Allowed

Punjab National Bank v. M/S Sri Lakshmi Saraswathi Spintex Ltd.

DRT16 May 2025TA/1757/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an ex-parte application by Punjab National Bank for recovery of Rs. 48,31,282/- along with interest against the non-appearance of the appellant firm and guarantors, directing a recovery certificate to be issued.

What did the court decide?

Recovery of Rs. 48,31,282/- plus interest and costs; liberty to sell hypothecated and personal assets; issue of Recovery Certificate.

Punjab National Bank versus M/S Sri Lakshmi Saraswathi Spintex… — Banking and Recovery | DRT (2025)

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T.A. No. 1757 of 2023

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16.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 16^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1757 of 2023

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(Originally filed before DRT- II, Chennai as OA 217/2022 and thereafter transferred to this Tribunal and renumbered as TA No 1757 of 2023)

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Punjab National Bank, Mylapore Branch, Represented by its Chief Manager, Presently Migrated to, Circle SASTRA Centre, Chennai South, PNB Towers, Mezzanine Floor, Nos.46-49, Royapettah High Road, Royapettah, Chennai – 600 014

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….Applicant

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-Vs-

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M/s. Sri Lakshmi Saraswathi Spintex Ltd.,

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Rep. by its Managing Director Mr. Aditya Praveen,

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No.9, Old No.8, Crescent road,

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Shenoy Nagar, Chennai – 600 030.

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(PAN: AAPCS1918R)

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Mr. Aditya Praveen,

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B13, Fort Indraprastha, No.18A,

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Kalakshetra Road, Thiruvanmiyur, Chennai – 600 041.

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Mr. Naveen Chandra,

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B13, Fort Indraprastha, No.45,

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Kalakshetra Road, Thiruvanmiyur, Chennai – 600 041. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. R. Jagadeesan

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Defendants 1 to 3 were set ex-parte on 11.08.2023

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: - FINAL ORDER - :

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This original application is filed on 30.09.2021 by the applicant

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T.A. No. 1757 of 2023

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16.05.2025

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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 to 3, jointly and severally for recovery of a total sum of Rs.48,31,282/- (Rupees Forty Eight Lakhs Thirty

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One Thousand Two Hundred and Eight Two Only) due in respect of Term Loan (Account No.06596515002705) repayable together with an interest @ 8% p.a. compounded with monthly rests plus penal interest @ 2% from the date of filing the OA, till the date of realization in full and for costs of this Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.217 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.217 of 2022 stood transferred to this Tribunal and renumbered as TA No.1757 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 is a Limited Company named “M/s. Sri Lakshmi Saraswathi Spintex Limited”, wherein 2^nd Defendant is Director, who is Borrower / Guarantor and 3^rd Defendant is the Guarantor.

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T.A. No. 1757 of 2023

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16.05.2025

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It is submitted by the applicant bank that at the request of 1^st Defendant, the Applicant Bank through its Branch Office at TTK Road, Mylapore sanctioned Term Loan facility to the tune of Rs.52 lakhs.

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In respect of the said facilities and also to secure the amount outstanding, Defendants 1 and 2 executed the following loaning and security documents:

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a) Application for Term Loan requesting a loan for Rs.52 lakhs for purchasing a Car.

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b) Sanction Letter issued by the branch.

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c) Agreement of Term Loan executed by the 1^st defendant represented by the 2^nd defendant.

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d) Common Agreement executed by the 1^st defendant represented by the 2^nd defendant.

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The 2^nd and 3^rd Defendants executed Agreement of Guarantee dated 18.01.2019 for Rs.52 Lakhs in favour of applicant bank.

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The 1^st Defendant has executed Agreement of Term Loan dated 22.12.2017 clearly admitting the fact that the Vehicle (New Mercedes

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Benz Car) was hypothecated to the Applicant Bank. Accordingly, the hypothecation of TN03 AJ 001 was registered in favour of the bank.

