Allowed

Punjab National Bank v. M/s Aasrthi Tours and Travels

DRT10 Aug 2026TA/1692/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Punjab National Bank to recover approximately Rs. 70.43 Lakhs consisting of interest on nine term loans granted for vehicle purchases. The court accepted the bank's evidence and granted judgment in an ex-parte decree due to the respondents' default.

What did the court decide?

The applicant bank was allowed to recover a total sum of Rs. 70,43,386.85 jointly and severally from the respondents along with interest at contractual rates and penal interest till realization.

Punjab National Bank versus M/s Aasrthi Tours and Travels — Company and Corporate | DRT (2026)

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T.A. No. 1692 of 2023

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10.08.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 10^th day of August, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1692 of 2023

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(Originally filed before DRT- II, Chennai as OA 116/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1692 of 2023)

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M/s. Punjab National Bank, Mylapore Branch, No.150, Luz Church Road, Mylapore, Chennai – 600 004 Represented by its Branch Senior Manager ….Applicant

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-Vs-

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M/s. Aarthi Tours & Travels, Represented by its Proprietor Mrs. Aarthi Balaji, w/o Balaji Sakthivel, No.216/2, Annai Sathya Nagar, 11^th Street, Arumbakkam, Chennai – 600 106

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Mrs. Aarthi Balaji, w/o Balaji Sakthivel, No.30, Thiruvalluvar Street, St. Thomas Mount, Chennai – 600 016 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. J.Arun Prasad

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Defendants 1 and 2 were set ex-parte on 22.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 27.07.2020 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 1 and 2, jointly and severally for recovery of a total

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T.A. No. 1692 of 2023

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sum of Rs.70,43,386.85p (Rupees Seventy Lakhs Forty Three Thousand Three Hundred Eighty Six and Eighty Five Paise only) as follows:

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i. A sum of Rs.7,49,976.75p due in respect of Term Loan (Account No.034300JT00000066) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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ii. A sum of Rs.6,20,930.30p due in respect of Term Loan (Account No.034300JT00000075) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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iii. A sum of Rs.6,49,431.30p due in respect of Term Loan (Account No.034300JT00000084) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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iv. A sum of Rs.6,36,164/- due in respect of Term Loan (Account No.034300JT00000093) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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v. A sum of Rs.6,52,728.60p due in respect of Term Loan

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T.A. No. 1692 of 2023

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(Account No.034300JT00000103) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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vi. A sum of Rs.6,28,290.30p due in respect of Term Loan (Account No.034300JT00000112) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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vii. A sum of Rs.6,53,877.60p due in respect of Term Loan (Account No.034300JT00000121) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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viii. A sum of Rs.6,60,526.20p due in respect of Term Loan (Account No.034300JT00000130) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2%, from the date of Application till the date of realization in full;

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ix. A sum of Rs.17,66,461.80p due in respect of Term Loan (Account No.034300JT00000149) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2%, from the date of Application till the date of

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realization in full, and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 116 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.116 of 2021 stood transferred to this Tribunal and renumbered as TA No.1692 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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It is the case of the applicant bank that the 2^nd defendant running a Travels under the name and style of M/s. Aarthi Tours & Travels, which is a proprietorship concern.

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The Applicant submits that the defendant had approached the bank for loan of Rs.48.20 Lakhs for purchase of 8 Tata Indica V2 LSTA 65 Taxi Cars each costing Rs.4,57,500/- and 1 Force Tempo Traveller for a sum of Rs.11.60 Lakhs under Standup India Scheme as it is a Proprietorship firm and owned by women entrepreneur.

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The applicant submits that the defendants made an application dated 31.07.2015 for sanction of Term Loan facility of Rs.48.20 Lakhs to the applicant bank and on basis of such request the applicant bank sanctioned a Term Loan Facility against Hypothecation of Movables for a sum of Rs.48.20 Lakhs in favour of the defendant vide Sanction Letter dated

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12.08.2015 subject to the terms and conditions as envisaged thereon. The applicant submits that on the same day, the applicant opened 9 vehicle accounts separately with 8 accounts each to the tune of Rs.4,57,500/- and 1 account to the tune of Rs.11,60,000/- as it will be easier to have track of end use verification of each vehicle, compliance of terms and conditions like Registration of vehicle, insurance, etc., and also while releasing the vehicles after closing of each of the loan by the defendant.

