Allowed

Punjab National Bank v. Prabhakaran

DRT13 May 2025TA/1584/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery of dues totaling Rs. 60,72,571.93p along with interest, against the respondents who defaulted on housing, overdraft, and car loans. The order permits sale of mortgaged property to recover the dues.

What did the court decide?

Recovery of Rs. 60,72,571.93p with interest; liberty to sell mortgaged and personal assets; issue of Recovery Certificate.

Punjab National Bank versus Prabhakaran — Consumer Protection | DRT (2025)

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T.A. No. 1584 of 2023

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13.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1584 of 2023

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(Originally filed before DRT- II, Chennai as OA 810/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1584 of 2023)

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Punjab National Bank

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K.K. Nagar Branch, No.347, Dr. Lakshmanasamy Salai, K.K. Nagar, Chennai – 600 078 Rep. by its Senior Manager ….Applicant

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-Vs-

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1 Mr. R. Prabhakaran S/o. Mr. C. Rajendran, r/o No.3, Ramanujar Street, Sreevaari Avenue, Ayimicheri, Kancheepuram District Pin – 602 105

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Mr. S. Anand,

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S/o. Mr. Surendra Babu, No.1, Ramanujam Street, Sreevaari Avenue, Ayimicheri, Kancheepuram District Pin – 602 105

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…..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : S. Vaidyanathan

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Defendants were set ex-parte on 06.01.2022

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: - FINAL ORDER - :

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This original application is filed on 03.09.2019 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly

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T.A. No. 1584 of 2023

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13.05.2025

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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.60,72,571.93p (Rupees Sixty Lakhs Seventy Two Thousand Five Hundred & Seventy One and Ninety Three Paise Only) as follows:

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(i) A sum of Rs.47,12,132.89p due in respect of Housing Loan

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(A/c No.251000NC00002436) from 1^st defendant together with further interest thereon @ 9.25% p.a., with monthly rests along with penal interest @ 2% p.a., from the date of application till the date of realization in full;

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(ii) A sum of Rs.10,32,269.14p due in respect of Overdraft against Housing Loan (A/c No.2510009900000268) from 1^st defendant together with further interest thereon @ 9.75% p.a., with monthly rests along with penal interest @ 2% p.a., from the date of application till the date of realization in full;

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(iii) A sum of Rs.3,28,169.90p due in respect of Car Loan Facility

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(A/c No. 251000NG00000630) from defendants 1 and 2, jointly and severally, together with further interest thereon @ 9.50% p.a., from the date of application till the date of realization in full;

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for sale of schedule mentioned immovable property and for costs of this application.

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T.A. No. 1584 of 2023

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13.05.2025

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.810 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 810 of 2019 stood transferred to this Tribunal and renumbered as TA No.1584 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 Hon’ble Tribunal.

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It is the case of the Applicant Bank that the 1^st Defendant had applied for a Housing Loan of Rs.32.00 Lakhs for purchase of Flat at Guduvanchery, vide Application dated 07.04.2014, which was sanctioned by the Applicant Bank vide Sanction Letter dated 10.04.2014 acknowledged by the Defendants.

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The 1^st Defendant had executed a Housing Loan agreement in favour of the Bank. The 1^st Defendant had deposited the original title deeds for the schedule property in favour of the Bank and had also executed a Memorandum of Deposit of Title Deeds dated 11.04.2014 registered as Doc.No.2335/2014.

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The 1^st Defendant had further availed a overdraft facility against Housing Loan of Rs.2,70,000/- from the Applicant Bank, and had executed Agreement

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for Overdraft facility dated 21.11.2014 in favour of the Applicant Bank, agreeing to repay the loan on demand and accepting the terms and conditions of sanction. The 1^st Defendant and had extended security for the additional amount by depositing the title deeds to the schedule property and also executing MOD dated 18.11.2014 registered as Doc. No.7462/2014.

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At the request of the 1^st Defendant, the Applicant had enhanced the overdraft facility against Housing Loan to Rs.8,60,000/- and the 1^st Defendant had executed Agreement for Overdraft facility dated 28.09.2016 in favour of the Applicant accepting the terms of sanction and to abide all the other terms and conditions, as required for the sanction of the Overdraft.

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The 1^st Defendant had also re-deposited the title deeds of the Schedule property as security for the enhanced overdraft facility of Rs.8,60,000/- and had executed MOD dated 28.09.2016 registered as Doc. No.4226/2016 with SRO, Walajabad in favour of the Applicant Bank.

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The 1^st Defendant had applied for a Car Loan of Rs.6,50,000/- vide Application dated 24.09.2014 which was sanctioned by the Applicant vide Sanction letter dated 29.09.2014. The 1^st Defendant had also hypothecated vehicle purchased out of the loan, in favour of the Applicant Bank, by a Hypothecation Agreement dated 29.09.2014. The 2^nd Defendant had executed Guarantee Agreement in favour of Applicant dated 29.09.2014

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offering his personal guarantee for the Car Loan.

