CITY UNION BANK LIMITED vs M/s GEE GEES CONSTRUCTIONS on 23 June 2026

1. M/s.Gee Gees Constructions, VPI/905(A), Geegees Building, Vazhayila, Peroorkada, Trivandrum - 695 043.

2. M/s.Thevar Metals, Thevar Arcade, VP/1547, Vazhayila, Peroorkada, Trivandrum - 695 043.

3. Salim Mathews, No.527, Darsan Nagar, Vazhayila, Kudappanakunnu Trivandrum – 695 043.

4. Gigi Salim, No.527, Darsan Nagar, Vazhayila, Kudappanakunnu, Trivandrum - 695 043.

TA 303/2016 (OA 127/2016)

5. Ajith Salim Mathew, No.527, Darsan Nagar, Vazhayila, Kudappanakunnu, Trivandrum 695 043

6. Avis Philip, No.527, Darsan Nagar, Vazhayila, Kudappanakunnu, Trivandrum - 695 043.

7. M S R Sukumaran, Proprietor of M/s.Jeyam Enterprises, H.No.64, Subash Nagar, Perunathanni, Trivandrum - 695 008.

8. S.Manohari, H.No.64, Subash Nagar Perunathanni, Trivandru - 695 008.

9. S.Balangaraj H.No.64, Subash Nagar Perunathanni, Trivandrum - 695 008.

10. S.Narmatha, H.No.64, Subash Nagar Perunathanni, Trivandrum - 695 008.

11. A. Anantharaman, H.No.64, Subash Nagar Perunathanni, Trivandrum 695 008.

12. C. Thulasi, “Baleswari”, H.No.64, Subash Nagar Perunathanni, Trivandrum - 695 008.

…Defendants

TA 303/2016 (OA 127/2016)

This Original Application having been heard on 19.05.2026 in the presence of Advocate Sri.Sasi N. 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.5,63,48,441.80 due under various loan accounts together with future interest and costs from the defendants and by sale of the schedule properties. 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 Kumbakonam, Tamilnadu and a branch among other places at Thiruvananthapuram.

3. The defendants approached the bank seeking financial assistance. Considering their request, applicant bank sanctioned the following credit facilities:

TA 303/2016 (OA 127/2016)

Date of sanction Type of loan Amount

Availed by Guarantors Collateral security 19.04.2013 CCOD Rs.25 lakhs Defendants 1, 3, 4 & 5 Defendants 7 to 12 Item Nos.1 to 7 properties 20.04.2013 OSL Rs.1 lakh Defendants 1, 3, 4 & 5 Defendants 7 to 12 Item Nos.1 to 7 properties 20.04.2013 OSL term equal Rs.1.74 crores Defendants 1, 3, 4 & 5 Defendants 7 to 12 Item Nos.1 to 7 properties 11.01.2014 OSL term equal Rs.60 lakhs Defendants 1, 3, 4 & 5 Defendants 7 to 12 Item Nos.1 to 7 properties 18.10.2013 Cash credit facility Rs.1.65 crores defendants 2, 5 and 6 Defendants 3 and 4 Item Nos.5 to 7 properties 01.08.2013 Vehicle loan (Yohavahana loan) Rs.3.90 lakhs Defendants 5 & 6 3rd defendant Item No.8 vehicle

After availing the loans, the defendants defaulted in repayments. Hence the applicant issued registered notice dated 22.08.2015 to the defendants calling upon them to repay the outstanding dues but they did not respond to the same. In such premises, the applicant was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.5,63,48,441.80 together with pendente lite and post-decree interest thereon from the defendants and by sale of the schedule properties;

(ii) To recover the costs, charges and expenses from the defendants; TA 303/2016 (OA 127/2016)

(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. Though the defendants 3 to 10 entered appearance in this case, they did not file written statement despite sufficient opportunity granted and thereafter remained absent from the proceeding. Defendants 1, 2, 11 and 12 neither appeared nor were they represented and hence all the defendants were set exparte on 14.09.2022. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.S.Ramprasad, Manager of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A91. 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.5,62,62,407.80 is outstanding in the loan accounts as on 30.11.2015, which is clearly established from the account statements marked as Exts.A74 to A85. However, the claim of Rs.86,034/- made in the OA as ‘other TA 303/2016 (OA 127/2016)

expenses’ is not supported by any documentary evidence and hence the same cannot be granted.

