PUNJAB NATIONAL BANK vs Priya on 14 August 2026

: - FINAL ORDER- :

1. This Original Application is filed on 22.07.2020 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 1 and 2, jointly and severally for recovery of a total sum of Rs.36,58,263/- (Rupees Thirty Six Lakhs Fifty Eight Thousand Two Hundred and Sixty Three only) due in respect of Housing Loan (A/c No. 521500NC00008352) repayable together with further interest @ 8.90% p.a. along with Penal interest @2% with monthly rests from the date of Application till the date of realization in full, for sale of immovable property morefully detailed in schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.355 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.355 of 2020 stood transferred to this Tribunal and renumbered as TA No.315 of 2023. Brief Facts of the case:

3. 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.

4. It is the case of the applicant bank that the 1st and 2nd defendants are husband and wife. The 1st defendant is the principal borrower and the 2nd defendant is the co-borrower. They approached the applicant bank seeking for Housing Loan credit facility.

5. The applicant submits that the 1st and 2nd defendants have made an application dated 10.12.2015 for Housing Loan to the applicant bank and on basis of such request, the applicant bank sanctioned Housing Loan facility for a sum of Rs.28.88 lakhs in favour of the defendants vide Sanction Letter dated 11.12.2015 subject to the terms and conditions as envisaged thereon.

a) Primary security: schedule mentioned property

b) Repayment: Rs.27,108.82p per month in Equated Monthly Instalments

6. The above said facility of Rs.28,88,000/- was availed and the defendants executed the following documents in favour of the bank on 11.12.2015:

a) Agreement for Housing Loan executed by the 1st and 2nd defendants

b) Power of attorney

7. It is submitted by the applicant bank that in order to secure the loan, the defendants have created EM on their property as described in the schedule to the OA by depositing the original title deeds as confirmed vide Letter of Intent executed on 08.01.2016 in terms of Section 58(f) of Transfer of Property Act to cover the loan liability. The 1st defendant had deposited the original Construction Agreement executed between the builder and the defendants dated 27.10.2015 and Sale Deed dated 21.12.2015 registered as Doc. No. 4660/2015 before SRO, Poonamallee in confirmation of the creation of EM over the schedule mentioned property.

8. The 1st defendant had also executed deed of MOD on 21.12.2015 registered as Doc. No. 4661 of 2015, SRO, Poonamallee in confirmation of the creation of EM over the schedule mentioned property. The defendant executed Deed of MOD on 21.12.2015 registered as Doc No. 4661/2015, SRO, Poonamallee to secure the repayment of aforesaid loan liability in respect of their property, namely A residential Flat bearing Flat No.S-1, in the second floor, having area of 1003 Sq.feet (including common areas) along with 1 car parking slot thereon lying within the limits of Thirumazhisai Town Panchayat, along with 495 Sq. Feet of undivided share in land measuring an extent of 2,035 Sq.Feet, bearing Plot No.19 in

LTM Nagar, (Layout approved by the CMDA vide PPD/L.O.No.25/95) and comprised in the survey No.78 and as per patta No.402, Re Survey No.78/10 in Thirumazhisai Village, Poonamallee Taluk in Thiruvallur District more fully described in the schedule to the OA, 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. The applicant bank issued Letter dated 11.01.2016 and accepted the confirmation of deposit of title deeds made by the defendants on 08.01.2016.

9. The applicant bank submits that they have caused a search in the Sub Registration District of Poonamallee, Thiruvallur District in which the property was mortgaged by the defendants by deposit of title deeds situated for a period of 13 years and the applicant was not aware of any encumbrance over the said property. In pursuance to execution of the aforesaid documents and creation of securities the credit facilities were availed by the defendants and thereby received consideration.

10. The applicant submits that subsequent to availing of loan, the 1st and 2nd defendants were irregular in repayment of the dues. The applicant made several demands calling upon the defendants to repay the amount but the defendants did not choose to repay the amounts. As such the loan account was classified as Non-Performing Asset (NPA) in terms of RBI guidelines.

