STATE BANK OF INDIA vs SAAD MUSTHAFA ALANCHERY on 19 March 2026

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 19th day of March, 2026

TRANSFER APPLICATION No.1045/2016 (O.A.No.503/2013)

Between

State Bank of India, P.B. No.32, Main Road, Irinjalakuda, Thrissur District-680121. …Applicant

And

Sri.Saad Musthafa Alanchery, S/o.Musthafa, Alanchery House, Puthumanassery, Pavaratty P.O., Thrissur-680507. …Defendant This Original Application having been heard on 16.03.2026 in the presence of Advocate Smt. V.K. Hema 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.13(10) of the SARFAESI Act, 2002 for recovery of a sum of Rs.29,91,722/- due under home loan account together with future interest @10% per annum with monthly rests from the defendant. Facts of the case:

2. The applicant is a body corporate constituted under State Bank of India Act, 1955 having its Corporate Centre at Mumbai and one of its branches at Irinjalakuda in Thrissur District.

3. The defendant approached the applicant bank for a housing loan. Considering his request, the applicant bank sanctioned a home loan of Rs.49,34,000/- as per the arrangement letter dated 30.06.2009. The defendant availed the facility after executing loaning/security documents and created security interest over the property having an extent of 21750 cents in Sy. No. 252/7 and 13.917 cents in Sy.No.252/8 of the Nattika Village, Chavakkad Taluk. Due to default in repayment, the loan was classified as NPA and thereafter, applicant bank issued a demand notice under S.13(2) of the SARFAESI Act on 03.03.2010 calling upon the defendant to pay an amount of Rs.51,63,378/- with future interest. On failure pay the amount, applicant bank issued possession notice dated 30.06.2010. Thereafter, the applicant bank filed Crl. M.P. No.5981/2011 before the Chief Judicial Magistrate Court, Thrissur and orders were issued for taking vacant possession of the land. However, the defendant surrendered the vacant possession of the land on 25.03.2011. In the meanwhile, the property was proclaimed to be sold on public auction on 04.09.2012 and it was sold for a sum of Rs.37,66,000/-. After adjustment of sale proceeds, a sum of Rs.29,66,998/- is due from the defendant. Hence the applicant bank issued a demand notice to the defendant calling him to pay the outstanding dues but there was no response to the demand notice. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.29,91,722/- together with pendente lite and post decree interest thereon from the defendant;

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

(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 filed written statement resisting the claim made by the applicant bank. Despite sufficient opportunity granted, he did not file counter proof affidavit nor adduced any documentary evidence to substantiate his contentions. Subsequently, the defendant remained absent from the proceeding and hence he was set exparte on 11.09.2023. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr. R. Viswanathan, Chief Manager and of the applicant bank have filed proof affidavit a and produced the loan documents marked as Exhibits A1 to A7. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendant. The availing of the credit facility is well established from the documents placed by the applicant bank. As on 31.07.2013, a sum of Rs.29,91,722/- is outstanding in the loan account, which is clearly established from the account statements marked as Ext.A6 and A7.

6. Considering the amount advanced, interest applied, repayments effected, default committed and 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.

7. 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.29,91,722/- (Rupees twenty nine lakhs ninety one thousand seven hundred and twenty two only) due under the home loan account from the defendant;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.29,91,722/- (Rupees twenty nine lakhs ninety one thousand seven hundred and twenty two only) from 12.09.2013 till realization from the defendant; and

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

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

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

10. 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 19th day of March, 2026)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Sri. R. Viswanathan, Chief Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 28.05.2009 Housing loan application submitted by the defendant to the applicant bank. A2 30.06.2009 Arrangement letter issued by the applicant bank and duly signed by the defendant. A3 30.06.2009 Memorandum of loan agreement for home loan executed by the defendant in favour of the applicant bank. A4 29.07.2012 Sale notice dated 27.07.2012 published in Mathrubhumi daily. A5 18.07.2013 Demand notice issued by the applicant to the defendant. A6

.. Statement of account duly certified in respect of home loan. A7

.. Memorandum of interest of Exhibit A6 account.

Defendant’s Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 19th March,2026

TA No.1045/2016 (OA No.503/2013)

Between

State Bank of India, P.B. No.32, Main Road, Irinjalakuda, Thrissur District-680121. …Applicant

And

Sri. Saad Musthafa Alanchery, S/o. Musthafa, Alanchery House, Puthumanassery, Pavaratty P.O., Thrissur-680507. …Defendant

F I N A L O R D E R