costs; liberty to sell hypothecated vehicle; issue of Recovery Certificate.

Punjab National Bank (Oriental Bank of Commerce) versus Shanthi — Banking and Recovery | DRT (2025)

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OA. No. 128 of 2022

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28.04.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of April, 2025

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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ORIGINAL APPLICATION No. 128 of 2022

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Punjab National Bank (Erstwhile Oriental Bank of Commerce) Circle Sastra Centre, Chennai North No.769, Spencer Plaza, Ground Floor, Anna Salai, Chennai – 600 002 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mrs. M. Shanthi W/o. V. Munusamy No.36, 5^th Main Road, CLC Works Road, Chrompet, Chennai – 600 044

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….Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. P. Reghu Raja

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Defendant set ex-parte on 03.08.2022

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: - FINAL ORDER - :

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This original application is filed on 06.09.2021 by the Applicant Bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendant for recovery of a total sum of Rs.21,08,460/-

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(Rupees Twenty One Lakhs Eight Thousand Four Hundred & Sixty

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Only) due in respect of Vehicle Loan (A/c No.15876515000634)

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OA. No. 128 of 2022

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28.04.2025

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together with further interest thereon @ 10.25% p.a., with

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monthly rests from the date of application till the date of realization in full from the Defendant, for sale of Schedule mentioned Hypothecated Asset morefully detailed in Schedule to the OA and for costs of this application.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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It is the case of the Applicant Bank that the Defendant had approached the Applicant Bank at its Branch Office in Thiruvallur Branch for availing Vehicle Loan for a sum of Rs.17,00,000/- on 31.01.2015.

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It is submitted that on accepting the said terms and conditions of sanction letter dated 31.01.2015 mentioned therein and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the defendant signed and executed the loan documents in favour of the Bank. The Defendant had executed the Agreement of term loan dated 31.01.2015 to the Bank. Also, executed the common agreement dated 31.01.2015 and General Power of Attorney dated 21.01.2015 in favour of the Bank to take delivery and possession of the Vehicle, to appoint

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OA. No. 128 of 2022

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28.04.2025

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and engage any broker for effecting any such transfer or sale. The Loan account was renewed on 09.01.2018.

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It is submitted by Applicant Bank that after availing the said facility, the defendant deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendant miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 29.10.2016, as per the guidelines issued by the RBI. The Applicant issued ‘Vehicle Seizure Notice’ to Defendant for default payment, despite which defendant did not come forward to repay the dues. Hence, this Original Application (OA) has been filed to recover the dues from the defendant.

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After the filing of the OA, Summon to Sole Defendant sent through Registered Post with Acknowledgement due, returned unserved. Applicant Bank had caused Paper Publication of Notice and filed proof thereof. When OA was taken up on 03.08.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant were placed ex-parte on 03.08.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Shri. S. Srinivasan, Chief

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OA. No. 128 of 2022

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28.04.2025

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Manager of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came

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to be marked as Ex A-1 to Ex A-7 . As the defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendant a sum of Rs.21,08,460/- (Rupees Twenty One Lakhs Eight Thousand Four Hundred & Sixty Only) due in respect of Vehicle Loan A/c No.15876515000634 together with further interest thereon @ 10.25% p.a., with monthly rests from the date of application till the date of realization in full along with costs.

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(b) In the event of failure of the defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated vehicle morefully detailed in the OA;

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OA. No. 128 of 2022

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(d) The applicant bank shall file the latest memo of calculation of

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OA amount together with interest, costs etc., to be paid by the defendant duly considering the amounts, if any, paid by the defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by defendant to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the party concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 28^th day of April, 2025)

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OA. No. 128 of 2022

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ANNEXURE

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1 : Shri. S. Srinivasan, Chief Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application dated 31.01.2015	A-1
2.	Sanction Letter dated 31.01.2015	A-2
3.	Agreement of Term Loan dated 31.01.2015	A-3
4.	Common Agreement dated 31.01.2015	A-4
5.	General Power of Attorney dated 31.01.2015	A-5
6.	Balance & Security Confirmation dated 09.01.2018	A-6
7.	Statement of Account dated 11.08.2021	A-7

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Witness Examined for the Defendant: -Nil-

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List of Documents Exhibited for the Defendant: -Nil -

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SCHEDULE OF PROPERTY

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Schedule of Hypothecation Movables

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Hypothecation of Chevrolet Cruze 2.0 LTZ MT W-Diamond Car

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Engine No.Z20D1332783K and Chassis No.MA6JFDFDEEH000718

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Vehicle IDV : 1568231

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Punjab National Bank (Oriental Bank of Commerce) v. Shanthi

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Shanthi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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