Allowed

Punjab and Sind Bank v. M/S Akila Trading Corporation

DRT12 Jan 2026TA/1294/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 4,88,24,536.64 plus interest against the respondents under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, after the defendants were set ex-parte.

What did the court decide?

Recovery of principal sum of Rs. 4,88,24,536.64, interest @10% p.a. with monthly rests, and costs; liberty to sale of mortgaged properties upon default.

Punjab and Sind Bank versus M/S Akila Trading Corporation — Banking and Recovery | DRT (2026)

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T.A. No. 1294 of 2023

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12.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 12^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 1294 of 2023

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(Originally filed before DRT- II, Chennai as OA 156/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1294 of 2023)

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Punjab & Sind Bank Ashok Nagar Branch 17/36, Ground Floor 4^th Avenue, Ashok Nagar Chennai 600 083 Rep by its Manager ….Applicant

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-Vs-

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M/s. Akila Trading Corporation,

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(M/s AK-ILA TRADING CORPORATION)

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#5/625, Radhika Apartments, 1^st Cross Street, Vignarajapuram, Vengal Vasal, Medavakkam, Chennai 600 100

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Mr. A. Kumar,

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Partner, M/s. Akila Trading Corporation,

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(M/s AK-ILA TRADING CORPORATION) S/o. K. Arumugam, Villa No.21, Isha Signature Villa, Perumbakkam, Chennai 600 100.

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Mr. N. C. Jitendra, Partner, M/s. Akila Trading Corporation, (M/s AK-ILA TRADING CORPORATION) #43, Vellalar Street, Adambakkam, Chennai 600 088

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Mrs. N. C. Mohana Priya (Guarantor), D/o. Mr. N. V. Chakrpani, #43, Vellalar Street, Adambakkam,

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Chennai 600 088 ….Defendants

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T.A. No. 1294 of 2023

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12.01.2026

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Counsels on record / appeared:

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Counsel for Applicant : Sh. R. Krishnamoorthy

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Defendants were set ex-parte on 22.08.2023

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: - FINAL ORDER - :

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This Original Application is filed on 29.12.2020 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants, for recovery of a total sum of Rs.4,88,24,536.64p

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(Rupees Four Crores Eighty Eight Lakhs Twenty Four Thousand Five

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Hundred Thirty Six and Sixty Four Paisa only) due in respect of PSB Vyapar Over Draft Loan (Account No.0991300000053) repayable together with further interest @10% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 156 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 156 of 2021 stood transferred to this Tribunal and renumbered as TA No.1294 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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T.A. No. 1294 of 2023

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12.01.2026

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It is the case of the Applicant Bank that on accepting the said terms and conditions of sanction ticket mentioned therein and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the Defendants signed and executed the loan documents in favour of the bank. They executed Form No.15 R – the demand promissory note dated 11.01.2018 to the bank. They executed Form No. 103/291/412 to the bank. They also submitted the letter of undertaking to the bank including Forms 122, 126, 199, 200, 216, 84AA, 159, Loan Agreement, Declaration, Consent Clause among other documents duly executed. They also submitted the certificate of execution of documents to the bank.

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The Applicant submits that the 1 to 3 Defendants submitted the Form No.200 for revised clauses pertaining to rate of interest dated 11.01.2018 to the bank. The 1 to 3 Defendants submitted the Form No.84AA to the bank. The 2 to 4 Defendants being the guarantors of the loan amount had executed the Form No.255 (RR) & 256 (RR) - Agreement of Guarantee to the bank. The 3^rd and 4^th Defendants had created charge over her assets described in the schedule hereunder in favour of the bank.

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It is submitted by the applicant bank that in order to secure the due repayment to the loan availed, the Defendants also created a mortgage, more fully described in the ‘Scheduled Property’ hereunder, by way of a Memorandum of deposit of title Deeds dated 10.01.2018, registered as Doc. Nos. 123 and 124/2018 in favour of the Applicant.

