Allowed

Punjab National Bank v. M s Sri Krishna Saw Mill

DRT8 Apr 2026OA/338/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab National Bank for recovery of dues of Rs. 13.02 crore from a partnership firm and its partners. The court found the bank's evidence reliable and the claim within limitation, granting permission for sale of secured assets.

What did the court decide?

Recovery of Rs. 13.02 crore with interest and costs; liberty to sell immovable properties, hypothecated assets, and personal assets of respondents.

Punjab National Bank versus M s Sri Krishna Saw Mill — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 338 of 2022

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08.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.338 of 2022

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Punjab National bank, Zonal SASTRA center Chennai south, PNB towers, 46-49, fourth floor, Royapettah, R.H road, Chennai-600 014

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Represented by its Chief Manager ….Applicant

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-Vs-

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M/s Sri Krishna saw mill Rep by its Partners 1. Mr. Pankaj K Patel 2. Mr. Ashok R Patel 3. Mr. Karamshi M Patel No.9.Kamatchi Nagar road, off GNT road, Puzhal, Chennai- 600 066

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Mr. Pankaj K Patel, S/o Khumji. M. Patel No.20, Ranganathan Avenue, Kilpauk,

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Chennai- 600 010

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Mr. Ashok R Patel, S/o Ratansi M Patel No.20, Ranganathan Avenue, Kilpauk, Chennai- 600 010

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Mr. Karamshi M Patel

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Old No.80, 82 New no. 101, 103, 105 Sydenhams Road, Chennai- 600 003 …..Defendants Counsels on record / appeared:

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Counsel for Applicant : Sh. G. Jehanathan Defendants 1 to 4 were set ex-parte on 13.02.2023

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O.A. No. 338 of 2022

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: - FINAL ORDER- :

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This Original Application is filed on 11.08.2022 by the applicant bank 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 defendants jointly and severally for recovery of a total sum of Rs.13,02,78,080.66p (Rupees Thirteen Crores Two Lakhs Seventy Eight Thousand and Sixty Six Paisa only) due in respect of Cash Credit facility (A/c No.2511008700244561) repayable together with further interest @ 13.30% p.a., with monthly rests together with 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 OA.

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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 1^st defendant M/s Sri Krishna Saw Mill represented by its partners Mrs. Vimlaben K Patel, the third and the fourth defendants, is a partnership firm, who had jointly executed a Deed of Partnership dated 01.04.2009.

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The first defendant through its partners Mrs. Vimlaben K Patel, the third and the fourth defendants approached the bank in the year 2012 and

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O.A. No. 338 of 2022

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08.04.2026

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requested for a CC (H) limit of Rs.4,50,00,000/-, an ILC/FLC limit of Rs.1,50,00,000/- Term Loan (machinery) of Rs.37.00.000/- and one time CAPEX FLC of Rs.35,58,000/- and availed the same vide Credit Sanction Intimation dated 03.09.2012. The said CC loan of Rs.4,50,00,000/- is repayable together with interest @15.00% p.a. subject to change from time to time. The first defendant through its partners Mrs. Vimlaben K Patel, third and fourth defendants executed the following necessary loan documents towards the loans availed on 06.09.2012:

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Hypothecation of goods and book debts to secure cash credit facility (CC-Rs.4,50,00,000/-)

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Hypothecation of movable assets forming part of fixed/ block assets (CC(H) limit of Rs.4,50,00,000/- an ILC/FLC limit of Rs.1,50,00,000/- term loan (machinery) of Rs.37.00.000/- and an one time CAPEX FLC of Rs.35,58,000/-

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Hypothecation of assets to secure term loan (Rs.37,00,000/-)

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It is submitted that the first defendant through its partners Mrs. Vimlaben. K. Patel, third and fourth defendants had mortgaged their properties at Madhavaram village vide Memorandum of Deposit of Title Deeds dated 10.09.2012 registered as Doc.no.4463/2012 as security towards the loan availed which are morefully described in the OA schedule.

