Allowed

Punjab National Bank v. Spire Works Rep By R Sekar

DRT17 Mar 2026TA/720/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a term loan amount of Rs. 11.19 lakhs. The bank proved its case via affidavit and documents, while the defendant failed to file a written statement or counter-affidavit after entering an appearance.

What did the court decide?

Recovery of Rs. 11,19,837/- along with interest @ 11.75% p.a. from the date of application till full payment, plus costs.

Punjab National Bank versus Spire Works Rep By R… — Contract and Commercial Disputes | DRT (2026)

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T.A. No.720 of 2023

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17.03.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th day of March, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 720 of 2023

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(Originally filed before DRT- II, Chennai as OA 633/2018 and thereafter transferred to this Tribunal and renumbered as TA No.720 of 2023)

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*Punjab National Bank (Erstwhile Oriental Bank of Commerce) Circle Sastra Centre Chennai North Ground Floor, Spencer Plaza, 769, Anna Salai, Chennai 600 002. .…. Applicant -Vs-

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M/s. Spiro Works Rep. by its Proprietor R.SeKar S/o. Rajamanickam, No.37/1, Perumal Mudali Street, Royapettah, Chennai 600 014. …… Defendant

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(Amended vide order in IA No.725/22 dated 17.05.2022 in view of merger)

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Counsels on record / appeared:

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Counsel for Applicant : Mr. P. Reghuraja

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Counsel for Defendant : M/s. A. Venkatesh

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: - FINAL ORDER - :

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This Original Application is filed on 15.03.2018 by Erstwhile Oriental Bank of Commerce (since merged with Punjab National 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 defendant for recovery of a total sum of Rs.11,19,837/-(Rupees Eleven

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Lakhs Nineteen Thousand Eight Hundred and Thirty Seven only) due

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T.A. No.720 of 2023

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in respect of Term Loan (A/c No.13097015001205) repayable together with interest @ 11.75% p.a., compounded with monthly rests from the date of this application till the date of final payment in full and for costs.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.633 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 27.10.2023, stood transferred to this Tribunal and renumbered as TA No.720 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 19 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 defendant is a long standing customer of the applicant bank, who approached for various loan limits. The applicant bank, after considering the requirement of the defendant, had sanctioned a sum of Rs.11,13,750/- towards Term loan on 25.11.2014.

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It is submitted by the applicant bank that the defendant availed the Term Loan of Rs.11,13,750/- and the defendant executed the following documents in favour of the bank:

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(i). Loan application dated 30.10.2014

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(ii). Sanction ticket dated 25.11.2014

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(iii). Agreement of term loan dated 25.11.2014

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T.A. No.720 of 2023

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17.03.2026

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(iv). Common agreement dated 25.11.2014

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(v). Sole Proprietorship letter

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(vi). Balance & Security Confirmation dated 05.04.2016.

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The applicant bank submits that inspite of repeated demands and several reminders made, the defendant failed to repay the balance of the liability owned by them to the applicant bank under the aforesaid credit facility. The applicant further submits that as per the book of A/c maintained by the applicant bank in the regular course of business as on 31.01.2018 the defendant is liable to pay a sum of Rs.11,19,837/- in cash credit and letter of credit together with subsequent interest @ 11.75% and at BRR with monthly rest for the entire period of advance and for future till the realization and also for the entire cost of his suit since the entire transaction is of commercial in nature. In view of the default, the applicant bank had classified the loan account as NPA on 31.07.2018. The amount outstanding in the account of the defendant in cash credit loan availed by them with interest debited is Rs.10,24,182.00 plus the interest accrued upto 31.01.2018 is Rs.95,654.10 which comes to Rs.11,19,837/-. Despite repeated requests and demands, as defendant 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 defendant.

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After filing of the OA, summons was sent to the defendant through

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Registered Post with Acknowledgment Due, which was served. The defendant entered appearance through counsel and filed Vakalath.

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However, despite availing substantial number of adjournments, defendant did not choose to file Written Statement. When OA was taken up on 27.07.2021 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, opportunity to file Written Statement by the defendant was closed on 27.07.2021.

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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. S. Mahendran, Chief

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Manager, Circle Sastra Centre 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-7.

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The defendant, despite availing sufficient opportunities, did not file Counter Proof Affidavit. Hence, opportunity to file CPA by the defendant was closed on 27.02.2024. 10. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-7 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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Despite receipt of summons and entering appearance thorough counsel by filing vakalath on 19.12.2018, the defendant did not choose to contest the claim by filing written statement or counter proof affidavit. A

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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 defendant produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendant.

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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 defendant a total sum of Rs.11,19,837/-(Rupees Eleven Lakhs Nineteen Thousand Eight Hundred and Thirty Seven only) due in respect of Term Loan (A/c No.13097015001205) repayable together with interest @ 11.75% p.a., compounded with monthly rests from the date of this application till the date of final payment in full along with costs of this OA.

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(b) 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

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T.A. No.720 of 2023

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prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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the date of receipt of this final order.

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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 PS, transcribed by her, corrected, signed and pronounced by me on this the 17^th day of March, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Mahendran, Chief Manager, Circle Sastra Centre 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.	30.10.2014 – Loan Application	A-1
2.	25.11.2014–Sanction Letter	A-2
3.	25.11.2014–Agreement of term loan	A-3
4.	25.11.2014–Common Agreement	A-4
5.	25.11.2014–Sole Proprietorship letter	A-5
6.	05.04.2016–Balance & Security Confirmation	A-6
7.	01.02.2022–Statement of Account.	A-7

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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

Punjab National Bank v. Spire Works Rep By R Sekar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Spire Works Rep By R Sekar

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

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