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The applicant submitted that the above said facility of Rs.48,20,000/was availed and the defendant executed the Hypothecation Agreement (for Road Transport Operator and Other Commercial Vehicle) in favour of the Bank on 18.08.2015.

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The applicant submits that the defendant had created Hypothecation Agreement in favour of the applicant bank and hypothecated all the vehicles in favour of applicant bank, the particulars of which are as follows:

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Model : TATA Indica V2 LS TA Taxi Cars

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i. Vehicle Registration No. TN 22 DA 7764, Chassis No. MAT600185FTF09733, Engine No.475IDI03FUYP36388

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ii. Registration No. TN 22 DA 7767, Chassis No. MAT600185FTF09725, Engine No.475IDI03FUYP36574

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iii. Vehicle Registration No. TN 22 DA 7716, Chassis No. MAT600185FTF09741, Engine No.475IDI03FUYP36632

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iv. Vehicle Registration No. TN 22 DA 7764, Chassis No. MAT600185FTF09720, Engine No.475IDI03FUYP36549

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v. Vehicle Registration No. TN 22 DA 7628, Chassis No. MAT600185FTF09715, Engine No.475IDI03FUYP36515

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vi. Vehicle Registration No. TN 22 DA 7679, Chassis No. MAT600185FTF09730, Engine No.475IDI03FUYP36573

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vii. Force Tempo Traveller, Vehicle Registration No. TN 22 DA 8716, Chassis No. MCHE4CEA2FP033784, Engine No.D56006546

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Thus the said defendant executed a Hypothecation Agreement (For Road Transport Operator and Other Commercial Vehicle) and created an hypothecation over the movable property described Schedule hereunder for the due repayment of the Term Loan Credit Facility raised by the defendant.

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It is submitted by the applicant bank that subsequent to availing of the loan, the defendant was irregular in the repayment of the dues. The applicant made several demands calling upon the defendant to repay the amount but the defendant did not choose to repay the amounts, however, the defendant had executed Balance and Security Confirmation Letter on 05.04.2018. The applicant states that since the defendant was irregular in the repayment of the dues, the applicant issued a letter on 04.05.2018 calling upon the defendants to repay the loan amount but the defendant did not choose to repay the amounts.

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The Applicant had taken legal steps to recover the loan amount hence the applicant bank initiated proceedings to seize the hypothecated vehicle and given necessary instructions to its recovery agent namely M/s. TVS Credit Services Ltd., to recover the amount in the loan account or seizure

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of the vehicles.

The applicant bank submits that there was a default in repayment of the above said Term Loan. The applicant had initiated recovery proceedings through Tamil Nadu State Legal Services Authority and notice has been sent on 28.08.2018 called upon the defendant to appear the Lok Adalat. Despite the letters, the defendant failed and neglected to pay the said amount and hence the suit. The applicant bank again sent Recall Letters to the defendants on 17.11.2018 but the defendants have not chosen to make any payments in respect of the loan accounts.

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The applicant further submits that the defendants are liable to pay a sum of Rs.70,43,386.85p/- in respect of Term Loan Facility as on 20.07.2020 as per the Statement of Accounts. The transaction being commercial in nature the defendants are liable to pay interest at the contractual rate. The applicant states that as per the directives of the RBI the banks have been given the freedom to fix the rate of interest with monthly rests. The defendants having failed to remit the interest accrued/ installment on the due date, the bank is entitled to get such interest capitalized. Therefore, the rate of interest and the capitalization are done as permitted by the RBI and the amount claimed do not run counter to the directives of the RBI. The present rate of interest charged @11.40% in respect of Loan Account No.034300JT00000066, 75 & 84 and all other loan accounts @11.65% with monthly rests apart from penal interest @2%.

