Allowed

Punjab National Bank v. Felix Arokiarajan

DRT6 Jan 2026TA/1742/2023

Case brief

AI extract

What is this about?

While confirming the OA amount and authorizing recovery from account holders, the Tribunal rules that the applicant bank may recover the dues via direct payment or by selling the mortgaged immovable property in default of payment.

What did the court decide?

Recovery of Rs.26,11,215.85 plus interest at 8% and 9.15% p.a. directly or by sale of mortgaged immovable property.

Punjab National Bank versus Felix Arokiarajan — Banking and Recovery | DRT (2026)

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T.A. No. 1742 of 2023

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06.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1742 of 2023

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(Originally filed before DRT- II, Chennai as OA 137/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1742 of 2023)

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Punjab National Bank K.K.Nagar Branch, Chennai – 600 078 Presently migrated to Circle Sastra Centre, Chennai North, 729, Ground Floor, Spencer Plaza, Anna Salai, Chennai – 600 002. Rep. by its Authorized Officer ….Applicant

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-Vs-

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Mr. Felix Arokiarajan No.10, Ramani Thottam, 1^st Street, Pazhavanthangal,

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Chennai 600 114.

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Mrs. Anthony Rose, No.10, Ramani Thottam, 1^st Street, Pazhavanthangal, Chennai 600 114.

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Mr.Amirtham,

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No.10, Ramani Thottam,

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1^st Street, Pazhavanthagal, Chennai 600 114.

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Mr. John Adaikalaraj, S/o. Mr. Arulsamy, No.5, Teacher’s Colony,

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Meenambakkam, Chennai 600 027. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Renuka Shankar

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Defendants were set ex-parte on 28.04.2022

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T.A. No. 1742 of 2023

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06.01.2026

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: - FINAL ORDER - :

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This Original Application is filed on 27.01.2021 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 to 4, for recovery of a total sum of Rs.26,11,215.85p (Rupees Twenty Six Lakhs Eleven Thousands Two Hundred and Fifteen and Eighty Five Paisa only) as follows:

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(i) A sum of Rs.18,26,088.64p due in respect of Housing Loan (Account No.25100NC00003602) repayable together with further interest @ 8% p.a. from the date of application till the date of realisation in full;

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(ii) A sum of Rs.7,85,127.21p due in respect of Over Draft Facility (Account No.251000990000587) repayable together with further interest @ 9.15% p.a. from the date of application till the date of realisation in full;

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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. 2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.137 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.137 of 2021 stood transferred to this Tribunal and renumbered as TA No.1742 of 2023.

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T.A. No. 1742 of 2023

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06.01.2026

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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 defendants had approached the applicant seeking financial assistance for purchase of Flat and submitted their loan application. Applicant bank, after perusal of relevant documents, had sanctioned Housing Loan of Rs.16,80,784/- at the rate of 8.70% (Floating) and the margin being 20.0%, vide Sanction letter dated 26.04.2017. The said loan amount has to be repaid in 300 months of Rs.13,761.41/-.

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It is submitted by the applicant bank that the primary security being equitable mortgage of schedule B property i.e. Flat No.2F in the Second floor, measuring an extent of 826 sq.ft., of super built up area along with reserved car park together with 426 sq.ft., undivided share of land out of schedule A property belonging to 1^st defendant.

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The Applicant submits that the 4^th defendant stood as guarantor for the above said loan facility availed by defendants 1 to 3 and executed Agreement of Guarantee dated 28.04.2017 in favour of applicant, thereby agreeing to guarantee due payment of above said loan amount, which at any time may be due to bank in respect of above said loan amount availed by the defendants. After agreeing to the terms and

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T.A. No. 1742 of 2023

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06.01.2026

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conditions of the said sanction, the defendants have executed Agreement for Housing Loan dated 28.04.2017 for the above said loan amount of Rs.16,80,784/- in favour of applicant.

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The applicant further submits that the 1^st defendant had executed an Affidavit for “Out-right Purchase” dated 28.04.2017 thereby undertaking and confirming all the terms and conditions therein.

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It is the further case of the applicant bank that the defendants had requested for Over draft limit for personal needs, which was duly considered and accordingly the applicant had sanctioned the said Over Draft limit of Rs.7,02,000/- vide its sanction letter dated 29.04.2017. The security for the said Over Draft Limit is extension of equitable mortgage over schedule B property belonging to 1^st defendant.

