In an ex-parte proceeding, the Tribunal allowed an application by PNB for recovery of dues including principal, interest, and costs from the defendants, relying on the bank's affidavit and undisputed documents.
Recovery of Rs. 20,35,632/- plus future interest and costs; liberty to sell defendant's assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.A. No. 631 of 2023
28.03.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 28th day of March, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 631 of 2023
(Originally filed before DRT- II, Chennai as OA 315/2020 and thereafter transferred to this Tribunal and renumbered as TA No 631 of 2023)
*M/s Punjab National Bank, (Erstwhile Oriental Bank of Commerce) Rep. by its Chief Manager, Cluster Officer – Resolution & Law Branch, No.769, Spencer Plaza, Ground Floor, Anna Salai, Chennai 600 002. ….Applicant
-Vs-
Counsels on record / appeared:
Counsel for Applicant : M/s M. Suresh Defendants 1 & 2 were set ex-parte on 27.07.2022
: - FINAL ORDER - :
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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 and 2, jointly and severally for recovery of a total sum of Rs.20,35,632/- (Rupees Twenty Lakhs Thirty Five Thousand Six Hundred Thirty Two only) due in respect of Cash Credit Facility (Account No.52684011000315) together with further interest @ 14.00% p.a., with monthly rests from the date of Application till the date of realization in full, for costs of this OA.
Brief Facts of the case:
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requested for Cash Credit Loan facilities for its working capital for running their business. In their course of business, they had approached the applicant bank and had applied for the Cash Credit facilities wherein the second defendant had agreed for the hypothecation of entire current assets including Stocks and Book Debts receivable as primary security. Further, to that defendants had executed all necessary document in order to secure the credit facilities availed by them. It is further submitted that, all the necessary documents were signed by the defendants at the office of the Applicant herein at their Madipakkam Branch and now the account being transferred to the its Cluster Officer, Resolution, Recovery & Law Branch at No.769, Spencer Plaza, First Floor, Anna Salai, Chennai – 600 002.
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(iii) Sole Proprietorship Letter dated 08.05.2018 declaring herself as Sole proprietrix of the first defendant concern.
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repayment of the loan amount as agreed and failed to discharge their liabilities. Even after repeated request and demand made by the Applicant bank, the Defendants had continuously committed chronic defaults in repayment of dues. However, the Cash Credit – General Loan facilities which was extended to the defendant, pursuant to the default, the account of the defendant was classified as NPA on 31.12.2019 as per the directives of the Reserve Bank of India. Further, to that applicant bank had also sent a Recall Notice dated 04.01.2020 to the first defendant which was served and acknowledged. However, no steps were initiated by the defendants to regularize the said loan account. It is seen from the statement of accounts that, the defendants had made their last payment of 09.03.2020. Hence the present Original Application (OA) has been filed to recover the amount due from the defendants.
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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-7 . As the Defendants remained exparte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.
: O R D E R :
(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.20,35,632/(Rupees Twenty Lakhs Thirty Five Thousand Six Hundred Thirty Two only) due in respect of Cash Credit Facility (Account No.52684011000315) together with further interest @ 14.00% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application;
(b) The applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the
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Defendants;
(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.
(e) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 28th day of March, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Shri. M. Velayutham, Chief Manager of the Applicant Bank
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Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit No. |
|---|---|---|
| 1. | Application Form 19.02.2018 | A-1 |
| 2. | Sanction Letter 04.05.2018 | A-2 |
| 3. | Sole Proprietorship Letter 08.05.2018 | A-3 |
| 4. | Agreement of Hypothecation of Assets 08.05.2018 | A-4 |
| 5. | Common Agreement 08.05.2018 | A-5 |
| 6. | Recall Notice and Acknowledgement Card 04.01.2020 |
A-6 |
| 7. | Statement of Account with BBE Certificate 20.03.2020 |
A-7 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
SCHEDULE
-NIL-
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the Debt Recovery Tribunal is entitled to conclude the application for recovery of amount due in absence of the Defendants (ex-parte).
1 provisions across 1 enactments
M/s Punjab National Bank
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
