FEDERAL BANK vs JAISON K SANI on 26 February 2026

1) Sri. Jaison K. Sani, aged 41 years, S/o. Sri. Sani, Koreth House, Pullur P.O., Irinjalakuda (via), Thrissur District, Pin- 680683.

2) Smt. Rasna Jaison alias Rasna Joseph, aged 34 years, W/o. Jaison K. Sani, Kokkadan House, Pudukkad P.O., Thrissur District, Pin- 680581. …Defendants This Original Application having been heard on 25.02.2026 in the presence of Advocate Smt. Ruby P. Paulose 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 short ‘the Act’ - for recovery of a sum of Rs.14,55,068.52 due under the FHS loan account together with future interest @15.50% per annum with monthly rests on Rs.14,45,276/- from the defendants jointly and severally and by sale of ‘A’ schedule property to the OA. Facts of the case:

2. The applicant is a banking company constituted under the Companies Act, 1956, having its Registered office at Alwaye, Kerala and one of its branches at Thrissur/S T Nagar in Thrissur District.

3. The defendants through their POA holder Shri. K.R. Joseph approached the applicant bank seeking financial assistance for purchase of Flat No.10B in the project ‘‘Federal Residency Annexe’’. Considering the request of the defendants, applicant bank sanctioned a Federal Housing Scheme Loan (hereinafter referred to as FHS) of Rs.15,00,000/- on 04.12.2008. The defendants availed the facilities after executing loaning/security documents and created equitable mortgage over the ‘A’ schedule property by deposit of title deed with the bank on 04.12.2008 and executed memorandum dated 05.12.2008 confirming the deposit of title deed with the intention to create mortgage. The defendants also executed balance confirmation letter dated 01.12.2011 confirming the balance outstanding under the loan account as on 30.11.2011. Despite repeated requests and reminders issued to the defendants, they did not take any steps to repay the installments/regularize the account. Consequently, applicant bank issued a lawyer notice to the defendants on 12.09.2014 calling upon them to repay the outstanding dues but they failed to settle the liabilities. Hence the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.14,55,068.52 together with pendente lite and post decree interest thereon from the defendants jointly and severally and by sale of ‘A’ schedule property to the OA;

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

(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 defendant No.1 entered appearance and sought adjournment for filing written statement but he did not file written statement within the stipulated time and thereafter remained absent from the proceeding. The 2nd defendant neither appeared nor was she represented in this case. Hence defendants 1 and 2 were set exparte on 07.04.2017 and 15.09.2015 respectively. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr. Thomas T.L, Chief Manager and Ms.Kochurani G. Ettil, Deputy Vice President-1 of the applicant bank have filed proof affidavit and additional proof affidavit respectively and produced the loan documents marked as Exhibits A1 to A13. The proof affidavit and additional proof affidavit filed by AW1 and AW2 and the documents produced in this case are not challenged by the defendants. The availing of the credit facility is well established from the documents placed by the applicant bank. As on 06.11.2014, a sum of Rs. 14,55,068.52 is outstanding in the loan account, which is clearly established from the account statement marked as Ext.A10.

6. In the additional proof affidavit filed by the applicant bank, it is averred that subsequent to filing of the OA, the property scheduled to the OA was sold under the SARFAESI Act on 05.12.2013 for Rs.28,05,292/-, which was adjusted in the FHS loan account on 20.12.2013. Subsequently, sale deed No.7323/2008 marked as Ext.A6 was returned to the applicant bank as per order dated 20.01.2025 in IA No.235/2025.

7. Considering the amount advanced, interest and penal interest applied, repayments effected and substantial recovery effected by sale of the secured asset and also the facility granted being a home loan, I am of the view that the applicant bank is entitled to get pendente lite and post decree interest @9% per annum, which is reasonable in the facts and circumstances of the case.

8. 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) the sum of Rs.14,55,068.52 (Rupees fourteen lakhs fifty five thousand and sixty eight and Paise fifty two only) due under the FHS account, less the sum of Rs.28,05,292/- (Rupees twenty eight lakhs five thousand two hundred and ninety two only) recovered by the applicant bank by sale of the secured asset on 20.12.2023, from the defendants jointly and severally;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.14,45,276/- (Rupees fourteen lakhs forty five thousand two hundred and seventy six only) from 07.11.2014 till realization, less the sum of Rs.28,05,292/- (Rupees twenty eight lakhs five thousand two hundred and ninety two only) recovered by the applicant bank on 20.12.2023, from the defendants jointly and severally; and

(iii) also costs and expenses borne by it for realization of the loan from the defendants.

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

10. Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the 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 26th day of February, 2026)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Sri. Thomas T.L, Chief Manager of the applicant bank. AW2: Smt. Kochurani G. Ettil, Deputy Vice President-1 of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 11.04.2008 General power of attorney executed by the 1st defendant in favour of Sri. K.R. Joseph. A2 21.09.2008 General power of attorney executed by the 2nd defendant in favour of Sri. K.R. Joseph. A3 04.12.2008 Demand promissory note for Rs.15,00,000/- executed by the defendants through their POA holder in favour of the applicant bank. A4 04.12.2008 Security delivery letter executed by the defendants through their POA holder. A5 04.12.2008 Federal Housing Scheme agreement executed executed by the defendants through their POA holder in favour of the applicant bank. A6

28.11.2008 Sale Deed No.7323/2008 of Thrissur SRO. [Returned to the applicant vide order dated 20.01.2025 in IA No.235/2025] A7

05.12.2008 Letter confirming the deposit of title deeds executed by the defendants through their POA holder. A8

01.12.2011 Balance confirmation letter executed by the defendants through their POA holder. A9

12.09.2014 Office copy of the lawyer notice issued to the defendants. A10 .. Statement of account of the FHS loan duly certified under Banker’s Book Evidence Act/IT Act.

A11 .. Statement showing varying rates of interest applied in the Exhibit A10 account. A12 .. Statement showing penal interest and capitalised penal interest charged in the Exhibit A10 account. A13 .. Statement of account of the FHS account for the period from 20.12.2023 duly certified under Banker’s Book of Evidence Act.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH

Dated the 26th February,2026

TA No.799/2016 (OA No.572/2014)

Between

The Federal Bank Ltd., Registered Office: Aluva, Branch:- Thrissur/ S T Nagar, Thrissur District, Kerala State. …Applicant

And

Sri. Jaison K. Sani, aged 41 years, S/o. Sri. Sani, Koreth House, Pullur P.O., Irinjalakuda (via), Thrissur District & Another. …Defendants F I N A L O R D E R