Allowed

Punjab National Bank v. M s Kamala Enterprises Represented by Proprietor Mrs M Kamala

DRT19 Sept 2025OA/231/2022

Case brief

AI extract

What is this about?

In an unopposed original application under the Debt Recovery Tribunal, the bank sought recovery of dues of approximately 25.13 lakh rupees via term and working capital loans. After determining the claim was within jurisdiction and limitation, and noting the trial was ex parte due to defendants' absence, the tribunal allowed the application and directed the realization of the loan amount, interest, and costs through sale of hypothecated assets.

What did the court decide?

Recovery of Rs.25,13,603.15 comprising Term Loan and Working Capital dues with further interest @ 10.25% and 10.65% p.a. until realization, including costs, from defendants jointly and severally, to be recovered also by sale of hypothecated schedule.

Punjab National Bank versus M s Kamala Enterprises Represented by… — Money Laundering | DRT (2025)

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O.A. No. 231 of 2022

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19.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 19^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 231 of 2022

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Punjab National Bank West Tambaram Branch No.39/28, Shanmuga Road, Tambaram West, Chennai – 600 045

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Presently Migrated to Circle SASTRA Centre, Chennai South PNB Towers, No.46-49, Mezzaine Floor, Royapettah High Road, Chennai – 600 014.

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Rep. by its Chief Manager. ….Applicant

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-Vs-

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M/s. Kamala Enterprises Rep. by Proprietor Mrs. M. Kamala W/o. Mr. Murugesan Devasagayam Nagar, Kannadapalayam West Tambaram, Tambaram, Chennai – 600 045.

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Mrs. M. Kamala W/o. Mr. Murugesan Devasagayam Nagar, Kannadapalayam West Tambaram, Tambaram, Chennai – 600 045.

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Mr. U. Murugesan S/o. Uthirapathy Devasagayam Nagar, Kannadapalayam West Tambaram, Tambaram, Chennai – 600 045. …..Defendants

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O.A. No. 231 of 2022

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19.09.2025

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Counsels on record / appeared:

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Counsel for Applicant : Mr. B.S. Sundaramoorthy

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Defendants were set ex-parte on 27.10.2022

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: - FINAL ORDER - :

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This Original Application is filed on 21.06.2022 by the applicant bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants jointly and severally for recovery of a total sum of Rs.25,13,603.15p (Rupees Twenty Five Lakhs Thirteen Thousand Six Hundred and Three and Fifteen Paise Only) as follows:

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(i) A sum of Rs.23,60,892.75p due in respect of Term Loan facility (A/c No.1751300005074), repayable together with further interest @ 10.25%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.1,52,710.40p due in respect of WCTL Facility (MSEs Loan) (A/c No.1751300026716), repayable together with further interest @ 10.65%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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for sale of schedule mentioned hypothecated movables morefully detailed in Schedule to the OA, and for costs of this application.

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O.A. No. 231 of 2022

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19.09.2025

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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 the Defendants had approached the Bank seeking financial assistance for purchasing Ashok Leyland commercial vehicle and Working Capital loan for their business purpose.

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It is submitted by the applicant bank that considering the said request, the applicant bank had sanctioned loan amount of Rs. 19,00,000/- by sanction dated 28.10.2012 and another loan Working capital loan (MSEs Loan) and sanctioned loan amount of Rs.2,00,000/- by sanction dated 14.08.2015, Term Loan for purchasing Ashok Leyland commercial vehicle loan, subject to Terms and conditions agreed between the parties. The Term Loan is repayable at the Base rate plus 2.75%-1% i.e., 12.20% rate is subject to change as and when the base rate changes and the present rate of interest is 10.25% and margin amount of 15% of the loan amount to be contributed by the Borrower. The Working capital loan (MSEs Loan) is repayable at the rate of Interest of BR+2=11.90% and the present rate of interest is 10.65% and margin amount of 33% of the loan amount and this loan amount was to be repaid by way of 24

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O.A. No. 231 of 2022

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19.09.2025

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month EMI of Rs. 8333/- + interest per month.

