FEDERAL BANK vs SHAJI ROBERT on 19 March 2026

1. Shaji Robert,

W/o.Robert Xavier,

2. Pratish Kurien,

S/o.Kurien,

…Defendants

This Original Application having been heard on 10.03.2026 in the presence of Advocate Sri.Vinod Jabar 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 an aggregate sum of Rs.37,60,203.83 due under two housing loan accounts together with future interest and costs from the defendants 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 Aluva and a branch amongst other places at Thumpolly in Alappuzha District.

3. At the request of the defendants, applicant bank sanctioned a federal housing scheme loan (FHS-1) of Rs.27.50 lakhs on 27.05.2008 and FHS-2 loan of Rs.4 lakhs on 17.01.2009 which were availed by them after executing security documents. The 1st defendant created mortgage over the OA schedule property to secure the loans. After availing the loans, the defendants failed and neglected to repay the installments as per the terms and conditions specified in the loan agreement and the accounts became highly irregular. Hence the applicant issued demand notice under S.13(2) of the SARFAESI Act on 08.08.2011

demanding repayment of the outstanding dues but they failed to settle the liability. In such premises, the applicant was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.37,60,203.83 together with pendente lite and post-decree interest on the sum of Rs.36,96,493.80 from the defendants 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 defendants entered appearance and sought adjournment for filing written statement. But they did not file any written statement despite time granted and hence the chance of filing written statement stood closed on 03.03.2017. Subsequently, the 1st defendant presented a written statement along with IA No.687/2017 to accept the same but none appeared to move the application and hence the same was rejected as not pressed on 04.02.2026. As such, the written statement was not taken on record.

Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Ms.Ajitha B., Senior Manager of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A11. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the housing loans is well established from the documents placed by the applicant bank. As per the account statements produced by the applicant bank, a sum of Rs.32,70,625.55 and Rs.4,89,578.28 was outstanding in FHS-1 account and FHS-2 account respectively as on 15.05.2014, which is clearly established from the account statements produced in this case.

6. It is averred in paragraph 10 of the proof affidavit that the mortgaged property scheduled to the OA was sold under the SARFAESI Act for Rs.36.25 lakhs on 04.03.2015 and an amount of Rs.30,59,927/- was credited in FHS-1 account on 13.03.2015 and a sum of Rs.5,65,073/- was credited in FHS-2 account. It is also stated that by appropriating the sale proceeds, FHS-2 account stood closed on 13.03.2015.

7. Considering the amount advanced, interest and penal interest applied, default committed and the facility granted being a housing loan and also substantial recovery effected by sale of the secured asset, I am of the view that the applicant bank is entitled to get pendente lite and post decree interest @9% per annum in the FHS-1 account, 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.32,70,625.55 (Rupees thirty two lakhs seventy thousand six hundred and twenty five and Paise fifty five only) due under the FHS-1 account, less the sum of Rs.30,59,927/- (Rupees thirty lakhs fifty nine thousand nine hundred and twenty seven only) recovered by the applicant bank by sale of the secured asset on 13.03.2015 from the defendants;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.32,14,983.80 (Rupees thirty two lakhs fourteen thousand nine hundred and eighty three and Paise eighty only) from 16.05.2014 till realization from the defendants; and

(iii) 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 19th day of March, 2026)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Ms.Ajitha B., Senior Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 27.05.2008 Demand promissory note for Rs.27.50 lakhs executed by the defendants. A2 27.05.2008 Security delivery letter executed by the defendants. A3 27.05.2008 Federal housing scheme agreement executed by the defendants. A4 17.01.2009 Demand promissory note for Rs.4 lakhs executed by the defendants. A5 17.01.2009 Security delivery letter executed by the defendants. A6 17.01.2009 Federal housing scheme agreement executed by the defendants. A7 20.05.2011 Balance confirmation letter executed by the defendants acknowledging the liability under the loan accounts. A8 08.08.2011 Copy of demand notice under S.13(2) of the SARFAESI Act issued to the defendants. A9 … Certified copy of the statement of account relating to FHS-1 facility. A10 … Statement showing the rate of interest applied in Ext.A9 account. A11 … Statement showing the penal interest charged in Ext.A9 account and capitalized portion thereof.

Defendants’ 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.71/2016 (OA NO.285/2014)

Between

The Federal Bank Ltd., Registered Office: Aluva, Branch: Thumpolly, Channar Memorial Building, Thumpolly Junction, Thumpolly P.O., Alappuzha District.

…Applicant

And

Shaji Robert, W/o.Robert Xavier,

& another.

…Defendants

F I N A L O R D E R