Allowed

Punjab National Bank v. G Narayanan

DRT29 May 2026OA/477/2023

Case brief

AI extract

What is this about?

The DT awarded recovery of a housing loan principal sum of Rs.31,02,561.08 with interest to the applicant bank, finding the defendant liable based on proved documents and the defendant being set ex-parte.

What did the court decide?

Recovery of Rs.31,02,561.08 plus interest at 12% p.a. with half yearly rests; direct payment within one month; permission to sell mortgaged/immovable/immovable properties on default.

Punjab National Bank versus G Narayanan — Banking and Recovery | DRT (2026)

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OA No. 477/2023

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 29^TH DAY OF MAY, 2026 PRESENT: SEEMA SINHA,

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

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OA No.477/2023

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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. G. Narayanan, S/o Govindhanandam, No.437/183/9,West Main Road, Pennadam, Thittakudi, Cuddalore -606111. ---Defendant

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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 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

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Page 1 of 6

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OA No. 477/2023

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as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 06.06.2023 to recover from the Defendants a sum of Rs.31,02,561.08p together with interest at the rate of 12% 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 defendant has availed Overdraft Loan for a sum of Rs.25,00,000/The defendant executed necessary loaning documents in favour of the Applicant. In addition to that, the defendant has also deposited the original title deeds of his 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 19.03.2019 in Document No.490/2019, SRO Pennadam.

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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 31.03.2023 for a sum of Rs.31,02.561.08p has became due and they are liable to pay the said amounts with further interest till repayment.

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The defendant though had availed the entire sanctioned limits under the said facilities, the defendant have 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 31.03.2021.

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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. Hence the applicant has issued demand notice dated on 21.06.2021 to the defendant to call upon to pay the outstanding amount. The SARFAESI Notices were duly served to the defendant. Despite repeated demands and reminders, made by the Applicant Bank, the Defendant have failed and neglected to repay and adjust his liability.

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Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.31,02,561.08p together with interest at the rate of 12% 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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Page 2 of 6

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OA No. 477/2023

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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	Particulars	Exhibits
1	—	Loan Application	Ex.No.A-01
2	15.03.2019	Agreement for Housing Loan	Ex.No.A-02
3	15.03.2019	Mortgage Deed	Ex.No.A-03
4	19.03.2019	MOD in Doc. No. 490/2019	Ex.No.A-04
5	—	Statement of Account	Ex.No.A-05

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Mortgaged Property

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In Vriddhachalam Registration District, and Pennadam Sub Registration District, in Cuddalore Revenue District, In Thittakudi Taluk, in Pennadam Village, R.S.No.317/3 — 594 square feet vacant site out of 0.62 are. Including 594 square feet R.C.C roof building, half share in western wall. Measurement of the vacant site is east west 11 feet, north south 54 feet. Now property is subdivided as 571/9A - 55 square meter.

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Boundaries:

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South of Virudhachalam — Thozhudar State high way East of Ismail Ravuthar’s building West of Rajendran’s building North of Kuttai.

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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. 477/2023

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He has stated in his affidavit that the defendant has availed Housing Loan from 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 signed 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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The Loan Application has been marked as Ex.No.A-01, Agreement for Housing Loan has been marked as Ex.No.A-02, Mortgage Deed has been marked as Ex.No.A-03, MOD in Doc. No. 490/2019 has been marked as Ex.No.A-04, and Statement of Account 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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Page 4 of 6

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OA No. 477/2023

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The Applicant Bank is entitled to recover from the Defendant, a sum of Rs.31,02,561.08p together with interest at the rate of 12% 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 Defendant is directed to pay personally a sum of Rs.31,02,561.08p together with interest at the rate of 12% 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 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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Page 5 of 6

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OA No. 477/2023

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(e) Recovery Certificate be prepared, as per the directions given above,

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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 T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 29^th May, 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 06.06.26

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Punjab National Bank v. G Narayanan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. G Narayanan

Case brief

What is this about?

What did the court decide?

What the court decided

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