Allowed

Punjab National Bank (Oriental Bank of Commerce) v. M/S Archana Syntheticss

DRT11 Jun 2026TA/939/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal adjudicated an Original Application filed by Punjab National Bank for recovery of dues. The court allowed the application, directing joint and several recovery of the claimed amount with interest and costs, having recorded satisfaction of a portion via earlier property sale.

What did the court decide?

Recovery of Rs. 64,71,471.15 with interest and costs; credit given for Rs. 31,45,000 already realized via sale of mortgaged property.

Punjab National Bank (Oriental Bank of Commerce) versus… — Execution and Attachment | DRT (2026)

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T.A. No.939 of 2023

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11.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 11^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. of 939 of 2026

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(Originally filed before DRT- II, Chennai as OA No.496 of 2020 and thereafter transferred to this Tribunal and renumbered as TA No.939 of 2023)

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Punjab National Bank Circle Sastra Chennai North Anna Salai, Chennai – 600 002 Represented by its Chief Manager

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…Applicant

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-Vs-

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M/s. Archana Synthetics Represented by its Proprietor Mrs. Sowjanyaa W/o Mr.S.Anandan No.42 Old No.46,Salai VinayagarKoil Street Mannady,Chennai – 600 001

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Mrs. Sowjanya, W/o Mr. S. Anandan No.5, Old No.3, Ramachandran Street Perambur, Chennai – 600 011

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Also at: Mrs. Sowjanya, W/o Mr. S. Anandan No.34, Satyarajnagar, 3^rd Street, Moolakadai, Chennai- 600 011

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Mr. S. Anandan S/o Mr. M.A.Srinivasan No.5, Old No.3, Ramachandran Street Perambur, Chennai – 600 011

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Also at: Mr. S. Anandan S/o Mr. M.A.Srinivasan No.34, Satyarajnagar, 3^rd Street, Moolakadai, Chennai- 600 011 ….Defendants

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T.A. No.939 of 2023

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11.06.2026

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Counsels on record / appeared:

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Counsel for Applicant : M/s. E.Kumar

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Defendants 1 to 3 were set ex-parte on 23.05.2022

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: - FINAL ORDER- :

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This Original Application is filed on 12.10.2020 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, jointly and severally for recovery of a total sum of Rs.64,71,471.15p (Rupees Sixty Four Lakhs Seventy One Thousand Four Hundred and Seventy One only) due in respect of Cash Credit facility (A/c No.10654011000213) repayable together with further interest @ 10.60% p.a. with monthly rests along with penal interest @2% p.a. 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.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.496 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.496 of 2020 stood transferred to this Tribunal and renumbered as TA No.939 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

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T.A. No.939 of 2023

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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 at the request of the Defendants, the applicant bank had sanctioned Cash Credit facility in a sum of Rs.15,00,000/- (Rupees Fifteen Lakhs only) vide Sanction Letter dated 03.12.2010, which was subsequently renewed and enhanced (02.07.2011, 10.10.2012, 04.12.2014 & 02.07.2015) from time to time and the last renewal made for amount of Rs.45,00,000/- (Forty five Lakhs Only) vide Sanction Letter dated 02.01.2017.

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The Applicant Bank submits that in order to secure the loan, the Defendants had executed the following loan documents in favour of applicant bank:

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i. Sole Proprietorship Letter (L.Doc.21) dated 07.12.2010 executed by 2^nd defendant

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ii. Agreement of Hypothecation of Assets (Loan Doc-1) dated 07.12.2010for the amount of 15 lakhs executed by the 1^st defendant

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iii. Agreement of Guarantee (Loan Doc-11) dated 07.12.2010for the amount of 15 lakhs executed by the 3^rd defendant.

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iv. Common Agreement (Loan Doc-38) dated 07.12.2010executed by the 1^st defendant.

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v. Supplemental Agreement to Secure Credit Loan/Facilities (Loan Doc-13) dated 05.07.2011for enhancement limit from 15 lakhs to 35 Lakhs executed by the 1^st defendant

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T.A. No.939 of 2023

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vi. Agreement of Guarantee (Loan Doc-11) dated 05.07.2011for the amount of 35 lakhs executed by the 3^rd defendant.

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vii. Supplemental Agreement to Secure Credit Loan/Facilities (Loan Doc-13) dated 04.01.2014 for enhancement limit from 35 lakhs to 45 Lakhs executed by the 1^st defendant

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viii. Agreement of Guarantee (Loan Doc-11) dated 04.01.2014for the amount of 45 lakhs executed by the 3^rd defendant.

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ix. Common Agreement (Loan Doc-38) dated 04.01.2014executed by the 1^st defendant.

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The Applicant further submits the said credit facility of Rs.45,00,000/- was also secured by mortgage of immovable property more fully described in the Schedule, which is in the name of 2^nd and 3^rd Defendants as security for the credit facilities availed by the defendants.

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The Applicant Bank submits that the defendants had deposited the Original Title Deed pertaining to the property more fully described in the Schedule vide Sale Deed dated 06.02.2012 executed by Mrs. Padmavathi and others represented by their Power Agent registered as Doc. No.1290/2012 with SRO, Redhills in favour of Mr. S. Anandan & Mrs. Sowjanya, with an intention to create equitable mortgage for the loan availed by him, as under Sec. 58 (f) of Transfer of Property Act, 1882 in favour of the Applicant bank.

