STATE BANK OF INDIA vs Jis C Mathew on 8 December 2016

IN THE DEBTS RECOVERY TRIBUNAL - 1, ERNAKULAM

PRESENT: SRI N. SOMASUNDAAR BA BL PRESIDING OFFICER

Dated the 08th December 2017

TRANSFERRED APPLICATION NO. 134 OF 2017 (Originally presented on 24.10.2016 before the Debts Recovery Tribunal – 2 Ernakulam and registered as OA 285/2016)

Between

Mananthavady, Wayanad, Kerala – 670645. …Applicant (The applicant bank was substituted in place of the State Bank of Travancore, having its registered office at Thiruvananthapuram and branch among other places at Mananthavady, Wayanad, Kerala – 670645 as per order dated 20.06.2017 in IA No.925/2017 in terms of the acquisition of State Bank of Travancore Order 2017 published in the Gazette of India dated 22.02.2017 which is effective from 01.04.2017)

And

Jis C Mathew, S/o Mathew, Cheriyakunnel House, Paleri, Makkiad P.O, Wayanad, Kerala – 670731. …Defendant

. This Transferred Application having been heard on 08.11.2017 in the presence of Advocate Sri Rajagopalan M for the applicant bank, and the defendants being exparte, and stood over to this day for consideration, the Tribunal delivered the following:- F I N A L O R D E R This is an Application filed by the erstwhile State Bank of Travancore under S.19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 – for short ‘the Act’ - for recovery of the sum of ₹3,27,309/- due under the agricultural cash credit account with interest thereon @11.70% per annum with annual rests from the defendant and by sale of ‘A’ and ‘B’ schedule properties and the sum of ₹8,44,277/- due under the agricultural term loan account with interest thereon @12.47% per annum with half yearly rests from the defendant and by sale of ‘A’ and ‘B’ schedule properties.

2. The Transferred Application was originally filed on 24.10.2016 before the Debts Recovery Tribunal - 2, Ernakulam which was then having jurisdiction over the

State of Kerala except the districts of Ernakulam and Idukki with effect from 09.05.2016 as per notification published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated 04.05.2016 vide S.O 1641(E) dated 02.05.2016, and was registered as (Original Application) ‘OA 285/2016’. In view of the amendment in area of jurisdiction in the aforesaid principal notification made by the Central Government vide notification published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (ii) dated 25.01.2017 vide S.O 253(E) dated 25.01.2017, OA 285/2016 stood consigned to this Tribunal and the proceedings continued before this Tribunal in the newly registered number as (Transferred Application) TA 134/2017.

3. The defendant was duly served with summons by registered post. But the defendant never appeared nor was he represented and thus he was declared exparte on 26.08.2017.

4. The Manager of the applicant bank, as AW1 filed proof affidavit and got marked Exts.A1 to A13 in support of its case.

5. Although the defendant did not contest the TA and remained exparte, I have examined the question of maintainability and jurisdiction and I found that the TA is well maintainable and this Tribunal has jurisdiction to entertain the TA.

6. According to the applicant bank, the defendant on 18.04.2011 availed from the erstwhile State Bank of Travancore an agricultural cash credit limit of ₹1,65,000/- for cultivation of coffee, pepper, areca-nut etc and an agricultural term loan of ₹4 lakhs for irrigation and personal needs on due execution of necessary security documents in its favour. The cash credit limit was to be repaid on demand and the term loan was to be repaid in ten successive equal annual instalments of ₹40,000/- each commencing from 18.04.2012 with interest servicing as and when due. The repayment of the amounts due under the agricultural cash credit limit and the term loan was secured by the hypothecation over ‘A’ schedule standing crops and the equitable mortgage created by the defendant over ‘B’ schedule immovable property.

7. The case of the applicant bank regarding recovery of the sum of ₹3,27,309/- claimed as due under Ext.A8 certified copy of the statement of account relating to the agricultural cash credit limit as on 24.10.2016, the date of the TA with interest pendentelite and post final order interest thereon from the defendant and by sale of ‘A’ and ‘B’ schedule properties and the sum of ₹8,44,277/- claimed as due under Ext.A11 certified copy of the statement of account relating to the agricultural term loan as on 24.10.2016, the date of the TA with interest pendentelite and post final order interest thereon from the defendant and by sale of ‘A’ and ‘B’ schedule properties is proved by the uncontroverted averments in the proof affidavit of AW1 along with Exts.A1 to A13.