11. It is submitted by the applicant bank that a notice dated 16.08.2016 under SARFAESI Act was issued by the applicant bank and subsequently the defendant approached the bank and regularized the Housing Loan account. Pursuant to the same, the 1st defendant executed a Supplementary Agreement on 18.10.2016 in this regard. The 2nd defendant co-borrower also executed Letter of Consent on the same day.

12. The borrowers were thereafter paying the EMIs regularly. The applicant bank further submits that the 1st defendant executed Balance and Security Confirmation Letter on 30.09.2018 in favour of applicant bank. However, subsequently, the 1st defendant had again failed and neglected to service the principal and interest the loan account had been slipped into NPA category again on 12.10.2018 in terms of RBI guidelines. The applicant bank issued Demand Notice dated 11.04.2019 to the defendants to repay the outstanding of Rs.30,00,268/-, which was duly received by the defendants, despite which the defendants did not come forward to repay the dues. Therefore, the applicant bank proceeded under Section 13(4) of the Act and issued Possession Notice dated 03.07.2019, which was also duly received by the defendants. As defendants did not come forward to repay the dues, the present Original Application has been filed by the applicant bank for recovery of this dues from the defendants.

13. 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 D-2. 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. Heard the submissions of Applicant Bank and perused the records.

14. To prove the case of the Applicant Bank, Sh. M. Velayutham, 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-14.

15. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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.

16. 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.

17. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.24,75,000/- by way of sale of Schedule immovable property under SARFAESI Act on 02.11.2023. Accordingly, part satisfaction of sum of Rs. 24,75,000/- was duly recorded vide proceedings dated 22.08.2024 and documents marked as Ex A-5 to A-7 were returned to applicant bank on 03.12.2024 under proper acknowledgement

18. 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:

: O R D E R :

19. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.36,58,263/- (Rupees Thirty six lakhs Fifty Eight Thousand Two Hundred and Sixty Three only) due in respect of Housing Loan (A/c No.521500NC00008352) together with further interest @ 8.90% p.a., along with Penal interest @2% with monthly rests from the date of Application till the date of realization in full and for costs of this application; (b) The sum of Rs. 24,75,000/- realized by way of sale of schedule immovable property is directed to be given credit to the borrower’s loan account as on date of realization

(c) If the sale proceeds of the immovable property are 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.

(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.

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

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

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 14th day of August, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. M. Velayutham, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 10.12.2015 Housing Loan application submitted by the defendants to the applicant A-1

2. 11.12.2015 Sanctioned letter along the terms and conditions issued by the applicant bank A-2

3. 11.12.2015 Agreement for housing loan executed by the defendants infavour of the applicant bank A-3

4. 11.12.2015 Power of attorney executed by the defendants A-4

5. 27.10.2015 Agreement for construction infavour of the defendants registered as Doc. No. 4659/2015, SRO Poonamallee A-5

6. 21.12.2015 Sale deed registered as Doc.No.4660/2015, SRO Poonamallee infavour of the defendants in respect of the OA schedule mentioned property A-6

7. 21.12.2015 Memorandum of deposit of title deeds executed by the defendants in favour of the applicant bank registered as Doc.No. 4661/2015, SRO Poonamallee A-7

8. 11.01.2016 Letter issued by the applicant bank to the defendants accepting the deposit of title deeds made by the defendants A-8

9. 18.10.2016 Supplementary agreement executed by the 1st defendant in favour of the applicant bank A-9

10. 18.10.2016 Supplementary agreement executed by the 2nd defendant in favour of the applicant bank A-10

11. 30.09.2018 Balance and security confirmation letter executed by the 1st defendant in favour of the applicant bank A-11

12. 11.04.2019 Demand notice issued by the applicant to the defendants under Sec.13(2) of the SARFAESI Act, 2002 A-12

13. 03.07.2019 Possession notice issued by the applicant by the defendants under Sec.13(4) of the SARFAESI Act, 2002 A-13

14. 20.07.2020 Statement of accounts A-14

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-: The Mortgaged Property has been sold under SARFAESI Act

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI