Allowed

Punjab National Bank v. M/s. Joe Traders

DRT19 Feb 2026OA/387/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab National Bank to recover an overdraft loan of Rs.59,34,965.50 plus interest. Based on documented evidence and the absence of representation from the respondents, the Tribunal directed payment within one month

What did the court decide?

The respondents were directed to pay Rs.59,34,965.50 with interest at 12.60% p.a. with half-yearly rests within one month, failing which movable and immovable properties could be sold for recovery.

Punjab National Bank versus M/s. Joe Traders — Banking and Recovery | DRT (2026)

¶1

OA No. 387/2022

¶2

Fair Order

¶3

IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI

¶4

DATED THIS 19^TH DAY OF FEBRUARY, 2026 PRESENT: SEEMA SINHA,

¶5

[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

¶6

OA No.387/2022

¶7

Between

¶8

Punjab National Bank, Circle SASTRA Trichy, Circle Office, Kailasapuram, Trichy – 620 014. Rep. By its Chief Manager.

¶9

---Applicant Bank

¶10

And

¶11

M/s Joe Traders,

¶12

Prop. B. Getzie Sophia,

¶13

No.3/58-1, V.S.Complex,

¶14

Konal, Manachanallur,

¶15

Trichy – 621 105.

¶16

Ms. B. Getzie Sophia,

¶17

No.20, Ariyamangalam, East Rajappur Nagar, Near Little Flower School, Trichy – 620 010.

¶18

Mrs. R. Sumathi,

¶19

W/o Rajendran,

¶20

No.7 A/1, Killiyanallur, Manachanallur Taluk, Trichy – 621 213. ---Defendants

¶21

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

¶22

Page 1 of 7

¶23

OA No. 387/2022

¶24

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 records and having stood over for consideration till this day, this Tribunal delivered the following:

¶25

JUDGEMENT

¶26

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 21.03.2022 to recover from the Defendants a sum of Rs.59,34,965.50p together with interest at the rate of 12.60% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Overdraft 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.

¶27

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

¶28

The 1^st defendant had availed Over draft loan facilities for a sum of Rs.35,00,000/- and executed necessary loaning documents in favour of the applicant. In addition to that the 2^nd and 3^rd defendants had deposited the original title of their immovable property with the applicant bank as security for the due repayment of loan availed by the 1^st defendant. Further, the 3^rd defendant had executed memorandum of deposit of title deeds on 16.12.2015 in Document No.4889/2015 SRO Joint Registrar, Manachanallur, Trichy. The following is the detail of housing loan availed by the defendants.

¶29

Nature of loan	Loan amount	Rate of interest	Outstanding amount as on 31.01.2022
Cash Credit	Rs.35,00,000/-	12.60% p.a +	Rs.59,34,965.50
A/C.		2% P.I
36180087003018342

¶30

Page 2 of 7

¶31

OA No. 387/2022

¶32

The 3^rd defendant had agreed to stand as guarantor for the loan availed by the 1^st and 2^nd Defendants and also executed deed of guarantee on 16.12.2015 in favour of the applicant. The defendants had executed Balance of security confirmation on 02.11.2018 and on 09.09.2021 thereby acknowledged their duality.

¶33

The defendants failed to pay the loan amount as agreed at the time availing the loan and their loan account has become non performing asset (NPA). Though they have availed the entire sanctioned loan and they have not chosen to repay the loan amounts, as agreed, despite the repeated demands and reminders by the Applicant Bank. The Applicant Bank already initiated SARFAESI proceedings against the defendants which is pending for its execution.

¶34

In spite of repeated reminders, the defendant failed to repay the loan amount. Hence the applicant has issued demand notice dated on 03.11.2017 and possession notice dated 15.02.2018 to the defendants to call upon to pay the outstanding amount. The SARFAESI Notices were duly served to the defendants.

