Allowed

Punjab National Bank v. Latha

DRT12 Aug 2025OA/131/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal, Chennai allowed the bank’s Original Application for recovery of Rs.39.14 lakhs along with interest and penalties on a term loan. The court approved the sale of mortgaged properties and personal assets to recover dues, directing the bank to file a memo of costs and obtain a Recovery Certificate. The defendant was in default since July 2019.

What did the court decide?

Recover Rs.39,14,008/- with interest; liberty to sell mortgaged and personal assets; issue Recovery Certificate.

Punjab National Bank versus Latha — Banking and Recovery | DRT (2025)

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O.A. No. 131 of 2022

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12.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 12^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 131 of 2022

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Punjab National Bank, Madipakkam Branch, Rep. by its Chief Manager Presently Migrated to Circle Sastra Centre, Chennai South, PNB Towers, Mezzanine Floor Nos.46-49, Royapettah High Road, Royapettah, Chennai – 600 014.

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….Applicant

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-Vs-

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Mrs. Latha N W/o Mr. Neminathan No.734B, 4^th Street, Sector D, Villivakkam, Chennai – 600 040. PAN: AIPPL1340P

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Also at: Mrs. Latha N W/o Mr.Neminathan No.4, 4^th Cross Street, Sakthivel Nagar, Perambur, Kolathur, Chennai – 600 082.

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Also at: Mrs. Latha N W/o Mr.Neminathan Flat No.E, 1^st floor “Sri Padmam Flats” Plot No.C.S2 and 78, A.R.Nagar, Mangadu Village, Sriperumbudur Taluk, Kancheepuram District 600 122. …Defendant

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O.A. No. 131 of 2022

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12.08.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. R. Jagadeesan

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Defendant was set ex-parte on 22.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 05.02.2022 by the applicant bank 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.39,14,008/- (Rupees Thirty Nine Lakhs Fourteen Thousand and Eight only) due in respect of Term Loan (Account No.52686011000364) repayable together with further interest @ 7.85% p.a. compound interest with monthly rests plus 2% penal interest from the date of Application till the date of realization in full, for sale of schedule mentioned immovable properties and for costs of this OA.

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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 Tribunal.

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It is the case of the applicant bank that defendant is an individual namely Mrs.Latha W/o Mr.Neminathan, who submitted an application on 16.11.2017 to the Madipakkam Branch of the Applicant bank requesting

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O.A. No. 131 of 2022

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12.08.2025

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for a Housing Loan of Rs.35,00,000/-. At the request of the defendant, the applicant bank through its Branch Office at Madipakkam, on 21.02.2017, sanctioned Term Loan (Purchase of House/Flat) to the tune of Rs.31 lakhs.

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The Applicant submits that in respect of the said facilities and also to secure the amount outstanding, the Defendant executed the following loan and security documents:

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i. Application for Housing Loan requesting a loan for Rs.35 lakhs

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ii. Sanction letter issued by the branch for Rs.31.00 lakhs with an interest rate of 8.85%

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iii. Agreement of Individual Housing Loan executed by the defendant

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iv. Common Agreement executed by the defendant.

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The applicant further submits that in order to secure the liability under the said facilities the defendant has further created mortgage by Deposit of title Deeds with an intent to create Mortgage, on 07.02.2018 by executing the Equitable Mortgage Register. The defendant also executed Memorandum of Deposit of Title Deeds on 25.04.2018 registered as Doc.No.499/18 at the Office of the Sub Registrar, Kundrathur Taluk whereby confirmed the security registered to secure the aforesaid credit facility from the applicant bank.

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It is submitted that the defendant has created a mortgage by depositing Construction Agreement dated 01.09.2017 entered into

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O.A. No. 131 of 2022

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12.08.2025

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between Mr.K.Vivekanand and Mrs.N.Latha and Sale Deed dated 04.01.2018 executed and registered by Mr.B.Krishnan in favour of Mrs.N.Latha vide Doc.No.122/2018 with the applicant bank.

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It is submitted by the applicant bank that subsequent to availing of the loan, the account has become irregular since 30.06.2019, as instalments have not been paid. A recall notice for entire outstanding has been made as per the letter dated 25.07.2019 under SARFAESI Act. But however the defendants have not fulfilled the promise even though the national lock down was lifted. A legal notice was sent to defendant on 18.12.2020 under SARFAESI Act. Though the applicant initiated action under the SARFAESI Act, could not realize the amount from the Defendants due to their intentional default not to repay the dues. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which returned as “Unserved” in one address and returned as “Unclaimed and Door Locked and Intimation Delivered” in another address. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 22.06.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant were placed ex-parte on 22.06.2022.

