Allowed

Punjab National Bank v. M/S Harini Mutti Speciality Dental Clinic

DRT5 Feb 2026TA/1590/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues under Section 19 of the RDB Act, 1993. The court validated the loan agreements and finding the defendants ex-parte liable, ordered recovery of Rs. 23,46,183.11 with interest. The bank was granted liberty to sell hypothecated and personal assets to satisfy the debt if necessary.

What did the court decide?

Recovery of Rs. 23,46,183.11 with further interest; liberty to sell hypothecated and personal assets; issuance of Recovery Certificate.

Punjab National Bank versus M/S Harini Mutti Speciality… — Execution and Attachment | DRT (2026)

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T.A. No. 1590 of 2023

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05.02.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of February, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1590 of 2023

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(Originally filed before DRT- II, Chennai as OA 851/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1590 of 2023)

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Punjab National Bank, Through Senior Manager, Branch Office: No.3, Third Main Road, Dhandeeswarar Nagar, Velachery, Chennai – 600 042.

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…Applicant

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-Vs-

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M/s. Harini Multi Specialty Dental Clinic Through Sole – Proprietor Dr. S.J. Senthil Kumar Karthick Towers, 2^nd Floor, No.8/9, Bharathi Salai, Mogappair West,

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Chennai – 600 037.

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Dr. S.J. Senthil Kumar S/o Sri. Kohn S Karthick Towers, 2^nd Floor, No.8/9, Bharathi Salai, Mogappair West, Chennai – 600 037. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Ms. Sharmila Devi

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Defendants 1 and 2 were set ex-parte on 19.07.2021

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: - FINAL ORDER - :

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This Original Application is filed on 20.09.2019 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 1 and 2, jointly and severally for recovery of a total

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sum of Rs.23,46,183.11p (Rupees Twenty Three Lakhs Forty Six

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T.A. No. 1590 of 2023

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05.02.2026

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Thousand One Hundred and Eighty Three and Eleven Paisa only) as follows:

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(a) A sum of Rs.11,54,297.96p due in respect of PNB General Credit Card Loan Scheme (Account No.644700KU00001617)

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repayable together with further interest @ 9.70% p.a. with monthly rests and Penal interest @ 2% (simple) from the date of application till the date of realisation in full;

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(b) A sum of Rs.11,91,885.15p due in respect of Working Capital Term Loan (Account No.6477008700000488) repayable together with further interest @ 10.00% p.a., with monthly rests and Penal interest @ 2% (simple) from the date of application till the date of realisation in full;

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for sale of scheduled mentioned hypothecated property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.851 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.851 of 2019 stood transferred to this Tribunal and renumbered as TA No.1590/2023.

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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. 1590 of 2023

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05.02.2026

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It is the case of the applicant bank that the 2^nd defendant had availed Cash credit of Rs.9.90 lakhs as a sole proprietor of his sole proprietorship concern M/s. Harini Multi speciality Dental clinic and another loan of Rs.9.75 lakhs under PNBGCC scheme in his personal individual capacity. Thus, the 2^nd defendant is jointly and severally liable for repayment of both the loans, further the 2^nd defendant approached the applicant bank on 25.10.2016 with request dated 25.10.2016 for sanction of Loan Rs.9.75 lakhs under PNBGCC scheme for expenses of his clinic, personal expenses, day to day expenses.

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The applicant had sanctioned loan of Rs.9.75 lakhs on 26.10.2016 and the defendants executed loan agreement on 26.10.2016 and one of the terms and conditions of loan was that to avail credit, there should be more credit than the debit to cover up the interest also. The facility was for initial 12 months renewable on yearly basis, subject to conduct of borrower as per repayment done. After sanction/disbursement of loan amount of Rs.9.75 lakhs under PNBGCC scheme, the same was utilised by the defendants for their business and they are liable to pay the same together with interest, penal interest and cost.

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The applicant further submits that to avail the above said credit facility, 2^nd defendant had executed the following documents in favour of the applicant bank :

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i. Acceptance of terms and conditions of sanction as per letter of acceptance dated 26.10.2016 in respect to Rs.9.75 lakhs which was duly acknowledged by defendant by accepting terms and

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T.A. No. 1590 of 2023

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05.02.2026

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conditions of sanction under his signature.

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ii. Execution of agreement for cash credit dated 26.10.2016 for Rs.9.75 lakhs with interest rate @ 10.69% p.a., with monthly rest and penal interest @ 2%

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iii. CGTMSE Coverage application dated 30.01.2017

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It is the further case of the applicant bank that the 2^nd defendant had approached the applicant on 31.10.2017 with request of sanction of Cash credit limit of Rs.9.90 lakhs for further strengthen his clinic, which was considered by applicant and sanctioned Cash credit facility of Rs.9.90 lakhs on 31.10.2017, the defendants executed hypothecation of goods to secure a demand cash credit on 31.10.2017.