¶35

Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.59,34,965.50p together with interest at the rate of 12.60% p.a. with monthly rests plus penal interest at the rate of 2%p.a. in respect of Overdraft Loan from the date of filing of Application till the date of realization with cost.

¶36

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

¶37

No.	Date	Description	Exhibit No.
1.	16.12.2015	Loan Sanction Letter	Ex.No.A-01
2	16.12.2015	Hypothecation of Goods and Book Debts to Secure Cash Credit Facility	Ex.No.A-02
3	16.12.2015	Agreement of Guarantee	Ex.No.A-03
4	16.12.2015	Mod in Doc No.4889/2015	Ex.No.A-04
5	02.11.2018	Balance and SecurityConfirmation Letter	Ex.No.A-05
6	09.09.2021	Balance and SecurityConfirmation Letter	Ex.No.A-06
7	-	Statement of account	Ex.No.A-07

¶38

"SCHEDULE OF PROPERTY"

¶39

(1) НУРОТНЕCATION PROPERTY

¶40

Page 3 of 7

¶41

OA No. 387/2022

¶42

Various raw materials viz manufacturing material, raw materials including excisable raw materials, stocks in process, semi finished goods, finished goods (including bought out finished goods) viz.

¶43

(ii) MORTGAGED PROPERTY

¶44

Tiruchirapalli District, previously Lalgudi Taluk, Now Mannachanallur Taluk, KILIYANALLUR SOUTH Village, Ayan Nanja Re-S.F.No.102/15, of an extent of 39 cents presently S.F.No.90/15B of an extent of 0.07.9 Hec (19.5 cents) as per measurements on ground 789.85 Sq.mt. (8502 Sq.ft.) in this a terraced house bearing Door No.7A/1-N.A. Hypothecated property.

¶45

Boundaries :-

¶46

On the	North, East	: West pathway
On the	South	: Natarajan Nanja Land
On the	East	: Natarajan Thope
On the	West	: Kaleeswari Property

¶47

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.

¶48

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?

¶49

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.

¶50

He has stated in his affidavit that the defendants has availed Overdraft Loan from the Applicant Bank, but they failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents given 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.

¶51

The Loan Sanction Letter has been marked as Ex.No.A-01, Hypothecation of Goods and Book Debts to Secure Cash Credit Facility has been marked as Ex.No.A-02, Agreement of Guarantee has been marked as Ex.No.A-03, Mod in Doc No.4889/2015 has been marked as Ex.No.A-04, Balance and Security Confirmation Letter has been marked as Ex.No.A-05,

¶52

Page 4 of 7

¶53

OA No. 387/2022

¶54

Balance and Security Confirmation Letter has been marked as Ex.No.A-06, Statement of account has been marked as Ex.No.A-07. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.

¶55

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.

¶56

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).

¶57

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 ".

¶58

Therefore, this Original Application is allowed . The Applicant

¶59

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

¶60

The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.59,34,965.50p together with interest at the rate of 12.60% p.a. with half yearly rests in respect of Overdraft Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

Page 5 of 7

OA No. 387/2022

ORDERED

(a) That the Defendants are directed to pay jointly/severally a sum of Rs.59,34,965.50p together with interest at the rate of 12.60% p.a. with half yearly rests in respect of Overdraft 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.

¶65

(b) In case of default of payment by the above mentioned Defendants, 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.

¶66

(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.

¶67

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

¶68

(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.

¶69

Page 6 of 7

¶70

OA No. 387/2022

¶71

(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 Overdraft 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.

¶72

Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 19^th February, 2026.

¶73

Sd/- (SEEMA SINHA) PRESIDING OFFICER

¶74

Uploaded on 02.03.2026

¶75

Page 7 of 7

Punjab National Bank v. M/s. Joe Traders

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s. Joe Traders

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus P Murugan

Maria Ruby Silviya S versus South Indian Bank

S P Dhamodharan versus Canara Bank

Punjab National Bank versus K Arichandran

Punjab National Bank versus R Sumathy

Idbi Bank versus v K M Fruits