6. Further, it could be seen from the account statements marked as Ext.A75, A77, A79, A81, A83 and A85 that the applicant bank has charged a sum of Rs.71,722.41, Rs.3,001.63, Rs.5,08,242.85, Rs.6,15,883.57, Rs.1,72,229.29 and Rs.11,457.60 by way of penal interest in OD A/c No.199516, OSL A/c No.2423795, OSL A/c No.2438275, OLCC A/c No.209436, OSL A/c No.393 and yohavahana loan A/c No.2610149 respectively. It is well settled that penal interest cannot be capitalized and no interest can be charged on penal interest and hence the applicant bank is not entitled to get any pendente lite and post-decree interest on the aforesaid amount charged in the loan accounts.

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, applicant bank is given a final order allowing it to recover the amount as shown below:

TA 303/2016 (OA 127/2016)

OD A/c No.199516 Rs.32,71,333.85 (Rupees thirty two lakhs seventy one thousand three hundred and thirty three and Paise eighty five only) together with pendente lite and post- decree interest on the sum of Rs.31,99,611.44 (Rupees thirty one lakhs ninety nine thousand six hundred and eleven and Paise forty four only) @12% per annum from 15.02.2016 till realization from defendants 1, 3, 4, 5 and 7 to 12 and by sale of item Nos.1 to 7 properties; OSL A/c No.2423795 Rs.1,36,907.24 (Rupees one lakh thirty six thousand nine hundred and seven and Paise twenty four only) together with pendente lite and post-decree interest on the sum of Rs.1,33,905.61 (Rupees one lakh thirty three thousand nine hundred and five and Paise sixty one only) @12% per annum from 15.02.2016 till realization from defendants 1, 3, 4, 5 and 7 to 12 and by sale of item Nos.1 to 7 properties; OSL A/c No.2438275 Rs.2,31,81,481.78 (Rupees two crores thirty one lakhs eighty one thousand four hundred and eighty one and Paise seventy eight only) together with pendente lite and post-decree interest on the sum of Rs.2,26,73,238.93 (Rupees two crores twenty six lakhs seventy three thousand two hundred and thirty eight and Paise ninety three only) @12% per annum from 15.02.2016 till realization from defendants 1, 3, 4, 5 and 7 to 12 and by sale of item Nos.1 to 7 properties;

TA 303/2016 (OA 127/2016)

OSL A/c No.393 Rs.77,70,274.89 (Rupees seventy seven lakhs seventy thousand two hundred and seventy four and Paise eighty nine only) together with pendente lite and post- decree interest on the sum of Rs.75,98,045.60 (Rupees seventy five lakhs ninety eight thousand forty five and Paise sixty only) @12% per annum from 15.02.2016 till realization from defendants 1, 3, 4, 5 and 7 to 12 and by sale of item Nos.1 to 7 properties; OLCC A/c No.209436 Rs.2,14,82,221.81 (Rupees two crores fourteen lakhs eighty two thousand two hundred and twenty one and Paise eighty one only) together with pendente lite and post-decree interest on the sum of Rs.2,08,66,338.24 (Rupees two crores eight lakhs sixty six thousand three hundred and thirty eight and Paise twenty four only) @12% per annum from 15.02.2016 till realization from defendants 2 to 6 and by sale of item Nos.5 to 7 properties; Yohavahana A/c No.2610149 Rs.4,20,188.23 (Rupees four lakhs twenty thousand one hundred and eighty eight and Paise twenty three only) together with pendente lite and post-decree interest on the sum of Rs.4,08,730.63 (Rupees four lakhs eight thousand seven hundred and thirty and Paise sixty three only) @12% per annum from 15.02.2016 till realization from defendants 3, 5 and 6 and by sale of item No.8 property; and costs and expenses borne by it for realization of the loans from the defendants, in proportion to the amount ordered to be recovered from them.

