Allowed

Punjab National Bank v. On Track Bi Solutions Rep By P Venkatesan

DRT28 Jul 2025TA/1573/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an unopposed application by Punjab National Bank for recovery of dues from the defendant M/s. On Track BI Solutions. The court awarded the principal sum with interest and ordered a search for assets to recover the balance.

What did the court decide?

Awarded recovery of Rs.10,06,473 and interest; liberty granted to sell defendant's assets; Recovery Certificate to be issued.

Punjab National Bank versus On Track Bi Solutions… — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1573 of 2023

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28.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1573 of 2023

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(Originally filed before DRT- II, Chennai as OA 16/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1573 of 2023)

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*Punjab National Bank (Erstwhile Oriental Bank of Commerce) Circle Sastra Centre, Chennai (North), Ground floor, Spencer Plaza, 769, Anna Salai, Chennai - 600 002. ….Applicant

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*(Amended vide order dated 21.06.2022 in view of merger & Amended vide order in IA No.1006/2022 dt.21.06.2022 in view of change of address of applicant bank)

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-Vs-

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On Track BI Solutions Rep by its Proprietor P. Venkatesan, No.31, Amman Koil Street, Devar Nagar, Padi, Chennai 600 050. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. P. Reghuraja

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Defendant were set ex-parte on 01.04.2019

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: - FINAL ORDER - :

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This original application is filed on 29.08.2018 by erstwhile

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Oriental Bank of Commerce (since merged with Punjab National Bank) under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions

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T.A. No. 1573 of 2023

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28.07.2025

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Act, 1993) against the defendant for recovery of a total sum of Rs.10,06,473/- (Rupees Ten Lakhs Six Thousand Four Hundred Seventy Three only) due in respect of Cash Credit facility (A/c No.10854011000156) and Term Loan (A/c

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No.10857011000478) repayable together with further interest and penal interest @ 11.35% per annum with monthly rests from the date of application till the date of realization in full, for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.16 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.16 of 2019 stood transferred to this Tribunal and renumbered as TA No.1573 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 defendant M/s.On Track BI Solutions approached the applicant bank and submitted the application at its Branch Office in Kodambakkam Branch for availing a Term Loan for a sum of Rs.4,00,000/- and Cash Credit facility of Rs,5,00,000/-.

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T.A. No. 1573 of 2023

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28.07.2025

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It is submitted that the Applicant Bank considered the proposal and sanctioned a sum of 9,00,000/- (Rupees Nine Lakhs only) through a Sanction letter dated 09.05.2016, on the terms and conditions mentioned therein.

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On accepting the said terms and conditions of sanction ticket mentioned therein and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the defendant signed and executed the loan documents in favour of the applicant at Kodabakkam Branch. M/s. On Track BI Solutions rep by its Proprietor the defendant is liable for the said facility availed. The defendant has availed the said loan from the applicant and become liable to repay the said loan amount with the agreed rate of interest at the time of availing the loan as per the RBL guidelines which is at 11.35% PA with monthly rest such interest being added to the balance outstanding on the amount advanced and bear interest at the same rate.

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At the time of availing the said loan, the defendant had executed the following documents in favour of the applicant:

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a) Agreement of hypothecation of assets dated 09.05.2016

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b) Agreement of term loan dated 09.05.2016

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c) Common agreement dated 09.05.2016

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The Applicant states that the 1^st defendant hypothecated the movable assets, present and in future by executing the said Agreement for hypothecation of movables dated 09.05.2016 in favour of the

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T.A. No. 1573 of 2023

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applicant.

It is submitted by the applicant bank that after availing the said loan amount from the applicant, the defendant failed and neglected to repay the same with interest and other charges. Hence the loan accounts were recalled. The Applicant states that several notices were sent to the defendant did not pay any amount towards such dues till this date. 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 was sent to sole defendant through Registered Post with Acknowledgment Due, which was duly served. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 01.04.2019 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 01.04.2019.

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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. P. Mahendran, 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 defendant 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. 1573 of 2023

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28.07.2025

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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 Defendant a sum of Rs.10,06,473/- (Rupees Ten Lakhs Six Thousand Four Hundred Seventy Three only) due in respect of Cash Credit facility (A/c No.10854011000156) and Term Loan (A/c No.10857011000478) repayable together with further interest and penal interest @ 11.35% per annum with monthly rests from the date of filing this application till the date of realization.

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(b) The applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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(c) 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

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T.A. No. 1573 of 2023

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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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(d) The applicant bank shall file memo of costs within ten days

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from the date of receipt of this final order.

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(e) 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/(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 28^th day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Mahendran, 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	A-1
2.	Sanction Letter dated 09.05.2016	A-2
3.	Agreement of term loan dated 09.05.2016	A-3
4.	Agreement of hypothecation of assets dated 09.05.2016	A-4
5.	Common agreement dated 09.05.2016	A-5
6.	Statement of A/c	A-6

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T.A. No. 1573 of 2023

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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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-NIL-

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

Punjab National Bank v. On Track Bi Solutions Rep By P Venkatesan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. On Track Bi Solutions Rep By P Venkatesan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Statutes considered

Parties & counsel

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Case details

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