Allowed

Punjab National Bank v. R Appadurai

DRT25 Jun 2026OA/642/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Punjab National Bank for recovery of dues totaling Rs. 22,77,304.67 including principal, interest, and costs from the defendant Mr. R Appadurai based on proof affidavit and documentary evidence filed ex-parte.

What did the court decide?

Defendant directed to pay Rs. 22,77,304.67 with simple interest at 6% p.a. along with cost. Liberty granted to sell mortgaged properties if payment is default.

Punjab National Bank versus R Appadurai — Contract and Commercial Disputes | DRT (2026)

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OA No. 642/2023

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 25^th DAY OF JUNE, 2026 PRESENT: SEEMA SINHA, [PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER

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OA No.642/2023

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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. R Appadurai, S/o. Ramasamy, D/No.2/315, East Street, Thalayamangalam, Orathanadu (T.K) Thanjavur ---- 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 Defendant 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:

Page 1 of 7

OA No. 642/2023

JUDGEMENT

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 30.08.2023 to recover from the Defendant a sum of Rs.22,77,304.67p i.e., (i) Rs.9,64,144.67p together with interest at the rate of 7 % p.a. with monthly rests plus penal interest at the rate of 2% p.a in respect of KCC loan ii) Rs.13,13,160/- together with interest at the rate of 7 % 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 defendant has availed KCC Loan for a sum of Rs.4,00,000/- and they Term Loan for a sum of Rs.5,50,000 totaling Rs.9,50,000/- from the applicant bank and executed necessary loan documents in favor of the Applicant. In addition to that, the defendant has 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 defendant has executed memorandum of deposit of title deeds on 04.08.2015 in Document No.1292/2015, SRO Orathanadu. The following is the detail of loan availed by the defendants.

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S. No.	Nature of Loan	Loan Amount	Interest Rate	Outstanding Amount (as on 31.03.2023)
1	KCC Loan & 0482008800003391	Rs.4,00,000	^{7% p.a. +} 2% P.I.	Rs.9,64,144.67
2	Term Loan & 048200AO00522054	Rs.5,50,000	^{7% p.a. +} 2% P.I.	Rs.13,13,160.00
	Total			Rs.22,77,304.67

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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.22,77,304.67p has become due and they are liable to pay the said amounts with further interest till repayment.

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Page 2 of 7

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OA No. 642/2023

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The applicant Bank submits that in spite of repeated demand notices and reminders, the defendant failed to repay the loan amount. Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.22,77,304.67p i.e., (i) Rs.9,64,144.67p together with interest at the rate of 7 % p.a. with monthly rests plus penal interest at the rate of 2% p.a in respect of KCC loan (ii) Rs.13,13,160/- together with interest at the rate of 7 % 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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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	27.07.2015	Loan Application	Ex. No. A-01
2	27.07.2015	Hypothecation Agreement	Ex. No. A-02
3	27.07.2015	Loan Application	Ex. No. A-03
4	27.07.2015	Hypothecation Agreement	Ex. No. A-04
5	04.08.2015	MOD Doc. No. 1292/2015	Ex. No. A-05
6	27.08.2014	Sale Deed Doc. No. 1236/2014	Ex. No. A-06
7	13.02.2015	Sale Deed Doc. No. 192/2015	Ex. No. A-07
8	24.07.2018	Balance and Security Confirmation Letter	Ex. No. A-08
9	30.07.2018	Balance and Security Confirmation Letter	Ex. No. A-09
10	26.07.2021	Balance and Security Confirmation Letter	Ex. No. A-10
11	—	Statement of Accounts	Ex. No. A-11

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SCHEDULE

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Mortgaged Property

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Thanjavur District, Orathanadu Taluk, and Sub Registration District in 17/1 Thalayamangalam Village.

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Page 3 of 7

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OA No. 642/2023

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S. No.	R.S. No.	Extent(Hec.A) A.Ce	Classification
1	324/1 Full	0.24.0 0.59	Punjai
2	321/6A Full	0.38.5 0.95	Punjai
3	321/6B Full	0.27.5 0.68	Punjai
4	321/6C Full	0.28.5 0.70	Punjai
	Total	2.92

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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 are 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 defendant has availed KCC and Agricultural 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-11 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 relies upon the following documents: (i) Loan Application (KCC)dated 27.07.2015 marked as Ex. No. A-01 ; (ii) Hypothecation Agreement dated 27.07.2015 marked as Ex. No. A-02 ; (iii) Loan Application (TL)dated 27.07.2015 marked as Ex. No. A-03 ; (iv) Hypothecation Agreement dated 27.07.2015 marked as Ex. No. A-04 ; (v) MOD Document No. 1292/2015 dated 04.08.2015 marked as Ex. No. A-05 ; (vi) Sale Deed Document No. 1236/2014 dated 27.08.2014 marked as Ex. No. A-06 ; (vii) Sale Deed Document No. 192/2015 dated 13.02.2015 marked as Ex. No. A- 07 ; (viii) Balance and Security Confirmation Letter dated 24.07.2018 marked as Ex. No. A-08 ; (ix) Balance and Security Confirmation Letter dated 30.07.2018 marked as Ex. No. A-09 ; (x) Balance and Security Confirmation Letter dated 26.07.2021 marked as Ex. No. A-10 ; and (xi) Statement of Accounts marked as Ex. No. A-11 . So the averments of the applicant as well

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Page 4 of 7

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OA No. 642/2023

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

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The Applicant Bank is entitled to recover from the Defendant, a sum of Rs.22,77,304.67p i.e., (i) Rs.9,64,144.67p together with simple interest at the rate of 6 % p.a. in respect of KCC loan ii) Rs.13,13,160/- together with simple interest at the rate of 6 % p.a. in respect of Agricultural Term Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby

ORDERED

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OA No. 642/2023

(a) That the Defendant are directed to pay personally a sum of Rs.22,77,304.67p i.e., (i) Rs.9,64,144.67p together with simple interest at the rate of 6 % p.a. in respect of KCC loan ii) Rs.13,13,160/- together with simple interest at the rate of 6 % p.a. in respect of Agricultural 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) 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.

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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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Page 6 of 7

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OA No. 642/2023

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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 KCC and Agricultural 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 25^th June, 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 04.07.26

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Punjab National Bank v. R Appadurai

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. R Appadurai

Case brief

What is this about?

What did the court decide?

What the court decided

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