Allowed

Punjab National Bank v. Vinothkumar

DRT18 Sept 2025TA/1486/2023

Case brief

AI extract

What is this about?

The DRT allowed the Applicant Bank's application for recovery of dues under RDB Act. The court granted permission to recover Rs. 12,85,735.45 plus interest and costs from the Defendants, who were absent from proceedings.

What did the court decide?

Recovery of Rs. 12,85,735.45 principal plus interest at 11.25% per annum compounded monthly and costs; liberty to recover via sale of hypothecated vehicle; issuance of Recovery Certificate.

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

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T.A. No. 1486 of 2023

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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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TRANSFERRED APPLICATION No. 1486 of 2023

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(Originally filed before DRT- II, Chennai as OA 362/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1486 of 2023)

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Punjab National Bank, Anna Salai Branch, No.15, General Patters Road, Chennai – 600 002. Rep. by its Branch Manager. ….Applicant

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-Vs-

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Mr. S. Vinoth Kumar,

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S/o Kannappa Santhanam,

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No.25/8, 5^th Street,

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Sri Ram Nagar, Edapalayam, Redhills, Chennai – 600 052.

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Mrs. J. Padmini, W/o Kannappa Santhanam,

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No.25/8, 5^th Street, Sri Ram Nagar, Edapalayam, Redhills, Chennai – 600 052.

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Also at

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No.9, Venkatesapuram, 5^th Street, Bricrhfoks Road, Chennai – 600 012. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. G. Jehanathan

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Defendants 1 and 2 were set ex-parte on 21.05.2019

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: - FINAL ORDER - :

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This Original Application is filed on 13.02.2019 by the applicant

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bank under Section 19(1) of Recovery of Debts and Bankruptcy Act,

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T.A. No. 1486 of 2023

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18.09.2025

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1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.12,85,735.45p (Rupees Twelve Lakhs Eighty Five Thousand Seven Hundred and Thirty Five and Forty Five Paisa

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only) due in respect of Vehicle Loan Facility repayable together with further interest @ 11.25% per annum compounded with monthly rests from the date of application till the date of realization in full, for sale of schedule mentioned hypothecated vehicle and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.362 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.362 of 2019 stood transferred to this Tribunal and renumbered as TA No.1486 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 for Vehicle Loan during the year 2017 and submitted loan application to the Applicant Bank on 31.03.2017 requesting grant loan for a sum of Rs. 13,68,000/-.

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T.A. No. 1486 of 2023

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18.09.2025

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It is submitted by the applicant bank that considering the said request, and upon scrutinizing the loan Application dated 31.03.2017 and other documents submitted by the Defendants, sanctioned the said loan amount of Rs. 13,68,000/- (Rupees Thirteen Lakh Sixty Eight Thousand only) and called upon the Defendants to sign the necessary loan documents for disbursal of the loan amount.

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It is further submitted by the applicant bank that as per the Terms and conditions applicable to Vehicle Loan executed by the Defendants, the Defendants agreed to repay the loan amount in 84 installments at Rs. 21,871.26/- commencing from 30.04.2017 to 31.03.2024. The Defendants agreed to pay interest at the rate of 8.45% per annum and penal interest charges at the rate of 2% per month on unpaid Equated Monthly Instalments. Second defendant stood as guarantor for the loan facilities availed by first defendant.

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It is submitted by the applicant bank that in order to secure the loan, the defendants executed the following documents in favour of applicant bank:

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(i) Hypothecation Agreement dated 31.03.2017 executed by 1^st defendant;

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(ii) Deed of Guarantee dated 31.03.2017 executed by the 2^nd defendant;

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(iii) Registration Certificate of Hypothecated vehicle bearing registration No.TN 18 AL 8153 dated 07.04.2017.

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T.A. No. 1486 of 2023

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18.09.2025

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The Applicant states that the Applicant disbursed the loan amount of Rs. 13,68,000/- (Rupees Thirteen Lakhs Sixty Eight Thousand Only) and the Defendants availed the said loan vide loan account No. 030600NG00010711.

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It is submitted by the applicant bank that subsequent to availing of loan, the Defendants have defaulted in payment of dues. Since the Defendants failed and neglected to pay any amount to the Applicant under the loan account in spite of repeated demands made by the Applicant, the Applicant caused a Legal Notice dated on 08.01.2019 through their counsel calling upon the Defendants to repay the sum of Rs. 11,81,206/- (Rupees Eleven Lakh Eighty One Thousand Two Hundred and Six Only) which includes principal, interest and other charges. In respect of the said Legal notice sent to the first defendant address were returned as “Insufficient Address” and second defendant 2^nd address were returned with postal endorsement as “Refused” on 14.01.2019. The Defendants either complied with the demands contained in the legal notice nor sent any reply thereto. 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 duly served. When OA was taken up on 21.05.2019 even after giving sufficient time, there was no appearance or representation from the

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T.A. No. 1486 of 2023

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18.09.2025

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defendants. Hence, defendants 1 and 2 were placed ex-parte on 21.05.2019.

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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. Velayudham, 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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: O R D E R :

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13. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants a sum of total a sum of Rs.12,85,735.45p (Rupees Twelve Lakhs Eighty Five Thousand Seven Hundred and Thirty Five and Forty Five Paisa only) due in respect of Vehicle Loan Facility repayable together with further interest @ 11.25% per annum compounded with monthly rests from the date

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T.A. No. 1486 of 2023

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18.09.2025

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of application till the 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 hypothecated vehicle morefully detailed in the OA schedule.

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(d) 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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(e) The applicant bank shall file memo of costs within ten days from the date 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/-

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(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 18^th day of September, 2025)

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T.A. No. 1486 of 2023

18.09.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. M. Velayudham, 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 31.03.2017.	A-1
2.	Sanction letter dated 31.03.2017.	A-2
3.	Hypothecation agreement dated 31.03.2017.	A-3
4.	Deed of guarantee dated 13.03.2017.	A-4
5.	Registration Certificate	A-5
6.	Statement of accounts	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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SCHEDULE

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L.M.V Car (White) make Mahindra and Mahindra Model XUV 500 W6 bearing registration No. TN18AL8153 and Engine No. D7FBCU18216742, Chassis No. MILDH90UMDM119421.

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

Punjab National Bank v. Vinothkumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Vinothkumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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