BANK OF INDIA vs Mary Ann Lawrence on 12 August 2026

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 12th day of August, 2026

TA No.1090/2016 (OA No.514/2013) Between

Bank of India,

Puthenchanthai Branch,

Thiruvananthapuram.

…Applicant And

Mary Ann Lawrence,

D/o.Lawrence Fernandes,

Proprietrix, M/s.Skiblue Systems,

TC 9/241 0-15, Jawahar Nagar,

Thiruvananthapuram – 3.

…Defendant

This Original Application having been heard on 03.08.2026 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 a sum of Rs.45,61,252/- due under cash credit account together with future interest thereon @14.25% per annum with monthly rests from the defendant personally.

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 Mumbai and a branch among other places at Puthenchanthai, Thiruvananthapuram.

3. The defendant approached the applicant bank with a request for financial assistance by way of cash credit facility. Considering her request, applicant bank sanctioned a cash credit limit of Rs.30 lakhs as per sanction letter dated 13.11.2008. Towards security for due repayment of the loan, the defendant executed demand promissory note, letter of authorization, consolidated stamped agreement, declaration of charge and hypothecation of stocks/book debts and hypothecation of tangible movable property in favour of the bank. Thereafter, she acknowledged the liability under the loan account on 13.06.2011. As the defendant failed to operate the account regularly, applicant bank issued a lawyer notice dated 17.04.2013 calling upon her to repay the outstanding dues. Since there was no positive response from the defendant, applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.45,61,252/- together with pendente lite and post-decree interest thereon from the defendant personally;

(ii) To recover the costs, charges and expenses from the defendant;

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

4. The defendant entered appearance in this case but she has not filed written statement despite sufficient opportunity granted. None appeared and represented for the defendant to address argument in this case. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.K.Muruganandan, Assistant General Manager of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A12. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendant. The availing of the loan is well established from the documents placed by the applicant bank. A sum of Rs.45,61,252/- is outstanding in the loan account as on

17.09.2013, which is clearly established from the account statements marked as Exts.A11 and A12.

6. The account statement marked as Ext.A12 would show that the applicant has charged a sum of Rs.37,344.28 by way of penal interest in the cash credit account. 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 account.

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 @12% per annum on the sum of Rs.45,23,907.72 (i.e., after excluding the penal interest of Rs.37,344.28 from the OA claim amount of Rs.45,61,252/-), 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.45,61,252/- (Rupees forty-five lakhs sixty-one thousand two hundred and fifty-two only) due under the cash credit account from the defendant;

(ii) pendente lite and post-decree interest @12% per annum on the sum of Rs.45,23,907.72 (Rupees forty- five lakhs twenty-three thousand nine hundred and seven and Paise seventy-two only) from 18.09.2013 till realization from the defendant; and

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

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 12th day of August, 2026)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Sri.K.Muruganandan, Assistant General Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Defendant’s Exhibits – Nil

PRESIDING OFFICER

Ext.No Date Particulars of documents

A1 25.09.2008 Application for loan submitted by the defendant. A2 13.11.2008 Sanction letter issued by the applicant bank sanctioning cash credit of Rs.30 lakhs to the defendant. A3 13.11.2008 Demand promissory note for Rs.30 lakhs executed by the defendant. A4 13.11.2008 Letter of authorization executed by the defendant. A5 13.11.2008 Consolidated stamped agreement executed by the defendant. A6

13.11.2008 Declaration regarding hypothecation of stocks/book debts executed by the defendant. A7

13.11.2008 Charge and hypothecation of book debts executed by the defendant. A8 13.11.2008 Hypothecation of tangible movable property executed by the defendant. A9

13.06.2011 Acknowledgement of debt/security executed by the defendant. A10 17.04.2013 Copy of lawyer notice issued to the defendant calling upon her to repay the outstanding dues. A11 … Certified copy of the statement of account relating to the cash credit facility. A12 … Worksheet showing the calculation of unapplied interest under Ext.A11 account.

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH

Dated the 12th August, 2026

TA No.1090/2016 (OA No.514/2013)

Between

Bank of India, Puthenchanthai Branch, Thiruvananthapuram. …Applicant

And

Mary Ann Lawrence, D/o.Lawrence Fernandes, Proprietrix, M/s.Skiblue Systems, TC 9/241 0-15, Jawahar Nagar, Thiruvananthapuram. …Defendant

F I N A L O R D E R