Allowed

Punjab National Bank v. Mohamed Ghouse

DRT20 Aug 2025TA/1225/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of dues amounting to Rs. 64,88,380.02p against two defendants. The defendants were adjudicated ex-parte due to non-appearance. The court permitted sale of schedule properties and personal assets for recovery.

What did the court decide?

Recovery of Rs. 64,88,380.02p plus interest and costs; sale of mortgage property; authority to sell other assets if necessary.

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

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T.A. No. 1225 of 2023

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20.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1225 of 2023

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(Originally filed before DRT- II, Chennai as OA 162/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1225 of 2023)

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Punjab National Bank, Circle Sastra Centre, Chennai South, PNB Towers, 46-49, Mezzanine Floor, Royapettah High Road, Royapettah, Chennai-600 014, Rep. by its Chief Manager ….Applicant

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-Vs-

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Mr. H.Mohamed Ghouse,

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S/o Mr. Hussain,

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No. 4/1, B KK Road,

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Villupuram - 605 602.

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Mrs. M. Naseeni Ghouse,

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W/o Mohamed Ghouse,

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Rep. by Prop. Of M/s G-Time

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No.4/1, B KK Road,

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Villupuram – 605 602. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Suresh Law Associates

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Defendants 1 and 2 were set ex-parte on 02.12.2021

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: - FINAL ORDER - :

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This Original Application is filed on 10.03.2021 by the applicant

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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

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recovery of a total sum of Rs.64,88,380.02p (Rupees Sixty Four

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T.A. No. 1225 of 2023

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20.08.2025

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Lakhs Eighty Eight Thousand Three Hundred and Eighty and Two

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Paisa Only) as follows:

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(i) A sum of Rs.27,49,902.50p due in respect of Housing Loan facility (A/c No.0488009900000345), repayable together with further interest @ 8.75%, 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.26,06,038.30p due in respect of Over Draft Facility (A/c No.048800NC00003129), repayable together with further interest @ 7.60%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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(iii) A sum of Rs.11,32,439.22p due in respect of Cash Credit facility (A/c No.048800KU00000314), repayable together with further interest @ 8.05%, 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 immovable property more fully detailed in Schedule to the OA, and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.162 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.162 of 2021 stood transferred to this Tribunal and renumbered as TA No.1225 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the

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T.A. No. 1225 of 2023

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20.08.2025

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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 have approached the Punjab National Bank RAPC, Villupuram for the credit facility. After examining the application, the Applicant Bank sanctioned Home Loan of sum of Rs.25 lakhs vide loan account No. 0488009900000345.

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It is submitted by the Applicant Bank that in order to secure the loan, the defendants executed the following loan and security documents in favour of applicant bank on 07.10.2017:

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(a) Sanction Letter

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(b) Agreement for Housing Loan

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It is further submitted that the Defendants had approached the

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Punjab National Bank RAPC, Villupuram for further credit facility. After examining the application, the Applicant Bank sanctioned Over Draft facility to the tune of Rs. 25 lakhs vide loan account No. 0488009900000345 to the defendants.

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Applicant bank submits that in order to secure the loan, the defendants executed the following loan and security documents in favour of the applicant bank on 11.10.2017:

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(a) Agreement of Over Draft facility for existing Housing Loan

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(b) Letter of Continuity

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T.A. No. 1225 of 2023

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The applicant bank submits that the Defendants have again approached the Punjab National Bank RAPC, Villupuram seeking for credit facility. After examining the application, the Applicant Bank had sanctioned Cash Credit Facility to the tune of Rs.10 lakhs vide loan account No. 048800KU00000314

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In order to secure the loan, the defendants have executed the following loan and security documents in favour of the applicant bank on 17.03.2018:

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(a) Agreement for Loan/Cash Credit/Over Draft

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(b) Agreement of Guarantee

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(d) Supplementary Agreement

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(e) Balance and Security Confirmation Letter dated 31.12.2019

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The Defendants have executed the MOD on 12.10.2017

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registered as Doc No. 3378/2017 S.R.O Villupuram No.2, Joint Sub Registry, Villupuram Taluk, to cover the loan liability sanctioned to the defendants to the property situated at V.Maruthur, Villupuram Taluk.

