FEDERAL BANK vs AMBILY ELIZABETH JOHN on 22 May 2026

1. Ambily Elizabeth John,

D/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711.

2. Susamma John,

W/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711.

3. John Mathews P.,

S/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711.

4. Aju John Paul,

S/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711.

5. Abel Alex John,

S/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711.

6. Anna Rinta John,

D/o.late P.M.John,

Punnamoottil House,

Kannampally,

Kakkudumon P.O.,

Athikkayam,

Pathanamthitta District – 689 711. …Defendants

This Original Application having been heard on 18.05.2026 in the presence of Advocate Sri.M.Sunil 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.2,54,425/- due under FVL account together with future interest on the sum of Rs.2,49,039/- @15.40% per annum with monthly rests from the defendants and by sale of ‘A’ schedule property; and the sum of Rs.34,47,856.10 due under ACC loan account together with future interest on the sum of Rs.33,21,818.10 @17% per annum with yearly rests from the defendants and by sale of ‘B’ to ‘D’ schedule properties. Facts of the case:

2. The applicant is a banking company registered under the Companies Act, 1956 having its registered office at Aluva and a branch among other places at Athikkayam in Pathanamthitta District.

3. During July, 2008, the 1st defendant along with late P.M.John, who is the husband of 2nd defendant and father of defendants 1 and 3 to 6, approached the applicant bank seeking financial assistance for pursuing higher studies for the 1st defendant. Considering their request, applicant bank sanctioned an education loan of Rs.9.80 lakhs under Federal Vidya Loan (FVL) scheme on 17.07.2008 and they availed the facility after executing demand promissory note, security delivery letter and agreement for FVL in favour of the bank. As collateral security for the loan, late P.M.John created mortgage over ‘A’ schedule property and executed letter dated 18.07.2008 confirming the deposit of title deed with the applicant bank on 17.07.2008. Thereafter, at the request of late P.M.John, applicant bank sanctioned an agricultural cash credit (ACC) loan of Rs.18 lakhs for conducting seasonal agricultural operations. He availed the facility after executing necessary security documents on 29.09.2008. As security for the cash credit facility, late P.M.John hypothecated the standing crops in 5.0890 hectares of land descried in ‘B’ schedule and extended the benefit of mortgage already created over ‘C’ and ‘D’ schedule properties. Subsequently, the cash credit limit was enhanced to Rs.21 lakhs on 22.03.2010.

4. After the demise of P.M.John on 09.12.2013, defendants 2 to 5 and the 3rd defendant as power of attorney holder of defendants 1 and 6 agreed for continuance of the FVL of Rs.9.80 lakhs as well as ACC limit of Rs.21 lakhs and also agreed for continuance of the mortgage created over ‘A’, ‘C’ and ‘D’ schedule properties, which devolved upon them. On 14.05.2014, the defendants executed demand promissory note for Rs.2,09,869/-, security delivery letter and agreement of FVL in respect of FVL facility and demand promissory note for Rs.27,80,776.10, security delivery letter and agreement of cash credit in respect of the ACC loan. Defendants 2 to 5 and the 3rd defendant as power of attorney holder of defendants 1 and 6 executed letter dated 15.05.2014 confirming/extending the mortgage created over ‘A’, ‘C’ and ‘D’ schedule properties. Since repayments in the accounts were defaulted, lawyer notices were issued to the defendants calling upon them to repay the entire dues but they did not 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.37,02,281.10 together with pendente lite and post-decree interest on the sum of Rs.35,70,857.10 from the defendants and by sale of ‘A’ to ‘D’ schedule properties;

(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.

5. The defendants entered appearance and sought adjournment for filing written statement but they did not file the same despite time granted. Since there was no representation for the defendants, they were set exparte on 22.02.2017.

Proof Affidavit:

6. To establish the claim on behalf of the applicant bank, one Mr.Vinu C.K., Manager and Principal Officer of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A46. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loans is well established from the documents placed by the applicant bank. An aggregate sum of Rs.37,02,281.10 is outstanding in the loan accounts as on 27.10.2015, which is clearly established from the account statements marked as Exts.A41 and A42.

7. Considering the amount advanced, interest and penal 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 in the manner stated below, 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.2,54,425/- (Rupees two lakhs fifty four thousand four hundred and twenty five only) due under the FVL account together with pendente lite and post-decree interest @9% per annum on the sum of Rs.2,49,039/- (Rupees two lakhs forty nine thousand and thirty nine only) from 28.10.2015 till realization from the defendants and by sale of ‘A’ schedule property;

(ii) the sum of Rs.34,47,856.10 (Rupees thirty four lakhs forty seven thousand eight hundred and fifty six and Paise ten only) due under the agricultural cash credit account together with pendente lite and post-decree interest @6% per annum on the sum of Rs.33,21,818.10 (Rupees thirty three lakhs twenty one thousand eight hundred and eighteen and Paise ten only) from 28.10.2015 till realization from the defendants and by sale of ‘B’ to ‘D’ schedule properties; and

