Allowed

Punjab National Bank v. Mrs Infomatique Systems

DRT24 Jul 2026OA/433/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank against two respondents for recovery of an outstanding term loan of Rs.23,02,849. The court held that the bank was duly proved of its claim based on filed documents and the ex-parte respondents offer. The application was allowed with modification on the rate and frequency of interest.

What did the court decide?

Recovery of Rs.23,02,849 plus interest at 10% p.a. with half yearly rests from filing date till realization with cost.

Punjab National Bank versus Mrs Infomatique Systems — Specific Performance | DRT (2026)

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OA No. 433/2024

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 24^th DAY OF JULY, 2026 PRESENT: SEEMA SINHA,

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

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OA No.433/2024

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Between

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Punjab National Bank, (Erstwhile United Bank of India) Circle SASTRA Trichy, Circle Office, Kailasapuram, Trichy -620 014 Rep. by its Chief Manager.

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---Applicant Bank

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And

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M/s. MRS Infomatique Systems Proprietor R. Maruthanayagam No. 306, Ilyas Complex, Nehruji Nagar, Ariyamangalm, Trichy – 620 010.

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Mr.R. Maruthanayagam Plot No. 38, Rajiv Gandhi Nagar, Malliyampathu, Trichy – 620 102. ---- Defendants

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Counsel for the Applicant Bank : M/s K.Ramesh & M.Sundaraj

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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. 433/2024

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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 23.09.2024 to recover from the Defendants a sum of Rs.23,02,849/- together with further interest at the rate of 15 % p.a. with monthly rests plus penal interest at the rate of 2 % p.a. in respect of Term 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 Applicant Bank submits that the defendant has availed Term Loan for a sum of Rs.39,00,000. The defendant executed necessary loan documents in favour of the applicant bank. The following is the details of Term loan availed by the defendants.

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S. No.	Nature of Loan & Account Number	Loan Amount	Rate of Interest	Outstanding Amount as on 30.06.2024
1.	Term Loan 1394305027491	Rs.39,00,000/-	^{15% p.a. +} 2% P.I.	Rs. 23,02,849/-

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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 30.06.2024 for a sum of Rs.23,02,849/- has become due and they are liable to pay the said amounts with further interest till repayment.

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The defendants have not cleared the liabilities despite the reminders of the applicant bank. Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.23,02,849/- together with further interest at the rate of 15 % p.a. with monthly rests plus penal interest at the rate of 2 % p.a. in respect of Term loan from the date of filing of Application till the date of realization with cost.

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OA No. 433/2024

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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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List of Documents

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Sl. No.	Date	Particulars	Exhibit No.
1.	10.09.2013	Loan Application	Ex. No. A-01
2.	12.09.2013	Sanction Letter	Ex. No. A-02
3.	12.09.2013	Demand Promissory Note	Ex. No. A-03
4.	12.09.2013	Hypothecation of Goods	Ex. No. A-04
5.	09.09.2016	Balance and Security Confirmation Letter	Ex. No. A-05
6.	05.09.2019	^{Balance and Security Confirmation Letter}	Ex. No. A-06
7.	02.09.2022	^{Balance and Security Confirmation Letter}	Ex. No. A-07
8.	-----	Statement of Accounts	Ex. No. A-08

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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. Manjunath Venkatagiri , who is the Chief Manager of the Applicant Bank.

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He has stated in his affidavit that the defendants have availed Term 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 signed by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-08 in support of its claim in the OA.

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Page 3 of 5

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OA No. 433/2024

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I scrutinized the document filed by the applicant bank and I find that The Applicant has produced the following documents, which were marked as exhibits: the Loan Application dated 10.09.2013 was marked as Ex. A-01 ; the Sanction Letter dated 12.09.2013 was marked as Ex. A-02 ; the Demand Promissory Note dated 12.09.2013 was marked as Ex. A-03 ; the Hypothecation of Goods dated 12.09.2013 was marked as Ex. A-04 ; the Balance and Security Confirmation Letter dated 09.09.2016 was marked as Ex. A-05 ; the Balance and Security Confirmation Letter dated 05.09.2019 was marked as Ex. A-06 ; the Balance and Security Confirmation Letter dated 02.09.2022 was marked as Ex. A-07 ; and the Statement of Accounts was marked as Ex. A-08 .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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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.23,02,849/- together with interest at the rate of 10 % p.a. with half yearly rests in respect of Term loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

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OA No. 433/2024

ORDERED

(a) That the Defendants are directed to pay jointly/severally a sum of Rs.23,02,849/- together with interest at the rate of 10 % p.a. with half yearly rests in respect of Term 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) 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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(c) 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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(d) 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 Term 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 24^{th July} , 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 01.08.26

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Punjab National Bank v. Mrs Infomatique Systems

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mrs Infomatique Systems

Case brief

What is this about?

What did the court decide?

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