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It is submitted by the applicant bank that in confirmation of above, the 2^nd and 3^rd defendants executed Memorandum of Deposit of Title Deeds dated 20.03.2013 & 11.03.2016 Registered as Doc. Nos. 3659 of

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T.A. No.939 of 2023

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2013 and 2111 of 2016 with SRO, Redhills in favour of the Applicant Bank for the credit facilities availed by them.

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The Applicant further submits that subsequent to availing of loan, operation of the loan account was highly unsatisfactory, due to defaulted repayment made by the Defendants. The Applicant submits in spite of repeated requests and demands, the defendants did not care to repay the amounts due to the bank, thereby violating the sanction terms. Consequently, the loan account was classified as Non Performing Asset (NPA) on 31.07.2018 in terms of RBI guidelines in the books of account of applicant bank. The applicant also sent a Demand notice dated 22.08.2019 recalling the loan granted to them and advised them to clear the entire liabilities. Despite repeated requests and demands, the defendants did not take any steps to repay the loans and only used the delaying statistics. 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 3 through Registered Post with Acknowledgment Due, which was returned with remarks ‘Left’ in respect of D-1 and D-2 while summons to D-3 returned with remarks ‘Refused’, which is deemed service. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 23.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 23.05.2022.

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T.A. No.939 of 2023

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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. Srinivasan, 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-16 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-16 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 23.05.2022, 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.

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During the pendency of OA, Applicant Bank had reported part

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T.A. No.939 of 2023

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satisfaction of OA claim in a sum of Rs.31,45,000/- by way of sale of Schedule mentioned immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.31,45,000/- was duly recorded vide proceedings dated 18.08.2022.

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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 jointly and severally for recovery of a total sum of Rs.64,71,471.15p (Rupees Sixty Four Lakhs Seventy One Thousand Four Hundred and Seventy One only) due in respect of Cash Credit facility (A/c No.10654011000213) repayable together with further interest @ 10.60% p.a. with monthly rests along with penal interest @2% p.a. from the date of Application till the date of realization in full, along with costs of this application.

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(b) The sum of Rs. 31,45,000/- realized by way of sale of schedule mentioned immovable property is directed to be given credit to the borrower’s loan account as on date of realization.

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(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 2^nd and 3^rd Defendants (both

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T.A. No.939 of 2023

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movable and immovable) to recover the balance dues as required under law for which the 2^nd and 3^rd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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

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(f) 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 11^th day of June, 2026)

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T.A. No.939 of 2023

11.06.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Srinivasan, Chief Manager of 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.	03.12.2010	Sanctioned of credit facility of Overdraft for amount of Rs.15,00,000/-	A-1
2.	02.07.2011	Sanction of credit facility (enhanced) of overdraft for amount of Rs.35,00,000/-	A-2
3.	10.10.2012	Sanctioned of credit facility (renewed) of over draft for amount of Rs.35,00,000/-	A-3
4.	04.10.2014	Sanctioned of credit facility (enhanced) of overdraft for amount of Rs.45,00,000/-	A-4
5.	02.07.2015	Sanctioned of credit facility(renewed) of overdraft for amount of Rs.45,00,000/-	A-5
6.	02.01.2017	Sanctioned of credit facility(renewed) of overdraft for amount of Rs.45,00,000/-	A-6
7.	07.12.2010	Sole proprietorship letter (L.Doc.21) executed by 2^nddefendant	A-7
8.	07.12.2010	Agreement of hypothecation of assets (loan Doc-1)for the amount of 15lakhs executed by the 1^stdefendant	A-8
9.	07.12.2010	Agreement of guarantee (Loan Doc-11) for the amount of 15 lakhs executed by the 3^rddefendant.	A-9
10.	07.12.2010	Common agreement (Loan Doc-38) executed by the 1^stdefendant	A-10
11.	05.07.2011	Supplemental agreement to secure credit loan/facilities )Loan Doc-13) for enhancement limit from 15 lakhs to 35 lakhs executed by the 1^stdefendant	A-11
12.	05.07.2011	Agreement of guarantee(Loan Doc-11) for the amount of Rs.35 Lakhs executed by the 3^rddefendant	A-12
13.	04.01.2014	Supplemental agreement to secure credit loan/ facilities (Loan Doc-13) for enhancement limit from Rs.35 lakhs to 45 lakhs executed by the 1^stdefendant	A-13
14.	04.01.2014	Agreement of guarantee(Loan doc-11) for the amount of Rs.45 lakhs executed by the 3^rddefendant	A-14
15.	04.01.2014	Common agreement (Loan Doc-38) executed by the 1^stdefendant	A-15

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T.A. No.939 of 2023

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16.	Statement of acc	ounts bea	ring A/c No. A-16
	10654011000213	for the	period from
	08.12.2010 to 11.	10.2020

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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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Mortgaged property has been sold under the SARFAESI Act.

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

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Uploaded on 11.06.2026 at 16:30 hours

Punjab National Bank (Oriental Bank of Commerce) v. M/S Archana Syntheticss

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. M/S Archana Syntheticss

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

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