Allowed

Punjab National Bank v. C Moorthy

DRT1 Apr 2026OA/203/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Punjab National Bank to recover Rs. 23,73,006.51 plus interest from Shri. C. Moorthy. Finding the bank proved its case due to the respondent's ex-parte appearance, the Tribunal directed personal payment and sale of mortgaged properties over 30 days.

What did the court decide?

Direct order to pay Rs. 23,73,006.51 with interest within one month; direction to sell mortgaged properties on default; instruction to issue Recovery Certificate.

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

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OA No. 203/2024

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 01^st DAY OF APRIL, 2026 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.203/2024

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Between

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Punjab National Bank, Represented by its Chief Manager, Circle SASTRA Trichy, Circle Office, Kailasapuram,Trichy-620 014. ---Applicant Bank

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And

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Shri.C.Moorthy , S/o.Chokkalingam, No.230, Karuppan Street, Poovathur post,Orathanadu Taluk, Thanjavur-614 625.

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---Defendant

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Counsel for the Applicant Bank : M/s T.M. Subramanian, S. Balasubramanian, M. Sundaraj and B. Iswarya.

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This Original Application was heard and fixed for passing final order before me in the presence of the above said Advocate for Applicant Bank and the Defendant has been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the records and having stood over for consideration till this day, this Tribunal delivered the following:

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JUDGEMENT

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1 . This Application has been filed under Sec.19 (1) of the "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" now amended as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 06.03.2024 to recover from the Defendant a sum of Rs. 23,73,006.51p together with interest at the rate of 10.30% p.a. plus 2% P.I with monthly

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Page 1 of 6

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OA No. 203/2024

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rests in respect of Housing Loan from the date of filing of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.

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2 . The brief averments of the application filed by the Applicant Bank are as follows:-

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The defendant has availed Housing Loan for a sum of Rs.13,00,000/and executed necessary loaning documents in favour of the Applicant. In addition to that, the defendant has also deposited the original title deeds this immovable property with the applicant bank as security for the due repayment of loan availed by him. Further, the defendant has executed Memorandum of deposit of title deeds on 16.03.2016 in Document No.425/2016, SRO Orathanadu. The following is the detail of loan availed by the defendant.

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S.No.	Nature of loan &	Loan amount	Rate of	Outstanding
	Account Number		interest	amount as on 31.01.2024
1	TL Housing 048200NC00613137	Rs.13,00,000/-	10.30%p.a + 2%P.I	Rs.23,73,006.51/-

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The defendant though had availed the entire sanctioned limits under the said facilities, the defendant has failed to repay the loan as per the sanction ticket, as agreed, despite the repeated demands and reminders made by the Applicant Bank. The Defendants have not paid the due amount. The borrower's loan account turned in to NPA on 11.01.2018. Hence, the applicant bank issued demand Notice U/s. 13(2) of the SARFAESI Act on 13.10.2022 against the defendants and the same was received by the defendants but the defendants failed and have not come to discharge the loan. After availing the loan, defendant was not regular in the matter of repayment. The defendant made several promises, but he failed to keep up his promises. Despite repeated demands and reminders, made by the Applicant Bank, the Defendant has failed and neglected to repay and adjust their liability. As per the statement of accounts as on 31.01.2024 for a sum of Rs.23,73,006.51/- has become due and they are liable to pay the said amounts with further interest till repayment.

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Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs. 23,73,006.51 together with interest at the rate of 10.30% p.a. plus 2% P.I with monthly rests in respect of Housing Loan from the date of filing of Application till the date of realization with cost.