TA 303/2016 (OA 127/2016)

9. The 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 23rd day of June, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

TA 303/2016 (OA 127/2016)

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

Applicant’s Exhibits

Ext.No. Date Particulars of documents A1 19.04.2013 Photocopy of Sanction Letter by the applicant Bank to the defendants 1, 3, 4, 5. A2 30.05.2013 Photocopy of Demand Promissory Note for ₹25,00,000/- executed by the defendants 1, 3, 4 & 5 jointly in favour of the applicant Bank. A3 30.05.2013 Photocopy of letter of continuity executed by the defendants 1, 3, 4 & 5 jointly. A4 30.05.2013 Photocopy of Overdraft Rules executed by the defendants 1, 3, 4 & 5 jointly in favour of the applicant Bank. A5 30.05.2013 Photocopy of Guarantee for cash credit executed by the 7th defendant in favour of the applicant Bank. A6 30.5.2013 Photocopy of Guarantee for cash credit executed by the 8th defendant in favour of the applicant Bank. A7 30.5.2013 Photocopy of Guarantee for cash credit executed by the 9th defendant in favour of the applicant Bank. A8 30.05.2013 Photocopy of Guarantee for cash credit executed by the 10th defendant in favour of the applicant Bank. A9 30.05.2013 Photocopy of Guarantee for cash credit executed by the 11th defendant in favour of the applicant Bank. A10 30.05.2013 Photocopy of Guarantee for cash credit executed by the 12th defendant in favour of the applicant Bank. A11 20.04.2013 Photocopy of Sanction Letter by the applicant

A12 30.04.2013 Photocopy of Demand Promissory Note for ₹1,00,000/- executed by the defendants 1, 3, 4 & 5 jointly in favour of the applicant Bank.

TA 303/2016 (OA 127/2016)

A13 30.04.2013 ` Photocopy of Application-cum-undertaking for loan executed by the defendants 1, 3, 4 & 5 jointly. A14 30.04.2013 Photocopy of Guarantee Agreement executed by the 7th defendant in favour of the applicant Bank. A15 30.04.2013 Photocopy of Guarantee Agreement executed by the 8th defendant in favour of the applicant Bank. A16 30.04.2013 Photocopy of Guarantee Agreement executed by the 9th defendant in favour of the applicant Bank. A17 30.04.2013 Photocopy of Guarantee Agreement executed by the 10th defendant in favour of the applicant Bank. A18 30.04.2013 Photocopy of Guarantee Agreement executed by the 11th defendant in favour of the applicant Bank. A19 30.04.2013 Photocopy of Guarantee Agreement executed by the 12th defendant in favour of the applicant Bank. A20 20.04.2013 Photocopy of Sanction letter by the Applicant Bank to the defendants 1, 3, 4 & 5. A21 08.05.2013 Photocopy of Demand Promissory Note for ₹1,74,00,000/- executed by the defendants 1, 3, 4 & 5 jointly in favour of the applicant Bank. A22 08.05.2013 Photocopy of for loan executed by the defendants 1, 3, 4 & 5 jointly. A23 08.05.2013 Photocopy of Guarantee Agreement executed by the 7th defendant in favour of the Applicant Bank. A24 08.05.2013 Photocopy of Guarantee Agreement executed by the 8th defendant in favour of the Applicant Bank. A25 08.05.2013 Photocopy of Guarantee Agreement executed by the 9th defendant in favour of the Applicant Bank. A26 08.05.2013 Photocopy of Guarantee Agreement executed by the 10th defendant in favour of the Applicant Bank. A27 08.05.2013 Photocopy of Guarantee Agreement executed by the 11th defendant in favour of the Applicant Bank. A28 08.05.2013 Photocopy of Guarantee Agreement executed by the 12th defendant in favour of the Applicant Bank. A29 18.10.2013 Photocopy of Sanction Letter by the Application

A30 25.10.2013 Photocopy of Demand Promissory Note for ₹1,65,00,000/- executed by the defendants 2, 5 & 6 jointly in favour of the Applicant Bank.

