Allowed

Punjab National Bank v. Djeabalou

DRT12 May 2026TA/11/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's Original Application under the RDB Act for recovery of outstanding loan dues of approx Rs.47.42 Lakhs from three respondents who defaulted on housing and vehicle loans, granting liberty to sell mortgaged and other assets.

What did the court decide?

Recovery of total sum of Rs.47,42,405/- comprising principal, interest, and penal interest; liberty to sell mortgaged and personal assets.

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

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T.A. No.11 of 2022

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12.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 12^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 11 of 2022

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(Originally filed before DRT-II, Chennai vide Dy. No.726/2022 and thereafter transferred to this Tribunal and numbered as TA No.11 of 2022)

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Punjab National Bank Circle SASTRA Centre, Chennai South Mezzananine Floor, 46-49 PNB Towers, Royapettah High Road, Chennai- 600 014 Rep by its Chief Manager …Applicant

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-Vs-

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Mr.T.,Djeabalou

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S/o Mr.Thandapani

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No.33, II floor, Annie Besant Street,

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VOC Nagar,

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Puducherry- 605 003

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Smt.J.Bhavani

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W/o Mr.T.,Djeabalou

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No.33, II floor, Annie Besant Street,

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VOC Nagar,

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Puducherry- 605 003

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Mr.K.Munibabu

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S/o/A.M.krishnamoorthy Chettiar 2/48, Odiempet Road,

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Villianur,

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Pondicherry-605 110 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M.S. Vishwanathan

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Defendants 1 to 3 were set ex-parte on 23.11.2022

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: - FINAL ORDER- :

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This Original Application is filed on 11.05.2022 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

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T.A. No.11 of 2022

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 3, for recovery of a total sum of

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Rs.47,42,405/- (Rupees Forty Seven Lakhs Forty Two Thousand

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Four Hundred and Five only) as follows:

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(i) A sum of Rs.15,96,818/- due in respect of Housing Loan (A/c No.292800NC00031851) repayable together with further interest @ 8.5% p.a. with monthly rests together with penal interest @2% p.a. from the date of Application till the date of realization in full;

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(ii) A sum of Rs.31,10,054/- due in respect of Housing Loan (A/c No.292800NC00032346) repayable together with further interest @ 8.5% p.a. with monthly rests together with penal interest @2% p.a. from the date of Application till the date of realization in full;

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(iii) A sum of Rs.35,533/- due in respect of Vehicle Loan (A/c No.292800NG00041270) repayable together with further interest @ 12.00% p.a. with monthly rests together with penal interest @ 2% p.a. from the date of Application till the date of realization in full;

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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

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of limitation as prescribed under Section 24 of the Recovery of Debts and

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T.A. No.11 of 2022

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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 defendants had approached the applicant bank, Pondicherry Branch requesting for Housing Term Loan of Rs.14.25 lakhs. Considering the said request, the applicant bank’s Pondicherry branch sanctioned the aforesaid facility on 20.12.2007.

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It is submitted by the applicant bank that the defendant herein executed the loan documents for Rs.14,25,000/- to repay the same with interest at 9.50% p.a. with monthly rests and Guarantee Agreement in favour of the applicant bank. The documents were executed by the 2^nd defendant as Co Borrower and the 3^rd defendant as Guarantor.

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It is the further case of the applicant bank that based on the request of the defendants, applicant’s bank Pondicherry branch also sanctioned another Housing Term Loan on 25.11.2013 for Rs.20 lakhs, for which the defendants executed Agreement for Housing Loan on 26.11.2013 for Rs.20,00,000/- to repay the same with interest at 10.25% p.a. with monthly rests and on 17.04.2014 one more Term Loan for purchase of Vehicle was also sanctioned in a sum of Rs.47,700/- to the defendants.

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The applicant submits that as security for the said facility the 1^st defendant created equitable mortgage in favour of the applicant bank in respect of his property morefully described as Schedule A in the OA, by deposit of title deeds, Sale deed No.7193/2006 dated 18.12.2006

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registered before Villianur Sub-Register office.

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It is submitted that by executing the Term Loan Agreement, the defendants agreed among other terms and conditions that if they commit default in repayment of any instalments of the loan or any amount payable under the terms and conditions of this agreement and /or the sanction letter, additional interest @ 2% per annum or at such other rate fixed by the bank from time to time over and above the rate of interest specified in the agreement shall be payable on the instalments or amount so defaulted for such period as the irregularity, breach, default continues or for such periods as the bank may deem it necessary and such additional interest shall be payable as and when it falls due. The decision of the bank on whether there has been any such default or breach shall be final and binding on the borrower. The payment of such additional interest shall be without prejudiced to the other rights or remedies available for the bank.

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The applicant submits that the defendants committed default in repayment of the aforesaid credit facility availed by them. The applicant bank had been repeatedly sending reminders orally and personally to the defendants herein and they failed and neglected repay the dues as promised by them. Thus, the loan account was classified as NonPerforming Asset (NPA) as on 02.05.2017. All the defendants are liable to repay the debt to the applicant bank as per terms of loan agreement executed and other loan documents.

