FEDERAL BANK vs K P Samuel on 26 May 2026

1. K.P.Samuel,

S/o.P.P.Pothen,

Kuzhiyathu Sunny Villa,

Kollakadavu P.O.,

Alappuzha District – 690 509.

2. Annie Samuel,

W/o.K.P.Samuel,

Kuzhiyathu Sunny Villa,

Kollakadavu P.O.,

Alappuzha District – 690 509.

3. Lalu Varghese,

S/o.K.V.Varghese,

Kuttiyil House, Cherianad,

Alappuzha District – 689 511.

4. Susy George,

W/o.Lalu Varghese,

Kuttiyil House, Cherianad,

Alappuzha District – 689 511.

5. Unnikrishnan Nair,

Sreepadmam,

Ayikkad Muri, Chingoli,

Karthikappally,

Alappuzha District – 690 532.

6. Rakesh Philip,

Chirayil Jose Villa,

Pulimchuvadu, Kollakadavu,

Alappuzha District – 690 509.

7. Chirayil Koshy Philip,

Chirayil Jose Villa,

Pulimchuvadu, Kollakadavu,

Alappuzha District – 690 509.

8. Rajendran Nair,

S/o.Vasudevan Nair,

Valiyaveettil House,

Mampra, Cherianad East,

Alappuzha District – 689 511.

9. Sivankutty Nair,

Edasseriyathu, Mampra,

Cherianad East,

Alappuzha District – 689 511.

10. Sunu Joseph,

S/o.M.P.Joseph,

Sunu Bhavan, Kidangannur,

Pathanamthitta District – 689 514. …Defendants

This Original Application having been heard on 20.05.2026 in the presence of Advocate Ms.Arya Satheesh 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.33,60,061.88 due under FHS loan and FML accounts together with future interest on the sum of Rs.32,80,968.67 from defendants 1 and 2 jointly and severally and by sale of the properties scheduled 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 among other places at Kodukulanji in Alappuzha District.

3. During the year 2005, defendants 1 and 2 approached the applicant bank for a federal housing loan (FHS) of Rs.10 lakhs for modification/maintenance of their residential building. Considering their request, applicant bank sanctioned an FHS loan of Rs.10 lakhs which was availed by them on 17.05.2005 after executing demand promissory note, security delivery letter and housing scheme agreement in favour of the bank. Towards collateral security for the loan, the 1st defendant created equitable mortgage over the properties scheduled to the OA and executed letter dated 18.05.2005 confirming the deposit of title deeds with the applicant bank. Subsequently, at the request of defendants 1 and 2, applicant bank sanctioned a federal mortgage loan (FML) of Rs.5 lakhs which was availed by them on 03.03.2008 after executing necessary security documents. The 1st defendant extended the mortgage already created by him on 17.05.2005 to cover the liability under the FML account. When the applicant obtained encumbrance certificate of the mortgaged properties, it was learnt that defendants 3 to 10 are having subsequent attachments over the properties and hence they were made as parties to the OA and no personal relief is sought against them. Due to default in repayment, the applicant initiated proceeding under the SARFAESI Act and issued demand notice dated 29.07.2009 calling upon defendants 1 and 2 to pay the entire amount due under the loan accounts. Despite receipt of the notice, they did not settle the liability. In such premises, applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.33,60,061.88 together with pendente lite and post decree interest on the sum of Rs.32,80,968.67 from defendants 1 and 2 jointly and severally and by sale of the OA schedule properties;

(ii) To recover the costs, charges and expenses from defendants 1 and 2;

(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 3, 4, 6, 7, 9 and 10 entered appearance and sought adjournment for filing written statement but they did not file any written statement within the statutory period. Defendants 3 and 4 presented a written statement belatedly on 05.08.2014 without any application to accept the same. The 9th defendant presented a written statement on 03.06.2014 along with a petition to accept the same but the petition was rejected on 29.07.2014 for not rectifying the defects noted by the Registry. Accordingly, written statements of defendants 3, 4 and 9 are not accepted on record. None appeared and represented for defendants 1, 2, 5 and 8. Hence defendants 1, 2 and 5 to 10 were set exparte on 19.05.2015. Defendants 3 and 4 remained absent from the proceeding and none appeared to address argument in this case. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Sunil Koshy, Senior Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A18. The account statement produced along with memo dated 10.02.2026 is marked as Ext.A19. 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.33,60,061.88 is outstanding in the loan accounts as on 10.12.2013 which is clearly established from the account statements marked as Exts.A13 and A14.