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The applicant submits that in the year 2014 the said CC (H) limit of Rs.4,50,00,000/- was further renewed and enhanced to a sum of

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Rs.7,00,00,000/- (Rupees seven Crores) for which the first defendant through its partners had extended their mortgage vide a Supplemental Memorandum of Deposit of Title Deeds dated 22.09.2014 registered as Doc.No.5585/2014 as security towards the enhanced limit availed. The applicant bank submits that the Term Loan (Machinery) of Rs.37,00,000/and one time CAPEX FLC of Rs.35,58,000/- were closed by the borrowers in due course of time.

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The applicant submits that in the year 2018 at the request of the first defendant, the said CC(H) limit was further renewed and enhanced, through its partner Mrs. Vimlaben. K. Patel, third and fourth defendants and they executed the following necessary loan documents towards the enhanced limit on 24.01.2018:

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Hypothecation of goods and both debts to secure cash credit facility

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Deed of Hypothecation to secure LC on DA basis.

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Agreement of hypothecation of goods.

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The applicant bank submits that so as to secure the above said credit facility Mrs. Vimlaben K Patel, the third and fourth defendants stood as personal guarantors and executed separate Agreement of Guarantee documents dated 24.01.2018 towards the CC limit of Rs.10,00,00,000/availed.

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The applicant bank further submits that the said Mrs. Vimla Ben K Patel died on 26.07.2018 leaving behind Sri. Pankaj K.Patel (the second

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defendant herein) as her legal heir. After the demise of Mrs. Vimlaben K Patel the existing partners mutually decided to admit Sri. Pankaj K Patel (the second defendant herein) in the place of deceased partner (Mrs. Vimlaben K Patel) of the firm and hence the second, third and fourth defendants herein executed a Deed of Partnership (Reconstitution) dated 10.08.2018. Thus the second defendant herein becomes the partner of the firm.

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It is submitted that in the year 2020 the first defendant through its partners. the second, third and fourth defendants executed a Master Agreement dated 30.01.2020 towards the CC limit availed. The first defendant executed the following loan documents on 30.01.2020:

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Hypothecation of goods and book debts to secure cash credit facility.

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Hypothecation of movable assets forming part of fixed/ block assets.

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The applicant bank submits that besides that the second, third, fourth defendants stood as Personal Guarantors and executed separate Agreement of Guarantee documents dated 30.01.2020 towards the CC limit of Rs.10,00,00,000/- (Rupees ten Crores) availed.

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It is submitted by the applicant bank that subsequent to availing of loan, the defendants failed to repay the said amount to the bank. The applicant states that the defendants have not closed the loan accounts in stipulated period and also failed to repay the outstanding in the loan

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accounts. Consequently, the loan account was classified as NonPerforming Asset (NPA) on 31.03.2021. Since the account turned NPA the applicant bank with no other options by initiating SARFAESI proceedings issued Demand Notice dated 28.06.2021 to the defendants demanding the

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entire outstanding dues followed by the Possession Notice dated 04.09.2021. Even after this the defendants did not come forward to settle the dues. In spite of repeated demands made by the applicant, the defendant did not comply with the demands. Hence, 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 to 4 through Registered Post with Acknowledgment Due, which were duly served to all the defendants. When OA was taken up on 13.02.2023, even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 13.02.2023

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Ms. B. Saranya, Chief Manager of the Applicant Bank, has filed her 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-25 .

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A careful examination of the pleadings in the Proof Affidavit and

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documents Exhibits A-1 to A-25 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 13.02.2023, 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 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.

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At the time of scrutiny of OA, subsequent to the discrepancy pointed out by the Registry with regard to the difference in the mentioning of Ward number in Sale Deed as Ward No.30 while in MoDT the Ward No. is mentioned as 24, the applicant bank had filed a memo dated 06.09.2022, clarifying that the variation has occurred due to re-organization of ward by the Corporation of Chennai. The secured asset was purchased by the defendants on 06.11.2009 vide Sale Deed registered as Doc. No.7343/2009, wherein the Ward No.30 is motioned. Whereas in the MoDT the Ward Number is mentioned as 24 due to expansion of

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Corporation Limit by adding more number of wards i.e., previously Chennai had only 155 wards but now it has 200 wards.

