Allowed

Punjab National Bank v. Mother Graphics

DRT18 Jun 2025TA/1580/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a term loan. The court held unchallenged evidence of loan sanction, guarantee agreements, and NPA classification sufficient to grant a final order for joint and several recovery of the principal, interest, and costs.

What did the court decide?

Recovery of Rs. 21,64,877.36 plus interest at 12.50% p.a., costs, and liberty to sell personal assets to recover balance dues.

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

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T.A. No. 1580 of 2023

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18.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 18^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1580 of 2023

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(Originally filed before DRT- II, Chennai as OA 506/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1580 of 2023)

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*Punjab National Bank, (Erstwhile Oriental Bank of Commerce), Circle Sastra Centre, Chennai North Ground Floor, Spenzer Plaza, No. 769, Anna Salai, Chennai – 600 002. Rep by its Manager ….Applicant

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(Amended vide order dated 21.04.2021 in view of merger and order dated 25.07.2022 in view of change of address)

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-Vs-

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M/s. Mother Graphic,

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Rep. by its Proprietor,

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C. Jesudasan,

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No. 2/220, Mettu Street, Agraharam,

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Chennai – 600 056.

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C.C. Rajendran, S/o. Chinnasamy, No. 254/287/2, KVB Garden, Chennai – 600 028.

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…. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. P. Reghuraja

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Defendants 1 & 2 were set ex-parte on 09.12.2021

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T.A. No. 1580 of 2023

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18.06.2025

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: - FINAL ORDER - :

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This Original Application is filed on 20.09.2018 by the Erstwhile Oriental Bank of Commerce (since merged with Punjab National Bank), under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 & 2, jointly and severally for recovery of a total sum of Rs.21,64,877.36p (Rupees Twenty One Lakhs Sixty

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Four Thousand Eight Hundred Seventy Seven and Thirty Six Paise only) due in respect of Term Loan (Account No.16767015000681) together with further interest @ 12.50% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.506 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.506 of 2019 stood transferred to this Tribunal and renumbered as TA No.1580 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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T.A. No. 1580 of 2023

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18.06.2025

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It is the case of the applicant bank that the 1^st defendant M/s. Mother Graphic, represented by its Proprietor C. Jesudasan approached the applicant bank and submitted an application at its Branch Office in Perambur Branch for availing a term Loan for a sum of Rs.10,00,000/- on 05.08.2013 and enhancement of term loan of Rs.10,00,000/- to Rs.15,00,000/- on 30.10.2013.

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It is submitted that the applicant bank considered the proposal and sanctioned a sum of Rs.15,00,000/- through a Sanction Ticket dated 07.11.2013 on the terms and conditions mentioned thereon.

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The Applicant submits that on accepting the said terms and conditions of sanction letter mentioned thereon and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the 1^st defendant signed and executed the loan documents in favour of the applicant. M/s Mother Graphic, represented by its Proprietor, the 1^st defendant is liable for the said facility availed. The 2^nd defendant personally guaranteed the repayment of the loan with interest to the applicant by the 1^st defendant.

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The 1^st defendant had availed the said loan from the applicant and became liable to repay the said loan amount with the agreed rate of interest at the time of availing the loan as per the RBI guidelines which is at 12.50% PA with monthly rest such interest being added to the balance

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T.A. No. 1580 of 2023

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18.06.2025

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outstanding on the amount advanced and bear interest at the same rate. At the time of availing the said loan, the defendants had executed the following documents in favour of the applicant:

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(a) Agreement of term loan dated 05.08.2013

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(b) Common agreement dated 05.08.2013

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(d) Agreement of term loan dated 08.11.2013

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(e) Common agreement dated 08.11.2013

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(f) Agreement of guarantee dated 08.11.2013

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It is submitted by applicant bank that as the 1^st defendant was in financial crisis due to flood, in order to help the 1^st defendant, the applicant further sanctioned a sum of Rs.5,37,600/- and Rs.8,16,000/- on 08.01.2016 and credited the monthly instalment in his loan Account. The 1^st defendant has not executed any loan documents for this loan amount.

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It is further submitted that guaranteeing the due repayment of the said facility availed by the 1^st defendant and performance of all obligations in relation thereto, the 2^nd defendant had executed the Agreement of Guarantee dated 05.08.2013 and 08.11.2013, in favour of the applicant.

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The Applicant submits that after availing the said loan and from the applicant, the defendants failed and neglected to repay the same with interest and other charges. The applicant states that several notices were

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T.A. No. 1580 of 2023

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18.06.2025

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sent to the defendants calling upon these to pay the amount dues. However, the defendants did not pay any amount towards such dues till this date. Therefore the loan account was classified as NPA on 25.10.2017 in accordance with RBI guidelines. Despite several notices, the defendants had not paid the dues. Hence the present Original Application (OA) has been filed for recovery of amounts due from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘intimation delivered’ in respect of D-1 and “No such Person” in respect of D2. However, one Mr. R. Prasath, Advocate undertook to file vakalat on behalf of defendants and sought time, but neither vakalat or written statement filed by defendants. When OA was taken up on 09.12.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 & 2 were placed ex-parte on 09.12.2021.

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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. Mahendran, Chief Manager of 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-10 . As the Defendants remained

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T.A. No. 1580 of 2023

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18.06.2025

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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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally for recovery of a total sum of Rs.21,64,877.36p (Rupees Twenty One Lakhs Sixty Four Thousand Eight Hundred Seventy Seven and Thirty Six

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Paise only) due in respect of Term Loan (Account No.16767015000681) together with further interest @ 12.50% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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(b) The applicant bank is at liberty to sell the personal assets of the defendants 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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T.A. No. 1580 of 2023

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18.06.2025

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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 Defendant 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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(d) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(e) 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 (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 18^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Mahendran, Chief Manager of the Applicant Bank

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T.A. No. 1580 of 2023

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18.06.2025

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	07.11.2013	Loan Application	A-1
2.	30.10.2013	Loan Application	A-2
3.	07.11.2013	Sanction Letter	A-3
4.	05.08.2013	Agreement of Term Loan	A-4
5.	05.08.2013	Common Agreement	A-5
6.	05.08.2013	Agreement of Guarantee	A-6
7.	08.11.2013	Agreement of Term Loan	A-7
8.	08.11.2013	Common Agreement	A-8
9.	08.11.2013	Agreement of Guarantee	A-9
10.	--	Statement of Account	A-10

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

:- SCHEDULE -:

NIL

Sd/-

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

Punjab National Bank v. Mother Graphics

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mother Graphics

Case brief

What is this about?

What did the court decide?

What the court decided

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