STATE BANK OF INDIA vs SHYJA BIJU on 5 January 2026

1. Shyja Biju,

W/o.late K.M.Biju,

Kizhakkethil House,

Kuzhitholu P.O.,

Anyartholu,

Pothumkandam.

2. Ananthakrishna,

S/o.late K.M.Biju, Kizhakkethil House,

Kuzhitholu P.O.,

Anyartholu,

Pothumkandam.

3. Nandakrishna,

S/o.late K.M.Biju, Kizhakkethil House,

Kuzhitholu P.O.,

Anyartholu,

Pothumkandam.

4. Soman,

S/o.Narayanan,

Puthuparambil House,

Ayyappankovil Village,

Kozhimala P.O.,

Kozhimala. (Dead) (No relief is sought against him)

5. Gunasekhar V.,

S/o.Velsamy,

No.450/9, Pari Nagar,

China Andan Kovil Street,

Karur P.O., Karur Taluk,

Tamilnadu – 639 002.

…Defendants

This Original Application having been heard on 18.12.2025 in the presence of Advocate Ms.Bindumol Joseph for the applicant bank and stood over to this day for consideration, the Tribunal delivered the following: F I N A L O R D E R

This Original Application has been filed under S.19(1) of the Recovery of Debts and Bankruptcy Act, 1993 for recovery of a sum of Rs.7,63,234.88 and Rs.5,15,215.65 due respectively under kisan cash credit account and agricultural term loan account, totaling to Rs.12,78,450.53 together with future interest and costs from defendants 1 to 3 jointly and severally to the extent of assets inherited by them from late K.M.Biju and by sale of ‘A’ and ‘B’ schedule properties.

Facts of the case:

2. The applicant is a body corporate constituted under State Bank of India Act, 1955 having its central office at Mumbai and one of its branches at Kattappana, Idukki District.

3. Defendants 1 to 3 are the legal heirs of late K.M.Biju. At the request of K.M.Biju, applicant bank sanctioned a kisan cash credit limit of Rs.3.80 lakhs and an agricultural term loan of Rs.4.40 lakhs as per arrangement letter dated 16.08.2007. As primary security for the loan, late K.M.Biju hypothecated the standing crops described in ‘A’ schedule in favour of the bank and he had created equitable mortgage over ‘B’ schedule properties towards collateral security for the loans. He availed the facilities but committed default in repayment. During the subsistence of mortgage, late K.M.Biju transferred the properties to the 4th defendant as per sale deed No.3217/2011 who in turn sold the mortgaged properties to the 5th defendant as per sale deed No.266/2012 of Udumbanchola SRO. Despite lawyer notice was issued to the borrower K.M.Biju, he did not take any step to liquidate the liability. After his death, legal notice was issued to defendants 1 to 3 recalling the liability but there is no positive response from the defendants. In such premises, applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.12,78,450.53 together with pendente lite and post decree interest thereon from defendants 1 to 3 jointly and severally to the extent of assets inherited by them from late K.M.Biju and by sale of ‘A’ and ‘B’ schedule properties;

(ii) To recover the costs, charges and expenses from defendants 1 to 3;

(iii) To issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

4. The court guardian of minor defendants 2 and 3 filed written statement denying the averments in the OA and claimed that these defendants and their assets are in no way liable to be proceeded against for recovery of amount, if any, due from the deceased borrower.

5. When the defendants 2 and 3 attained the age of majority, summons was issued and served on them but they remained absent from the proceeding and hence they were declared exparte on 22.07.2022 and 28.10.2025 respectively.

6. The defendants 1, 4 and 5 neither appeared nor were they represented and hence the 4th defendant was set exparte on 20.04.2015 and defendants 1 and 5 were set exparte on 02.02.2016.

7. On 29.10.2025, the applicant bank filed a memo stating that they came to know that the 4th defendant expired. Since no specific relief is sought against the deceased 4th defendant, applicant bank has not taken any step against him. Proof Affidavit:

8. To establish the claim on behalf of the applicant bank, one Mr.Jacob P.Oommen, Chief Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A20. The availing of loans and creation of mortgage charge over the schedule properties are well established from the documents placed by the applicant bank. An aggregate sum of Rs.12,78,450.53 is outstanding in the loan accounts as on 17.09.2014, which is clearly established from the account statements marked as Exts.A15, A16, A18 and A19.