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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 sum of Rs.13,02,78,080.66p (Rupees Thirteen Crores Two Lakhs Seventy Eight Thousand and Sixty

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Six Paisa only) due in respect of Cash Credit facility (A/c No.2511008700244561) repayable together with further interest @ 13.30% p.a., with monthly rests together with penal interest @ 2% p.a. from the date of Application till the date of realization in full, along with costs of this application.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the mentioned immovable property and hypothecated assets morefully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property and hypothecated assets are not sufficient to satisfy the dues as ordered

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O.A. No. 338 of 2022

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above, the applicant bank is at liberty to sell the personal assets of the Defendants 2 to 4 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 2 to 4 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 to 4.

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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 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 Defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date of receipt 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)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 08^th day of April, 2026)

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O.A. No. 338 of 2022

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Ms. B.Saranya, Chief Manager representing the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	01.04.2009	Deed of partnership	A-1
2.	03.09.2012	Credit sanction intimation	A-2
3.	06.09.2012	Hypothecation of goods and book debts to secure cash credit facility.	A-3
4.	06.09.2012	Hypothecation of movable assets forming part of fixed/ block assets	A-4
5.	06.09.2012	Hypothecation of assets to secure term loan	A-5
6.	10.09.2012	Memorandum of deposit of title deeds registered as Doc.No.4463/2012	A-6
7.	06.11.2009	Sale deed registered as Doc.no.7343/2009	A-7
8.	22.09.2014	Supplemental memorandum of deposit of title deeds registered as Doc.No.5385/2014	A-8
9	25.01.2018	Credit sanction intimation	A-9
10	24.01.2018	Hypothecation of goods and book debts to secure cash credit facility	A-10
11.	24.01.2018	Deed of hypothecation to secure LC on DA basis	A-11
12.	24.01.2018	Agreement of hypothecation of goods	A-12
13.	24.01.2018	Agreement of guarantee	A-13
14.	24.01.2018	Agreement of guarantee	A-14
15.	24.01.2018	Agreement of guarantee	A-15
16.	10.08.2018	Deed of partnership (reconstitution)	A-16
17.	30.01.2020	Master agreement	A-17
18.	30.01.2020	Hypothecation of goods and book debts to secure cash credit facility	A-18
19.	30.01.2020	Hypothecation of movable assets forming part of fixed/block	A-19
20	30.01.2020	Agreement of guarantee	A-20
21.	30.01.2020	Agreement of guarantee	A-21
22.	30.01.2020	Agreement of guarantee	A-22
23.	28.06.2021	Demand notice	A-23
24.	04.09.2021	Possession notice	A-24
25.		Statement of accounts A/c No.2511008700244561	A-25

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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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:- SCHEDULE OF PROPERTY -:

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ITEM NO.1:-

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PROPERTY OF M/s SRIN KRISHNA SAW MILL

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All that piece and parcel of land and shed situated at No.9, Kamakshi Nagar road, ward no.30, Madhavaram village, measuring an extent of Acre 0.98 cents (Hec 0.40.5) comprised in Survey nos. 1430, 1431 and 1432 present survey Nos.1430/1B, 1431/2B and 1432/1B as per patta No.8390 (TK8A/19/1414) issued by zonal deputy Tahisildar, Madhavaram, Ambattur taluk, old Tiruvallur district in the name of M/s. Sri Krishna saw mills:

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S. No	Extent of land as per	Extent of land as per
	Doc	patta
1430/1B	AC 0.48.9 cents	Hec 0.18.5
1431/2B	AC 0.38.7 cents	Hec 0.16.0
1432/1B	AC 0.15.4 cents	Hec 0.06.0
	AC 0.98 cents	Hec 0.40.5

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Bounded on the:

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North by: Kamakshi nagar 40 feet road

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South by: PWD lake survey no. 1420

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East by: PWD lake survey No.1420

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West by: Cultivation land survey no.1431 (part)

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Within the Sub-registration district of Madhavaram and registration district of North Chennai.

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ITEM NO.2:-

Stocks and machineries lying at the premises No.9, Kamatchi Nagar Road, off GNT Road, Puzhal, Chennai-600 066

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

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Punjab National Bank v. M s Sri Krishna Saw Mill

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M s Sri Krishna Saw Mill

Case brief

What is this about?

What did the court decide?

What the court decided

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