Allowed

Punjab National Bank v. Karthikeyan

DRT14 Aug 2025TA/911/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues. The tribunal held the claim valid and directed recovery of Rs. 56.91 lakhs plus interest from the co-defendants, allowing the bank to sell the mortgaged property if payment is not made.

What did the court decide?

Recovery of Rs. 56,91,283 plus interest at 9.25% per annum; liberty to recover by sale of mortgaged property.

Punjab National Bank versus Karthikeyan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 911 of 2023

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14.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 14^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 911 of 2023

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(Originally filed before DRT- II, Chennai as OA 122/2020 and thereafter transferred to this Tribunal and renumbered as TA No 911 of 2023)

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Punjab National Bank

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Rep. by its Senior Manager, K.K.Nagar Branch, No.347, Dr.Lakshmanasamy Salai, K.K.Nagar, Chennai – 600 078.

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….Applicant

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-Vs-

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1 Mr.P.Karthikeyan,

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S/o.Mr.V.J.Pandian,

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Flat No.S1, 2^nd Floor,

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“Sri Rajani Apartments”,

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Sathiam Street, Shanmuga Nagar, Nerkundram, Chennai – 600 107.

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Also at

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P.Karthikeyan, M/s.Vishnu Bhavan, F-70, Koyambedu Flower Market, Koyambedu, Chennai – 600 107.

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Mrs.P.Parvathi, W/o.Mr.V.J.Pandian, Flat No.S1,2^nd Floor,

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“Sri Rajani Apartments”, Sathiam Street, Shanmuga Nagar, Nerkundram, Chennai – 600 107.

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Mr.P.Senthil Kumar, S/o.Mr.V.J.Pandian, Flat No.S1, 2^nd Floor,

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“Sri Rajani Apartments” Sathiam Street, Shanmuga Nagar, Nerkundram, Chennai – 600 107.

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T.A. No. 911 of 2023

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14.08.2025

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Also at Mr.P.Senthil Kumar, M/s.Masani Amman Fast Foods, Near Rohini Theatre, Koyambedu, Chennai – 600 107. …..Defendants Counsels on record / appeared:

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Counsel for Applicant : Ms. S. Sharmila Devi

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Defendants 1 to 3 were set ex-parte on 04.08.2025

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: - FINAL ORDER - :

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This Original Application is filed on 26.04.2019 by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.56,91,283/- (Rupees Fifty Six Lakhs Ninety One Thousand Two Hundred and Eighty Three Only) due in respect of Housing Loan Facility (A/c No. 251000NC00002658) repayable together with further interest @ 9.25% per annum compounded with monthly rests from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.122 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.122 of 2020 stood transferred to this Tribunal and renumbered as TA No.911 of 2023.

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T.A. No. 911 of 2023

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14.08.2025

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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 defendants have approached the applicant seeking for Housing Loan facility of Rs.51,00,000/- towards purchase of residential flat which is more fully described in the OA schedule and submitted their Application dated 12.01.2015 and 29.01.2015.

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It is submitted by the applicant bank that after perusal, the applicant sanctioned the Housing Loan of Rs.51,00,000/- to the defendants, which is repayable at the rate of 10.25%, floating interest rate. The margin being 20% and the repayment tenure is 30 years. The said loan facility has to be repaid by the defendants in 360 monthly EMI'S of Rs.45,701/- per month commencing from March, 2015. The primary security being Residential Flat more fully described in the schedule of property to be purchased with the loan facility availed by the defendants. Thereafter the said loan amount of Rs.51,00,000/-was disbursed into the housing loan account No.251000NC00002658 by the applicant.