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The applicant submits that one of the terms and conditions that facility will keep drawing powers by crediting interest on monthly basis or whenever charged, the credit facilities were utilised by the defendant and liable to pay the same together with interest, penal interest, cost and expenses. Further the defendant had executed the following documents:

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i. Acceptance of Terms and conditions of sanction dated 31.01.2017 in respect to cash credit facility for Rs.9.90 lakhs, it was duly acknowledged by the defendant by accepting the terms and conditions of sanction by writing a letter on 31.10.2017

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ii. Execution of agreement of Hypothecation of Goods to secure a demand cash credit dated 31.10.2017 for Rs.9.90 lakhs with

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T.A. No. 1590 of 2023

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interest @ 9.6% p.a., with monthly rest and penal interest @ 2%

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iii. CGTMSE Coverage application dated 30.01.2017

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The applicant further submits that subsequent to availing of loan, regular repayments were not forthcoming and requests by the bank officials to the borrower could not bring any result and all the heed made went to the deaf ears, the bank was then constrained not to permit any such facility further to defendant and thus finally classified the loan account of PNBGCC as Non-Performing Asset (NPA) on 12.10.2018 with balance outstanding Rs.10,41,870.92/- and Cash credit on 16.04.2018 with balance outstanding Rs.10,00,665.20/- with an accrued interest of Rs.2,62,761.93/- and Rs.52,247.01/- and Rs.11,361.95 on 31.12.2018. Despite repeated requests and demands, as defendants did not come forward to repay the dues, the present Original Application (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 and 2 through Registered Post with Acknowledgment Due, which was returned unserved with remark as “Left” in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 19.07.2021.

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T.A. No. 1590 of 2023

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05.02.2026

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. P. Mahendran is 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-13 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 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 amount claimed against defendants.

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The defendants were set ex-parte on 19.07.2021, 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

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and operations in the account and the default committed, this Tribunal

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T.A. No. 1590 of 2023

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05.02.2026

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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 jointly and severally, a total sum of Rs.23,46,183.11p (Rupees Twenty Three Lakhs Forty Six Thousand One Hundred and Eighty Three and Eleven Paisa only) as follows:

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(i) A sum of Rs.11,54,297.96p due in respect of PNB General Credit Card Loan Scheme (Account No.644700KU00001617) repayable together with further interest @ 9.70% p.a. with monthly rests and Penal interest @ 2% (simple) from the date of application till the date of realisation in full;

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(ii) A sum of Rs.11,91,885.15p due in respect of Working Capital Term Loan (Account No.6477008700000488) repayable together with further interest @ 10.00% p.a., with monthly rests and Penal interest @ 2% (simple) from the date of application till the date of realisation 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

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T.A. No. 1590 of 2023

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the hypothecated assets morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are 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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T.A. No. 1590 of 2023

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05.02.2026

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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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 05^th day of February, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Mahendran, Chief Manager of 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.	Request application of defendant for PNBGCC Scheme loan of Rs.9.75 lakhs dated 25.10.2016	A-1
2.	Letter intimating the sanction of PNBGCC scheme loan of Rs.9.75 lakhs with terms and conditions dated 26.10.2016	A-2
3.	Letter of undertaking for availing credit limit under PNB General Credit card scheme for Rs.9,75,000/- by defendant dated 26.10.2016	A-3
4.	Agreement for loan/cash credit/ overdraft for Rs.9.75 lakhs by defendant for PNB General Credit card scheme dated 26.10.2016	A-4
5.	Letter of sanction dated 31.10.2017 for cash credit limit of Rs.9.90 lakhs dated 31.10.2017	A-5
6.	Letter dated 31.10.2017 accepting terms and conditions and other covenants of loan of Rs.9.75 lakhs under PNBGCC Scheme dated 31.10.2017	A-6
7.	Agreement of hypothecation of goods to secure a demand cash credit of Rs.9.90 lakhs by defendants dated 31.10.2017	A-7
8.	Defendant letter dated 31.10.2017 agreeing for certain covenants of sanction of Cash credit of 9.90 lakhs dated 31.10.2017	A-8
9.	Defendants request for CGTMSE coverage for PNBGCC scheme and cash credit facilities dated 30.01.2017	A-9

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T.A. No. 1590 of 2023

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10.	Applicant bank letter dated 06.07.2018 for not crediting the amount and not operating the general credit card account properly dated 06.07.2018	A-10
11.	Legal notice dated 06.08.2018 for payment of due amount of Rs.10,00,665/- as on 30.05.2018 in cash credit loan account dated 06.08.2018	A-11
12.	Applicant bank notice dated 07.01.2019 for payment of recoverable amount in both loan accounts dated 07.01.2019	A-12
13.	Statement of account for cash credit and general credit card scheme and certificate under Bankers Books Evidence Act, 1891.	A-13

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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 OF HYPOTHECATED PROPERTY-:

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All medical equipments and machines, spares, tools and other consumables such as X- Ray machine, computer, air-conditioners, all furniture and fixtures and all accessories used in the profession of dentistry/orthodontics and all that goods bought from bank finance etc., lying at Karthick towers, 2^nd floor, No.3/9, Bharathi Salai Mogappair West, Chennai – 37.

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

Punjab National Bank v. M/S Harini Mutti Speciality Dental Clinic

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Harini Mutti Speciality Dental Clinic

Case brief

What is this about?

What did the court decide?

What the court decided

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