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

9. ‘A’ to ‘D’ 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 22nd day of May, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.Vinu C.K., Manager and Principal Officer of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 21.12.2013 Copy of general power of attorney executed by the 1st defendant in favour of the 3rd defendant. A2 21.12.2013 Copy of general power of attorney executed by the 6th defendant in favour of the 3rd defendant. A3 17.07.2008 Demand promissory note for Rs.9.80 lakhs executed by the 1st defendant and late P.M.John in favour of the applicant bank. A4 17.07.2008 Security delivery letter executed by the 1st defendant and late P.M.John in favour of the applicant bank. A5 17.07.2008 Agreement for vidya loan executed by the 1st defendant and late P.M.John in favour of the applicant bank. A6

24.06.1983 Sale deed No.1947/1983 of Ranny SRO. A7

20.05.2003 Certified copy of Will No.37/2003 of SRO, Perunadu. A8

14.10.2005 Release deed No.1583/2005 of Perunadu SRO. A9

19.07.2005 Power of attorney executed by one P.M.Paul. A10 18.07.2008 Letter executed by late P.M.John confirming the deposit of title deeds with the applicant bank. A11 29.09.2008 Demand promissory note for Rs.18 lakhs executed by late P.M.John. A12 29.09.2008 Security delivery letter executed by late P.M.John. A13 29.09.2008 Agreement for agricultural loan executed by late P.M.John. A14 28.06.1978 Patta No.LA 54/78 KKLY.

A15 01.10.2008 Letter executed by late P.M.John confirming the deposit of title deeds with the applicant bank and the extension thereof. A16 23.11.1996 Letter executed by late P.M.John confirming the deposit of title deed with the applicant bank. A17 04.11.1993 Sale deed No.1976/1993 of Perunad SRO. A18 01.10.2008 Letter executed by late P.M.John confirming the deposit of title deeds with the applicant bank and the extension thereof. A19 20.03.2006 Letter executed by late P.M.John confirming the deposit of title deeds with the applicant bank. A20 22.03.2010 Demand promissory note for Rs.21 lakhs executed by late P.M.John in favour of the applicant bank. A21 22.03.2010 Security delivery letter executed by late P.M.John in favour of the applicant bank. A22 22.03.2010 Agreement for agricultural loan executed by late P.M.John in favour of the applicant bank. A23 23.03.2010 Letter executed by late P.M.John confirming the deposit of title deeds in respect of ‘C’ schedule property with the applicant bank and the extension thereof. A24 23.03.2010 Letter executed by late P.M.John confirming the deposit of title deeds in respect of ‘D’ schedule property with the applicant bank and the extension thereof. A25 14.05.2014 Request letter for continuance of FVL executed by the defendants. A26 14.05.2014 Demand promissory note executed by the defendants. A27 14.05.2014 Security delivery letter executed by the defendants. A28 14.05.2014 Agreement of FVL executed by the defendants. A29 15.05.2014 Letter executed by the defendants confirming the extension of mortgage to secure the FVL account. A30 14.05.2014 Request letter for continuance of agricultural cash credit facility executed by the defendants.

A31 14.05.2014 Demand promissory note executed by the defendants. A32 14.05.2014 Security delivery letter executed by the defendants. A33 14.05.2014 Agreement of agricultural cash credit executed by the defendants. A34 15.05.2014 Letter executed by the defendants confirming the extension of mortgage in respect of ‘C’ schedule property. A35 15.05.2014 Letter executed by the defendants confirming the extension of mortgage in respect of ‘D’ schedule property. A36 12.03.2010 Balance confirmation letter executed by late P.M.John. A37 03.11.2012 Balance confirmation letter executed by late P.M.John. A38 10.04.2013 Balance confirmation letter executed by late P.M.John. A39 27.01.2015 Copy of lawyer notice issued to the defendants calling upon them to repay the outstanding dues under FVL account. A40 27.01.2015 Copy of lawyer notice issued to the defendants calling upon them to repay the outstanding dues under ACC account. A41 … Certified copy of the statement of account relating to the FVL facility. A42 … Certified copy of the statement of account relating to the ACC loan. A43 … Statement showing the penal interest charged in FVL account and capitalized portion thereof. A44 … Statement showing the penal interest charged in ACC account and capitalized portion thereof. A45 … Statement showing the rate of interest applied in Ext.A41 account from time to time.

A46 … Statement showing the rate of interest applied in Ext.A42 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 22nd May, 2026

TA No.548/2016 (OA NO.516/2015)

Between

The Federal Bank Ltd., Athikkayam Branch, Naranmoozhy P.O., Pathanamthitta District. …Applicant

And

Ambily Elizabeth John, D/o.late P.M.John, Punnamoottil House, Kannampally, Kakkudumon P.O., Athikkayam, Pathanamthitta District & 5 others.

…Defendants

F I N A L O R D E R