8. Having regard to the amounts availed by the defendant agricultural purpose, and the repayments made, and the interest charged, and the prevailing rate of interest for advances below ₹2 lakhs and between ₹2 lakhs and ₹4 lakhs under the priority agricultural sector in the applicant bank, and the fact that the component of interest in the principal sum adjudged as due as on 24.10.2016 has become disproportionate to the actual amount availed by the defendant on 18.04.2011, this Tribunal in exercise of its discretionary power in granting interest as provided under the provisions of S.19(20) of the Act holds that the applicant bank is entitled to get interest pendente-lite and post final order interest @8% per annum on the amounts found due under Ext.A8 account relating to the agricultural cash credit limit and @9% per annum on the amounts found due under Ext.A11 account relating to the agricultural term loan.

9. In the above circumstances, the applicant bank is entitled to and given a final order in the following lines:- (a) The applicant bank shall recover:-

(i) the sum of ₹3,27,309/- (Rupees three lakhs twenty seven thousand three hundred nine only) with interest thereon @8% per annum from 25.10.2016 till realisation from the defendant and by sale of ‘A’ and ‘B’ schedule properties; and

(ii) the sum of ₹8,44,277/- (Rupees eight lakhs forty four thousand two hundred seventy seven only) with interest thereon @9% per annum from 25.10.2016 till realisation from the defendant and by sale of ‘A’ and ‘B’ schedule properties; and

(iii) also its costs from the defendant and by sale of ‘A’ and ‘B’ schedule properties.

(b) ‘A’ and ‘B’ schedules to the TA shall be appended to this final order.

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

(d) A certificate of recovery shall be drawn up on the basis of this final order and be issued along with a copy of this final order to the Recovery Officer for recovery of the amount of debt specified under paragraph 9(a) above and for distribution of the proceeds from the sale of ‘A’ and ‘B’ schedule properties in the order of priority as provided under sub-section (20AB) of S.19 of the Act.

10. Communicate a copy each of this final order and the recovery certificate to be issued as specified under paragraph 9(d) above to both parties as provided under sub- section (21)(i) of S.19 of the Act r/w R.16 of the Debts Recovery Tribunal (Procedure) Rules, 1993 as amended from time to time. [Dictated to my PA directly on the computer, corrected and pronounced by me in the open Tribunal on this the 08th day of December 2017]

[ N. SOMASUNDAAR ]

Appendix TA 134/2017

A P P E N D I X Witness for Applicant: AW1: Vaidyanathan S, Manager of the applicant bank.

Witness for Defendant(s): Nil Applicant’s Exhibits Ext.No. Date Particulars of documents A1 18.04.2011 Sanction letter issued by the erstwhile State Bank of Travancore to the defendant advising him sanction of agricultural finance of ₹1,65,000/- under kisan credit card (KCC) scheme, which was countersigned by the defendant in its favour in token of having accepted the terms and conditions therein A2 18.04.2011 Letter of arrangement issued by the erstwhile State Bank of Travancore to the defendant advising him sanction of agricultural finance of ₹4 lakhs under kisan gold card (KGC) scheme, which was countersigned by the defendant in its favour in token of having accepted the terms and conditions therein A3 18.04.2011 Hypothecation agreement executed by the defendant in favour of the erstwhile State Bank of Travancore A4 16.03.1990 Settlement deed No.465 of the SRO, Vellamunda A5 19.04.2011 Memorandum of deposit of title deeds executed by the defendant in favour of the erstwhile State Bank of Travancore A6 10.04.2014 Revival letter executed by the defendant in favour of the erstwhile State Bank of Travancore A7 07.09.2016 Copy of lawyer notice issued by the erstwhile State Bank of Travancore to the defendant calling upon him to discharge the debt due to it within ten days from the date of receipt of such notice A8

Certified copy of the statement of account relating to the agricultural cash credit limit A9

Statement showing the unapplied interest accrued under Ext.A8 account during the period from 01.04.2015 to 24.10.2016 A10

Statement showing the varying rate of interest applied under Ext.A8 account during different periods A11

Certified copy of the statement of account relating to the agricultural term loan A12

Statement showing the unapplied interest accrued under Ext.A11 account during the period from 01.04.2014 to 24.10.2016 A13

Statement showing the varying rate of interest applied under Ext.A11 account during different periods Defendant’s Exhibits – Nil

(PRESIDING OFFICER)

IN THE DEBTS RECOVERY TRIBUNAL - 1, ERNAKULAM

PRESENT: SRI N. SOMASUNDAAR BA BL

Dated the 08th December 2017

TA NO. 134 OF 2017

Between

Mananthavady, Wayanad, Kerala – 670645. …Applicant

And

Jis C Mathew, S/o Mathew, Cheriyakunnel House, Paleri, Makkiad P.O, Wayanad, Kerala – 670731. …Defendant

F I N A L O R D E R

IN THE DEBTS RECOVERY TRIBUNAL-1 ERNAKULAM

D.R.C. No. 46 OF 2018 IN TRANSFERRED APPLICATION NO.134 OF 2017

(Originally presented on 24.10.2016 before the Debts Recovery Tribunal-2 Ernakulam and registered as OA 285/2016)

R E C O V E R Y C E R T I F IC A T E (bearing even date of final order dated 08.12.2017)

Between

Mananthavady, Wayanad, Kerala-670645.

