PUNJAB NATIONAL BANK vs GEETHA S.S on 27 May 2026

1. Geetha S.S., W/o.Madhukumar, C, 40, Jayaprakash Lane, Kudappanakkunnu P.O., Trivandrum – 695 043. Now residing at: Chandravilasam, Poovathoor P.O., Irinchayam, Nedumangadu, Trivandrum – 695 561.

2. Majun M., S/o.Madhukumar, C, 40, Jayaprakash Lane, Kudappanakkunnu P.O., Trivandrum – 695 043. Now residing at: Chandravilasam, Poovathoor P.O., Irinchayam, Nedumangadu, Trivandrum – 695 561.

3. Sunilkumar S., S/o.Sadanandan, Sada Nivas 5, Valakkad, Mudakkal, Attingal - 695 103.

…Defendants

This Original Application having been heard on 25.05.2026 in the presence of Advocate Sri.M.Mohamed Navas 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.17,13,123/- due under housing loan account together with future interest thereon @9% per annum with monthly rests and penal interest @2% per annum from the defendants and by sale of the OA schedule property. 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 head office at New Delhi and one of its branches at Thiruvananthapuram.

3. At the request of defendants 1 and 2, erstwhile United Bank of India sanctioned a housing loan of Rs.20 lakhs on

31.03.2010 for construction of house. As security for the loan, defendants 1 and 2 executed demand promissory note, letter of disbursement and agreement of housing loan in favour of the bank. The 3rd defendant stood as guarantor for the loan. Towards collateral security, the 1st defendant created equitable mortgage over the OA schedule property and executed letter dated 31.03.2010 confirming the deposit of title deed with the applicant bank. The defendants availed the facility but committed default in repayment. Hence the bank issued a notice dated 25.08.2011 calling upon the defendants to repay the 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 a sum of Rs.17,13,123/- together with pendente lite and post decree interest thereon from the defendants and by sale of the OA schedule property;

(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. All the defendants were duly served with summons. Defendants 1 and 2 neither appeared nor were they represented and hence they were set exparte on 05.09.2014.

5. The 3rd defendant filed written statement denying the execution of guarantee agreement and claimed that letter of guarantee produced by the applicant is a fabricated document. He is not liable to pay any amount and hence the OA may be dismissed as against him. Proof Affidavit:

6. To establish the claim on behalf of the applicant, one Mr.Alexander Thomas, Senior Manager of erstwhile United Bank of India has filed proof affidavit and additional proof affidavit and produced the loan documents marked as Exhibits A1 to A9 and the statement produced along with affidavit dated 22.11.2025 is marked as Ext.A10. The availing of loan and creation of mortgage over the OA schedule property are well established from the documents placed by the applicant bank.

7. The 3rd defendant has not filed counter proof affidavit nor adduced any documentary evidence to substantiate his claim and remained absent from the proceeding.

8. Heard arguments advanced by the learned counsel for the applicant. The sole issue arises for consideration is whether the applicant is entitled to recover the amount as claimed in this case.

9. A perusal of the materials would reveal that defendants 1 and 2 availed a housing loan of Rs.20 lakhs from erstwhile United Bank of India on 31.03.2010 after executing demand promissory note, letter for disbursement of loan and agreement of housing loan which are marked as Exts.A2 to A4 respectively. Further, it could be seen that the 3rd defendant executed letter of guarantee marked as Ext.A5 guaranteeing due repayment of the amount due under the housing loan account. The 1st defendant had created mortgage over the OA schedule property to secure the housing loan and executed letter dated 31.03.2010 marked as Ext.A7 confirming the deposit of title deed with the applicant bank. Though the 3rd defendant denied the execution of Ext.A5 letter of guarantee, he could not substantiate his claim and did not even come forward to advance argument in this case. The account statement marked as Ext.A9 establishes that a sum of Rs.17,13,123/- is outstanding under the housing loan account as on 20.12.2012. The aforementioned documents would prove the claim of the applicant and they are entitled to recover the same from the defendants. The issue is answered in favour of the applicant.

10. The applicant filed an affidavit stating that the secured asset was sold by erstwhile United Bank of India through public auction held under the SARFAESI Act for Rs.6,20,000/- and sale certificate was issued on 29.12.2018. Consequently, sale deed marked as Ext.A6 was returned to the applicant as per order dated 18.09.2019 in IA No.433/2019.

11. It could be seen from the statement filed along with the OA that the applicant has charged a sum of Rs.3,550/- by way of penal interest in the housing loan account. It is well settled that penal interest cannot be capitalized and no interest can be charged on penal interest and hence the applicant is not entitled to get any pendente lite and post-decree interest on the aforesaid amount charged in the loan account.

12. Considering the amount advanced, interest and penal interest applied, default committed and 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 on the sum of Rs.17,09,573/- (i.e., after excluding the penal interest of Rs.3,550/- from the OA claim amount of Rs.17,13,123/-), which is reasonable in the facts and circumstances of the case.

13. 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.17,13,123/- (Rupees seventeen lakhs thirteen thousand one hundred and twenty three only) due under the housing loan account, less the sum of Rs.6,20,000/- (Rupees six lakhs twenty thousand only) recovered by the applicant by sale of the secured asset on 29.12.2018, from the defendants;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.17,09,573/- (Rupees seventeen lakhs nine thousand five hundred and seventy three only) from 25.02.2013 till realization from the defendants; and

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

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

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

16. 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 27th day of May, 2026)

[SOVAN KUMAR DASH]

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 31.03.2010 Sanction letter issued by the bank sanctioning housing loan of Rs.20 lakhs to defendants 1 and

2. A2 31.03.2010 Demand promissory note for Rs.20 lakhs executed by defendants 1 and 2. A3 31.03.2010 Letter for disbursal of loan executed by defendants 1 and 2. A4 31.03.2010 Agreement of housing loan executed by defendants 1 and 2. A5 31.03.2010 Letter of guarantee executed by the 3rd defendant. A6 15.03.2010 Sale deed No.1242/2010 [Returned to the applicant]. A7 31.03.2010 Letter executed by the 1st defendant confirming the deposit of title deed with the applicant bank. A8 25.08.2011 Copy of recall notice issued to the defendants by the bank. A9 … Certified copy of the statement of account relating to the housing loan. A10 … Statement of account for the period from 31.01.2024 to 23.11.2025 in respect of the housing loan.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 27th May, 2026

TA No.434/2016 (OA No.104/2013)

Between

Punjab National Bank (Erstwhile United Bank of India), Trivandrum (CBS) Branch, Kesava Towers, 1st Floor, Gandhari Ammankovil Road, Thiruvananthapuram. …Applicant

And

Geetha S.S., W/o.Madhukumar, C, 40, Jayaprakash Lane, Kudappanakkunnu P.O., Trivandrum – 695 043. Now residing at: Chandravilasam, Poovathoor P.O., Irinchayam, Nedumangadu, Trivandrum – 695 561 & 2 others.

...Defendants

F I N A L O R D E R