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The Applicants declares that compound interest has been charged at such rate, and capitalized at such periodical rests, as are permitted by and

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do not run counter to the directives of the Reserve Bank of India and no penal interest has been compounded in the accounts. That the loan transaction of the defendants is of commercial in nature. Despite receipt of Recall Notices, as defendants failed and neglected to repay the loan, 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 was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which were returned with the remarks ‘No such Person’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 22.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 22.06.2022.

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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. M. Velayutham, 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-15 . The applicant had seized 5 cars out of 8 hypothecated vehicles and 1 Force Tempo Traveller and some of the vehicles were sold and the sale proceeds were credited into the loan account of the defendants.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-15 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 defendant.

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The defendants were set ex-parte on 22.06.2022, 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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19. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1

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and 2 jointly and severally, a total sum of Rs.70,43,386.85p (Rupees Seventy Lakhs Forty Three Thousand Three Hundred

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Eighty Six and Eighty Five Paise only) as follows:

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i. A sum of Rs.7,49,976.75p due in respect of Term Loan (Account No.034300JT00000066) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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ii. A sum of Rs.6,20,930.30p due in respect of Term Loan (Account No.034300JT00000075) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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iii. A sum of Rs.6,49,431.30p due in respect of Term Loan (Account No.034300JT00000084) repayable together with further interest @11.40% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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iv. A sum of Rs.6,36,164/- due in respect of Term Loan (Account No.034300JT00000093) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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v. A sum of Rs.6,52,728.60p due in respect of Term Loan (Account No.034300JT00000103) repayable together

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with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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vi. A sum of Rs.6,28,290.30p due in respect of Term Loan (Account No.034300JT00000112) repayable together with further interest @11.65% p.a. with monthly rests along with penal interest @2% from the date of Application till the date of realization in full;

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costs of this OA.

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

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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 Defendants 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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(d) 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 10^th day of August, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. M. Velayutham, 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.	Term Loan Application submitted by the Defendants to the Applicant dated 31.07.2015	A-1
2.	Sanctioned Letter along with Terms and Conditions issued by the Applicant Bank dated 12.08.2015	A-2
3.	Hypothecation Agreement executed by the Defendant to in favour of the Applicant Bank dated 18.08.2015	A-3
4.	R.C. Book, Vehicle Registration No. TN 22 DA 7764, Chassis No. MAT600185FTF09733, Engine No.475IDI03FUYP36388	A-4
5.	R.C. Book, Registration No. TN 22 DA 7767, Chassis No. MAT600185FTF09725, Engine No.475IDI03FUYP36574	A-5
6.	R.C. Book, Vehicle Registration No. TN 22 DA 7716, Chassis No. MAT600185FTF09741, Engine No.475IDI03FUYP36632	A-6
7.	R.C. Book, Vehicle Registration No. TN 22 DA 7764, Chassis No. MAT600185FTF09720, Engine No.475IDI03FUYP36549	A-7
8.	R.C. Book, Vehicle Registration No. TN 22 DA 7628, Chassis No. MAT600185FTF09715, Engine No.475IDI03FUYP36515	A-8
9.	R.C. Book, Vehicle Registration No. TN 22 DA 7679, Chassis No. MAT600185FTF09730, Engine No.475IDI03FUYP36573	A-9
10.	R.C. Book, Force Tempo Traveller, Vehicle Registration No. TN 22 DA 8716, Chassis No. MCHE4CEA2FP033784,Engine No.D56006546	A-10
11.	Balance and Security Confirmation Letter executed by the Defendant to in favour of the applicant bank dated 05.04.2018	A-11
12.	Recall Notice issued by the Applicant to the Defendants dated 04.05.2018	A-12
13.	Pre-Litigation Lok Adalat Notice sent through Tamil Nadu State Legal Services Authority by the Applicant Bank dated 28.08.2018	A-13
14. 15.	Recall Letters issued by the Applicant to the Defendants dated 17.11.2018 Statement of Accounts dated 20.07.2020	A-14 A-15

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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-:

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-Nil-

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

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Punjab National Bank v. M/s Aasrthi Tours and Travels

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Aasrthi Tours and Travels

Case brief

What is this about?

What did the court decide?

What the court decided

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