(The applicant bank was substituted in place of the State Bank of Travancore, having its registered office at Thiruvananthapuram and branch among other places at Mananthavady, Wayanad, Kerala-670645 as per order dated 20.06.2017 in IA No.925/2017 in terms of the acquisition of State Bank of Travancore Order 2017 published in the Gazette of India dated 22.02.2017 which is effective from 01.04.2017)

.....…Applicant/Certificate holder bank

And

Jis C Mathew, S/o Mathew, Cheiryakunnel House, Paleri, Makkiad P.O., Wayanad, Kerala-670731. …………….Defendant/Certificate debtor

Whereas, the above titled Transferred Application under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act 1993 (hereinafter referred to as ‘the Act’, for short) having come up before me on 08th day of December, 2017 for final disposal and determination of the debt against the defendant/Certificate debtor.

2. It is hereby ordered and certified under the provisions of sub-section (22) of Section 19 of the Act for recovery of:-

(i) the sum of 3,27,309/- (Rupees three lakhs twenty seven thousand three hundred nine only) with interest thereon @8% per annum from

25.10.2016 till realisation from the defendant/certificate debtor and by sale of ‘A’ and ‘B’ schedule properties; and

(ii) the sum of 8,44,277/- (Rupees eight lakhs forty four thousand two hundred seventy seven only) with interest thereon @9% per annum from 25.10.2016 till realisation from the defendant/certificate debtor and by sale of ‘A’ and ‘B’ schedule properties ; and

(iii) also its costs from the defendant/certificate debtor and by sale of ‘A’ and ‘B’ schedule properties.

Given under my hand and the seal of this Tribunal on this the 17th day of February, 2018.

[ N. SOMASUNDAAR ]

SCHEDULE OF AMOUNT TO BE RECOVERED UNDER THE RECOVERY CERTIFICATE

Sl.No Item of amount to be recovered Amount(in ) I(a) Amount determined to be recovered from the defendant / certificate debtor and by sale of ‘A’ and ‘B’ schedule properties. 3,27,309.00

(b) Interest @8% per annum from 25.10.2016 to 08.12.2017 (410 days) on 3,27,309/- 29,412.97

(c) Proportionate Costs 8,539.58

Total amount to be recovered as on 08.12.2017 from the defendant/certificate debtor and by sale of ‘A’ and ‘B’ schedule properties. 3,65,261.55 (Rupees three lakhs sixty five thousand two hundred sixty one and paise fifty five only) II(a) Amount determined to be recovered from the defendant / certificate debtor and by sale of ‘A’ and ‘B’ schedule properties. 8,44,277.00

(b) Interest @9% per annum from 25.10.2016 to 08.12.2017 (410 days) on 8,44,277/- 85,352.94

(c) Proportionate Costs 22,027.42

Total amount to be recovered as on 08.12.2017 from the defendant/certificate debtor and by sale of ‘A’ and ‘B’ schedule properties. 9,51,657.36 (Rupees nine lakhs fifty one thousand six hundred fifty seven and paise thirty six only) Grand Total: Rs.13,16,918.91 (Rupees thirteen lakhs sixteen thousand nine hundred eighteen and paise ninety one only)

(PRESIDING OFFICER)

DEBTS RECOVERY TRIBUNAL-1, ERNAKULAM

SCHEDULED TO RECOVERY CERTIFICATE

TA 134 OF 2017

State Bank of India Vs. Jis C Mathew

DETAILS OF COSTS

Costs memo filed on 14.12.2017

Sl.No. Item of costs Claimed (in ) Allowed (in ) Remarks

Court fee 14,000.00 14,000.00

Process fee 74.00 74.00 (receipts produced)

Advocate’s fee 16,000.00 16,000.00

Miscellaneous charges (Stationary, binding etc.) 200.00 180.00

Xerox charges 150.00 143.00

Typing charges 200.00 170.00

Clerkage 800.00

(not allowed) Total 31,424.00 30,567.00 (Rupees thirty thousand five hundred sixty seven only)

Debts Recovery Tribunal-1, Ernakulam

TA No.134/2017

Final order dated 08.12.2017 and cost memo filed by the applicant bank are placed below for kind perusal. Accordingly, Recovery certificate has been typed and put up along with schedule of amount to be recovered under the recovery certificate, for kind approval and signature please.

Assistant Registrar

Registrar

Hon’ble Presiding Officer