Allowed

Punjab National Bank v. Shalini Sathishbabu

DRT21 May 2026TA/519/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.39,07,201.49 as a housing loan default. The court observed that defendants were set ex-parte and failed to contest the claim, leaving documented proof of the loan and default as established by the bank.

What did the court decide?

Recovery of Rs.39,07,201.49 plus interest and costs from respondents jointly and severally; issuance of Recovery Certificate.

Punjab National Bank versus Shalini Sathishbabu — Contract and Commercial Disputes | DRT (2026)

¶1

T.A. No. 519 of 2023

¶2

21.05.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 21^st day of May, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 519 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA No.334/2020 and thereafter transferred to this Tribunal and renumbered as TA No.519 of 2023)

¶9

Punjab National Bank, Mylapore branch, No.150, Luz Church road, Mylapore, Chennai- 600 004 Represented by its Branch Chief Manager …Applicant

¶10

-Vs-

¶11

Mrs. Shalini Sathishbabu, W/o SathishBabu Residing at 25/7, Balaji Nagar, Ernavoor, Chennai- 600 057

¶12

Also at:

¶13

Mrs. Shalini Sathishbabu, W/o SathishBabu C/o M/S, E4E Healthcare Business services Pvt. Ltd., No.152, 5^th floor, Block A (Eastern front wing) TECCI Park No.285, Old Mahabalipuram road, Sholinganallur, Chennai- 600 119

¶14

Mrs. Subhashini, W/o R. Madhan, No.7, Subraya Nagar, Thiruneermalai Road, Chennai- 600 044 ….Defendants

¶15

T.A. No. 519 of 2023

¶16

¶17

21.05.2026

¶18

Counsels on record / appeared:

¶19

Counsel for Applicant : M/s J. Arun Prasad

¶20

Defendants 1 and 2 were set ex-parte on 13.05.2022

¶21

: - FINAL ORDER- :

¶22

This original application is filed on 22.07.2020 by the applicant bank under Section 19(1) 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 sum of Rs.39,07,201.49p (Rupees Thirty Nine Lakhs Seven Thousand Two Hundred One and Forty Nine only) due in respect of Housing Loan (A/c No.034300NC001441084) repayable together with further interest @ 8.50% p.a. with monthly rests and 2% penal interest from the date of Application till the date of realization in full and for costs of this OA.

¶23

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.334 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 334 of 2020 stood transferred to this Tribunal and renumbered as TA No.519 of 2023.

¶24

Brief Facts of the case:

¶25

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

¶26

T.A. No. 519 of 2023

¶27

¶28

21.05.2026

¶29

jurisdiction of this Tribunal.

¶30

It is the case of the applicant bank that the first defendant is borrower and the second defendant is guarantor. The defendants approached the applicant bank for grant of Housing Loan to the 1^st defendant for purchase of a property morefully described in the schedule to the OA and to put up construction thereon. The 1^st defendant made a loan application for grant of Housing Loan on 10.08.2017. The applicant bank, upon considering the said request vide Sanction Letter dated 14.09.2017 sanctioned Housing Loan for a sum of Rs.31 Lakhs.

¶31

It is submitted that in consideration of the applicant bank granting the aforesaid Housing Loan credit facility, the defendants had executed the following documents covering the loan liability of Rs.31 Lakhs in favour of applicant bank:

¶32

a) Agreement for Housing Loan dated 18.09.2017 executed by the

¶33

1^st defendant.

¶34

b) Power of attorney dated 14.09.2017 executed by the 1^st defendant.

¶35

c) Mortgage Deed dated 14.09.2017 executed by the 1^st defendant.

¶36

d) Agreement of Guarantee dated 14.09.2017 executed by the 2^nd defendant in favour of the applicant guaranteeing repayment of the credit facility extended to the 1^st defendant.