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It is further submitted by the applicant bank that after accepting and acknowledging the terms and conditions of said Sanction, the 1^st

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and 2^nd defendant purchased the schedule property in their name out the said loan facility availed from the applicant and 3^rd defendant stood as Guarantor for the said loan facility availed by the 1^st and 2^nd defendant. Further the defendants jointly have executed an Agreement for Housing loan dated 30.01.2015 with the applicant agreeing to the terms and conditions therein. The 1^st and 2^nd defendants have created equitable mortgage over the said Residential Flat vide Memorandum of Deposit of Title Deeds dated 31/03/2015, registered as Document No. 2280/2015, SRO, Virugambakkam and deposited Original Sale Deed dated 26/03/2015, registered as Document No.2128/2015, SRO, Virugambakkam and Construction Agreement dated 26/03/2015, registered as Document No.2127/2015, SRO, Virugambakkam with the intention to create equitable mortgage with the applicant, in order to collaterally secure the above said loan amount availed by the defendants in favour of the Applicant Bank. Further the 1^st and 2^nd defendant have executed Property Declaration Form dated 10.04.2015 and Annexure II dated 10.04.2015 in favour of the applicant.

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The Applicant Bank submits that after availing and utilizing the above said loan amounts to its fullest benefit for purchase of schedule property, the defendants have failed to repay the loan dues as agreed upon and committed willful default to regularise their Loan Account. The applicant bank further submits that though the Defendants have acknowledged their debt and liability vide Balance and Security

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T.A. No. 911 of 2023

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14.08.2025

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Confirmation Letter dated 10.01.2018 in respect of above said Housing Loan account, the defendants have willfully neglected to regularize the loan account. Consequently, the Housing Loan account No.251000NC00002658 became Non-Performing Asset (NPA) on 12.10.2018 in accordance to RBI guidelines. Despite repeated reminder letters dated 09.05.2017, 27.05.2017 and recall notices dated 02.01.2017, 29.12.2017 and 01.10.2018, the defendants did not come forward to make any remittance in their loan account and regularize the same.

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It is submitted that the applicant bank, through its Authorised Officer had initiated SARFAESI proceedings and issued Demand Notice dated 06.10.2018 U/s. 13(2) of SARFAESI Act, calling upon the defendants to repay the outstanding due amount within 60 days from the date of notice. After giving sufficient time, the Applicant issued Possession Notice dated 20.12.2018 to the defendants after following due process of law. Despite the same, the defendants did not come forward to settle their outstanding dues to the Applicant. In the meantime, the defendants have approached this Tribunal in S.A.No.13 of 2019 challenging the Possession Notice dated 20/12/2018 issued by the Applicant herein. The Tribunal was pleased to grant interim order in the above S.A. However since the defendants did not comply with the conditional order, the said Interim order granted got vacated by the orders of this Tribunal and the said S.A.No.13 of 2019 is pending on the file of this Tribunal for enquiry. Subsequently the defendants made

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T.A. No. 911 of 2023

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remittance of a sum of Rs.4,50,000/- on 30.03.2019 into their Housing Loan account and again the defendants committed willful default in repaying the agreed EMI and failed to regularize their housing loan account No.251000NC00002658. Hence the Housing Loan account No.251000NC00002658 again became NPA on 30.06.2019. The Applicant bank further submits that since the Defendants are not operating the loan accounts and the applicant bank have sent letter/representations to the Defendants to repay the balance due amount together with accumulated interest which however evoked no response from the defendant's end. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to defendants through Registered Post with Acknowledgment Due, summons to 1^st address of the 1^st defendant is received by him and the private notice sent to 2^nd address of the 1^st defendant returned as “UNCLAIMED”. The private notice sent to 2^nd defendant was received by her. The private notice sent to 1^st address of the 3^rd defendant was received by him and the private notice sent to 2^nd address of the 3^rd defendant got returned as “LEFT”. Applicant bank had caused paper publication of the notice and filed proof thereof. Although defendants entered appearance through their counsel, did not file written statement despite availing substantial number of adjournments. Hence opportunity to file

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T.A. No. 911 of 2023

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written statement was closed on 18.03.2022. Thereafter, there has been no representation on behalf of defendants till the date the case was taken up for final hearing. When OA was taken up on 04.08.2025 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 04.08.2025.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Mr. M. Velayutham, Chief 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-26 . 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 a total sum of Rs.56,91,283/- (Rupees Fifty Six

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T.A. No. 911 of 2023

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Lakhs Ninety One Thousand Two Hundred and Eighty Three

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Only) due in respect of Housing Loan Facility (A/c No. 251000NC00002658) repayable together with further interest @ 9.25% per annum with monthly rests from the date of filing the OA till 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 more fully detailed in the OA.