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O.A. No. 131 of 2022

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12.08.2025

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. S. Dayalan, Assistant 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 to be marked as Ex A-1 to A-11 . As the Defendant remained exparte, 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 the severally, a total sum of defendant for recovery of a total sum of Rs.39,14,008/(Rupees Thirty Nine Lakhs Fourteen Thousand and Eight only) due in respect of Term Loan (Account No.52686011000364) repayable together with further interest @ 7.85% p.a. compound interest with monthly rests plus 2% penal interest from the date of Application till the date of realization in full along with costs of this application.

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O.A. No. 131 of 2022

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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 immovable properties more fully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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(e) The applicant bank shall file the latest memo of calculation of 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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(f) The applicant bank shall file memo of costs within ten days

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from the date of receipt of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the

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O.A. No. 131 of 2022

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Recovery Officer in terms of the final order.

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

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

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 12^th day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Dhayalan, Assistant 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.	Application requesting a housing loan for Rs.35 lakhs respectively dated 16.11.2017	A-1
2.	Sanction letter issued by the Applicant dated 21.12.2017	A-2
3.	Agreement of individual housing loan executed by the defendants dated 22.12.2017	A-3
4.	Common agreement executed by the defendant dated 22.12.2017	A-4
5.	Equitable Mortgage Register executed by the Defendant dated 07.02.2018	A-5
6.	Memorandum of Deposit of Title Deeds executed by the Defendant dated 25.04.2018	A-6
7.	Construction Agreement entered between Mr.K.Vivekanand and Mrs.N.Latha dated 04.01.2018	A-7
8.	Sale Deed executed and registered by Mr.B.Krishnan in favour of Mrs.N.Latha vide Doc.No.122/2018 dated 04.01.2018	A-8

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9.	Notice issued by the Applicant bank under SARFAESI Act to the Defendant dated 25.07.2019	A-9
10.	Legal notice sent by the Applicant Bank to the	A-10
	defendant dated 18.12.2020
11.	Statement of Term Loan A/c No.5286011000364	A-11

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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-:

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Item No.1

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All that piece and parcel of vacant Land comprised in Survey No.531/1A2, 1B1, 1B2, 1B3, 2A, 2B, 2C, 535/1,2, 536/1 to 14 in A.R.Nagar in Old Survey No.531/1,2, New Survey No.531/2B, bearing Plot No.78, in extent of 3005 sq.ft., (obtained valid approved from CMDA vide its approval No.P.P.D.L.O.No.12/98 letter No.N.L.1/6179/98) situated at Mangadu Village, Sriperumbudu Taluk, Kancheepuram District, and bounded on the

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North by: Plot No.C.S2 59.71 feet South by: Vacant Land 69.56 feet 6.89 Splay East by: 30 feet wide Road 32.15 feet West by: Plot No.80 to 85 78.74 feet

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Admeasuring 3005 sq.ft and situate within the Registration District of Chennai South and Sub Registration District of Kundrathur.

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Item No.2

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All that piece and parcel of vacant Land comprised in Survey No.531/1A2, 1B1, 1B2, 1B3, 2A, 2B, 2C, 535/1,2, 536, 537/1 to 14 in A.R.Nagar in Old Survey No.531/1,2, New Survey No.531/2B, bearing Plot No.C.S2, in extent of 1837 sq.ft., with splay 50 sq.ft., 1787 sq.ft.,

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obtained valid approved from CMDA vide its approval No.P.P.D.L.O.No.12/98 letter No.N.L.1/6179/98) situated at Mangadu Village, Sriperumbudur Taluk, Kancheepuram District, and bounded on the

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North by: 24 feet wide Road 46.92 feet South by: Plot No.78 59.71 feet East by: 30 feet wide Road 34.45 feet West by: Plot No.79 & 80 34.45 feet

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Admeasuring 1837 sq.ft with splay 50 sq.ft., 1787 sq.ft., and situate within the Registration District of Chennai South and Sub Registration District of Kundrathur.

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

Punjab National Bank v. Latha

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Latha

Case brief

What is this about?

What did the court decide?

What the court decided

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