TA 303/2016 (OA 127/2016)

A31 25.10.2013 Photocopy of Overdraft Rules in Form No.F-96 executed by the defendants 2, 5 & 6 jointly in favour of the Applicant Bank. A32 25.10.2013 Photocopy of Hypothecation (Goods) Agreement executed in 2 & 5 jointly in favour of Applicant Bank. A33 25.10.2013 Photocopy of Hypothecation of Books Debts executed in 2 & 5 jointly in favour of Applicant Bank. A34 25.10.2013 Photocopy of Guarantee Agreement executed by the 3rd defendant in favour of the Applicant Bank. A35 25.10.2013 Photocopy of Guarantee Agreement executed by the 4th defendant in favour of the Applicant Bank. A36 11.01.2014 Photocopy of Sanction Letter by the Applicant

A37 23.01.2014 Photocopy of Demand Promissory Note for ₹60,00,000/- executed by the defendants 1, 3, 4 & 5 jointly in favour of the Applicant Bank. A38 23.01.2014 Photocopy of Application-cum-undertaking for loan executed by the defendants 1, 3, 4 & 5 jointly. A39 23.01.2014 Photocopy of Guarantee Agreement executed by the 7th defendant in favour of the Applicant Bank. A40 23.01.2014 Photocopy of Guarantee Agreement executed by the 8th defendant in favour of the Applicant Bank. A41 23.01.2014 Photocopy of Guarantee Agreement executed by the 9th defendant in favour of the Applicant Bank. A42 23.01.2014 Photocopy of Guarantee Agreement executed by the 10th defendant in favour of the Applicant Bank. A43 23.01.2014 Photocopy of Guarantee Agreement executed by the 11th defendant in favour of the Applicant Bank. A44 23.01.2014 Photocopy of Guarantee Agreement executed by the 12th defendant in favour of the Applicant Bank. A45 01.08.2013 Photocopy of Sanction letter by the Applicant Bank to the defendants 6 & 5. A46 03.08.2013 Photocopy of Demand Promissory Note for ₹3,90,000/- executed by the defendants 6 & 5 jointly in favour of the Applicant Bank. A47 03.08.2013 Photocopy of Application-cum-Undertaking for loan executed by the defendants 6 & 5 jointly. A48 03.08.2013 Agreement of Hypothecation of vehicle executed by 6th defendant in favour of Applicant Bank.

TA 303/2016 (OA 127/2016)

A49 03.08.2013 Photocopy of Guarantee Agreement executed by the 3rd defendant in favour of the Applicant Bank. A50 12.04.2013 Photocopy of Registered Memorandum of Deposit of Title Deed No.1471/13 executed by the 4th (Salim Mathews) and 5th (Ajith Salim Mathew) defendants in favour of the Applicant Bank confirming the creation of equitable mortgage created over the scheduled property by deposit of the original title deeds with the Bank. A51 25.01.2014 Photocopy of Rectification Deed No.324/2014 executed by 4th (Salim Mathews) and 5th (Ajith Salim Mathew) defendants in favour of the Applicant Bank correcting the date of Deposit of title deeds. A52 28.05.2013 Extension of mortgage executed by the 2nd defendant in favour of the applicant Bank confirming the creation of extension of mortgage. A53 23.01.2014 Extension of mortgage executed by the 2nd confirming the creation of extension of mortgage. A54 27.01.2010 Photocopy of Sale Deed No.388/2010 executed by Ramachandran Pillai and Muthulekshmi (for herself and on behalf of Power of attorney holder of Santhosh) in favour of 3rd defendant (Salim Mathews). A55 01.06.2012 Photocopy of Sale Deed No.2627/2012 Volume No.1976, pages 395-398 of the Nedumangadu Sub Registry executed by Sharmila in favour of 3rd defendant (Salim Mathews). A56 28.09.2012 Photocopy of Settlement Deed No.4183/2012 Volume No.1997, pages 321-324 of the Nedumangadu Sub Registry executed by Salim Mathews in favour of 5th defendant Ajith Salim Mathew. A57 02.05.2013 Photocopy of Registered Memorandum of Deposit of Title Deed No.1109/13 executed by the 5th (Ajith Salim Mathew) defendant in favour of the Applicant Bank confirming the creation of equitable mortgage created over the scheduled property by deposit of the original title deeds with the Bank. A58

confirming the creation of extension of mortgage.

