Allowed

Punjab National Bank v. Subhashini Madan

DRT20 May 2025TA/995/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's transfer application seeking realization of Rs.35.5 Lakhs. The court recorded part satisfaction from a previous sale and directed recovery of the balance from personal assets if mortgaged property proceeds are insufficient.

What did the court decide?

Recovery of Rs.35,51,817/- with interest directed against the defendant; liberty to sell personal assets for balance dues; Recovery Certificate to be issued.

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

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T.A. No. 995 of 2023

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20.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 995 of 2023

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(Originally filed before DRT- II, Chennai as OA 172/2021 and thereafter transferred to this Tribunal and renumbered as TA No 995 of 2023)

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Punjab National Bank Circule SASTRA South, PNB Towers, No.46-49, Royapettah High Road, Chennai – 600 014 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mrs. Subhshini Madan W/o. R. Madan, Door No.D, 3^rd Block, 3^rd Floor, Tiruneermalai Road, Bashyam Apartment, Chrompet, Chennai – 600 044 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. S. Vaidyanathan

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Defendant was set ex-parte on 17.12.2021

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: - FINAL ORDER - :

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This original application is filed on 22.03.2021 by the applicant bank

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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.35,51,817/(Rupees Thirty Five Lakhs Fifty One Thousand Eight Hundred and

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Seventeen Only) due in respect of Housing Loan A/c

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T.A. No. 995 of 2023

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20.05.2025

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No.05816016000886 together with interest thereon @ 7.70% p.a., with monthly rests plus penal interest @ 2% p.a., 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. 172 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.172 of 2021 stood transferred to this Tribunal and renumbered as TA No.995 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 Defendant vide Application dated 05.08.2017 had requested the Applicant Bank for a Housing Loan for purchase of Flat No.C3, at Plot No.126, Porur Kundrathur Vijayam Cooperative Maha Nagar Phase-1, Kunrathur.

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It is submitted that based on the Application, the Applicant Bank sanctioned a sum of Rs.31,00,000/-, as Housing Loan, as requested by the Defendant vide Sanction Letter dated 24.08.2017, the terms and conditions of which were accepted by the Defendant.

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T.A. No. 995 of 2023

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20.05.2025

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The Applicant Bank submitted that to evidence the availing of the said Housing Loan facility, the Defendant had executed the following security documents in favour of the Applicant thereby confirming the loan facility:

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i. Agreement for Housing Loan dated 24.08.2017

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ii. Common Agreement dated 24.08.2017

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iii. Tripartite Agreement with Builder and the Bank dated 24.08.2017

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iv. Common Affidavit from borrower in case of home loans dated

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24.08.20127

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v. Affidavit from borrower on legal heirs dated 24.08.2017

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vi. Power of Attorney of Borrower / Defendant dated 24.08.2017

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And certain other undertakings and mandates, as required by the Applicant Bank.

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It is submitted by the Applicant Bank that the defendant had deposited the Construction Agreement and Sale Deed in respect of the said property as mentioned in Schedule-A and B dated 31.08.2017 registered as Doc. No.11942 and 11943/2017 respectively with SRO, Kunrathur, with the Applicant Bank with an intention to create security for the credit facility being sanctioned to her. The Defendant had further executed Memorandum

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of Deposit of Title Deeds for the Two Properties on 17.11.2017 in favour of the Applicant Bank and the same was registered as Doc.No.16142/2017 with SRO, Kunrathur.

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T.A. No. 995 of 2023

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20.05.2025

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It is submitted by Applicant Bank that after availing the said facility, the defendant deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendant miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 29.01.2019, as per the guidelines issued by the RBI. Inspite of repeated reminders and requests, defendant did not come forward to repay the dues. Hence, this Original Application (OA) has been filed to recover the dues from the defendant.

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After the filing of the OA, Summons was sent to Sole Defendant through Registered Post with Acknowledgement due, which was returned unserved with the remarks “Left”. Applicant Bank had caused Paper Publication of Notice and filed proof thereof. When OA was taken up on 17.12.2021 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant were placed ex-parte on 17.12.2021.

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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, Mr. P. Mahendran, Chief 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

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T.A. No. 995 of 2023

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20.05.2025

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marked as Ex A-1 to A-13 . 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 OA claim in a sum of Rs.27,50,000/- by way of sale of mortgaged property described in Schedule A, B & C to the OA and realized a sum of Rs.27,50,000/- on 23.06.2023 and issued a Sale Certificate on 19.09.2023. Accordingly, part satisfaction of sum of Rs.27,50,000/- is duly recorded vide proceedings dated 06.08.2024 and documents marked as Ex A-9 to A-11 were returned to applicant bank under proper acknowledgment on 26.09.2024.

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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 Defendant a

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sum of total sum of Rs.35,51,817/- (Rupees Thirty Five

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Lakhs Fifty One Thousand Eight Hundred and Seventeen Only) due in respect of Housing Loan A/c

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T.A. No. 995 of 2023

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(b) The sum of Rs.27,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law;

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(d) In the event of failure of the defendant to pay the aforesaid amount, the applicant bank is at liberty to sell the personal assets / hypothecated assets of the defendant (both movable and immovable) to recover the outstanding dues as required under law;

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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 defendant 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

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T.A. No. 995 of 2023

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20.05.2025

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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 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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(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 20^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. P. Mahendran, Chief Manager of 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 Housing Loan from Defendant dated 05.08.2017	A-1
2.	Sanction letter with terms and conditions acknowledged by Defendant dated 24.08.2017	A-2
3.	Agreement for individual housing loan dated 24.08.2017	A-3
4.	Common Agreement dated 24.08.2017	A-4
5.	Common Affidavit dated 24.08.2017	A-5

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T.A. No. 995 of 2023

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20.05.2025

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6.	Affidavit regarding Legal heirs dated 24.08.2017	A-6
7.	Tripartite Agreement dated 24.08.2017	A-7
8.	Power of Attorney executed by Defendant dated 24.08.2017	A-8
9.	Sale Deed executed by V. Sundar Rajan rep. by POA M/s. V.P.M.Housing in favour of Defendant registered as Doc. No.11943/2017	A-9
10.	Construction Agreement between V.P.M. Housing and Borrower registered as Doc.No.11942/2017 dated 31.08.2017	A-10
11.	Memorandum of Deposit of Title Deeds registered as Doc. No.16142/2017 dated 17.11.2017	A-11
12.	Statement of Account for Housing Loan A/c. No. 05816016000886	A-12
13.	Statement of Account (Calculation) for the period 30.12.2019 to 20.03.2021.	A-13

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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) PRESIDING OFFICER, DRT-III, CHENNAI

Punjab National Bank v. Subhashini Madan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Subhashini Madan

Case brief

What is this about?

What did the court decide?

What the court decided

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