Allowed

Punjab National Bank v. Boologavasan

DRT13 May 2025TA/1606/2023

Case brief

AI extract

What is this about?

Punjab National Bank sought recovery of loan dues from the respondents. The Tribunal upheld the bank's claim based on uncontroverted evidence following ex-parte hearings, allowing recovery of principal and interest with costs.

What did the court decide?

Recovery of Rs.67,47,501/- with interest and costs; recovery certificate to be issued.

Punjab National Bank versus Boologavasan — Banking and Recovery | DRT (2025)

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T.A. No. 1606 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. 1606 of 2023

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(Originally filed before DRT- II, Chennai as OA 805/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1606 of 2023)

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Punjab National Bank

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Asset Recovery Management Branch PNB Towers, No.46-49, Royapettah High Road, Chennai – 600 014 Rep. by its Chief Manager

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….Applicant

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-Vs-

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Mr. N. Boologavasan S/o. Mr. Srinivasa Iyer Natarajan Ambi, No.24, Block 4, Plot No.3, Sri Ram Flat, Hasthinapuram,

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Chennai – 600 064

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And at

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House No. 20, “Boulevard Villa”, Thirutheri, Village, Singaperumal Koil Panchayat, Kattankolathur Panchayat Union, Kancheepuram District

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Mrs. Priya Boologavasan, W/o. N. Boologavasan, No.24, Block 4, Plot No.3, Sri Ram Flat, Hasthinapuram, Chennai – 600 064

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And at House No. 20, “Boulevard Villa”, Thirutheri, Village, Singaperumal Koil Panchayat, Kattankolathur Panchayat Union, Kancheepuram District …..Defendants

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T.A. No. 1606 of 2023

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13.05.2025

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Counsels on record / appeared:

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Counsel for Applicant : Mr. S. Vaidyanathan

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Defendants were set ex-parte on 06.08.2021

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: - FINAL ORDER - :

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This original application is filed on 06.08.2019 by the applicant 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 jointly and severally for recovery of a total sum of

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Rs.67,47,501/- (Rupees Sixty Seven Lakhs Forty Seven Thousand Five Hundred and One Only) as follows:

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(i) A sum of Rs.56,02,883/- due in respect of Housing Loan

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Facility (A/c No.254300NC03514747) 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.11,44,618/- due in respect of Overdraft Facility

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(A/c No. 0338009900000138) together with further interest

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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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for sale of Schedule mentioned immovable property morefully

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T.A. No. 1606 of 2023

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13.05.2025

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detailed in Schedule to the OA and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.805 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 805 of 2019 stood transferred to this Tribunal and renumbered as TA No.1606 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 Defendant had vide Applicant dated 15.09.2015 requested the Applicant Bank for takeover of a Housing Loan which he had availed from M/s. Cholamandalam Investment and Finance Company Ltd. Based on the Application the Applicant Bank sanctioned a sum of Rs.49,28,000/-, as requested by the Defendants on Bank’s terms and conditions, which were accepted by the Defendants.

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It is submitted by the Applicant Bank that to evidence the availing of the said Housing Loan facility, the 1^st Defendant had executed the following security documents in favour of the Applicant thereby confirming the loan facility:

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i. Agreement of Housing Loan and certain other undertakings and mandates as required by the Applicant Bank.

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It is further submitted by the Applicant Bank that the Loan was guaranteed by the 2^nd Defendant in her personal capacity and in the said Guarantee agreement dated 18.09.2015, she had agreed to the extension of validity of the Guarantee and other documents, even if it was confirmed only by the 1^st Defendant.

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In order to secure the dues, the 1^st Defendant had deposited the original title deeds pertaining to the property mentioned in Schedule, with the Applicant on 27.10.2015, with an intention to create security for the loan availed by him from the Bank and had executed a Memorandum of Deposit of Title Deeds dated 24.02.2016 registered as Doc. No.1809/2016 with SRO, Pallavaram, in favour of the Bank.

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Applicant Bank submitted that the Defendants had further applied for

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and availed Overdraft facility of Rs.10.00 Lakhs against the same property, which was sanctioned by the Applicant Bank on 15.09.2017. The overdraft was repayable on demand and interest @ 9.55% p.a., was to be serviced by the Defendants, as and when applied in the account.