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The applicant bank submits that agreeing to the terms and conditions of the said Sanction dated 29.04.2017, the defendants executed Agreement of Over Draft Facility for Housing Loan dated 29.04.2017, in favour of applicant thereby agreeing to the terms and conditions therein. Further, the 1^st defendant executed Property Declaration Form dated 04.05.2017 in favour of applicant thereby giving details of property to be mortgage in favour of applicant.

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It is further submitted by the applicant that after agreeing to the terms and conditions of above said sanction, the 1^st defendant had created Equitable Mortgage over the Schedule B property herein i.e. Flat No.2F in the Second Floor, measuring an extent of 826 sq.ft., of super

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T.A. No. 1742 of 2023

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06.01.2026

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built up area along with reserved car park together with 426 sq.ft., undivided share of land out of Schedule A property herein, for the total loan limit of Rs.23,82,784/- advanced to defendants by the applicant, with the clear intention to collaterally secure the above said total limit of Rs.23,82,784/- advanced to 1^st , 2^nd ,3^rd and 4^th defendants, in and by a Memorandum of Deposit of Title Deeds dated 05.05.2017, registered as Document No.1909/2017, SRO, Padappai.

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The applicant submits that the 1^st defendant deposited original Sale deed dated 26.12.2012, registered as Document No.8004/2012, SRO, Padappai and Original Unregistered Construction Agreement dated 05.11.2012 with the applicant for the above said total limit of Rs.23,82,784/- advanced to defendants. The defendants fully utilized the Housing Loan amount of Rs.16,80,784/- from their Housing Loan account No.251000NC00003602 and Over Draft Limit of Rs.7,02,000/- in their loan No.2510009900000587.

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It is submitted by the applicant bank that after availing and utilizing the above said loan facilities to their fullest benefit to purchase the subject flat, the defendants have failed to repay the loan dues as agreed upon and committed wilful default to regularise their above said loan accounts. Subsequently, on the request made by the defendants, the applicant renewed the said Over Draft Limit Account No.2510009900000587 on 05.05.2018. However, the defendants committed default in regularising their above said loan accounts and hence the Housing Loan Account No.251000NC00003602 and Over Draft

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T.A. No. 1742 of 2023

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06.01.2026

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Limit Account No.2510009900000587 were classified as Non-Performing Asset (NPA) on 31.12.2019 in accordance with RBI guidelines.

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The applicant bank submits that despite repeated requests and reminders, the defendants did not come forward to regularise and repay the agreed instalments. Hence the applicant issued a Recall Notice dated 04.02.2020 to the defendants calling upon them to repay the outstanding dues to the applicant. Despite the same, the defendants did not come forward to regularise their above said loan accounts and hence the applicant was constrained to initiate SARFAESI proceedings against the defendants by issuing Demand Notice U/s.13(2) of SARFAESI Act, 2002. Though the 1^st defendant had confirmed his outstanding dues to the applicant vide Balance and Security Confirmation Letter dated 08.04.2020 in respect of Housing Loan Account No.251000NC00003602 and Over Draft Limit Account No.2510009900000587, the defendants did not come forward to regularise and settle their outstanding dues to the Applicant. The applicant further submits that since the Defendants were not operating the loan accounts and the applicant bank have sent letter/representations to the Defendants to repay the balance due amount together with accumulated interest, which however evoked no response from the defendant’s end. Hence, 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 to 4 through Registered Post with Acknowledgment Due, which was

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T.A. No. 1742 of 2023

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06.01.2026

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served in respect of D-2 and D-4, while summons returned as “Left” in respect of D-1 and D-3. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 28.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 28.04.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. P. Mahendaran, 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-21 . 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 Defendants

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for recovery of a total sum of Rs.26,11,215.85p (Rupees

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Twenty Six Lakhs Eleven Thousands Two Hundred and

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T.A. No. 1742 of 2023

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06.01.2026

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Fifteen and Eighty Five Paisa only) as follows:

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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 more fully detailed in the OA schedule.