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Inspite of availing the loan for purchase of the car and even after utilisation of the car purchased from the funds of the bank, the defendants did not choose to repay the loan as per the agreement entered between the bank and the defendants. The account has become

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T.A. No. 1757 of 2023

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16.05.2025

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irregular since 29.02.2020 in all the facilities mentioned above, instalments have not been paid. A recall notice for entire outstanding has been made as per the letter 17.03.2020 under SARFAESI ACT respectively. The Defendants issued a reply dated 14.05.2020 to the above said Notice sent by the Applicant Bank stating that due to the sudden National lockdown, there is an inability to do the business and thus a time of 60 days could be given from the date of lifting of National Lockdown and re-starting of business activities so that the entire outstanding in the Term Loan Would be discharged. However, the defendants have not fulfilled the promise even though the national lock down was lifted.

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The applicant has taken action under the SARFAESI Act, 2002. Legal Notices were also sent to the Defendants on 11.01.2021. A reply was sent by the defendants for the legal notice issued by the Applicant Bank on 25.01.2021 requesting three months’ time to restart repayment of the loan availed by them by taking into consideration the pandemic prevailing in the country but is yet to repay the dues/overdue. The Applicant initiated action under the above Act but could not realize the amount from the Defendants due to their intentional default, not to repay the dues. Hence the present Original Application (OA) is filed for recovery of dues from defendants

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After the filing of the OA, Summons were sent to D1 and D3 through Registered Post with Acknowledgment Due, which was duly

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T.A. No. 1757 of 2023

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16.05.2025

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served. When OA was taken up on 11.08.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 11.08.2023.

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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. R. Rajasekaran, Senior 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-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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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 1 to 3 jointly and severally a sum of Rs.48,31,282/- (Rupees

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Forty Eight Lakhs Thirty One Thousand Two Hundred and Eight Two Only) due in respect of Term Loan (Account No.06596515002705) repayable together with an interest @ 8%

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T.A. No. 1757 of 2023

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p.a. compounded with monthly rests plus penal interest @ 2% from the date of filing the OA, 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 assets.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants 2 and 3 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 2 and 3 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 and 3;

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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 Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry

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to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

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

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T.A. No. 1757 of 2023

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16.05.2025

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from the date of this final order.

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(g) 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 (Surya), transcribed by him, corrected, signed and pronounced by me on this the 16^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. R. Rajasekaran, Senior 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.	Application for Term Loan dated 22.12.2017.	A-1
2.	Sanction Letter of the Applicant Bank dated 22.12.2017.	A-2
3.	Agreement of Term Loan executed by the 1^st Defendant represented by the 2^ndDefendant dated 22.12.2017.	A-3
4.	Common Agreement executed by the 1^stDefendant represented by the 2^nd defendant dated 22.12.2017.	A-4
5.	Agreement of Guarantee executed by the 2^nd Defendant dated 18.01.2019.	A-5
6.	Agreement of Guarantee executed by the 3^rd Defendant dated 18.01.2019.	A-6
7.	Copy of Registration Certificate.	A-7

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T.A. No. 1757 of 2023

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16.05.2025

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	Notices/Letter Se	nt to	Defendant		A-8
8.	Notice issued by the SARFEASI ACT to the 17.03.2020.	Appli 1^st	cant Bank Defendant	under dated
9	Notice issued by the SARFEASI ACT To the 17.03.2020.	Appli 2^nd	cant Bank Defendant	under dated	A-9
10	Notice issued by the SARFEASI ACT to the 17.03.2020.	Appli 3^rd	cant Bank Defendant	under dated	A-10
11	Reply given by the Defend 17.03.2020 issued by th 14.05.2020.	ants e Ap	for the notice plicant Bank	dated dated	A-11
12	Legal Notice sent by the A AD cards dated 11.01.202	pplica 1.	nt Bank alon	g with	A-12
13	Reply given by the Defend issued by the Applicant Ba	ants nk da	to the Legal ted 25.01.20	Notice 21.	A-13
14	Statement of Account No.06596515002705	for	Term Loan	A/c.	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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		:- SCHEDULE-:
Class of Vehicle	:	L.M.V (CAR)
Maker’s Name	:	Mercedes Benz India Pvt. Ltd.,
Type of Body	:	Car (SEDAN)
Month and Year	:	1/2017
No. of Cylinders	:	4
Chassis Number	:	WDC2539036L003211
Engine Number	:	65192133772230
Maker’s Class	:	MERCEDES BENZ OLC 220D 4M B84

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

Punjab National Bank v. M/S Sri Lakshmi Saraswathi Spintex Ltd.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Sri Lakshmi Saraswathi Spintex Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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