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It is further submitted that the above facilities are Primarily secured by hypothecation of movables and defendants have executed Hypothecation agreement 13.11.2012, Pronote for Rs.19 lakhs in favour of applicant bank. The facilities are collaterally secured by way of movable Property viz., Hypothecation of Vehicles purchased out of funds availed by the defendants from the applicant bank.

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The Applicant Bank further states that Pursuant to the Term loan for purchasing Ashok Leyland commercial vehicle and sanctioned loan amount of Rs. 19,00,000/- by sanction dated 28.10.2012 and another amount of Rs.2,00,000/- by sanction dated 14.08.2015, the Defendant had executed the Following loan security documents to secure the repayment of loan amount.

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a) Hypothecation agreement 13.11.2012, consisting of stocks of Tools & Transport Vehicles, Pronote for Rs.19 lakhs executed by 2^nd Defendant.

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b) Hypothecation agreement, consisting of stocks of Tools & Transport Vehicles, Pronote for Rs. 2 lakhs dated 14.08.2015 executed by 1^st Defendant and the 3^rd Defendant signing as Guarantor.

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The Applicant Bank further states that the 3^rd Defendant signed as Guarantor for the loan liability of the 1^st and 2^nd Defendant and their

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O.A. No. 231 of 2022

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19.09.2025

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Guarantee shall be continuing Guarantee in terms of section 128 and 129 of the Indian Contracts Act, until a notice in writing stating that the same is discharged, given by the Applicant Bank to them.

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It is submitted by the Applicant Bank that subsequent to availing of loan, the 1^st and 2^nd Defendants have failed and neglected to repay the principal and interest as per the terms of Agreement. Consequently, the loan account slipped into Non-Performing Asset (NPA) category on 31.07.2019 in terms of RBI guidelines. Despite repeated reminders and demands, as defendants did not come forward to repay the dues, 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 were sent to defendants 1 to 3 through Registered Post with Acknowledgment Due, which returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 27.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 27.10.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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O.A. No. 231 of 2022

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19.09.2025

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To prove the case of the Applicant Bank, Sh. P. Mahendran, Chief Manager representing 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-36 . As the Defendants 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 the Defendants jointly and severally, a total sum of Rs.25,13,603.15p (Rupees Twenty Five Lakhs Thirteen Thousand Six Hundred and Three and Fifteen Paise Only) as follows:

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(ii) A sum of Rs.1,52,710.40p due in respect of WCTL

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O.A. No. 231 of 2022

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19.09.2025

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Facility (MSEs Loan) (A/c No.1751300026716),

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repayable together with further interest @ 10.65%, p.a., with monthly rests from the date of filing the OA till date of realization in full along with costs.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated assets.

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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 Defendants 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

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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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O.A. No. 231 of 2022

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19.09.2025

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

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Sd/PRESIDING OFFICER, DRT-III, CHENNAI

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(S.V. GOWRAMMA)

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 19^th day of September, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Mahendran, Chief Manager representing 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 Applicant given by 1^stand 2^nddefenda	nt	A-1
2.	Hypothecation Agreement executed Defendants From no.D15 dated 30.11.2012	by .	A-2
3.	Deed of Hypothecation (Transport Equip executed by Second defendant) d 30.11.2012.	ment ated	A-3
4.	Tex Invoice for Vehicle given by T.V. Sund Iyengar & Sons Ltd dated 26.11.2012.	aram	A-4
5.	Letter of lien executed by second defend from No.D4 dated 30.11.2012.	ants	A-5
6.	From of certificate of Registration TN22AU2547 dated 01.02.2007.	No.	A-6
7.	From of certificate of Registr No.TN22BZ0119 dated 16.11.2007.	ation	A-7
8.	From of certificate of Registration TN22CT8467 dated 29.05.2012.	No.	A-8
9.	From of certificate of Registration TN22BT3422 dated 04.05.2010.	No.	A-9
10.	From of certificate of Registration TN22CW4090 dated 28.10.2011.	No.	A-10
11.	From of certificate of Registration TN11A2602 dated 08.10.2012.	No.	A-11

