STATE BANK OF INDIA vs Sandeep S Nair on 5 January 2026

1. Sandeep S. Nair, ‘Sandharam’, NRA 24, Njandoor Konam P.O., Chempazhanthi, Thiruvananthapuram – 695 587.

2. Remya Sandeep, W/o.Sandeep S. Nair, ‘Sandharam’, NRA 24, Njandoor Konam P.O., Chempazhanthi, Thiruvananthapuram – 695 587.

…Defendants

This TA (OA) having been heard on 17.12.2025 in the presence of Advocate Sri.Tom K.Thomas 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 is an application filed under S.31A of the Recovery of Debts and Bankruptcy Act, 1993 by the applicant bank for issuance of Recovery Certificate in terms of the award dated 20.06.2010 in P.L.No.3825/2010 for recovery of the amount due thereunder.

2. The 1st defendant availed a car loan of Rs.7.10 lakhs on 30.05.2007 and the 2nd defendant stood as guarantor for the loan. Due to default in repayment, the matter was placed before the Lok Adalat organized by Thiruvananthapuram District Legal Services Authority. With the concurrence of the defendants, the applicant bank obtained an award dated 20.06.2010 in PL No.3825/2010, directing the defendants to pay the compromise amount of Rs.8,26,000/- in three installments i.e., Rs.40,000/- on or before 27.06.2010, another sum of Rs.40,000/- on or before 03.07.2010 and the balance amount of Rs.7,46,000/- on or before 30.09.2010; and in default thereof, the bank shall be at liberty to recover the amount as per the default clause.

3. According to the applicant, the defendants did not pay any amount as per the award and it is entitled to get the sum of Rs.12,49,439.02 together with interest thereon @14.25% per annum with monthly rests from 31.12.2012 till the date of payment from the defendants. The prayer is to issue Recovery Certificate accordingly.

4. The defendants entered appearance on 20.03.2013 and sought adjournment for filing written statement. They have not filed any objection or written statement and remained absent from the proceeding and hence the defendants were declared exparte on 07.08.2013.

5. S.31A was incorporated by way of amendment made to the Act as per Act 1 of 2000, which came into force on 17.01.2000, which deals with issuance of Recovery Certificate in respect of decrees for recovery of debt passed by any court prior to the commencement of Act 1 of 2000. When any decree passed by a civil court after introduction of S.31A in the statute, which remained unexecuted and the decreetal debt grew after calculating the interest beyond Rs.10 lakhs (Rs.20 lakhs w.e.f. 01.07.2019), can be executed by the Tribunal not by the civil court in view of the ratio decided by the Hon'ble High Court of Kerala in the case titled V.D.Mathew v. State Bank of Travancore, reported in 2008 (2) D.R.T.C 695 (Kerala) wherein it was held that “If that be so, after the decree was passed, the debt under it remains a decree debt and when the outstanding under that decree grew to be beyond Rupees

Ten Lakhs, it was amenable to the jurisdiction of the Tribunal, as cause of action, against the debtor.” Here in this case at the time of passing the Award, the decreetal amount was Rs.8,26,000/- and the total recoverable amount at the time of initiation of this proceeding was Rs.12,49,439.02. The ratio decided by the Hon'ble High Court is squarely applicable to the facts and circumstances of this case and this proceeding is maintainable in this forum and the Tribunal is empowered to issue Recovery Certificate for recovery of amount due under the award (i.e., the decree passed on or after 17.01.2000) which grew beyond the statutory limit of Rs.10 lakhs. Any other interpretation would make S.31A of the Act redundant and a decree holder bank, after obtaining a decree after the commencement of Act 1 of 2000 for recovery of amount with interest which has exceeded of Rs.10 lakhs, would be unable to approach for recovery of such amount either before the Tribunal or the civil court which is not the intention of legislature. The Tribunal, therefore, is required to issue Recovery Certificate for recovery of the amount due under the award.

6. As per S.21 of the Legal Services Authorities Act, 1987, every award of the Lok Adalat shall be deemed to be a decree of a civil court and shall be binding on all the parties to the dispute. Section 21 reads as follows:

21. Award of Lok Adalat.—

Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any other court and where a compromise or settlement has been arrived at, by a Lok Adalat in a case referred to it under sub- section (1) of section 20, the court-free paid in such case shall be refunded in the manner provided under the Court Fees Act, 1870 (7 of 1870).—

Every award made by a Lok Adalat shall be final and binding on all the parties to the dispute, and no appeal shall lie to any court against the award.

7. Pending the case, the Tribunal passed an order of conditional attachment in IA No.897/2016 on 03.12.2016 over the property therein belonging to the 1st defendant. As the 1st defendant failed to furnish security for the required sum or to show cause why such security should not be furnished within the stipulated time, the attachment sought for as against the petition schedule property viz., 4.10 Ares of land, was granted on 16.05.2017. Subsequently, the attachment order granted in respect of 2 Ares 8 square meter, out of 4.10 Ares of land, was lifted as per order dated 20.06.2023 in IA No.1451/2023 and the order of attachment is continuing for the remaining extent of property i.e., 2.02 Ares. Hence the applicant bank is entitled to realise the amount found due as above by sale of the remaining extent of the attached property.

8. In view of the above discussion, the applicant is entitled to get a final order directing to issue Recovery Certificate on the following lines: In the result, it is ordered to issue Recovery Certificate for recovery and payment to the applicant bank the sum of Rs.12,49,439.02 (Rupees twelve lakhs forty nine thousand four hundred and thirty nine and Paise two only) with further interest thereon @14.25% per annum with monthly rests from 31.12.2012 till realization and also the costs of the applicant bank in this proceeding from the defendants and by sale of 2.02 Ares of land attached under IA No.897/2016.

9. The schedule to IA No.897/2016 shall be appended to this final order.

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

11. 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

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.1467/2016 (OA No.65/2013)

Between

State Bank of India, Stressed Assets Recovery Branch, 1st Floor, ‘Sangamam’, Gas House Junction, Opp: A.K.G. Centre, Thiruvananthapuram. …Applicant

And

Sandeep S. Nair, ‘Sandharam’, NRA 24, Njandoor Konam P.O., Chempazhanthi, Thiruvananthapuram – 695 587 & another.

…Defendants

F I N A L O R D E R