Allowed

Punjab National Bank v. Revathi

DRT4 Aug 2025TA/1258/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applicant Bank's recovery application regarding a housing loan default. The Court validated the claim for Rs.38,67,381/- against the borrower and guarantor. It directed the application of SARFAESI sale proceeds and authorized the sale of other assets to recover the balance.

What did the court decide?

Recovery of Rs.38,67,381/- jointly and severally from defendants; direction to credit SARFAESI sale proceeds; liberty to sell other assets for balance dues; issuance of Recovery Certificate.

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

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T.A. No. 1258 of 2023

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04.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1258 of 2023

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(Originally filed before DRT- II, Chennai as OA 332/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1258 of 2023)

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Punjab National Bank, Mint Street Branch No.35, Mint Street, Chennai – 600 079 Represented by its Senior Manager ….Applicant

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-Vs-

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Ms. Revathi V D/o. Mr. Veerasekar No.7, Ramappa Nagar 2^nd Cross Street

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Perungudi Chennai – 600 096.

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Also at: No.156 W-1 Oduvan Patti North Street Sivagangai – 630 502.

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Mr. Nicholas Arokia Raj S/o. Mr. Arokiaraj Old No.34, New No.18, 2^nd Street, Abhirami Avenue KKD Nagar, Kodungaiyur

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Chennai – 600 118. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s S. Anuradha Balaji

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Defendants 1 and 2 were set ex-parte on 30.08.2022

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: - FINAL ORDER - :

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This Original Application is filed on 06.07.2020 by the applicant

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T.A. No. 1258 of 2023

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04.08.2025

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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 recovery of a total sum of Rs.38,67,381/- (Rupees Thirty Eight Lakhs Sixty Seven Thousand Three Hundred Eighty One only) due in respect of Housing Loan Facility (A/c No.252400NC00166874) repayable together with further interest @ 9.25% per annum with monthly rests and penal interest @ 2% from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.332 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.332 of 2020 stood transferred to this Tribunal and renumbered as TA No.1258 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 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 in the year 2015 for grant of Housing Loan for Purchase of the Schedule Property.

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T.A. No. 1258 of 2023

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04.08.2025

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It is submitted that considering the said request, the Applicant Bank had sanctioned the Housing Loan of a sum of Rs.33,00,000/- (Rupees Thirty Three Lakhs only) to the 1^st defendant. The said loan was sanctioned against the security of the equitable mortgage of the immovable property owned by the 1^st defendant at Ayapakkam Village detailed in the schedule to the OA and against the personal guarantee of the 2^nd defendant. The sanction was communicated by the Applicant Bank to the defendants on 30.03.2015, who have duly acknowledged the same accepting the terms and conditions contained therein.

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The Applicant Bank states that the 1^st defendant herein availed the said Housing Loan of sum of Rs.33,00,000/- from the Applicant Bank on 31.03.2015. In consideration thereof and secure the same, the 1^st defendant as the borrower and the 2^nd defendant as the guarantor had executed the following loan documents in favour of the Applicant Bank on 31.03.2015:

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i) Agreement for Housing Loan executed by the 1^st defendant

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ii) Agreement of Guarantee executed by the 2^nd defendant

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The Applicant Bank states that to secure the outstanding in the loan account, the 1^st defendant mortgaged the property owned by her morefully detailed in the OA schedule situated at Ayapakkam Village, Ambattur Taluk, Thiruvallur District. The mortgage was created by the 1^st defendant on 26.05.2015 by deposit of original title deeds with the applicant bank with an intention to create equitable mortgage over the same. The 1^st defendant executed Memorandum of Deposit of Title deeds

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T.A. No. 1258 of 2023

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04.08.2025

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dated 22.07.2015, registered as Doc.No.10661/2015, S.R.O. Ambattur, confirming the deposit of title deeds and thereby creating equitable mortgage over the schedule property.

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The Applicant Bank submits that the defendants have executed Balance Security Confirmation Letter dated 20.01.2018 and confirmed the balance in the loan account as on 31.12.2017 as well as the execution of the security documents.

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It is submitted that the Housing loan availed by the 1^st defendant was to be repaid as per the terms agreed. The Applicant Bank submits that after availing the housing loan, the 1^st defendant failed to repay the same in terms of the loan sanction. The Applicant Bank on various occasions had demanded repayment of the dues and also sent notices which remained futile since the defendants cared not to repay. Since the defendants failed to repay the loan outstanding, the loan account has been classified as Non Performing Asset (NPA) on 30.06.2016. The Applicant further submits that in spite of repeated demands and reminders, the defendants have deliberately failed and neglected to clear the dues to the applicant bank and in view of the huge amounts due from the defendants, the applicant bank initiated proceedings against the secured asset towards repayment of Housing loan availed by them under Section 13(2) of the SARFAESI Act vide Notice dated 17.04.2017 calling upon the defendants to pay the outstanding liability of a sum of Rs.26,76,057/- as on 31.03.2017. The said demand notice was wilfully returned by the defendants as "Refused". Inspite of the demand, the

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T.A. No. 1258 of 2023

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04.08.2025

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defendants have not come forward to clear the dues. Hence the present Original Application (OA) has been filed by Applicant Bank for recovery of its dues from 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. Summons to D1 is duly served, while summons to D2 returned with endorsement as ‘Refused’. When OA was taken up on 30.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 30.08.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. M. Velayutham, Chief Manager representing the Applicant Bank, has filed her 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-6 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.31,50,000/- by way of sale of Schedule immovable property under SARFAESI Act on 11.05.2023 and

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T.A. No. 1258 of 2023

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04.08.2025

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the same was appropriated to the loan account and sale certificate was also issued in favour of the auction purchaser.

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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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14. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants, jointly and severally, a sum of Rs.38,67,381/- (Rupees Thirty Eight Lakhs Sixty Seven Thousand Three Hundred Eighty One only) due in respect of Housing Loan Facility (A/c No.252400NC00166874) repayable together with further interest @ 9.25% per annum with monthly rests and penal interest @ 2% from the date of application till the date of realization in full, along with costs of this application.

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(b) The sum of Rs.31,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the mortgaged 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

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T.A. No. 1258 of 2023

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04.08.2025

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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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(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 defendants 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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(e) The applicant bank shall file memo of costs within ten days from the date of receipt 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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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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 04^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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T.A. No. 1258 of 2023

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04.08.2025

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Sanction of Housing Loan Facility issued by the Applicant Bank for a sum of Rs.33,00,000/- dated 30.03.2015.	A-1
2.	Agreement for Housing Loan executed by the 1^st defendant dated 31.03.2015.	A-2
3.	Agreement of Guarantee executed by the 2^nd defendant dated 31.03.2015.	A-3
4.	Balance and Security Confirmation Letter executed by the 1^stdefendant dated 20.01.2018.	A-4
5.	Demand notice under Section 13(2) of SARFAESI Act issued by the applicant bank to the defendants along with proof of service dated 17.04.2017.	A-5
6.	Statement of Accounts in respect of Over Draft Account No. 252400NC00166874 along with Memorandum of Interest	A-6

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

Punjab National Bank v. Revathi

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Revathi

Case brief

What is this about?

What did the court decide?

What the court decided

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