Allowed

Punjab National Bank v. Ravichandran D

DRT3 Oct 2025OA/435/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application filed under the RDB Act to recover outstanding loan amounts totaling Rs.28,20,730.17 along with interest from the defendant, who appeared ex-parte. The court directed the defendant to pay personally or through sale of mortgaged properties.

What did the court decide?

Defendant directed to pay Rs.28,20,730.17 with interest and penal interest within one month; liberty to apply to sell mortgaged properties if payment defaults.

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

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OA No. 435/2023

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 03^RD DAY OF OCTOBER, 2025 PRESENT: SEEMA SINHA,

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[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.435/2023

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Between

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Punjab National Bank, Circle SASTRA Trichy, Circle Office, Kailasapuram, Trichy – 620 014. Rep. By its Chief Manager. ---Applicant Bank

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And

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Mr. D. Ravichandran, S/o Dharmaraj, No.27/1, 1^st street, Mangalapuram, Medical College Road, Thanjavur – 613 007. ---Defendant

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Counsel for the Applicant Bank : M/s S. Balasubramanian, T.M. Subramanian, M Sundaraj, B. Iswarya

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This Original Application was heard and fixed for passing final order before me in the presence of the above said Advocate for Applicant Bank and the Defendant having been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the records and having stood over for consideration till this day, this Tribunal delivered the following:

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OA No. 435/2023

JUDGEMENT

1 . This Application has been filed under Sec.19 (1) of the "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" now amended as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 10.05.2023 to recover from the Defendant a sum of Rs.28,20,730.17p i.e. (i) Rs.13,85,497.17p together with interest at the rate of 11.35% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Cash Credit and (ii) Rs.14,35,233/- together with interest at the rate of 11.35% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of in Term Loan from the date of filing of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.

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2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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The defendant approached the Applicant Bank to avail Cash Credit Loan for a sum of Rs.7,50,000/- and Term Loan for a sum of Rs.6,00,000/totaling Rs.13,50,000/-. After due consideration, the Applicant Bank accepted the request of the defendant and sanctioned the Cash Credit and Term Loan after executing necessary documents in favour of the Applicant Bank. The defendant also deposited the Original Title deeds of his immovable property with the Applicant bank as security for the due repayment of the loan availed by him and also executed memorandum of deposit of Title deeds on 25.01.2016 in Doc.No.180/2016, SRO Vallam. Further, Defendants agreed to repay the loan together with interest at the rate of 11.35% % p.a. plus penal interest at the rate of 2%p.a together with costs and charges for the Cash Credit loan and Term Loan. Further, defendants also agreed to pay interest as and when it is changed from time to time by the Applicant Bank. The defendant had executed Balance of security confirmation on 20.10.2018, 29.10.2018 and 18.10.2021 thereby acknowledge their liability. After availing the loan, defendant was not regular in the matter of repayment. The defendant made several promises, but he failed to keep up his promises.

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Despite repeated demands and reminders, made by the Applicant Bank, the Defendants have failed and neglected to repay and adjust their liability. Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.28,20,730.17p i.e. (i) Rs.13,85,497.17p together with interest at the rate of 11.35% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Cash Credit and (ii) Rs.14,35,233/- together with interest at the rate of 11.35% p.a. with monthly rests plus penal interest at the rate of

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OA No. 435/2023

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2%p.a. in respect of in Term Loan from the date of filing of Application till the date of realization with cost.

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The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

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S. No.	Date	Description of document	Exhibits
1.	29.12.2015	Loan Application	Ex.No.A-01
2.	29.12.2015	Hypothecation Agreement Rs.6,00,000/-	Ex.No.A-02
3.	29.12.2015	Loan Application	Ex.No.A-03
4.	29.12.2015	Hypothecation Agreement Rs.7,50,000/-	Ex.No.A-04
5.	25.01.2016	MOD in Doc.No.180/2016	Ex.No.A-05
6.	29.11.2011	Sale Deed Doc.No.2527/2011	Ex.No.A-06
7.	29.07.2015	Sale Deed Doc.No.1569/2015	Ex.No.A-07
8.	20.10.2018	Balance and SecurityConfirmation Letter	Ex.No.A-08
9.	29.10.2018	Balance and SecurityConfirmation Letter	Ex.No.A-09
10.	18.10.2021	Balance and SecurityConfirmation Letter	Ex.No.A-10
11.	----	Statement of Accounts	Ex.No.A-11

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I SCHEDULE

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SCHEDULE OF PROPERTY Mortgaged Property

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Item No.1

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Registration District : Thanjavur Sub Registration District : Boodhalur District : Thanjavur Taluk : Boodhalur Vattam & Village : Kalvirayanpettai

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S.No.261/5 - Extent Acre 1.78 cents full,

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S.No.261/6

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Extent Acre 0.22 cents full,

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S.No.261/4B - Extent Acre 0.33 1/3 cents (Out of 0.34.0 ares)

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Boundaries:

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North of Pannai Land, South of Dharmarajan Property, East of Dharmarajan Property, West of Dharmarajan Property.

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OA No. 435/2023

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Grand Totally Extent Acre 2.33^1/3 cents.

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Item No.2:

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Registration District : Thanjavur Sub Registration District : Vallam District : Thanjavur Taluk : Thanjavur Village : Guruvedipatti

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S.No.9/13А - Extent Acre 0.77 cents full, 2. S.No.10/9A2 - Extent Acre 0.65 cents full, 3. S.No.10/7B2 - Extent Acre 0.02 cents,

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S.No.22/2 - Extent Acre 1.70 cents full, 5. S.No.25/1 - Extent Acre 0.48 cents.

