Allowed

Punjab and Sind Bank v. Rupesh Parsmal

DRT7 Apr 2026TA/2039/2023

Case brief

AI extract

What is this about?

This is a transfer of a debt recovery application where the bank sought recovery of housing loan dues. The tribunal allowed the application, adjudicating the claim based on bank records and granting recovery of principal, interest, and penal charges with liberty to sell properties.

What did the court decide?

Direction to Defendants to jointly and severally pay Rs.52,76,594.22 comprising principal, interest, and penal interest, with liberty to recover the balance through sale of scheduled property and pers

Punjab and Sind Bank versus Rupesh Parsmal — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 2039 of 2023

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07.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.2039 of 2023

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(Originally filed before DRT-II, Chennai vide Dy. No.13/2022 and thereafter transferred to this Tribunal and re-numbered as TA No.2039/2023)

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Punjab and Sind Bank International Banking division Represented by its Assistant General Manager No.770-A, Deva Towers, Anna salai, Chennai-600 002 …Applicant

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-Vs-

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Shri Rupesh Parasmal,

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Son of Late Parasmal Jain,

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No.27/18, Radhakrishnan Salai,

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Vivekanandha Nagar,

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Kodungaiyur,

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Chennai- 600 118

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Smt. Sonal R.Loudha,

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W/o Shri Rupesh Parasmal,

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No.27/18, Radhakrishnan Salai, Vivekanandha Nagar,

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Kodungaiyur,

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Chennai- 600 118 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s K. Subramanian

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Defendants 1 and 2 were set ex-parte on 19.03.2024

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: - FINAL ORDER- :

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This Original Application is filed on 19.07.2022 by the applicant bank

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

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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T.A. No. 2039 of 2023

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07.04.2026

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.52,76,594.22p (Rupees Fifty Two Lakhs Seventy

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Six Thousand Five Hundred and Ninety Four and Twenty Two paise

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only) as follows:

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(i) A sum of Rs.40,35,891.60p due in respect of Housing Loan (A/c No 09991200000252) repayable together with interest at MCLR Rate +0.25% i.e. 9% p.a. with monthly rests and penal interest at 2% p.a., with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.12,40,702.62p due in respect of Housing Loan (A/c No 09991200000269) repayable together with interest at MCLR rate i.e. 8.75% p.a. with monthly rests and penal interest at 2% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of Schedule Mentioned Property morefully detailed in Schedule to the OA, and for costs of this application;

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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 first defendant is a film distributor. The second defendant is the guarantor to the facility

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T.A. No. 2039 of 2023

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sanctioned to the first defendant. The first availed the Housing Loan facility of Rs.29.80 lakhs and executed necessary loan documents in favour of applicant bank. Besides the first defendant to secure the credit limits sanctioned and availed deposited the original of title deeds relating to his immovable property by way of security for the due repayment of all advances and credit facilities sanctioned and availed by the defendants during 17.06.2017. An agreement relating to deposit to title deeds was registered on 19.06.2017 as Doc 5874/2017 on the file of SRO Guduvanchery. The loan sanctioned carries an interest rate at MCLR +0.25% and the present rate 9% on the date of sanction per annum vide sanction letter MDP/21/7 dated 17.06.2017. The defendants had acknowledged and accepted the said sanction letter.

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That first defendant was sanctioned an additional Housing Loan of Rs.9.70 lakhs during 17.07.2017 towards loan for renovation. The loan sanctioned carries an interest rate of MCLR rate i.e. 8.75% on the date of sanction per annum vide sanction letter MDP/25/7 dated 18.07.2017. The defendants had acknowledged and accepted the said sanction letter.

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The applicant bank had issued the Sanction Letter along with additional terms and conditions governing the loan facility, to the said defendants that the defendants were required to comply with terms and conditions in the sanction letter and the additional terms and conditions annexed with sanction letter if they intended and agreed to avail the home loan offered vide sanction letter.