6. The applicant bank filed an affidavit on 08.04.2025 stating that during the pendency of the OA, mortgaged properties described in ‘A’ and ‘B’ schedules to the OA were sold under the SARFAESI Act on 30.01.2024 for Rs.47,10,000/- and the said amount was credited to loan A/c No.12027300000782 (FHS loan) on 09.02.2024. It is also averred that the bank has not received any notice of challenge to the sale proceeding. Consequently, sale deeds marked as Exts.A4 and A5 were returned to the applicant bank on 17.07.2025 as per order dated 27.06.2025 in IA No.1608/2025.

7. Considering the amount advanced, interest and penal interest applied, default committed and substantial recovery effected by sale of the secured assets, 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, applicant bank is given a final order allowing it to recover the amount as shown below: Federal housing loan account (FHS account ) Rs.18,98,403.44 (Rupees eighteen lakhs ninety eight thousand four hundred and three and Paise forty four only) together with pendente lite and post-decree interest @9% per annum on the sum of Rs.18,54,907.67 (Rupees eighteen lakhs fifty four thousand nine hundred and seven and Paise sixty seven only) from 11.12.2013 till realization from defendants 1 and 2 jointly and severally; Federal mortgage loan account (FML account) Rs.14,61,658.44 (Rupees fourteen lakhs sixty one thousand six hundred and fifty eight and Paise forty four only) together with pendente lite and post-decree interest @12% per annum on the sum of Rs.14,26,061/- (Rupees fourteen lakhs twenty six thousand and sixty one only) from 11.12.2013 till realization from defendants

1 and 2 jointly and severally; and costs and expenses borne by it for realization of the loans from defendants 1 and 2. The sum of Rs.47,10,000/- (Rupees forty seven lakhs ten thousand only) recovered by the applicant bank by sale of the secured assets shall be given credit in the FHS loan account on 09.02.2024 and balance, if any, after closure of the said account shall be credited to FML account on 09.02.2024.

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 26th day of May, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 17.05.2005 Demand promissory note for Rs.10 lakhs executed by defendants 1 and 2. A2 17.05.2005 Security delivery letter executed by defendants 1 and 2. A3 17.05.2005 Federal housing scheme agreement executed by defendants 1 and 2. A4 04.03.1999 Sale deed No.383/1999 [Returned to the applicant]. A5 04.03.1999 Sale deed No.387/1999 [Returned to the applicant]. A6

18.05.2005 Letter executed by the 1st defendant confirming the deposit of title deeds with the applicant bank. A7

03.03.2008 Balance confirmation letter executed by the defendants acknowledging the liability under the FHS loan account. A8

03.03.2008 Demand promissory note for Rs.5 lakhs executed by defendants 1 and 2. A9

03.03.2008 Security delivery letter executed by defendants 1 and 2. A10 03.03.2008 Agreement for mortgage loan executed by defendants 1 and 2. A11 01.03.2008 Letter executed by the 1st defendant confirming the deposit of title deeds with the applicant bank and the extension thereof. A12 29.07.2009 Demand notice under S.13(2) of the SARFAESI Act issued to defendants 1 and 2. A13 … Certified copy of the statement of account relating to the FHS loan. A14 … Certified copy of the statement of account relating to the FML.

A15 10.12.2013 Statement showing the rate of interest applied in Ext.A13 account. A16 10.12.2013 Statement showing the rate of interest applied in Ext.A14 account. A17 10.12.2013 Statement showing the penal interest charged in Ext.A13 account and capitalized portion thereof. A18 10.12.2013 Statement showing the penal interest charged in Ext.A14 account and capitalized portion thereof. A19 16.06.2025 Statement showing the outstanding amount after appropriation of the sale proceeds.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 26th May, 2026

TA No.1015/2016 (OA No.602/2013)

Between

Federal Bank Ltd., Kodukulanji Branch, Main Road, Kodukulanji, Alappuzha District. …Applicant

And

K.P.Samuel, S/o.P.P.Pothen, Kuzhiyathu Sunny Villa, Kollakadavu P.O., Alappuzha District & 9 others.

...Defendants

F I N A L O R D E R