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The hypothecated vehicle has been sold in public auction as per the agreement of hypothecation entered by the Defendant and the amount has since been appropriated to the loan account.

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It is submitted by Applicant Bank that after availing the said facility, the defendants deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendants miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 30.06.2017, as per the guidelines issued by the RBI. The Applicant Bank through its Authorized Officer, had issued a Demand Notice under Section 13(2) of the SARFAESI Act, 2002 to the 1^st Defendant claiming the amounts due in the account with interest but the Defendant has not responded to the notice of Demand. Hence, this Original Application (OA) has been filed to recover the 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 Acknowledgement due, which was returned unserved with postal endorsement as ‘Left’, in respect of D-1, while summon to D2 was duly served. Applicant Bank had caused Paper Publication of Notice in respect of D1 and filed proof thereof. When OA was taken up on 06.01.2022 even after giving sufficient time, there was no

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appearance or representation from the defendants. Hence, defendants were placed ex-parte on 06.01.2022.

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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, Mr. Pawan Kumar Gupta, 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-19 . 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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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 sum of Rs.60,72,571.93p (Rupees Sixty Lakhs Seventy Two Thousand Five Hundred and Seventy One and Ninety Three Paise Only) as follows:

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(i) A sum of Rs.47,12,132.89p due in respect of Housing Loan (A/c No.251000NC00002436) from 1^st defendant together

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T.A. No. 1584 of 2023

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13.05.2025

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with further interest thereon @ 9.25% p.a., with monthly rests along with penal interest @ 2% p.a. simple, from the date of application till the date of realization in full;

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(ii) A sum of Rs.10,32,269.14p due in respect of Overdraft against Housing Loan (A/c No.2510009900000268) from 1^st defendant together with further interest thereon @ 9.75% p.a., with monthly rests along with penal interest @ 2% p.a. simple, from the date of application till the date of realization in full;

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(iii) A sum of Rs.3,28,169.90p due in respect of Car Loan Facility (A/c No. 251000NG00000630) from 1^st and 2^nd defendants jointly and severally, together with further interest thereon @ 9.50% 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) 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 morefully detailed in the OA;

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(d) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, the

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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;

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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 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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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 (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 13^th day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Pawan Kumar Gupta, Chief Manager, of 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.	Application for housing loan dated 10.04.2014	A-1
2.	Sanction letter acknowledged by D1 dated 10.04.2014	A-2
3.	Housing Loan Agreement executed by D1 dated 10.04.2014	A-3
4.	MOD executed by D1 registered as Doc. No.2335/2014 dated 11.04.2014	A-4
5.	Application for Car Loan dated 24.09.2014	A-5
6.	Sanction letter for Car Loan acknowledged by D1 dated 29.09.2014	A-6
7.	Hypothecation Agreement executed by D1 dated 29.09.2014	A-7
8.	Guarantee Agreement executed by D2 dated 29.09.2014	A-8
9.	Sanction letter for OD facility acknowledged by D1 dated 21.11.2014	A-9
10.	Agreement for overdraft facility of 2.70 Lakhs executed by D1 dated 21.11.2014	A-10
11.	Memorandum of Deposit of Title Deeds executed by D1 Registered as Doc. No.7462/2014 dated 18.11.2014	A-11

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12.	Agreement for Overdraft facility of 8.60 Lakhs executed by D1 dated 28.09.2016	A-12
13.	Supplemental Memorandum of Deposit of Title Deeds executed by D1 registered as Doc.No.4226/2016 dated 28.09.2016	A-13
14.	Sale Deed executed by S. Anand in favour of R. Prabhakaran Registered as Doc. No.3872/2013 dated 12.06.2013	A-14
15.	Balance and Security confirmation letter in Housing Loan Account dated 09.09.2016	A-15
16.	Balance and Security confirmation letter in Car Loan Account dated 09.09.2016	A-16
17.	Statement of Account in Housing Loan Account	A-17
18.	Statement of Account in OD Account	A-18
19.	Statement of Account in Car Loan Account	A-19

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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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All that piece and parcel of House site comprised in Survey Nos.71/1A, 72/2, 76/1, 78/2 in the layout named “Sri Vaari Avenue” bearing Plot Nos.20 and 21, with Total extent of 3,256 Sq.ft., situated at Ayemichery Village, Kancheepuram Taluk and District, the Sub-Registration District of Walajahbad and Registration District of Kancheepuram.

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The Property is bounded on the ;

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North by : 20 feet Road; South by : Vacant Land and Plot No.24 in Sy. No.72/3 East by : Plot No.19 West by : Plot No.22 In all admeasuring 3,256 Sq.ft., (302.48 Sq.mtr) House site

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER,

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DRT-III, CHENNAI

Punjab National Bank v. Prabhakaran

Case brief

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Punjab National Bank v. Prabhakaran

Case brief

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