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The applicant submits that the Defendants have executed equitable mortgage and also submitted the following documents pertaining to the

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T.A. No. 1294 of 2023

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12.01.2026

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mortgaged properties:

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i. Registered Settlement deeds dated 08.09.2017 in Doc Nos. 4190 and 4191 of 2017 in favour of 3^rd and 4^th Defendants.

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ii. Registered Settlement deed dated 28.02.2007 bearing Doc No.698/2007 executed by Mr. N. Veeraraghavalu to and in favour of Mr. N. V. Chakrapani.

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iii. Registered Sale Deed dated 25.01.1957 bearing Doc. No.3522/1957 executed by Mr. Sundarara Rao to and in favour of Mr. N. veeraraghavalu.

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iv. Registered Sale Deed dated 27.05.1949 bearing Doc. No.958/1949 executed by Mr. A. Balakrishnan to and in favour of Mr. Sundarara Rao.

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v. Twon Survey Field Register Extract in the name of N. V. Chakrapani has been issued by the Zonal Deputy Tahsildar, Alandur Zone, Tambaram Taluk.

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vi. Encumbrance certificates.

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It is submitted by the applicant bank that after availing the said loan amounts from the Applicant, the Defendants failed and neglected to repay the same with interest and other charges. The Applicant had sent several notices to the Defendants calling upon them to pay the amount dues. However, the Defendants did not pay any amount towards such dues till this date. Despite several notices including proceedings under the SARFAESI Act, 2002, the Defendants had not paid the dues, therefore, as

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T.A. No. 1294 of 2023

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12.01.2026

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per the Statement of Account filed herein, as on 30.11.2020 the principal and interest payable was accumulating as, a sum of Rs.4,88,24,536.64/-. The total amount payable is Rs.4,88,24,536.64/-. 64 towards aforesaid PSB Vyapar OD/loan.

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The Defendants have failed to pay the said amount to the Applicant, in spite of demands, both oral and written forcing the Applicant to file this application for the recovery of its legitimate dues from the Defendants. The Applicant reserves its right to amend this Application, if necessary. All the facts of the case are enumerated above and the same are correct. The documents produced in the O.A. were duly executed by the Defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due, summons D1 to D4 was duly served. Although defendants D1 to D3 entered apperaence and filed vakalat through their counsel, did not choose to file written statement despite availing sufficient opportunities. When OA was taken up on 22.08.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants were placed exparte on 22.08.2023.

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Heard the submissions of Applicant Bank and perused the record s.

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To prove the case of the Applicant Bank, Sh. Ajay N., 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

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T.A. No. 1294 of 2023

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12.01.2026

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marked as Ex A-1 to A-22 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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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 Defendant, jointly and severely for recovery of a total sum of Rs.4,88,24,536.64p (Rupees Four Crores Eighty Eight Lakhs Twenty Four Thousand Five Hundred Thirty Six and Sixty Four Paisa only) due in respect of PSB Vyapar Over Draft Loan (Account No.0991300000053) repayable together with further interest @10% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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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 A and B mentioned immovable properties morefully detailed in the OA schedule.

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(d) The applicant bank shall file the latest memo of calculation of

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T.A. No. 1294 of 2023

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12.01.2026

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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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(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(f) 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 Steno (Arti), transcribed by her, corrected, signed and pronounced by me on this the 12^th day of January, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Ajay N., Chief Manager representing the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application	A-1
2.	Sanction Letter dated 10.01.2018	A-2
3.	Attestation Memo of Documents dated 11.01.2018	A-3
4.	Certificate of Execution of Documents dated 11.01.2018	A-4

