Allowed

Punjab National Bank v. Sabeena

DRT9 Jun 2025TA/566/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues arising from an overdraft loan facility. The Tribunal validated the bank's claim of approximately Rs. 30.81 lakh, including interest and penalties, against the borrower and guarantor who were adjudged by default.

What did the court decide?

Recovery of Rs. 30,81,627/- with interest and penal charges; authorization to sell scheduled and personal properties if dues remain unpaid.

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

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T.A. No. 566 of 2023

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09.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 566 of 2023

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(Originally filed before DRT- II, Chennai as OA 355/2020 and thereafter transferred to this Tribunal and renumbered as TA No 566 of 2023)

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M/s. Punjab National Bank, Mylapore Branch, No.150, Luz Church Road, Mylapore, Chennai -600 004, Represented by its Branch Chief Manager ….Applicant

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-Vs-

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Mr. M. Sabeena,

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Wife of Mabin,

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No.52, Denupuri Housing Colony, Madambakkam, Tambaram Taluk, Kanchipuram District,

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PIN -600 126.

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Mr. C. Mohan Kumar,

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Son of Chellappan Nadar,

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31 82C1, Vilayathuvilai, Charoad, Kalkulam, Thuckalay, Kanniyakumari,

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Tamil Nadu -629 175. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. J. Arun Prasad

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Defendants 1 and 2 were set ex-parte on 06.01.2022

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: - FINAL ORDER - :

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This original application is filed on 22.07.2020 by the applicant bank

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

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993)

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T.A. No. 566 of 2023

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09.06.2025

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.30,81,627/- (Rupees Thirty Lakhs Eighty One Thousand Six Hundred and Twenty Seven Only) due in respect of Over Draft Loan facility (Account No.0343009300374303) repayable together with further interest @ 11.05% p.a. with monthly rests and with penal interest @ 2% p.a. from the date of filing the OA, till the date of realization in full and for sale of scheduled mentioned property morefully 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.355 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.355 of 2020 stood transferred to this Tribunal and renumbered as TA No.566 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 first defendant is a borrower and the second defendant is a guarantor. The 1^st defendant had approached the applicant bank for credit facility and made an application dated 28.09.2017 for Over Draft Loan facility to the applicant bank.

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It is submitted by applicant bank that on the basis of such request of

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T.A. No. 566 of 2023

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09.06.2025

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defendants, the Applicant Bank sanctioned OD Facility against IP for a sum of Rs.24.65 Lakhs in favour of the defendants vide sanction letter dated 28.09.2017 subject to the terms and conditions as envisaged thereon.

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The above said facility of Rs.24,65,000/- was availed and the defendants executed the following documents in favour of the bank on 28.09.2017:

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a) Over Draft Agreement b) Agreement of Guarantee c) Letter of Hypothecation

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The Applicant Bank further that the Defendants had created EM on their property as more fully described in the schedule hereunder by depositing the original title deeds as confirmed vide letter of intent executed on 08.02.2018 in terms of Section 58(f) of Transfer of Property Act to cover the loan liability. The Defendants had deposited the original title deeds along with and Sale Deed dated 12.10.1993 registered as Document No.2129 of 1993, SRO, Thuckalay in confirmation of the creation of EM over the schedule mentioned property.

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The 2^nd Defendant has also executed Deed of MOD on 07.02.2018, registered as Doc.No.461 of 2018, SRO, Thuckalay to secure the repayment of aforesaid loan liability in respect of his property namely All that piece and parcel of property situated at Kanyakumari District, Kalkulam Taluk, Kalkulam village, D.No.82 C1, Layathuvilai, Charode, (Block 31), Old

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09.06.2025

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Sy.No.430, RE0Sy-A1/162-2, Previously A1-162 of Padmanabhapuram Municipality to the extent of 6.145 Cents Registration District of Kanyakumary and Sub-Registration District of Thuckalay morefully described in the schedule hereunder, with an intent to create security over the property by way of equitable mortgage in favour of the applicant bank in respect of the Over Draft credit facility allowed in the account of the defendants and such deposit of the title deeds dated 07.02.2018, registered as Document No.461/2018, In the Office of the Sub-Registrar, Thuckalay executed by the defendants.

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Thus the said defendants executed an Over Draft Agreement and created an equitable mortgage over the immovable property described as Schedule hereunder for the due repayment of the Over Draft Credit Facility raised by the first and second defendant.