TA 303/2016 (OA 127/2016)

A59

confirming the creation of extension of mortgage. A60 13.10.2003 Photocopy of Sale Deed No.4164/2003 Volume No.727, pages 475-477 of the Devikulam sub Registry executed by S. Kaliyappan in favour of 5th defendant (Ajith Salim Mathew) A61 24.10.2013 Photocopy of Memorandum of Deposit of Title Deed executed by the 4th (Gigi Salim) defendant in favour of the Applicant Bank confirming the creation of equitable mortgage created over the scheduled property by deposit of the original title deeds with the Bank. A62

confirming the creation of extension of mortgage. A63 29.01.2004 Photocopy of Sale Deed No.353/2004 Volume No.1451, pages 299-301 of the Pattom Sub Registry executed by K.S. Sindhu in favour of 4th defendant (Gigi Salim). A64 09.03.2005 Photocopy of Sale Deed No.1115/2005 Volume No.1517, pages 173-176 of the Pattom Sub Registry executed by K.S. Sindhu in favour of 4th defendant (Gigi Salim). A65 31.10.2013 Photocopy of Memorandum of Deposit of title deeds executed by the 4th defendant in favour of the applicant Bank confirming the creation of equitable mortgage created over the scheduled – property by deposit of the original title deeds with the Bank. A66

confirming the creation of extension of mortgage. A67 07.10.2004 Photocopy of Sale Deed No.3452/2004 Volume No.126, pages 435 – 437 of the Pattom Sub Registry executed by Jayasree, Karunakaran and Krishnamma Jointly in favour of 4th defendant (Gigi Salim). A68 22.08.2015 True copy of Registered Notice issued by the bank demanding the dues to the bank from the defendants 1, 3, 4, 5, 7, 8, 9, 10, 11, 12 jointly. Account No. OD 107120000199516

TA 303/2016 (OA 127/2016)

A69 22.08.2015 True copy of Registered Notice issued by the bank demanding the dues to the bank from the defendants 1, 3, 4, 5, 7, 8, 9, 10, 11 and 12 jointly. A70 22.08.2015 True copy of Registered Notice issued by the bank demanding the dues to the bank from the defendants 1, 3, 4, 5, 7, 8, 9, 10 and 11 jointly. A71 22.08.2015 True copy of Registered Notice issued by the bank demanding the dues to the bank from the defendants 6, 5 and 3 jointly. A72 22.08.2015 True copy of Registered Notice issued by the bank demanding the dues to the bank from the defendants 2, 5, 6, 3, 4 jointly. A73 22.08.2015 True copy of Registered Notice issued by the bank demanding he dues to the bank from the defendants 1, 3, 4, 5, 7, 8, 9, 10, 11 and 12. A74 … Certified copy of the statement of account relating to OD A/c No.107120000199516 A75 … Worksheet in respect of OD 107120000199516 A76 … Certified copy of the statement of account relating to OSL A/c No.107012002423795 A77 … Worksheet in respect of OSL A/c No.107012002423795 A78 … Certified copy of the statement of account relating to OSL A/c No.107012002438275 A79 … Worksheet in respect of OSL A/c No.107012002438275 A80 … Certified copy of the statement of account relating to OLCC A/c No.107120000209436 A81 … Worksheet in respect of OLCC A/c No.107120000209436. A82 … Certified copy of the statement of account relating to OSL A/c No.501812080000393 A83 … Worksheet in respect of OSL A/c No.501812080000393 A84 … Certified copy of the statement of account relating to CUB Yohavahana A/c No.107012002610149 A85 … Worksheet in respect of CUB Yohavahana A/c No.107012002610149 A86 … Rate of Interest applied in OD A/c No.107120000199516 A87 … Rate of interest applied in OSL A/c No.107012002423795 A88 … Rate of interest applied for OSL A/c No.107012002438275

TA 303/2016 (OA 127/2016)

A89 … Rate of Interest applied in OLCC A/c No.107120000209436 A90 … Rate of Interest applied in OSL A/c No.501812080000393 A91 … Rate of Interest applied in CUB Yohavahana A/c No.107012002610149.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

TA 303/2016 (OA 127/2016)

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TA 303/2016 (OA 127/2016)

TA 303/2016 (OA 127/2016)

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PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 23rd June, 2026

TA No.303/2016 (OA NO.127/2016)

Between

City Union Bank Ltd., Power House Road, Thiruvananthapuram. …Applicant

And

M/s.Gee Gees Constructions, VPI/905(A), Geegees Building, Vazhayila, Peroorkada, Trivandrum 695 043 & 11 others.

...Defendants

F I N A L O R D E R