Allowed

Punjab National Bank v. N Madhurajadhithan

DRT5 Aug 2026OA/251/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal examined an application filed by Punjab National Bank for recovery of a housing loan of Rs.81,19,697/Gar plus interest. After verifying documents, the Tribunal allowed the application, directing defendants to pay the outstanding amount with statutory interest. Penal interest was refused, and rights to sale of mortgaged properties were affirmed.

What did the court decide?

Defendants directed to pay Rs.81,19,697/- plus 10.25% p.a. interest with half yearly rests from filing date until realization; liberty to sell mortgaged properties.

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

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OA No. 251/2023

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 05^th DAY OF AUGUST, 2026 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.251/2023

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Between

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

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And

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Mr.N.Madhurajadhithan,

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S/o.R.Nagarajan, No.1 Ashok Nagar RMS Colony, Karumandapam TRIC, Karumandapam, Trichy- 620 001

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Mr.R.Nagarajan, S/o.N.Rethinam, No.105 Ashok Nagar RMS Colony, Karumandapam, Trichy- 620 001 ---- Defendants

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Counsel for the Applicant Bank : M/s S.Balasubramanian , T.M.Subramanian , M.Sundaraj & 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 Defendants having been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the

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OA No. 251/2023

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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 29.03.2023 to recover from the Defendants a sum of Rs.81,19,697/- together with further interest at the rate of 10.25 % p.a. with monthly rests plus penal interest at the rate of 2% p.a. 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 defendants have availed Housing Loan for a sum of Rs.1,10,00,000/- . The defendants executed necessary loan documents in favour of the Applicant. In addition to that, the defendants have 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 1st defendants have executed memorandum of deposit of title deeds on 03.12.2014 in Document No.7273/2014, SRO Trichy Joint-I . The following is the detail of loan availed by the defendant.

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S.No.	^{Nature of loan & Account} Number	Loan amount	Rate interest	of Outstanding amount as on 28.02.2023
1	HousingLoan 531600NC00002857	Rs.1,10,00,000/-	^10.25% + 2% P.I	^p.a Rs.81,19,697/-

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The defendants have executed Balance of security confirmation on 28.11.2017 and 05.11.2020 thereby acknowledge their duality. Further the applicant submits that as per the accounts of the applicant maintained in the name of the defendants kept in regular course of business and as certified under the Bankers Book of Evidence Act as on 28.02.2023 for a sum of Rs.81,19,697/- has become due and they are liable to pay the said amounts with further interest till repayment.

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The defendants failed to pay the loan amount as agreed at the time of availing loan and their loan account has become non-performing asset. The applicant bank submits that the defendants though have availed the entire sanctioned loan and they have not chosen to repay the loan amounts, as

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OA No. 251/2023

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agreed, despite the repeated demands and reminders by the Applicant Bank. The Applicant Bank also initiated SARFAESI proceedings against the defendants.

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In spite of repeated reminders, the defendant failed to repay the loan amount. Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.81,19,697/- together with further interest at the rate of 10.25 % p.a. with monthly rests plus penal interest at the rate of 2% p.a. in respect of Housing Loan from the date of filing of Application till the date of realization with cost.

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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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List of Documents

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Sl. No.	Date	Particulars	Exhibit No.
1.	29.11.2014	Sanction Letter	Ex. No. A-01
2.	29.11.2014	Agreement For Housing loan	Ex. No. A-02
3.	29.11.2014	Agreement of Guarantee	Ex. No. A-03
4.	03.12.2014	MOD Doc. No.7273/2014	Ex. No. A-04
5.	28.11.2017	^{Balance and Security Confirmation} Letter	Ex. No. A-05
6.	05.11.2020	^{Balance and Security Confirmation} Letter	Ex. No. A-06
7.	-	Statement of Accounts	Ex. No. A-07

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SCHEDULE OF PROPERTY Mortgaged Property

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Tirchirappalli District, Tiruchirappalli Taluk, Tiruchirappalli I & II Joint Sub District, Srirengam Taluk, Piratiyur West Village, Survey No.61 Acres 7.40 cents- in this Acres 3.70 cents – in this Acre 1.10 cents of land divided into housing plots, In this Plot No.44 within the following four boundaries:

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East of Plot No.45, West of Vacant Plot, South of East West Pathway, North of Narayansamy's land,

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OA No. 251/2023

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Within this four boundaries the Property Measuring East to West 40 ft, North to South 65 ft, total 2,600 Sq.ft.(241.54 Sq.mts) the housing plot with right to use roads, Patta No.30.

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New Ward AM, New Block No.14, New T.S.No.4/5.

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Property situate at Balaji Nagar, Piratiyur West Village, within the limits of Tiruchirappalli City Corporation.

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3 . On the other hand, Notices were issued to Defendants and since from the beginning of the case, there was no representation on behalf of the Defendants. Hence, Defendants were 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. N.Sivagurunathan , who is the Chief Manager of the Applicant Bank.

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He has stated in his affidavit that the defendants have availed Housing Loan from the Applicant Bank, but they failed to pay the outstanding loan amount, hence she has filed the case. The applicant bank has also filed the documents signed by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-07 in support of its claim in the OA.

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I scrutinized the document filed by the applicant bank and I find that the Applicant produced and marked the following documents as exhibits: the Sanction Letter dated 29.11.2014 was marked as Ex. A-01; the Agreement for Housing Loan dated 29.11.2014 was marked as Ex. A-02; the Agreement of Guarantee dated 29.11.2014 was marked as Ex. A-03; the MOD Document No. 7273/2014 dated 03.12.2014 was marked as Ex. A-04; the Balance and Security Confirmation Letter dated 28.11.2017 was marked as Ex. A-05; the Balance and Security Confirmation Letter dated 05.11.2020 was marked as Ex. A-06; and the Statement of Accounts was marked as Ex. A-07. 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 Defendants 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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OA No. 251/2023

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

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The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.81,19,697/- together with interest at the rate of 10.25 % p.a. with half yearly rests in respect of Housing Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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ORDERED

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(a) That the Defendants are directed to pay jointly/severally a sum of Rs.81,19,697/- together with interest at the rate of 10.25 % p.a. with half yearly rests 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 Defendants, the Applicant Bank is at liberty to sell the movable / immovable properties

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OA No. 251/2023

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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 defendants are jointly/severally 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 defendants.

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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 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 N, taken down, transcribed, typed by him, corrected and pronounced by me in the Open Court in this the 05^th August, 2026.

Sd/-

(SEEMA SINHA)

PRESIDING OFFICER

Uploaded on 12.08.2026

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Punjab National Bank v. N Madhurajadhithan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. N Madhurajadhithan

Case brief

What is this about?

What did the court decide?

What the court decided

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