9. Admittedly, defendants 1 to 3 are the legal heirs of deceased Biju, who availed kisan cash credit limit of Rs.3.80 lakhs and agricultural term loan of Rs.4.40 lakhs from the applicant bank on 16.08.2007 and as security for the loans, hypothecation charge was created over ‘A’ schedule property and equitable mortgage was created over ‘B’ schedule properties. In such premises, applicant bank is entitled to recover the amount due under the loan accounts by sale of ‘A’ and ‘B’ schedule properties and in case of non-recovery of the same, defendants 1 to 3 shall be liable to the extent of the value of assets succeeded by them from the deceased Biju.

10. As the applicant bank did not seek any relief against the deceased 4th defendant and the 5th defendant, no order is passed against them. However, purportedly the 5th defendant being the subsequent purchaser of the ‘B’ schedule mortgaged properties, this final order would be binding on him as well.

11. Considering the amount advanced, interest applied, repayments effected and default committed and also the facilities granted being agricultural loans, I am of the view that the applicant bank is entitled to get pendente lite and post-decree interest @6% per annum, which is reasonable in the facts and circumstances of the case.

12. The applicant bank, therefore, is entitled to get a final order on the following lines: In the result, the applicant bank is given a final order allowing it to recover:

(i) an aggregate sum of Rs.12,78,450.53 (Rupees twelve lakhs seventy eight thousand four hundred fifty and Paise fifty three only) by sale of ‘A’ and ‘B’ schedule properties and in case of any shortfall, the same shall be recovered from the assets, if any, left by deceased K.M.Biju in the hands of defendants 1 to 3, who shall be personally liable to the extent of the value of such assets succeeded by them in the event of their failure to satisfactorily account for the same;

(ii) pendente lite and post-decree interest @6% per annum on the sum of Rs.12,78,450.53 (Rupees twelve lakhs seventy eight thousand four hundred fifty and Paise fifty three only) from 23.09.2014 till realization by sale of ‘A’ and ‘B’ schedule properties and in case of any shortfall, the same shall be recovered from the assets, if any, left by deceased K.M.Biju in the hands of defendants 1 to 3, who shall be personally liable to the extent of the value of such assets succeeded by them in the event of their failure to satisfactorily account for the same; and

(iii) costs and expenses borne by it for realization of the loans from defendants 1 to 3.

13. ‘A’ and ‘B’ schedules to the OA shall be appended to this final order.

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

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

16. Communicate copy of this order to both parties as provided in R.16 r/w R.2(c) of the Debts Recovery Tribunal (Procedure) Rules, 1993. (Dictated to my PA, corrected and pronounced by me in the open Tribunal on this the 5th day of January, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.Jacob P.Oommen, Chief Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 16.08.2007 Sanction letter issued by the applicant bank sanctioning kisan cash credit loan of Rs.3.80 lakhs to Biju. A2 16.08.2007 Agreement of loan cum hypothecation executed by the borrower. A3 16.08.2007 Sanction letter issued by the applicant bank sanctioning agricultural term loan of Rs.4.40 lakhs to Biju. A4 16.08.2007 Agreement of loan cum hypothecation executed by Biju. A5 05.05.2010 Revival letter executed by the borrower acknowledging the liability under the agricultural term loan account. A6

10.07.2010 Revival letter executed by the borrower acknowledging the liability under the kisan cash credit account. A7

04.03.2013 Revival letter in respect of the agricultural term loan and kisan cash credit facility. A8

29.06.2007 Settlement deed No.1017/2007 of Udumbanchola. A9

29.06.2007 Settlement deed No.1018/2007 of Udumbanchola. A10 17.07.2007 Sale deed No.1095/2007 of Udumbanchola. A11 20.07.2007 Possession certificate issued by the Village Officer, Karunapuram. A12 … Location sketch issued by the Village Officer, Karunapuram. A13 … Copy of relevant page of the equitable mortgage register maintained by the applicant bank.

A14 08.07.2014 Copy of lawyer notice issued to defendants 1 to

3. A15 … Certified copy of the statement of account relating to the kisan cash credit facility. A16 … Statement showing the interest accrued under Ext.A15 account. A17 … Statement showing the rate of interest applied in Ext.A15 account from time to time. A18 … Certified copy of the statement of account relating to the agricultural term loan. A19 … Statement showing the interest accrued under Ext.A18 account. A20 … Statement showing the rate of interest applied in Ext.A18 account from time to time.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 5th January, 2026

TA No.49/2017 (OA No.544/2014)

Between

State Bank of India, Kattappana Branch, Opp: Police Station, Idukki District. …Applicant

And

Shyja Biju, W/o.late K.M.Biju, Kizhakkethil House, Kuzhitholu P.O., Anyartholu, Pothumkandam & 4 others.

...Defendants

F I N A L O R D E R