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It is submitted by the applicant bank that the defendants of their

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own free consent agreed to avail the above said credit facilities from applicant bank subject to terms and conditions as contained in sanction/ offer letters. The defendants had acknowledged and accepted the sanction letter and the terms and conditions mentioned therein and the additional terms and conditions annexed with sanction letter, and had voluntarily agreed to strictly abide by the same that the defendants also signed the sanction letter as token as acceptance of terms and conditions governing loan facility. The sanction letter also clearly stipulated that defendants shall also pay the processing charges along with service tax, as applicable to the applicant bank.

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HOUSING TERM LOAN OF RS.29.80 LAKHS

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That pursuant to acceptance of sanction letter the first defendant had signed and executed the following loan documents towards HTL facility of Rs.29.80 lakhs on 19.06.2017 in favour of applicant bank:

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(i) The first defendant executed a DPN on form no.14 (R) for Rs.29.80 lakhs (Twenty nine lakhs and eighty thousand only)

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(ii) The 1^st defendant had executed a letter on Form No.106.

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(iii) The 1^st defendant as proprietor on 19.06.2017 executed a letter on Form No.103/291/412.

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(iv) The defendants 1 and 2 executed a letter on form no.199 accepting the right to the bank to securitize/ assign etc.

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(v) The first defendant executed a letter on Form no.200 accepting revised clauses pertaining to rate of interest.

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(vi) The second defendant executed a letter of guarantee in favour of the applicant bank in the aforesaid credit facility to the extent of Rs.29.80 lakhs (Rupees Twenty nine lakhs and eighty thousand only) sanctioned and availed by the first defendant on form 256(RR)

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(vii) The first defendant had signed a letter agreeing and consenting for the disclosure its data by the bank to CIBIL etc.

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(viii) The defendants had on 20.02.2020 executed a revival letter reviving the loan document dated 19.06 and acknowledged the debt in respect of housing loan account 0575120000630.

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TOWARDS HOUSING LOAN AMOUNT OF RS.9.70LAKHS

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(i) The first defendant executed a DPN dated 18.07.2017 on form no.15 (R) for Rs.9.70 lakhs (rupees nine lakhs seventy thousand only)

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(ii) The 1^st defendant had on 18.07.2017 executed a letter on Form no.106

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(iii) The first defendant on 18.07.2017 executed a letter on form.no.103/291/412

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(iv) The defendants 1-2 and had on 18.07.2017 executed a letter on form no.199 accepting the right of the bank to securitize/ assign etc.

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(v) The first defendant on 18.07.2017 executed a letter on form no.200 accepting revised clauses pertaining to rate of interest.

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(vi) The second defendant had on 18.07.2017 executed a letter of guarantee in favour of the applicant bank personally guaranteeing the amounts due to the applicant bank in the aforesaid credit facility to the extent of Rs.39.50 lakhs (rupees thirty nine lakhs fifty thousand only) sanctioned and availed by the first defendant on form 256(RR)

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(vii) The first defendant on 18.07.2017 had signed a letter agreeing and consenting for this disclosure its data by the bank to CIBIL etc.,

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(viii) The second defendant on 18.07.2017 had signed a letter agreeing and consenting for the disclosure its data by the bank to CIBIL etc.,

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(ix) The first defendant had on 20.02.2020 executed a revival letter reviving letter reviving the loan documents dated 18.07.2017 and acknowledged the debt in respect of Housing Loan Account 05751200000636.

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The applicant bank submitted that the defendants were under legal and contractual obligation to pay the loan on demand and were the essence of the contract between the applicant bank and defendants.

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It is further submitted that in terms of loan sanctioned and availed by the first defendant that if the defendants fail to pay to bank any amount due and payable then applicant bank may declare the principal, all accrued interest and other amounts by borrowers shall become payable forth with the borrower to the applicant bank.

