Allowed

Punjab National Bank v. Ayyum Ganapathi

DRT30 Jan 2025TA/705/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an unopposed application filed by a bank for recovery of housing loan dues of approximately Rs. 24.30 Lakhs. The respondent was heard ex-parte. The tribunal directed recovery of the principal amount along with future interest and directed the bank to issue a recovery certificate.

What did the court decide?

Recovery of Rs. 24,30,205/- along with interest at 7.75% per annum compounded monthly and costs.

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

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TA No.705/2023 (E)

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30.01.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 30^th day of January, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 705 of 2023

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(Originally filed before DRT-II, Chennai as OA 58/2021 and thereafter transferred to this Tribunal and renumbered as TA No. 705 of 2023)

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Punjab National Bank (Erstwhile Oriental Bank of Commerce) T-Nagar Branch Rep. by its Chief Manager, 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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Mr. Ayyum Ganapathi S/o Mr. Azhagarsami No.14/1,2^nd Street Mahalakshmi Nagar Sivan Koil Road Thiruverkadu, Tiruvallur Chennai -600 077

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Also, at:

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Mr. Ayyum Ganapathi S/o Mr. Azhagarsami Flat No. F3,1^st Floor North Mada Street Thiruverkadu, Tiruvallur Chennai -600 077 …. Defendant

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Counsels on record / appeared:

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Counsel for Applicant Bank : M/s K.V. Subramanian Associatez Defendant was set ex-parte on 08.10.2021

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TA No.705/2023 (E)

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30.01.2025

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: - FINAL ORDER - :

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This original application is filed on 16.01.2021 by Erstwhile Oriental Bank of 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 defendant for recovery of a total sum of Rs.24,30,205/- (Rupees Twenty-Four Lakhs Thirty Thousand Two Hundred Five Only) due in respect of Housing Loan Facility (Account No.09286015001736) together with further interest @ 7.75% per annum compounded interest with monthly rests, plus 2% penal interest from the date of application 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.58/2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS, dated 04.10.2022, OA No. 58/2021 stood transferred to this Tribunal and renumbered as TA No.705/2023.

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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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The applicant bank's case is that the defendant, an employee of the Tamil Nadu Electricity Board, approached the bank on 26.06.2014 and submitted an application seeking Housing Loan.

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TA No.705/2023 (E)

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30.01.2025

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It is submitted by applicant bank that upon request of the defendant, the applicant bank had sanctioned Housing Loan of Rs.25,00,000/- vide Sanction Letter dated 28.06.2014, which is repayable together with interest at the rate of 10.25% p.a. in 180 equated monthly installments of Rs.27,300/- each commencing from January, 2015 till December, 2029.

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It is submitted by the applicant bank that on availing the said credit facility, the defendant had executed the following loan documents on 28.06.2014 in favour of applicant bank:

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a) Agreement of Individual housing loan for Rs.25,00,000/-

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b) Common Agreement.

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It is submitted by applicant bank that defendant had executed the Balance and Security Confirmation Letter on 09.02.2016 and 06.08.2018 respectively.

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It is further submitted that in order to further secure the liability under the said facility, defendant had created mortgage by deposit of title deeds with an intent to created mortgage on 16.09.2014 and executed a Letter handing over title deeds and Agreement relating to deposit of title deeds 10.07.2014, registered as Doc No.11054/2014 in favour of applicant bank.

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It is submitted by applicant bank that the defendant, after availing the sanctioned credit facilities, violated the terms of the sanction, including the repayment schedule, and defaulted on the repayment of the loan despite repeated reminders. Consequently, the loan account was classified as a Non-Performing Asset (NPA) on

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TA No.705/2023 (E)

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30.01.2025

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30.11.2019. Despite the default and persistent non-compliance, the defendant failed to respond positively. In light of this, the Applicant Bank, through its Authorized Officer, issued a Demand Notice dated 07.12.2019 under Section 13(2) of the SARFAESI Act, calling upon the Defendant to clear the arrears. This was followed by a Legal Notice dated 18.12.2020; however, the defendant failed to settle the dues. Therefore, the Applicant Bank has filed this Original Application (OA) seeking recovery of the outstanding dues from the Defendant.

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After the filing of the OA, summons was sent to the defendant through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as ‘Left without Instruction’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 08.10.2021 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 08.10.2021.

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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, Sri. Velayuthan, Chief Manager of 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-9. As the defendant 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

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TA No.705/2023 (E)

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30.01.2025

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OA claim in a sum of Rs.23,50,000/- by way of sale of mortgaged property under SARFAESI Act on 18.05.2022. Accordingly the memo was taken on record and part satisfaction of OA claim was recorded vide proceedings dated 02.08.2022.

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With regard to the amount due to the applicant bank, 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 Defendant a sum of Rs.24,30,205/- (Rupees Twenty-Four Lakh Thirty Thousand Two Hundred Five Only) due in respect of Housing Loan Facility together with further interest @ 7.75% per annum with monthly rests from the date of filing this application till the date of realization.

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(b) The amount of Rs.23,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower loan account as on the date of realization.

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(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 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 defendant to the applicant bank.

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TA No.705/2023 (E)

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30.01.2025

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(d) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(e) 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 Prasobh Sankar, transcribed by him, corrected, signed and pronounced by me on this the

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30^th day of January, 2025)

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TA No.705/2023 (E)

30.01.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sri. Velayuthan, Chief Manager of applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
	AW-1
1.	Loan Applicationdated26.06.2014	A-1
2.	Sanction Letterdated28.06.2014	A-2
3.	Agreement of Individual housingloandated28.06.2014	A-3
4.	Common Agreement dated28.06.2014	A-4
5.	Balance and Security Confirmationdated 09.02.2016	A-5
6	Balance and Security Confirmationdated 06.08.2018	A-6
7	Recall notice dated 07.12.2019	A-7
8	Legal Notice dated18.12.2020	A-8
9	Statement of Account	A-9

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Witness Examined for the Defendant: -Nil-

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

Punjab National Bank v. Ayyum Ganapathi

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ayyum Ganapathi

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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