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Page 2 of 6

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OA No. 203/2024

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The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:

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S. No.	Date	Description of document	Exhibits
1.	15.03.2016	Sanction Letter	Ex.No.A-01
2.	15.03.2016	Agreement for HousingLoan	Ex.No.A-02
3.	16.03.2016	MOD in Doc.No.425/2016	Ex.No.A-03
4.	12.10.2018	Balance and SecurityConfirmation Letter	Ex.No.A-04
5.	****	Statemnet of Accounts	Ex.No.A-05

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DESCRIPTION OF PROPERTY

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Registration District : Pattukkottai Sub Registration : Orathanadu District : Thanjavur Taluk : Orathanadu Village : Poovathur S.No. : 38/6 Extent : 6976sq.ft(0.16 cents)

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Boundaries:

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North of Road, South of Chokkayee, Shankar, Chinnasamy Property East of Chinnasamy Property West of Chokkayee, Shankar Property

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3 . On the other hand, Notices were issued to Defendant and since from the beginning of the case, there was no representation on behalf of the Defendant. Hence, Defendant was set ex-parte.

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4. Now the main point for consideration before me is as to whether the Applicant has been able to prove his case on his own leg?

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Having gone through the affidavit of the applicant and the documents filed by them and also considering the submission of the counsel for the Applicant, I find that the Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. Manjunath Venkatagiri, who is the Chief Manager of the Applicant Bank.

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Page 3 of 6

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OA No. 203/2024

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He has stated in his affidavit that the defendant have availed Housing Loanfrom the Applicant Bank, but he failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given by the defendant at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-05 in support of its claim in the OA.

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Sanction Letter has been marked as Ex.No.A-01, Agreement for Housing Loan has been marked as Ex.No.A-02, MOD in Doc. No. 425/2016 has been marked as Ex.No.A-03, Balance and Security Confirmation Letter has been marked as Ex.No.A-04, Statement of Accounts has been marked as Ex.No.A-05. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

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As the Defendant remained ex-parte, the claim of the Applicant Bank is neither disproved nor dislodged and goes on record as proved. Accordingly a cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.

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So far the claim of interest is concerned, it is a well settled Law that the Tribunal has got powers to award pendente lite interest in view of the Judgment of the Hon’ble Supreme Court in N.M. Veerapa Vs Canara Bank (reported in AIR 98(1), 1101 & in Central bank of India Vs Ravindra and OS (AIR, 2001(1), 3095).

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So far the penal interest is concerned Hon'ble supreme court stated in the said judgement as followed " Though interest can be capitalised on the anology that the interest falling due on the accrued date and remaining unpaid, partakes the character of amount advanced on that date, yet penal interest, which is charged by way of penalty for non payment, cannot be capitalized. Further interest, i.e interest on interest, whether simple, compound or penal, cannot be claimed on the amount of penal interest. Penal interest cannot be capitalized. It will be opposed to public policy ".

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Therefore, this Original Application is allowed . The Applicant

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Bank is entitled for a final order on the following lines:-

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The Applicant Bank is entitled to recover from the Defendant, a sum of Rs. 23,73,006.51p together with interest at the rate of 10.30% p.a. with half yearly rest in respect of Housing Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

ORDERED

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OA No. 203/2024

(a) That the Defendant is directed to pay personally a sum of Rs. 23,73,006.51p together with interest at the rate of 10.30% p.a. with half yearly rest in respect of Housing Loan from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.

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(b) In case of default of payment by the above mentioned Defendant, the Applicant Bank is at liberty to sell the movable / immovable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.

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(c) If the sale proceeds are not sufficient, after defraying the expenses of such sale, for the payment of all such amounts, the defendant is personally liable to pay the amount of such deficiency with interest mentioned above until realization.

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(d) Any amount remitted during the course of this proceedings shall be given due credit, to the loan account of the defendant.

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(e) Recovery Certificate be prepared, as per the directions given above, and issue accordingly. A copy of the order is to be communicated to the parties concerned, immediately.

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(f) It is further ordered that the Applicant Bank shall file cost memo within a period of one month from the date of receipt of this order, so as to

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OA No. 203/2024

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prepare the recovery certificate with cost for the Housing loan and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.

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Dictated to P.Sharmila, LDC taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 1^st April, 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 10.04.2026

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Punjab National Bank v. C Moorthy

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. C Moorthy

Case brief

What is this about?

What did the court decide?

What the court decided

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