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As per the terms of the loan agreements executed in favour of the

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applicant by the defendants the defendants agreed that the principal amount under this agreement shall always include and /or shall deem to include also the interest calculated and debited to the loan account of the borrower with monthly rests from time to time cumulatively. If the borrower commits default in repayment of the periodic interest or any instalments of repayment or any amount payable under the terms of this agreement and/or the sanction order, penal interest and additional penal interest shall become payable for the period for which the irregularity, breach, default continues at the rates as per the agreement or at such other rates as may be fixed by the bank from time to time over and above the rate of interest applicable to the credit facility as and when it falls due. The decision on the bank on whether there has been any such default or breach shall be final and binding on the borrower. The payment of such additional interest shall be without prejudice to the other rights or remedies available for the bank.

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The applicant submits that despite repeated demands the defendants failed and neglected to repay the debts due to the applicant bank. The applicant bank has issued Recall Notice on 06.11.2017 to pay the entire amount due to the applicant within 10 days from the date of receipt of notice. As this was also ineffective, the applicant bank issued Demand Notice under Section 13(2) of the SARFAESI Act, 2002 on 29.12.2017, thereby demanding the borrowers to repay the loan due outstanding in their names within 60 days of receipt of the notice. This has also yielded no fruitful effect. Hence, the present Original Application

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T.A. No.11 of 2022

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(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 3 through Registered Post with Acknowledgment Due, which was returned with remarks “left” in respect of D-1, summons to D-2 returned with remarks “Unclaimed”, while summons to D-3 returned with remarks “Insufficient address”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 23.11.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 23.11.2022

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Mr. Pattabiraman Mahendran, Chief Manager of the Applicant Bank, has filed his 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-14.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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

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amount claimed against defendants.

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The defendants were set ex-parte on 23.11.2022, 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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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 1 to 3, for recovery of a total sum of Rs.47,42,405/- (Rupees Forty Seven Lakhs Forty Two Thousand Four Hundred and Five only) as follows:

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(i) A sum of Rs.15,96,818/- due in respect of Housing Loan (A/c No.292800NC00031851) repayable together with further interest @ 8.5% p.a. with monthly rests together

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with penal interest @2% p.a. from the date of Application till the date of realization in full;

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(ii) A sum of Rs.31,10,054/- due in respect of Housing Loan (A/c No.292800NC00032346) repayable together with further interest @ 8.5% p.a. with monthly rests together with penal interest @2% p.a. from the date of Application till the date of realization in full;

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(iii) A sum of Rs.35,533/- due in respect of Vehicle Loan (A/c No.292800NG00041270) repayable together with further interest @ 12.00% 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 OA.

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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 schedule mentioned immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the mortgaged property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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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) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 12^th day of May, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Pattabiraman Mahendran, Chief Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	20.12.2007	Sanction of the Housing term loan-I	A-1

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2.	26.12.2007	Agreement for Housing loan for Rs.14,25,000/- executed by the 1^stand 2^nd defendant.	A-2
3.	26.12.2007	Guarantee agreement executed by Guarantor	A-3
4.	26.12.2007	Mortgage deed executed by 1^stdefendant	A-4
5.	26.12.2007	Application for Housing term loan-2	A-5
6.	26.12.2007	Agreement for housing loan for Rs.20,00,000/- executed by the 1^stand 2^nd defendant.	A-6
7.	17.04.2014	Sanction of vehicle loan to the 1^st defendant for Rs.47,700/-	A-7
8.	26.11.2013	Mortgage deed executed by 1^stdefendant	A-8
9.	18.12.2006	Sale deed registration No.7193 favouring the 1^stdefendant in Villianur sub-register office (sold in e-auction)	A-9
10.	06.11.2017	Recall notice sent to 1^stdefendant	A-10
11.	29.12.2017	Notice issued the defendants under section 13(2) of securitization act,2002 by the applicant bank	A-11
12.	08.10.2010 & 05.10.2013 & 30.04.2016	Acknowledgement of debts by the defendants on 08.10.2010, 05.10.2013 and 30.04.2016	A-12
13.	28.01.2020	One time settlement proposal for Rs.50lakhs to settle all loans given by the 1^stdefendant	A-13
14.	30.04.2022	Statement of account details 1. H/L-1 A/c No. 292800NC00031851 2. H/L-1 A/c No. 292800NC00032346 3. H/L-1 A/c No. 292800NG00041270 & summary of all accounts	A-14

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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-A:

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All that piece and parcel of land and building bearing plot no.71 in Padmini Nagar, Village No.32, Villianur revenue village, Villianur commune Panchayat limits comprised in cadastre No.570pt and R.S.No.191/1pt with two storied residential building thereon ground measuring 1291.67 Sq.ft (120sq.meter) and first floor measuring 1205.56 sq.ft (112sq.meter) in

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the name of T.Djeabalou under a sale deed 18.12.2006 registered as Doc.No. 7193 of 2006 in the office of the sub register of Villianur SubRegistrar and bounded on the

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North by: Road South by: Plot No.62 East by: Plot No.70 West by: Plot No.72

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

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Uploaded on 12.05.2026 at 17:00 hours

Punjab National Bank v. Djeabalou

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Djeabalou

Case brief

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