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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 receipt 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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T.A. No. 911 of 2023

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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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 14^th day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: . Mr. M. Velayutham, Chief 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.	Loan Application by 1^stand 2^nddefendants dated 12.01.2015.	A-1
2.	Loan Application by 3^rd defendant dated 29.01.2015.	A-2
3.	Sanction letter dated 28.01.2015.	A-3
4.	Agreement for Housing Loan executed by the defendants in favour of applicant dated 30.01.2015.	A-4
5.	Sale Deed registered as Document No.2128/15, SRO, Virugambakkam dated 26.03.2015.	A-5
6.	Construction Agreement registered as Document No. 2127/15, SRO, Virugambakkam dated 26.03.2015.	A-6
7.	Memorandum of Deposit of Title Deeds, registered as Document No.2280/15, SRO. Virugambakkam dated 31.03.2015.	A-7
8.	Property Declaration Form dated 10.04.2015.	A-8
9.	Annexure II executed by 1^stand 2^nddefendant in favour of applicant dated 10.04.2015.	A-9
10.	Annexure III acknowledgement letter by the applicant dated 11.04.2014.	A-10
11.	Balance and Security Confirmation Letter dated 10.01.2018.	A-11

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T.A. No. 911 of 2023

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14.08.2025

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12.	Reminder letter to the 1^stdefendant dated 09.05.2017.	A-12
13.	Reminder letter to the defendants dated 27.05.2017.	A-13
14.	Recall Notice sent by the applicant to the defendants dated 02.01.2017.	A-14
15.	Recall Notice sent by the applicant to the defendants dated 29.12.2017.	A-15
16.	Recall Notice sent by the applicant to the defendants dated 01.10.2018.	A-16
17.	Demand Notice U/s.13(2) of Sarfaesi Act dated 06.10.2018.	A-17
18.	Acknowledgement cards	A-18
19.	Possession Notice dated 20.12.2018.	A-19
20.	Paper Publication in Tamil Daily regarding Possession Notice dated 26.12.2018.	A-20
21.	Paper Publication in English Daily regarding Possession Notice dated 26.12.2018.	A-21
22.	Photographs	A-22
23.	Panchnama	A-23
24.	Statement of Account in respect of A/c.No.251000NC00002658	A-24
25.	Legal Notice dated 23.01.2019.	A-25
26.	Valuation Report of the schedule property	A-26

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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-A

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All that piece and parcel of House site, situated at Nerkundram Village, Maduravoyal Taluk, Thiruvallur District, bearing Plot No.18 in Annammal Nagar, (Regularisation Permit No.0903/25.11.2003 letter No.4147/2003, dated 25.11.2003) comprised in Survey Nos.129 & 128, Patta No.10825 as per patta Survey No.128/1B measuring an extent of 2983 sq.ft land being

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Bounded on the:

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North by: 24 feet wide Road,

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South by: Vacant land, East by: Plot No.19,

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West by: Mr. Madhavan and Meenakshi Land,

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T.A. No. 911 of 2023

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Measuring

North to South on the Eastern side : 83 feet, North to South on the Western side: 87 feet 5 inches East to West on the Northern side : 35 feet,

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East to West on the Southern side : 35 feet.

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In all admeasuring 2983 sq.ft.

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SCHEDULE-B

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Flat No.S1, 2^nd Floor measuring about 1386 sq.ft. including common area in the apartment known as “Sri Ranjini Apartments” together with 718 sq.ft. of undivided share of land out of schedule ‘A’ mentioned property.

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

Punjab National Bank v. Karthikeyan

Case brief

What is this about?

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Punjab National Bank v. Karthikeyan

Case brief

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