Allowed

Punjab National Bank v. Raju

DRT6 Jul 2026OA/114/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab National Bank to recover dues of Rs. 51,06,775 from borrowers who defaulted on housing and overdraft loans. The court directed recovery of principal, interest, and penal charges, allowing sale of personal assets if mortgaged property proceeds are insufficient.

What did the court decide?

Recovery of Rs. 51,06,775 with interest and penal charges; direction to defer credit for realized sale proceeds; liberty to sell personal assets for balance dues; issuance of Recovery Certificate.

Punjab National Bank versus Raju — Banking and Recovery | DRT (2026)

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O.A. No. 114 of 2024

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06.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 114 of 2024

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M/s Punjab National Bank, Circle SASTRA Centre, Chennai, Spencer Plaza, Second Floor, 769, Anna Salai, Chennai – 600 002. Rep.by its Chief Manager. ….Applicant

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-Vs-

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Mr. Raju Azhagu, S/o Azhagu, Old No.4/New No.6, Nethaji Street, Mathiazagan Nagar, Saligramam, Chennai-600 093.

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Mrs. Pothumani, W/o Mr. Raju Azhagu, Old No.4/new No.6, Nethaji Street, Mathiazagan Nagar, Saligramam, Chennai-600 093. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. M.S. Viswanathan

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Defendants were set ex-parte on 21.08.2024

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: - FINAL ORDER - :

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This Original Application is filed on 24.03.2023 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 jointly and severally for recovery of a total sum of Rs.51,06,775/- (Rupees Fifty One Lakhs Six Thousand Seven

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O.A. No. 114 of 2024

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06.07.2026

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Hundred and Seventy Five only) as follows:

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(i) A sum of Rs.17,78,635.07p due in respect of Housing Term Loan facility (A/c No.521500NC00008431) repayable together with further interest @ 9.00% p.a. with monthly rests and penal interest @ 2% p.a. from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.33,28,140.50p due in respect of Overdraft facility on Term Loan (A/c. No. 5215009900000540) repayable together with further interest @ 10.10% p.a. with monthly rests and penal interest @ 2% p.a. from the date of filing the OA till date of realization in full;

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for sale of immovable property morefully detailed in the Schedule to the OA and for costs of this application.

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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 defendant had approached Applicant Bank's Mylapore Branch requesting for Housing Term Loan and submitted Loan Application dated 30.12.2015. Considering the

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said request, the Applicant Bank's Mylapore Branch sanctioned the aforesaid facility on 30.12.2015 for Rs.18,29,000/- vide Sanction Letter for

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O.A. No. 114 of 2024

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06.07.2026

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which the Defendant herein had executed Agreement for Housing Loan for Rs.18,29,000/- and on 30.01.2016, the Defendant herein executed Agreement of Overdraft facility for Housing Loan for Rs.24,50,000/- in favour of applicant bank.

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The Applicant submits that as security for the said facility, the 2^nd Defendant created equitable mortgage in favour of the Applicant Bank in respect of his property more fully described as Schedule A by deposit of title deeds viz., Sale Deed Document No: 192/1993 dated 25.01.1993 before Virugambakkam Sub Registrar Office. The memorandum of deposit of title deeds executed by 2^nd defendant in favour of applicant bank, was registered as Document No.62/2016 dated 06.01.2016 before Sub Registrar, Virugambakkam.

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It is submitted by the applicant bank that upon executing the Housing Loan Agreement and Overdraft Agreement, the defendants agreed among other terms and conditions that if they commit default in repayment of any installment of the loan or any amount payable under the terms of agreement or commits breach of any of the terms and conditions of the agreements and / or the sanction order, additional interest @ 2% per annum or at such other rate fixed by the Bank from time to time over and above the rate of interest specified in the agreement shall be payable on the installments or amount so defaulted, for such period as the irregularity, breach, default continues or for such periods as the Bank may deem it necessary and such additional interest shall be payable as and when it falls

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due.

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O.A. No. 114 of 2024

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06.07.2026

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The Applicant submits that subsequent to availing of loan, the Defendants committed default in repayment of the aforesaid credit facilities availed by them. The Applicant Bank have been repeatedly sending reminders orally and personally to the Defendants herein. The Applicant Bank issued Notice on 10.01.2018 to the defendants to regularize the Loan Account within 10 days. However, the Defendants failed and neglected to repay the dues as promised by them and so the loan account was classified as Non Performing Asset (NPA) as on 31.03.2018. The defendants are liable to repay the debt to the Applicant Bank as per terms of the loan agreement executed and other loan documents.