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O.A. No. 231 of 2022

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19.09.2025

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12.	Sanction of Term Loan by Applicant Bank for Purchasing Commercial Vehicles Manufactured by Ashok Leyland dated 28.10.2012.	A-12
13.	Demand Promissory Note Rs. 19 Lakhs executed by second defendant dated 30.11.2012.	A-13
14.	Demand Promissory Note Rs. 19 Lakhs executed by second defendant dated 13.04.2016.	A-14
15.	Demand Promissory Note Rs. 19 Lakhs executed by second defendant dated 24.06.2019.	A-15
16.	Form No.D-41 dated 24.06.2019.	A-16
17.	Letter of lien executed by second defendant from No.D4 dated 24.06.2019.	A-17
18.	Deed of Hypothecation (Transport Equipment) From No.D22 dated 24.06.2019.	A-18
19.	Revival letter executed by Second Defendant form No.D43 dated 24.06.2019.	A-19
20.	Application form for MSE Loan given by first Defendant dated 05.08.2015.	A-20
21.	Sanction letter given by Applicant Bank for second Loan	A-21
22.	Demand Promissory Note executed by First Defendant dated 14.08.2015.	A-22
23.	Hypothecation Agreement executed by first Defendants From no.D15 dated 14.08.2015.	A-23
24.	Letter of Lien from No.D4 executed by first Defendant dated 14.08.2015.	A-24
25.	Letter of Guarantee form No. D21 executed by third Defendant dated 14.08.2015.	A-25
26.	Sanction letter given by Applicant Bank dated 09.05.2017.	A-26
27.	Demand Promissory Note executed by First Defendant dated 09.05.2017.	A-27
28.	Supplemental Agreement executed by first Defendants From no.D15 dated 09.05.2017.	A-28
29.	Hypothecation Agreement From No.D15 by Second Defendants dated 09.05.2017.	A-29
30.	Letter of Lien from No.D4 executed by Second Defendant dated 09.05.2017.	A-30
31.	Agreement for charging interest under MCLR system executed by 2^ndDefendant dated	A-31

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O.A. No. 231 of 2022

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19.09.2025

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	09.05.2017.
32.	Loan Reminder letter issued by Applicant Bank to Second Defendant dated 16.02.2019.	A-32
33.	Letter issued by Applicant Bank to 2^nd Defendant intimating about OTS Recovery camp dated 19.09.2020.	A-33
34.	Demand Promissory Note executed by First Defendant dated 24.06.2019.	A-34
35.	Statement of accounts in respect of Term Loan A/c. No.1751300005074 dated 17.06.2022.	A-35
36.	Statement of accounts in respect of WCTL Loan A/C. No. 1751300026716 dated 17.06.2022.	A-36

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:- SCHEDULE -:

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Hypothecation agreement 13.11.2012, consisting of stocks of Tools & Transport Vehicles, Pronote for Rs. 19 Lakhs executed by 2^nd Defendant. Hypothecation agreement, consisting of stocks of Tools & Transport Vehicles, executed by 1^st Defendant and the 3^rd Defendant signing as Guarantor.

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DETAILS OF TRANSPORT VEHICLES

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SL. NO.	DATE	CERTIFICATE OF REGISTRATION	CHASSIS NO.	ENGINE NO.
1.	01.02.2007	TN22AU5247	0FZGL4GM0106703	SLTF0100871
2.	16.11.2007	TN22BZ0119	29HC7K161271	E483CD7K175245
3.	29.05.2012	TN22CT8467	MBITLDWC9CEYH5151	CYEZ405766
4.	04.05.2010	TN22BT3422	MC233HRC09M036454	E483CD9M219421
5.	28.10.2011	TN22CW4090	MBYB37900BFA17704	11E84006088
6.	08.10.2012	TN11A2602	MB1A3DJC8CPWE6804	CWPZ100654

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

Punjab National Bank v. M s Kamala Enterprises Represented by Proprietor Mrs M Kamala

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M s Kamala Enterprises Represented by Proprietor Mrs M Kamala

Case brief

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What did the court decide?

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