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The 1^st Defendant had accepted the terms and conditions of sanction and had executed Agreement of Overdraft facility for Housing Loan

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Borrowers, in favour of the Applicant Bank. The 1^st Defendant had also agreed to extend the mortgage of the Schedule mentioned property as security for the overdraft against Housing Loan, and had executed mortgage deed dated 15.09.2017 in favour of the Applicant Bank.

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It is further submitted that the 1^st Defendant had executed a balance and security confirmation letter dated 08.02.2018 confirming the balance in the Housing Loan account as on 08.02.2018 whereby the validity of the documents executed in the loan account have been extended and are not barred by limitation.

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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 31.03.2018, as per the guidelines issued by the RBI. The Applicant had issued several reminders to the Defendants for repayment of the loan, and since no response was received, a notice was issued on 17.05.2018 to the defendants under Section 13(2) of the SARAFESI Act, 2002. However, the Defendants did not come forward to repay the outstanding loan amount. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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T.A. No. 1606 of 2023

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13.05.2025

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After filing of the OA, Summons were sent to D1 & D2 through Registered Post with Acknowledgement due, which was returned unserved with postal endorsement as ‘No Such Addressee’. Applicant Bank had caused Paper Publication of Notice and filed proof thereof. When OA was taken up on 06.08.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants were placed ex-parte on 06.08.2021.

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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, Mr. P. Mahendran, Chief Manager, Circle SASTRA South Branch 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-14 . 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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During the pendency of OA, applicant bank had reported part satisfaction of OA claim in a sum of Rs.41,50,000/- by way of sale of Schedule immovable property under SARFAESI Act on 16.12.2022. Accordingly, part satisfaction of sum of Rs.41,50,000/- is duly recorded vide proceedings dated 28.08.2024 and documents marked as Ex A-5 and A-6 were returned to applicant bank on 26.09.2024 under proper

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T.A. No. 1606 of 2023

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acknowledgment as per extant guidelines.

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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.67,47,501/- (Rupees Sixty Seven Lakhs Forty Seven Thousand Five Hundred and One Only) as follows:

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(i) A sum of Rs.56,02,883/- due in respect of Housing Loan Facility (A/c No.254300NC03514747) 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.11,44,618/- due in respect of Overdraft Facility (A/c No. 0338009900000138) 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; along with costs of this application.

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(b) The sum of Rs.41,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) The applicant bank is at liberty to sell the personal assets / hypothecated assets of the defendants (both movable and immovable) to recover the balance dues as required under law;

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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/(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. P. Mahendran, Chief Manager, Circle SASTRA South Branch 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 Credit facilities from D-1 dated 15.09.2015	A-1
2.	Sanction Letter with acknowledgement dated 18.09.2015	A-2
3.	Agreement for Housing Loan executed by 1^st Defendant dated 18.09.2015	A-3
4.	Guarantee Agreement executed by 2^ndDefendant 18.09.2015	A-4
5.	Memorandum of deposit of title deeds executed by D1 registered as Doc. No.1809/2016 24.02.2016	A-5
6.	Sale Deed executed by T. Anoop Bora in favour of N. Boologavasan registered as Doc.No.13604/2014 dated 10.11.2014	A-6
7.	Sanction letter for overdraft facility dated 15.09.2017	A-7
8.	Agreement of Overdraft facility executed by D1 15.09.2017	A-8

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9.	Mortgage Deed executed by D1 for overdraft facility Dated 15.09.2017	A-9
10.	Balance and security confirmation letter executed by 1^stDefendant dated 08.02.2018	A-10
11.	Demand Notice issued by Applicant to Defendants under SARFAESI Act, 2002 with acknowledgement dated 17.05.2018	A-11
12.	Statement of Accounts from 18.09.2015 to 30.01.2018 in Housing Loan Account.	A-12
13.	Statement of Accounts from 15.09.2017 to 31.03.2018 in Overdraft Account.	A-13
14.	Memorandum of Calculation from 01.04.2018 to 03.07.2019 (NPA Period) in Housing Loan and Overdraft Account.	A-14

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

Punjab National Bank v. Boologavasan

Case brief

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Punjab National Bank v. Boologavasan

Case brief

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