Allowed

Punjab National Bank v. Manikandan

DRT18 Sept 2025OA/238/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the original application filed by Punjab National Bank for recovery of dues including principal and interest against the borrower and guarantor, ordering sale of scheduled properties to recover the amount.

What did the court decide?

Bank allowed to recover Rs. 31,77,086/- jointly and severally; liberty to sell scheduled immovable properties and personal assets to recover balance dues.

Punjab National Bank versus Manikandan — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 238 of 2022

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18.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 18^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 238 of 2022

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Punjab National Bank

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Shiva Vishnu Koil Road, Rajajipuram, Opp: Shree Niketan Mat. School, Thiruvallur – 602 001. Rep by its Chief Manager …Applicant

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-Vs-

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K. Manikandan

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S/o V. Krishnamoorthy

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14B Pugazhenthi Street, Pallikaranai (near Om Sakthi Koil)

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Chennai 600 100.

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M. Uma Maheswari W/o K.Manikandan 14B Pugazhenthi Street, Pallikaranai (near Om Sakthi Koil) Chennai 600 100. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. G. Pramila

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Defendants 1 and 2 were set ex-parte on 15.11.2022

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: - FINAL ORDER - :

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This Original Application is filed on 13.07.2022 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 defendants 1 and 2, jointly and severally for recovery of

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a total sum of Rs.31,77,086/- (Rupees Thirty One Lakhs Seventy Seven Thousand and Eighty Six only) due in respect of Housing Loan (Account No.15876015000514) repayable together with further interest @ 10.25% p.a., with monthly rests together with penal interest @ 2% p.a. 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 the 1^st defendant had approached the applicant bank seeking for Housing Loan by submitting loan application on 15.10.2014 for the purpose of purchase and construction of schedule mentioned property.

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It is submitted by the applicant bank that in pursuant to the requisition for grant of housing loan made by the 1^st defendant, the applicant bank had sanctioned the Housing Loan facility to the tune of Rs.22.00 lakhs subject to the primary security of schedule mentioned property.

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The applicant further submits that in consideration of the grant of Housing Loan facility, the defendants had executed the following loan

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security documents to secure the repayment of loan amount:

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a) Sanction letter dated 05.11.2014 with terms and conditions duly accepted by the 1^st defendant;

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b) Agreement for housing loan executed on 05.11.2014 by the 1^st defendant;

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c) Agreement of Guarantee executed on 05.11.2014 by the 2^nd defendant.

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It is submitted by the applicant bank that the 2^nd defendant stood as guarantor for the loan liability and her 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 her.

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It is submitted that the 1^st defendant had created EM on his property as more fully described in the OA schedule by depositing the original title deeds as confirmed in terms of Section 58(f) of Transfer of Property Act to cover the loan liability. The 1^st defendant had deposited the original Sale Deed dated 05.11.2014 registered as Doc.No.8041 of 2014 before SRO, Tambaram and Construction Agreement dated 22.09.2014 registered as Doc.No.8040 of 2014 before SRO, Tambaram in confirmation of the creation of EM over the schedule mentioned property.

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The applicant submits that 1^st defendant had given letter dated

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18.09.2025

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25.11.2014 and also executed Deed of MOD on 22.12.2014, registered as Doc.No.9364/2014, SRO Tambaram to secure the repayment of aforesaid loan liability.

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It is further submitted that the 1^st defendant had made paltry payments subsequent to the availing of loan amount. Thereafter, the 1^st defendant had failed and neglected to service the principal and interest, the loan account had been slipped into NPA on 31.01.2018 as per the RBI guidelines. Applicant bank had issued Demand Notice under Section 13(2) of the SARFAESI Act on 01.02.2018 and taken symbolic possession of the schedule mentioned property but evoked no response. 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 were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with an endorsement as “Left” in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 15.11.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 15.11.2022.

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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. Srinivasan, Chief 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 Defendants 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 Defendants jointly and severally, a total sum of Rs.31,77,086/- (Rupees

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Thirty One Lakhs Seventy Seven Thousand and Eighty Six only) due in respect of Housing Loan (Account No.15876015000514) repayable together with further interest @ 10.25% p.a., with monthly rests together with penal interest @ 2% p.a. from the date of Application till the date of realization in full along with costs of this application.

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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

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schedule mentioned immovable property morefully detailed in the OA schedule.

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

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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 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 Defendants to the applicant bank.

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

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(g) 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 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 18^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. S. Srinivasan, 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.	Application cum appraised/sanction form for housing loan dated 15.10.2014	A-1
2.	Sanction letter/limit proposal dated 05.11.2014	A-2
3.	Agreement for housing loan executed by the defendants dated 05.11.2014	A-3
4.	Guarantee agreement executed by the 2^nd defendant dated 05.11.2014	A-4
5.	Common agreement executed by the 1^st defendant dated 05.11.2014	A-5
6.	Construction agreement registered as Doc.No.175 of 2015 dated 26.09.2014	A-6
7.	Sale deed registered as Doc.No.176 of 2015 dated 05.11.2014	A-7
8.	Memorandum of deposit of title deeds (MOD) registered as Doc.No.2000/2015 dated 22.12.2014	A-8
9.	Demand Notice dated 01.02.2018	A-9
10.	Sale Notice dated 05.02.2019	A-10
11.	Statement of accounts for the period from 10.01.2015 to 04.07.2022	A-11

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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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Schedule A

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All that piece and parcel of house site, measuring an extent of 875 sq.ft and 428 sq.ft totally measuring an extent of 1303 sq.ft comprised in survey No.141/2 as per Tambaram Town Survey field register copy old survey No.141/2 (part) survey filed No.149/6, ward No. F block No.16, in Rojthotam 2^nd street, situated in No.31, Irumbuliyur Village, Tambaram Taluk, Kancheepuram District.

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Building planning permit P.P.A No.523/13, P.P.L. No.511/3 dated 03.09.2013 for member secretary, CMDA, Chennai – 600 008.

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Bounded on the

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North by: Mr. Samuel Lesley and others property

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South by: Mr. Shankar’s property East by: 20 feet road West by: land in survey No.142

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Admeasuring

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North by: 37 ¼ feet; South by: 37 ¼ feet East by: 35 feet; West by: 35 feet

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Within Tambaram municipality limits and within the registration district of Chennai south and sub registration district of Tambaram

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Schedule B

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268 sq.ft undivided share of land in A schedule property

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Schedule C

Flat No.F-2, First Floor, built up area 542 sq.ft. R.C.C. terraced building including all its amenities “Angel Home” Roja Thottam 2^nd street, East Irumbuliyur, Tambaram, Chennai – 600 059.

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

Punjab National Bank v. Manikandan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Manikandan

Case brief

What is this about?

What did the court decide?

What the court decided

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