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The Applicant Bank caused a search in the Sub Registration District of Thuckalay, Kanyakumari District, in which the property that was mortgaged by the defendants by deposit of title deeds situated for a period 13 years and the Applicant is not aware of any encumbrance over the said property.

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In pursuance to execution of the aforesaid documents and creation of securities the credit facilities were availed by the defendants and thereby received consideration.

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The applicant states that subsequent to availing of credit facility, the

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09.06.2025

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first and second defendants were irregular in the repayment of the dues. The applicant made several demands calling upon the defendants to repay the amount but the defendants did not choose to repay the amounts. The applicant bank issued Recall Notice dated 01.06.2009 to the defendants to repay the outstanding amount. The defendants received the notice. The applicant bank through its Authroised Officer had issued Demand Notice under Section 13(2) of the Act on 06.05.2019 followed by Possession Notice dated 16.11.2019 under Section 13(4), both the notices are duly served, despite which the defendants failed and neglected to repay the outstanding 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 and 2 through Registered Post with Acknowledgment Due, which returned unserved as ‘no such person’ and ‘left’ in respect of defendants 1 and 2 respectively. Applicant bank had caused paper publication of notice and filed proof thereof. When OA was taken up on 06.01.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence defendants 1 and 2 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. P. Mahendran, Chief Manager representing the Applicant Bank, has filed his Affidavit by way of

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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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally a sum of Rs.30,81,627/- (Rupees Thirty Lakhs Eighty One Thousand Six Hundred and Twenty Seven

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Only) due in respect of Over Draft Loan facility (Account No.0343009300374303) repayable together with interest @ 11.05% p.a. with monthly rests and with penal interest @ 2% p.a. 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 immovable property.

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(d) If the sale proceeds of the mortgaged immovable property are not sufficient to satisfy the dues as ordered above, the 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 for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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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 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 from the date of receipt 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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09.06.2025

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 09^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: Mr. P. Mahendran, Chief Manager representing the Applicant Bank Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Housing Loan Application submitted by the Defendants to the Applicant dated 28.09.2017.	A-1
2.	Sanctioned Letter along with Terms and Conditions issued by the Applicant Bank dated 28.09.2017.	A-2
3.	Over Draft Loan Agreement executed by the defendants in favour of the Applicant Bank dated 28.09.2017.	A-3
4.	Agreement of Guarantee executed by the Guarantor in favour of the Applicant Bank dated 28.09.2017.	A-4
5.	Letter of Hypothecation executed by the Second Defendant dated 28.09.2017.	A-5
6.	Letter of Intend to deposit of title deeds executed by the 2^nddefendant dated 08.02.2018.	A-6
7.	Sale Deed registered as Document No.2129/1993, SRO-Thuckalay, infavour of the 2^ndDefendant in respect of the OA Schedule mentioned property dated 12.10.1993.	A-7
8.	Memorandum of Deposit of Title Deeds executed by the Defendants to infavour of the Applicant Bank registered as Doc.No.461 of 2018, SRO-Thuckalay dated 07.02.2018.	A-8
9.	Balance and Security Confirmation Letter executed by the Defendants to infavour of the Applicant Bank dated 30.04.2018.	A-9
10.	Re-Call Letter issued by the Applicant dated 01.06.2019.	A-10
11.	Demand Notice issued by the Applicant to the Defendants under Sec.13(2) of the SARFAESI Act,2002 dated 06.05.2019.	A-11

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12.	Possession Notice issued by the Applicant to the Defendants under Sec.13(4) of the SARFAESI Act,2002 dated 16.11.2019.	A-12
13.	Statement of Accounts dated 20.07.2020.	A-13
14.	Certificate under Banker’s Book’s Evidence Act,1891 dated 20.07.2020.	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 -:

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All that piece and parcel of property situated at Kanyakumari District, Kalkulam Taluk, Kalkukam Village, D.No.82 C1, Layathuvilai, Charode, (Block 31), Old Sy.No.430, RE0Sy-A1/162-2, Previously A1-162 of Padmanabhapuram Municipality to the extent of 6.145 Cents Registration District of kanyakumary and Sub-Registration District of Thuckalay and being bounded on the.

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North by : Syenlabdeen Property South by : Road East by : C.M.C. Rajan Property West by : Plot No.2

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And within the Registration District of Kanyakumai and SubRegistration District of Thuckalay.

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Sd/-

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

Punjab National Bank v. Sabeena

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sabeena

Case brief

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What did the court decide?

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