Allowed

Punjab National Bank v. Fayaz Ahamed

DRT16 Jan 2026OA/1455/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's Original Application for a Recovery Certificate of Rs. 45,15,228/- plus interest. The defendants, appearing in absentia, failed to rebut evidence of loan defaults on vehicle and housing loans.

What did the court decide?

Recovery Certificate for Rs. 45,15,228/- with 8% p.a. interest from date of filing, recoverable from defendants jointly and severally or against schedule property.

Punjab National Bank versus Fayaz Ahamed — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 16^th Day of January, 2026

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1455/2023

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BETWEEN:

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Punjab National Bank (erstwhile Oriental Bank of Commerce) Stressed Assets Targeted Resolution & Action (Sastra Vertical), Raheja Towers, First Floor, No.26-27, M.G Road, Bengaluru- 560001 …APPLICANT

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AND:

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Fayaz Ahamed S/o. Abdul Sattar, No.1442, First Stage Rajiv Nagar, Kalyan Nagar, Mysore- 570019

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Smt. Jabeen Taj W/o Fayaz Ahmed, No.1442, First Stage Rajiv Nagar, Kalyan Nagar, Mysore- 570019 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M.K Venkataramana Defendants : Exparte

OA 1455-2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate Rs.45,15,228/- (Rupees forty five lakh fifteen thousand two hundred twenty eight only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendants availed the following credit facilities from the Erstwhile Oriental Bank of Commerce which later got amalgamated with Punjab National Bank :-

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I. Vehicle Loan of a sum of Rs.50,000/- (Rupees Fifty Thousand Only) and

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II. Housing loan limit of Rs.24,00,000/- (Rupees Twenty four lakh Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with agreement of guarantee, mortgage deed, and sanction letter in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account

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OA 1455-2023

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promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 12.03.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-27 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the

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OA claim as against the defendant?

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OA 1455-2023

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are availed by defendants for Vehicle and Housing purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can be allowed with

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OA 1455-2023

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a reduced interest @8% p.a.(Simple).

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In the result, OA.No.1455/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.45,15,228/- (Rupees forty five lakh fifteen thousand two hundred and twenty eight only) consisting of:-

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a) Rs.20,807/- (Rupees twenty thousand eight Only) with

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further interest @8% p.a. (Simple) and

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b) Rs.44,94,421/- (Rupees forty four lakh ninety four thousand four hundred and twenty one Only) with further interest @8% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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jointly severally and personally and their other assets are liable

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to be proceeded against for the balance amount.

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OA 1455-2023

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 16^th day of January, 2026].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Ravi Ranjan, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	20.12.2013	Loan Application
A2	10.01.2014	Sanction letter
A3	10.01.2014	Agreement of term loan
A4	10.01.2014	Agreement of guarantee

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OA 1455-2023

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A5	10.01.2014	Common Agreement
A6	10.01.2014	Affidavit cum undertaking
A7	10.01.2014	Affidavit cum undertaking
A8	10.01.2014	General Power of Attorney
A9	12.05.2014	Loan application
A10	13.05.2014	Sanction letter
A11	13.05.2015	Agreement of individual housing loan
A12	13.05.2015	Common agreement
A13	13.05.2014	Power of attorney
A14	13.05.2014	First defendant’s affidavit
A15	13.05.2014	Second defendant’s affidavit
A16		Undertaking to execute the deed of conveyance
A17		First defendant’s affidavit cum undertaking
A18		Second defendants’ affidavit cum undertaking
A19	16.06.2015	Undertaking letter
A20	30.03.2020	Balance confirmation letter
A21	18.01.2023	Legal notice & postal receipts
A22		Returned postal cover( D1)
A23		Returned postal cover( D2)
À24		Returned postal cover( D1)
A25		Returned postal cover( D2)
A26		Term Loan (Vehicel) A/c No.52656515001543
A27		Term loan (Housing) A/c No.52656015001773

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. Fayaz Ahamed

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Fayaz Ahamed

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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