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The applicant bank submits that subsequent to availing of loan, the operation of the accounts was not proper and irregular. Hence the applicant has been repeatedly requesting the defendant to regularize the credit facilities which are highly running irregular. In fact the applicant bank had several rounds of discussions with the first defendant about the regularization of the loan accounts but of no avail. The defendants did not come forward to discharge the liability the defendants completely failed defaulted and neglected to pay the said amount or any part thereof despite the several reminders and notice, the defendants failed and neglected to pay the outstanding dues or take any effective steps to address to debts due to the applicant bank. In view of aforesaid financial irregularities, there is a remote chance of the first defendant turning around and repaying the huge dues of the applicant bank. The applicant bank has therefore finally classified the loan account as Non-Performing Asset (NPA) on 30.11.2018 and issued notice dated 05.12.2018 under Sec.13(2) of the SARFAESI Act demanding a sum of Rs.40,06,648/- by calling upon the advances to proceed further. The defendants, having received the notice had intentionally neglected and failed to pay and clear the outstanding dues. In the above circumstances, the present Original

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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 was returned as “Left” 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 19.03.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 19.03.2024.

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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, Mr. N. Ajay, 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-23 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-23 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 19.03.2024, but till this day

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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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16. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, Rs.52,76,594.22p (Rupees Fifty Two Lakhs Seventy Six Thousand Five Hundred and Ninety Four and Twenty Two paise 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 OA schedule mentioned immovable properties morefully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable 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

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from the date of receipt of this final order.

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(g) 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 is 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 07^th day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	16.06.2017	Loan application	A-1
2.	17.06.2017	Originalsanction letter	A-2
3.	19.06.2017	Original DPN executed by the defendants	A-3
4.	19.06.2017	Form 106	A-4
5.	19.06.2017	Letter on form no.103/291/412 executed by the defendant.	A-5
6.	19.06.2017	Letter of undertaking by borrower form 199	A-6
7.	19.06.2017	Revised clause if interest- form 200	A-7
8.	19.06.2017	Letter of guarantee on form 256 RR	A-8
9	19.06.2017	MOD 5874/2017	A-9
10	19.06.2017	Sale deed 5873/2017	A-10
11.	13.06.2017	Construction Agreement 5872/2017	A-11

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12.	20.02.2020	Revival Letter	A-12
13.	17.07.2017	Sanction Letter for Rs.9.80 lakhs	A-13
14.	18.07.2017	DPN for Rs.9.80lakhs	A-14
15.	18.07.2017	Form 106	A-15
16.	18.07.2017	Letter on form NO.103/291/412 executed by the defendant.	A-16
17.	18.07.2017	Letter of undertaking by borrower form 199	A-17
18.	18.07.2017	Revised clause of interest-form 200	A-18
19.	18.07.2017	Form84-A	A-19
20	18.07.2017	Letter of guarantee on form 256 RR	A-20
21.	18.07.2017	Agreement relating to deposit of title deeds 7366/2014	A-21
22.	20.02.2020	Revival Letter	A-22
23.		Statement of accounts	A-23

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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 PROPERTY-:

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All that piece and parcel of undivided share of land ad measuring 566sq.ft out of land measuring 1415Sq.ft comprised in old S.No.379/1 as per patta 5468 new S.No.379/23 together with residential flats bearing F1 and S1 on the 1^st floor and 2^nd floor respectively measuring an extent of 1242 sq.ft built up area (inclusive of common area) in the building known as SRI SAARA BUILDERZ situate at 193 - Aadhanur village, Sriperumpudur taluk bounded on the

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North by: Sri Ram Nagar

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South by: Road

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East by: Road

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West by: Property belongs to M. Devadass Linear measurements

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East to west on the northern side: 49.6 feet

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East to west on the southern side: 48 feet

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North to south on the eastern side: 32 feet

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North to south on the western side: 26 feet

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In all measuring 1415 Sq.ft or thereabouts and lying within the Registration district of Chennai South and Sub-Registration District of Guduvanchery.

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

Punjab and Sind Bank v. Rupesh Parsmal

Case brief

What is this about?

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Punjab and Sind Bank v. Rupesh Parsmal

Case brief

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