¶37

The applicant bank submits that in order to secure the loan, the defendants had created EM on their property as morefully described in the schedule to the OA by depositing the original title deeds as confirmed vide

¶38

T.A. No. 519 of 2023

¶39

21.05.2026

¶40

¶41

Letter of intent executed on 24.04.2018 in terms of Section 58(f) of Transfer of Property Act to cover the loan liability. The 1^st defendant had deposited the original Construction Agreement executed between the builder and the defendants dated 03.08.2017, registered as Doc.No.12934 of 201, before SRO, Kundrathur and Sale Deeds dated 15.09.2017, 02.11.2012 registered as Document No.12935 of 2017 before SRO, Kundrathur in confirmation of the creation of EM over the schedule mentioned property.

¶42

The defendant had also executed Deed of Memorandum of Deposit of Title Deeds dated 21.11.2017 registered as Doc. No.16282 of 2017, before SRO, Kundrathur to secure the repayment of the aforesaid loan liability in respect of their property namely Villa known as “VPM Housing” bearing Plot No.126, pearl villa at No.B2 in ground & first floor having plinth/ super built up area of about 1350sq.feet with car parking space in Ground floor, Kundrathur village, Now Pallavaram taluk, Kanchipuram District morefully described in the OA schedule, with an intent to create security over the property by way of equitable mortgage in favour of the applicant bank in respect of the Housing Loan credit facility allowed in the account of the defendants. Thus the said defendants executed an agreement for housing loan and created an equitable mortgage over the immovable property described as Schedule hereunder for the due repayment of the Housing Term Loan raised by the first and second defendants.

¶43

It is the further case of the applicant bank that they had caused a

¶44

T.A. No. 519 of 2023

¶45

21.05.2026

¶46

¶47

search in the Sub Registration District of Kundrathur, Kanchipuram district in which the property that was mortgaged by the defendants by deposit of title deeds is situated, for a period 13 years and the applicant is not aware of any encumbrances over the said property.

¶48

The applicant bank submits that subsequent to availing of loan, the defendants were not regular in repayment and committed default. Since the 1^st defendant had failed and neglected to service the principal and interest, the loan account slipped into Non-Performing Asset (NPA) category on 06.04.2019 in terms of RBI guidelines.

¶49

The applicant submits that the defendants are liable to pay a sum of Rs.39,07,201.49/- in respect of Housing Term Loan facility as on 20.07.2019 as per the statement of accounts. The transactions being commercial in nature the defendants are liable to pay interest at the contractual rate. The defendants having failed to remit the interest accrued/installments 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 on the loan is @8.50% with monthly rests apart from penal interest @2%. The applicant bank declares that compound interest has been charged at such rate and capitalized at such periodical rests as are permitted and do not run counter to the directives of the Reserve Bank of India and no penal interest has been compounded in the accounts.

¶50

The applicant bank issued a Recall Notice dated 10.03.2019 to the

¶51

T.A. No. 519 of 2023

¶52

21.05.2026

¶53

¶54

defendants to regularize the loan account and the defendants received the notice.

¶55

The applicant further submits that the applicant issued Demand Notice dated 08.04.2019 under Section 13(2) of the SARFAESI act and the same was served to the defendants. The defendants failed and neglected to repay the loan amount as mentioned in the demand notice within the stipulated time. The applicant reserves its right to proceed against the secured assets under the provisions of the SARFAESI Act, 2002 as and when it is deemed fit. Despite repeated requests and demands, the defendants failed and neglected to repay the outstanding dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶56

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which were returned with remarks “Left” in respect of D-1 and summons to D-2 returned as “Insufficient address”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 13.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 13.05.2022.

¶57

Heard the submissions of Applicant Bank and perused the

¶58

records.

¶59

To prove the case of the Applicant Bank, Mr. P. Mahendran, Chief

¶60

T.A. No. 519 of 2023

¶61

21.05.2026

¶62

¶63

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

¶64

came to be marked as Ex A-1 to A-13.

