INDIAN OVERSEAS BANK vs M/s GLOBAL APPLIANCES on 25 March 2026

1. M/s.Global Appliances,

T.C.20/2103, Karamana P.O.,

Thiruvananthapuram – 695 002,

represented by its partner

Badusha, S/o.Mohammed Sali,

T.C.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

2. Badusha,

S/o.Mohammed Sali,

T.C.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

3. Sabeena,

W/o.Mohammad Haja,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

4. Hasna,

D/o.Mohammad Haja,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002,

Represented by her mother Sabeena,

W/o.Mohammad Haja,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

5. Aban,

S/o.Mohammad Haja,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002,

Represented by his mother Sabeena,

W/o.Mohammad Haja,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

6. Kasim Beevi,

W/o.Mohammad Sali,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

7. Maheen,

S/o.Mohammed Sali,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

8. Shajahan,

S/o.Mohammed Sali,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

9. Aysha Beevi,

D/o.Mohammed Sali,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

10. Suharban Beevi,

D/o.Mohammed Sali,

T.C.No.20/1377, PMS House,

Karamana P.O.,

Thiruvananthapuram – 695 002.

…Defendants

This Original Application having been heard on 23.03.2026 in the presence of Advocate Sri.Leo George 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.21,10,414.64 due under the cash credit account together with future interest thereon @16% per annum with monthly rests by sale of ‘A’ and ‘B’ schedule properties and to declare that the said amount is due from the 1st defendant. Facts of the case:

2. The applicant is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered office at Chennai and one of its branches at Killipalam, Thiruvananthapuram.

3. The 1st defendant is a partnership firm engaged in the trade of electronic and consumer goods. The 2nd defendant and late S.Mohammed Haja, predecessor of defendants 3 to 5, were the partners of the 1st defendant firm. At the request of the 1st defendant, the applicant bank sanctioned a cash credit limit of Rs.5 lakhs on 28.09.2002 which was enhanced to Rs.10 lakhs 31.07.2003. The 2nd defendant and late S.Mohammed Haja executed the loan documents to secure the loan. Towards collateral security for the cash credit limit, late Mohammed Sali, predecessor of defendants 2 and 6 to 10, and the 10th defendant created mortgage over ‘A’ and ‘B’ schedule properties respectively and executed letters dated 31.07.2003 confirming the deposit of title deeds with the applicant bank on 30.07.2003. Thereafter on 01.07.2004, late S.Mohammed Haja executed balance confirmation letter on behalf of the firm and acknowledged the liability under the loan account. Due to default in repayment, the account turned NPA on 15.04.2006. Subsequently, the applicant issued lawyer notice to defendants 2, 3 and 6 to 10 calling upon them to repay the outstanding dues but they did not clear the liability. In such premises, the applicant was constrained to file the OA claiming the following reliefs:

(i) To declare that a sum of Rs.21,10,414.64 is due from the 1st defendant partnership firm and the said amount together with pendente lite and post-decree interest thereon is to be recovered by sale of ‘A’ and ‘B’ schedule properties;

(ii) To recover the costs, charges and expenses by sale of ‘A’ and ‘B’ schedule properties;

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

4. All the defendants were duly served with summons. As there was no representation for defendants 1 and 8 and no vakalath was filed for them, they were set exparte on 09.09.2015. The defendants 2 to 7, 9 and 10 entered appearance in this case but they have not filed written statement despite time granted and hence the chance of filing written statement stood closed on 25.05.2017 and thereafter they remained absent from the proceeding. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mrs.S.Indukala, Senior Manager of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A15. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the cash credit limit is well established from the documents placed by the applicant bank. As per the account statement produced by the applicant bank, a sum of Rs.21,10,414.64 is outstanding in the cash credit account as on 15.06.2013, which is clearly established from the account statement marked as Ext.A14.

6. In the course of argument, learned counsel for the applicant submitted that they instituted this OA as a mortgage suit and no personal decree is sought for in this case as it is barred by the law of limitation.

7. Considering the amount advanced, interest applied, repayments effected and default committed, I am of the view that the applicant bank is entitled to get pendente lite and post decree interest @12% 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.21,10,414.64 (Rupees twenty one lakhs ten thousand four hundred and fourteen and Paise sixty four only) due from the 1st defendant under the cash credit account by sale of ‘A’ and ‘B’ schedule properties;

(ii) pendente lite and post-decree interest @12% per annum on the sum of Rs.21,10,414.64 (Rupees twenty one lakhs ten thousand four hundred and fourteen and Paise sixty four only) from 18.06.2013 till realization by sale of ‘A’ and ‘B’ schedule properties; and

(iii) costs and expenses borne by it for realization of the loan by sale of ‘A’ and ‘B’ schedule properties.

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

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

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

12. 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 25th day of March, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 28.09.2002 Demand promissory note for Rs.5 lakhs executed by the 1st defendant through the 2nd defendant and late Mohammed Haja. A2 28.09.2002 Letter of hypothecation executed by the executed by the 1st defendant through the 2nd defendant and late Mohammed Haja. A3 31.07.2003 Demand promissory note for Rs.5 lakhs executed by the 2nd defendant and late Mohammed Haja on behalf of the 1st defendant. A4 31.07.2003 Letter enclosing demand promissory note executed by the 2nd defendant and late Mohammed Haja on behalf of the 1st defendant. A5 31.07.2003 Supplemental deed of hypothecation executed by the 2nd defendant and late Mohammed Haja on behalf of the 1st defendant. A6 31.07.2003 Letter of hypothecation executed by the 2nd defendant and late Mohammed Haja on behalf of the 1st defendant. A7 26.09.1972 Sale deed No.3198/1972 of Chala SRO. A8 31.07.2003 Letter executed by late Mohammed Sali confirming the deposit of title deed with the applicant bank. A9 16.10.1995 Sale deed No.3610/1995 of Chala SRO. A10 31.07.2003 Letter executed by the 10th defendant confirming the deposit of title deed with the applicant bank. A11 01.07.2004 Balance confirmation letter executed by late Mohammed Haja acknowledging the liability under the loan account.

A12 09.07.2012 Copy of lawyer notice issued to defendants 2, 3 and 6 to 10 calling upon them to repay the outstanding dues. A13 15.02.2013 Postal receipts evidencing the despatch of Ext.A12 lawyer notice to the defendants A14 … Certified copy of the statement of account relating to the cash credit facility. A15 01.06.2013 Statement showing the rate of interest applied in the cash credit 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 25th March, 2026

TA No.103/2016 (OA NO.299/2013)

Between

Indian Overseas Bank, Killipalam Branch, Karamana, Thiruvananthapuram. …Applicant

And

M/s.Global Appliances, T.C.20/2103, Karamana P.O., Thiruvananthapuram – 695 002, represented by its partner Badusha, S/o.Mohammed Sali, T.C.20/1377, PMS House, Karamana P.O., Thiruvananthapuram – 695 002 & 9 others.

…Defendants

F I N A L O R D E R