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(d) 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

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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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T.A. No. 1742 of 2023

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06.01.2026

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(e) The applicant bank shall file memo of costs within ten days

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from the date of receipt of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the

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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 06^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. Mahendran, 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 by 1^stand 2^nddefendant dated 04.04.2017	A-1
2.	Loan Application by 3^rddefendant	A-2
3.	Guarantor Information	A-3
4.	Sanction Letter for Housing Loan dated 26.04.2017	A-4
5.	Appraisal and Sanction Note for OD limit dated 29.04.2017	A-5
6.	Agreement for Guarantee executed by 4^th defendant dated 28.04.2017	A-6
7.	Agreement for Housing Loan executed by 1^st, 2^nd, 3^rdand 4^thdefendant in favour of applicant dated 28.04.2017	A-7
8.	Affidavit “Out-right Purchase” by 1^stdefendant dated 28.04.2017	A-8
9.	Agreement of Over Draft facility for Housing Loan Borrowers dated 29.04.2017	A-9

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T.A. No. 1742 of 2023

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06.01.2026

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10.	Property Declaration Form by 1^stdefendant dated 04.05.2017	A-10
11.	Memorandum of Deposit of Title deeds registered as Document No.1909/2017, SRO, Padappai, executed by 1^stdefendant in favour of applicant dated 05.05.2017	A-11
12.	Sale deed registered as Document No.8004/2012, SRO, Padappai dated 26.12.2012	A-12
13.	Agreement for Construction of flat between Builder and the Purchasers dated 05.11.2012	A-13
14.	Renewal of Over Draft Limit dated 05.05.2018	A-14
15.	Recall notice dated 04.02.2020	A-15
16.	Notice U/sec.13(2) of SARFAESI Act	A-16
17.	Balance and Security Confirmation Letter in respect of Housing Loan A/c.No.251000NC00003602 dated 08.04.2020	A-17
18.	Balance and Security Confirmation Letter in respect of Over Draft Loan A/c.No.2510009900000587 dated 08.04.2020	A-18
19.	Statement of Account in respect of Housing Loan A/c.No.251000NC00003602	A-19
20.	Statement of Account in respect of Over Draft Loan A/c.No.2510009900000587	A-20
21.	Valuation Report of schedule property dated 16.03.2017	A-21

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-:

Schedule “A”

(Total Property)

All that piece and parcel of vacant house site, i.e., bearing Plot Nos.12 and 13, measuring a total extent of 4817 sq.ft., comprised in S.No.370/1, Old Patta No.1108, as per Patta Sub Division S.No.370/1A1A, New Patta No.6808, as per Patta Sub Division Survey No.370/9, situated in No.28, Perungalathur Village, Tambaram Taluk, Kancheepuram District.

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The planning Permit No. PP/D/12537/12-13, vide Letter No.PPA/335/2012, B.L.No.107/12-13, dated 30.07.2012, Executive

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T.A. No. 1742 of 2023

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06.01.2026

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Officer, Perungalathur Town Panchayat, This Planning Permission is given as per Delegation of Powers, given by Member Secretary, CMDS, Chennai 600 008.

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The planning Permit No.PP/D/12538/12-13, Vide Letter No.PPA/335/2012, B.L.No.108/12-13, dated 30.07.2012 Executive Officer, Perungalathur Town Panchayat, This planning permission is given as per Delegation of Powers, given by Member Secretary, CMDA, Chennai 600 008.

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Bounded on the

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North by : Plot No.14(Mrs. Bhuvaneswari Plot), South by : Plot No.11 in S.No.370/1 Part, East by : Vacant land in S.No.369, West by : 30 Feet Road.

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Measuring on the

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North by : 63½ feet, South by : 63 feet, East by : 76 feet, West by : 76 feet.

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The above property is situated within the Perungalathur Town, Panchayat Limits, and within the Registration District of Chennai South and Registration Sub District of Padappai.

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Schedule “B”

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(Property hereby conveyed)

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Flat No.2F, in the second floor measuring an extent of 826 sq.ft., of super built up area, along with reserved car park marked in the drawing for car park area, together with 426 sq.ft., (39.59 sq.mt.) undivided share of land in “A’’ Schedule mentioned property.

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

Punjab National Bank v. Felix Arokiarajan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Felix Arokiarajan

Case brief

What is this about?

What did the court decide?

What the court decided

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