¶65

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.

¶66

The defendants were set ex-parte on 13.05.2022, 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.

¶67

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.27,50,000/- by way of sale of Schedule mentioned property under SARFAESI Act on 28.06.2023. Accordingly, part satisfaction of sum of Rs. Rs.27,50,000/- was duly recorded vide order and documents marked as Ex A-8 to A-10 were

¶68

T.A. No. 519 of 2023

¶69

¶70

21.05.2026

¶71

returned to applicant bank on 24.01.2024 under proper acknowledgement.

¶72

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:

¶73

: O R D E R :

¶74

The OA is allowed with costs,

¶75

(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, for recovery of a total sum of Rs.39,07,201.49p (Rupees Thirty Nine Lakhs Seven

¶76

Thousand Two Hundred One and Forty Nine only) due in respect of Housing Loan (A/c No.034300NC001441084) repayable together with further interest @ 8.50% p.a. with monthly rests and 2% penal interest from the date of Application till the date of realization in full along with costs of this application.

¶77

(b) The sum of Rs.27,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

¶78

(c) If the sale proceeds of the mortgaged 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

¶79

under law for which the Defendants to disclose to the Tribunal

¶80

T.A. No. 519 of 2023

¶81

¶82

21.05.2026

¶83

particulars of other properties or assets owned by the Defendant;

¶84

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

¶85

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.

¶86

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

¶87

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶88

A copy of this order be communicated to the parties concerned.

¶89

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

¶90

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 21^st day of May, 2026)

¶91

ANNEXURES

¶92

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶93

AW-1: Mr. P. Mahendran, Chief Manager of the Applicant Bank

¶94

Exhibits on the part of the Applicant:

¶95

Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	10.08.2017	Housing loan application submitted by the defendants to the applicant	A-1

¶96

T.A. No. 519 of 2023

¶97

¶98

21.05.2026

¶99

2.	14.09.2017	Sanctioned letter along with terms and conditions issued by the applicant bank	A-2
3.	18.09.2017	Agreement for housing loan executed by the defendant in favour of the applicant bank	A-3
4.	14.09.2017	Power of attorney executed by the first defendant in favour of the applicant.	A-4
5.	14.09.2017	Mortgage deed executed by the first defendant in favour of applicant.	A-5
6.	14.09.2017	Agreement of guarantee executed by the guarantor in favour of the applicant bank.	A-6
7.	24.04.2018	Letter of intend to deposit title deeds executed by the defendants	A-7
8.	03.08.2017	Agreement of construction infavour of the defendants registered as Doc.No.12934/2017, SRO Kundrathur	A-8
9.	15.09.2017	Sale deed registered as document No.12935/2017 SRO Kundrathur in favour of the defendants in respect of the OA schedule mentioned property.	A-9
10.	21.11.2017	Memorandum of deposit of title deeds executed by the defendants infavour of the applicant bank registered as Doc.No.16282 of 2017, SRO Kundrathur	A-10
11.	10.03.2019	Recall letter issued by the applicant to the defendants	A-11
12.	08.04.2019	Demand notice issued by the applicant to the defendant under Sec.13(2) of the SARFAESI Act, 2002	A-12
13.	20.07.2020	Statement of accounts	A-13

¶100

Witness Examined for the Defendants: -Nil-

¶101

List of Documents Exhibited for the Defendants: -Nil –

¶102

:-SCHEDULE-:

¶103

The mortgaged property has been sold under SARFAESI act.

¶104

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

Punjab National Bank v. Shalini Sathishbabu

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shalini Sathishbabu

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Sindhuja Modern Dall and Rice Mills versus 201

Bank of India versus M/S Agma Foundations Private Limited

Bank of Maharashtra versus M/S Reflection Investment

Canara Bank versus C P Sudharson

Union Bank of India versus Ggs Traders

Canara Bank versus R G Enterprises Rep By Mr R Sathish And two Others