Allowed

Punjab National Bank v. Chetan Kapil Dev Sharma

DRT25 Nov 2025TA/1348/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the banking company's application for recovery of dues. Finding the claim unchallenged due to the default in appearing by the respondents, the Tribunal ordered the recovery of Rs. 67,40,046 along with interest and costs, permitting sale of mortgaged or personal assets for realization.

What did the court decide?

Recovery of Rs. 67,40,046 with interest and costs; liberty to realize the amount through sale of mortgaged schedule property and subsequently personal assets of the respondents.

Punjab National Bank versus Chetan Kapil Dev Sharma — Banking and Recovery | DRT (2025)

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T.A. No. 1348 of 2023

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25.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1348 of 2023

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(Originally filed before DRT- II, Chennai as OA 416/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1348 of 2023)

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

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-Vs-

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1 Mr. Chetan Kapil Dev Sharma S/o. Mr. Kapil Dev Sharma No.18/8, 5^th Lane, Konnur High Road Ayanavaram, Chennai – 600 023

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Mr. G. Seenu, S/o. Mr. Govindasamy No.38, New No.20

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Millagai Sedikulam Ward, Old Gummidipoondi, Perungudi,

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Chennai – 600 096 …..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 26.08.2022

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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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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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T.A. No. 1348 of 2023

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recovery of a sum of Rs.67,40,046/- (Rupees Sixty Seven Lakh Forty Thousand and Forty Six only) due in respect of Housing Loan Facility (Account No.252400NC00166935) repayable together with further interest @ 9.25% per annum with monthly rests and penal interest @2% p.a. 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.416 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.416 of 2020 stood transferred to this Tribunal and renumbered as TA No.1348 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 during the year 2015 for grant of Housing loan for purchase of the Schedule Property. Considering the said request, the Applicant Bank had sanctioned Housing Loan of a sum of Rs.48,95,000/- (Rupees Forty Eight Lakhs and Ninety Five thousand only) to the 1^st defendant. The said loan was sanctioned against the

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T.A. No. 1348 of 2023

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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 said sanction was communicated by the Applicant Bank to the defendants on 27.03.2015 who have duly acknowledged the same accepting the terms and conditions contained therein.

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It is submitted by the Applicant Bank that the 1^st defendant herein had availed the said Housing Loan of sum of Rs.48,95,000/(Rupees Forty Eight Lakhs and Ninety Five thousand only) from the Applicant Bank on 30.04.2015. In consideration thereof and to 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 favor of the Applicant Bank on 30.04.2015.

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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 further submits that to secure the outstanding in the loan account, the 1^st defendant mortgaged the property owned by him, being, All that piece and portion of flat bearing No.BF-2 in the 1^st Floor of B-Block, having 1120sq. ft. built up area including common area in the building known as 'VASANTHA GARDEN', together with 600 sq.ft. of undivided share in land out of 21 ½ cents or 9362 sq.ft., at Plot Nos. 5A, 5B & 5C situated at Jain Nagar, comprised in Survey No.259/3 part, as per Patta No.419, New Survey No.259/3A

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of Ayapakkam Village, Ambattur Taluk, Thiruvallur District, more fully described in the schedule to the OA. 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 dated 31.07.2015, 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 and Security Confirmation Letter dated 21.04.2018 and confirmed the balance in the loan account as on 31.03.2018 as well as the execution of the security documents.

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It is submitted by the Applicant Bank that the Housing loan availed by the 1^st defendant was to be repaid as per the terms agreed. However, subsequent to availing of 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 failed to repay the loan outstanding, the loan account has been classified as Non Performing Asset (NPA) on 30.06.2016 in accordance with RBI guidelines.

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The Applicant Bank 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

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T.A. No. 1348 of 2023

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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 07.11.2016 and the defendants received the said notice.

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It is submitted by the applicant bank that subsequent thereto, the loan account was upgraded as Standard account through recovery of overdue amounts. The defendants again failed to repay the loan as agreed and the loan account was once again classified as NPA on 31.03.2017. The Applicant Bank issued another Demand Notice dated 17.04.2017 calling upon the defendants to pay the outstanding liability of a sum of Rs.44,92,497/- as on 31.03.2017. The said demand notice was duly received by the defendants. In spite of the demand, the defendants have not come forward to clear the dues. 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, summons to D1 was duly served, while summons to D2 returned with the remarks “No such person”. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 26.08.2022.

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T.A. No. 1348 of 2023

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25.11.2025

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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. P. Mahenderan, 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-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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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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: ORDER :

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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.67,40,046/(Rupees Sixty Seven Lakh Forty Thousand and Forty Six only) due in respect of Housing Loan Facility (Account No.252400NC00166935) repayable together with further interest @ 9.25% per annum with monthly rests and penal interest @2% p.a. from the date of application till the date of realization in full along with costs.

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T.A. No. 1348 of 2023

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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 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 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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(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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(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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T.A. No. 1348 of 2023

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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 25^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Mahenderan, 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.	Sanction of Housing Loan Facility issued by the Applicant Bank dated 27.03.2015.	A-1
2.	Agreement For Housing Loan executed by the defendants dated 30.04.2015.	A-2
3.	Agreement For Guarantee executed by the 2^nd defendant dated 30.04.2015	A-3
4.	Balance and Security Confirmation Letter executed by the 1^stdefendant dated 21.04.2018.	A-4
5.	Demand notice Section 13(2) of SARFAESI Act issued under 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 housing loan account 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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T.A. No. 1348 of 2023

25.11.2025

:- SCHEDULE -:

All that piece and portion of Flat bearing No.BF-2 on the 1^st floor of B-Block, having 1120 sq. ft. build up area including common area in the building known as 'VASANTHA GARDEN', together with 600 sq.ft. of undivided share in land out of 21½ cents or 9362 sq.ft., at Plot Nos. 5A, 5B & 5C situated at Jain Nagar, comprised in Survey No.259/3 part, as per Patta No. 419, New Survey No.259/3A of Ayapakkam Village, Ambattur Taluk, Thiruvallur District and

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Bounded on the:

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North by : 20 Feet wide Road

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South by : Vacant land

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East by : Property belonging to Mariyappa Nacker

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West by : Property belonging to Poosanam son of Bhoopathy Naicker Measuring on the:

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North to South on the Eastern side : 84 Feet

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North to South on the Western side : 76 Feet 9 Inches

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East to West on the Northern side : 113 Feet

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East to West on the Southern side : 121 Feet

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in all admeasuring an extent of 9362 sq.ft. or thereabouts

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Situate within the Sub-Registration District of Ambattur and Registration District o Chennai North.

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

Punjab National Bank v. Chetan Kapil Dev Sharma

Case brief

What is this about?

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Punjab National Bank v. Chetan Kapil Dev Sharma

Case brief

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