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The Defendants have agreed to pay interest for the respective

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loans viz., Housing Loan, Over Draft facility and Cash Credit facility are 8.75% & 7.60% & 8.05% per annum with monthly rests respectively.

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It is submitted by the applicant bank that subsequent to availing of aforesaid credit facilities, as the defendants did not perform the

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T.A. No. 1225 of 2023

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business activities well, the loan accounts was running irregular for want of servicing of principal and interest. Therefore, the applicant bank had classified the loan accounts of the first defendant as NonPerforming Asset (NPA) on 30.06.2019 in accordance with RBI guidelines. The Applicant Bank sent several reminders to the defendants to repay the entire overdue amounts forthwith but there was no response from the Defendants. 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 Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served to D1 and D2. When OA was taken up on 02.12.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 02.12.2021.

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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, Sh. M. Velayutham, 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-19 . 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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T.A. No. 1225 of 2023

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20.08.2025

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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 a total sum of Rs.64,88,380.02p (Rupees Sixty Four Lakhs Eighty Eight Thousand Three Hundred and Eighty and Two Paisa Only) as follows:

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(ii) A sum of Rs.26,06,038.30p due in respect of Over

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Draft Facility (A/c No.048800NC00003129), repayable together with further interest @ 7.60%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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(iii) A sum of Rs.11,32,439.22p due in respect of Cash Credit facility (A/c No.048800KU00000314), repayable together with further interest @ 8.05%, p.a.,

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T.A. No. 1225 of 2023

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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 immovable property more fully detailed in the OA.

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(d) If the sale proceeds of the immovable property is 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

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of OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during

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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 receipt of this final order.

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T.A. No. 1225 of 2023

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

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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/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by him, corrected, signed and pronounced by me on this the 20^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. M. Velayutham, 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 Application dated 07.10.2017.	A-1
2.	Agreement for Housing Loan dated 07.10.2017.	A-2
3.	Mortgage Deed dated 07.10.2017.	A-3
4.	Agreement of Over Draft Facility for Existing Housing Loan Borrowers dated 10.10.2017.	A-4
5.	Letter of Continuity dated 11.10.2017.	A-5
6.	Mortgage Deed dated 11.10.2017.	A-6
7.	Memorandum of Deposit of Title Deeds (Doc. No. 3378/2017) dated 12.10.2017.	A-7
8.	Partition Deed (Doc. No. 895/2001) dated 08.02.2001.	A-8
9.	Partition Deed (Doc. No. 3054/2005) dated 16.09.2005.	A-9
10.	Loan Application dated 17.03.2018.	A-10
11.	Agreement for Loan/Cash Credit/Overdraft dated 17.03.2018.	A-11
12.	Agreement of Guarantee dated 17.03.2018.	A-12
13.	Letter of Continuity dated 17.03.2018.	A-13
14.	Supplemental Agreement dated 17.03.2018.	A-14

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T.A. No. 1225 of 2023

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15.	Balance and Security Confirmation Letter dated 31.12.2019.	A-15
16.	Notice U/s 13(2) of the SARFAESI Act dated 03.05.2018.	A-16
17.	Statement of Account dated 11.10.2017 to 02.02.2021 along with Certificate under Banker’s Book Evidence Act 1891 dated 04.02.2021.	A-17
18.	Statement of Account dated 09.10.2017 to 02.02.2021 along with Certificate under Banker’s Book Evidence Act 1891 dated 04.02.2021.	A-18
19.	Statement of Account dated 17.03.2018 to 31.01.2021 along with Certificate under Banker’s Book Evidence Act 1891 dated 04.02.2021.	A-19

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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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All the piece and parcel of 0.07 cents of land out of 0.22 cents of land (1656 Sq.ft) comprised in Dry S.No.201/1 and 0.77 cents of land in S.No.201/2 with RCC terraced house thereon bearing Door No.7/4/1A, warf No.15 and Assessment No.6875

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Bounded on the

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North of: Building belonging to Sh.Sarveshwaran Chettiar

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South of: House belonging to Sh.Arumugam Chettiyar

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East of: Property belonging to Mrs. Mehrun’s portion house and common lane

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West of: Property belonging to Sh.Ramanjum Lalitha Susila

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Lying within the Sub Registration of Villupuram Joint-II and Registration.

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Sd/-

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

Punjab National Bank v. Mohamed Ghouse

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mohamed Ghouse

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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