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Boundaries:

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East & West of Dharmaraj Property, North of Karuppudaiyar Property, South of Vaikkal

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S.No.87/2A - Extent Acre 0.65 cents full,

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S.No.87/2B - Extent Acre 0.68 cents full, 8. S.No.88/6 - Extent Acre 0.38 cents full, 9. S.No.88/7 - Extent Acre 0.46 cents 10. S.No.30B/2F - Extent Acre 0.23 cents full, 11. S.No.88/4C - Extent Acre 0.42 cents full, 12. S.No. 75/14B2 - Extent 5814sq.ft.,

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North of Dharmaraj Property, Sourth of Vellaisamy Property, West of Periyasamy Property, East of vadivel Property

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S.No.77/15 - 2180sq.ft 14. S.No.75/8B3 - 2762sq.ft

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East of Pathway, West & South of Periyasamy Property, North of Krishnasamy Udaiyar Property.

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S.No.75/8B3 - Extent 872sq.ft

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OA No. 435/2023

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East of Dharmaraj Property, West of Periyasamy Property, South of Colony plots, North of Vaikkal

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Grand Totally Extent Acre 6.44 cents and 11628 sq.ft.

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3 . On the other hand, Notices were issued to Defendant and since from the beginning of the case, there was no representation on behalf of the Defendant. Hence, Defendant was set ex-parte.

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4. Now the main point for consideration before me is as to whether the Applicant has been able to prove his case on his own leg?

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Having gone through the affidavit of the applicant and the documents filed by them and also considering the submission of the counsel for the Applicant, I find that the Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. N. Sivagurunathan, who is the Chief Manager of the Applicant Bank.

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He has stated in his affidavit that the defendant has availed Cash Credit and Term Loan from the Applicant Bank, but he failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given by the defendant at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-11 in support of its claim in the OA.

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The Loan Application has been marked as Ex.No.A-01, Hypothecation Agreement Rs.6,00,000/- has been marked as Ex.No.A-02, Loan Application has been marked as Ex.No.A-03, Hypothecation Agreement Rs.7,50,000/has been marked as Ex.No.A-04, MOD in Doc.No.180/2016 has been marked as Ex.No.A-05, Sale Deed Doc.No.2527/2011 has been marked as Ex.No.A-06, Sale Deed Doc.No.1569/2015 has been marked as Ex.No.A-07, Balance and Security Confirmation Letter has been marked as Ex.No.A-08, 2^nd Balance and Security Confirmation Letter has been marked as Ex.No.A09, 3^rd Balance and Security Confirmation Letter has been marked as Ex.No.A-10, Statement of Accounts has been marked as Ex.No.A-11. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

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As the Defendants remained ex-parte, the claim of the Applicant Bank is neither disproved nor dislodged and goes on record as proved. Accordingly a cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.

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OA No. 435/2023

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So far the claim of interest is concerned, it is a well settled Law that the Tribunal has got powers to award pendente lite interest in view of the Judgment of the Hon’ble Supreme Court in N.M. Veerapa Vs Canara Bank (reported in AIR 98(1), 1101 & in Central bank of India Vs Ravindra and OS (AIR, 2001(1), 3095).

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So far the penal interest is concerned Hon'ble supreme court stated in the said judgement as followed " Though interest can be capitalised on the anology that the interest falling due on the accrued date and remaining unpaid, partakes the character of amount advanced on that date, yet penal interest, which is charged by way of penalty for non payment, cannot be capitalized. Further interest, i.e interest on interest, whether simple, compound or penal, cannot be claimed on the amount of penal interest. Penal interest cannot be capitalized. It will be opposed to public policy ".

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Therefore, this Original Application is allowed. The Applicant Bank is entitled for a final order on the following lines:-

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The Applicant Bank is entitled to recover from the Defendant, a sum of Rs.28,20,730.17p i.e. (i) Rs.13,85,497.17p together with interest at the rate of 11.35% p.a. with half yearly rests in respect of Cash Credit and (ii) Rs.14,35,233/- together with interest at the rate of 11.35% p.a. with half yearly rests in respect of in Term Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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ORDERED

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(a) That the Defendant is directed to pay personally a sum of Rs.28,20,730.17p i.e. (i) Rs.13,85,497.17p together with interest at the rate of 11.35% p.a. with half yearly rests in respect of Cash Credit and (ii) Rs.14,35,233/- together with interest at the rate of 11.35% p.a. with half yearly rests in respect of in Term Loan from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.

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(b) In case of default of payment by the above mentioned Defendant, the Applicant Bank is at liberty to sell the movable / immovable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

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(c) If the sale proceeds are not sufficient, after defraying the expenses of such sale, for the payment of all such amounts, the defendant is

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OA No. 435/2023

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personally liable to pay the amount of such deficiency with interest mentioned above until realization.

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(d) Any amount remitted during the course of this proceedings shall be given due credit, to the loan account of the defendant.

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(e) Recovery Certificate be prepared, as per the directions given above, and issue accordingly. A copy of the order is to be communicated to the parties concerned, immediately.

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(f) It is further ordered that the Applicant Bank shall file cost memo within a period of one month from the date of receipt of this order, so as to prepare the recovery certificate with cost for the Cash credit and Term loan and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.

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Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 03^rd October, 2025.

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Sd/-

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(SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 15.10.2025

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OA No. 435/2023