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It is submitted by the applicant bank that as per the terms of the loan agreement executed in favour of the applicant by the defendants, the defendants agreed that the principal amount under this agreement shall always include and /or shall deem to include also the interest calculated and debited to the loan account of the borrower with monthly rests from time to time cumulatively.

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If the borrower commits default in repayment of the periodic interest or any installments of repayment or any amount payable under the terms of this agreement or commits breach of any of the terms and conditions of this agreement and or the sanction order, penal interest and additional penal interest shall become payable for the period for which the irregularity, breach, default continues at the rates as per the agreement or at such other rates as may be fixed by the Bank from time to time over and above the rate of interest applicable to the credit facility, as and when it falls due.

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O.A. No. 114 of 2024

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06.07.2026

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The Applicant submits that despite repeated demands, the Defendants failed and neglected to repay the debts due to the Applicant Bank. The Applicant bank issued Demand Notice on 02.04.2018 under Section 13(2) of SARFAESI Act to the Defendants calling upon them to repay the outstanding loan amount due under the aforesaid two credit facilities within 60 days but the defendants failed to comply with the same. However, the defendants have executed Balance and Security Confirmation letter dated 22.08.2018 and 20.07.2021 in favour of applicant bank thereby confirming the amount outstanding in the loan account. Since the Defendants had neither chosen to regularize the payments of installment nor paid the entire dues, 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 the Defendants 1 and 2 through Registered Post with Acknowledgment Due, summons to D1 and D2 were duly served. Though D-2 entered appearance through her counsel and filed vakalat, did not file written statement, despite availing three adjournments. When OA was taken up on 21.08.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 21.08.2024.

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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. V. Subramani, Chief

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O.A. No. 114 of 2024

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06.07.2026

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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-13 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 21.08.2024, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal

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possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants. 16. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.71,00,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.71,00,000/- Lakhs was duly recorded vide proceedings dated 16.06.2026.

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O.A. No. 114 of 2024

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06.07.2026

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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 total sum of Rs.51,06,775/- (Rupees Fifty

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One Lakhs Six Thousand Seven Hundred and Seventy Five

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only) as follows:

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(i) A sum of Rs.17,78,635.07p due in respect of Housing Term Loan facility (A/c No.521500NC00008431)

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repayable together with further interest @ 9.00% p.a. with monthly rests and penal interest @ 2% p.a. from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.33,28,140.50p due in respect of Overdraft facility on Term Loan (A/c. No. 5215009900000540)

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repayable together with further interest @ 10.10% p.a. with monthly rests and penal interest @ 2% p.a. from the date of filing the OA till date of realization in full along with costs.

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(b) The sum of Rs.71,00,000/- realized by way of sale under SARFAESI Act is directed to be given credit to the borrower’s loan account as on the date of realisation.

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O.A. No. 114 of 2024

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(c) If the sale proceeds of the immovable property is 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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(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 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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(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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A copy of this order be communicated to the parties concerned.

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Sd/-

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

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 06^th day of July, 2026)

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O.A. No. 114 of 2024

06.07.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. V. Subramani, Chief Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl.	Dated	Description of Documents	Exhibit
No.			No.
1.	30.12.2015	Application for Home Loan by the Defendants	A-1
2.	30.12.2015	Sanction of the Housing loan to the Defendants	A-2
3.	31.12.2015	Agreement for Housing Loan for executed by the Defendants	A-3
4.	30.01.2016	Sanction of Over draft for the Housing loan to the Defendants	A-4
5.	30.01.2016	Agreement of Overdraft executed by Defendants	A-5
6.	06.01.2016	Memorandum of Deposit of Title Deeds Documents No.62/2016 executed by the 2nd Defendant	A-6
7.	25.01.1993	Sale deed Registration No.192/1993 favouring the 2nd Defendant in Register office & Translation memo	A-7
8.	10.01.2018	Notice sent to Defendant to regularize the loan	A-8
9.	02.04.2018	Notice issued to the Defendant under section 13(2)of Securitization act,2002 by the applicant Bank	A-9
10.	22.08.2018	Balance and Security confirmation letter confirmed by the Defendant dated 22.08.2018	A-10
11.	20.07.2021	Balance and Security confirmation letter confirmed by the Defendants	A-11
12.		Statement of account details (i) A/c No.521500NC00008431 (ii)A/c No. 5215009900000540 (iii)Summary	A-12 & 13

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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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O.A. No. 114 of 2024

06.07.2026

-: SCHEUDLE :-

Mortgaged property has been sold under SARFAESI Act.

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

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Uploaded on 06.07.2026 at 17:00 hours

Punjab National Bank v. Raju

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Raju

Case brief

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