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T.A. No. 1294 of 2023

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12.01.2026

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5.	Demand Promissory Note dated 11.01.2018	A-5
6.	Letter of Waiver dated 11.01.2018	A-6
7.	Other forms dated 11.01.2018	A-7
8.	Letter od undertaking dated 11.01.2018	A-8
9.	Revised clauses pertaining of rate of interest dated 11.01.2018	A-9
10.	Loan agreement Form 216/84AA dated 11.01.2018	A-10
11.	Undertaking, Declaration, Civil consent clause dated 11.01.2018	A-11
12.	Sale deed dated 27.05.1949 Doc. No.958/1949	A-12
13.	Sale deed dated 25.12.1957 Doc. No.3522/1957	A-13
14.	Settlement Deed dated 28.02.2007 Doc No.698/2007	A-14
15.	Settlement Deed dated 08.09.2017 Doc No.4190/2017	A-15
16.	Settlement Deed dated 08.09.2017 Doc No.4191/2017	A-16
17.	Town Survey Field Register Extract dated 20.02.2007	A-17
18.	Planning Permit by Alandur Municipality dated 22.05.2018	A-18
19.	MOD dated 10.01.2018 Doc No.123/2018	A-19
20.	MOD dated 10.01.2018 Doc No.124/2018	A-20
21.	Legal Notice dated 19.10.2020	A-21
22.	Statement pf Account & BBE dated 11.01.2018	A-22

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-:

Property 1:-

Schedule A

All that piece and parcel of property bearing Door No.43, Vellalar Street, known as Karikalan Street, comprised in S.No.206/1, ward No. G, Block No.14, T.S. No.33 to an extent of 5376 sq. ft. as per planning permit with existing building in 2729 sq. ft. Ground 2187 sq. ft. In first floor thereon, (Building approved Planning Member Secretary, MMDA for Commissioner, Alandur Municipality) situated at Adambakkam Village now Alandur Taluk, Kancheepuram District,

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T.A. No. 1294 of 2023

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12.01.2026

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Bounded on the North By :- Property belonging to Pushpa Valliammal, South By :- Property belonging to Bhageerathi Ammal, East By :- Property belonging to Duraiswamy Reddiar,

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West By :- Vellalar Street known as Karikalan Street and, Measuring East to West on the North :- 28 ft., East to West on the South :- 28 ft., North to South on the East :- 192 ft., North to South on the West :- 182 ft.

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Schedule B

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½ (half) Undivided Share in the Schedule ’A’ mentioned property, together with building in First Floor 2187 sq.ft. with all TNEB service connection, House tax Assessment, water service connection, fittings, fixtures in the name of Mr. N.C. Jitendra namely the 3^rd of you.

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Title Document No. 4191/ 2017 dated 08.09.2017 of Alandur SRO.

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Property 2:-

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Schedule A

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All that piece and parcel of property bearing Door No.43, Vellalar Street, known as Karikalan Street, Comprised in S.no. 206/1, ward No. G, Block No.14, T.S. No.33 to an extent of 5376 sq. ft as per planning permit with existing building in 2729 sq. ft. Ground, 2187 sq. ft. In First Floor thereon, (Building approved Planning Permit No.371/2008, B.A. No.523/2008 dated 14.10.2008 issued by the Member Secretary, MMDA for Commissioner, Alndur Muncipality) situated at Adambakkam Village now Alandur Taluk, Kancheepuram District,

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Bounded on the North By :-Property belonging to Pushpa Valliammal, South By :-Property belonging to Bhageerathi Ammal, East By :-Property belonging to Duraiswamy Reddiar

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T.A. No. 1294 of 2023

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12.01.2026

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West By :-Vellalar Street known as Karikalan Street, and, Measuring East to West on the North :-28 ft., East to West on the South :-28 ft., North to South on the East :-192 ft., North to South on the West :-182 ft.

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Schedule B

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½ (half) Undivided Share in the Schedule ’A’ mentioned property, together with building in First Floor 2187 sq.ft. With all TNEB service connection, House tax Assessment, water service connection, fittings, fixtures in the name of Mr. N.C. Mohanapirya namely the 4^rd of you.

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Title Document No. 4190/ 2017 dated 08.09.2017 of Alandur SRO.

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Sd/-

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

Punjab and Sind Bank v. M/S Akila Trading Corporation

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. M/S Akila Trading Corporation

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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