CANARA BANK vs M/s VELAYUDHAM STORES on 15 September 2026

1. M/s.Velayudhan Stores,

Marakada Road, Chala,

Thiruvananthapuram – 695 036,

Represented by its partner

V.Bhaskara Rajen.

2. M/s.Senthil Agencies,

TC 38/691, Marakada Road, Chala,

Thiruvananthapuram – 695 036,

Represented by its partner C.V.Suresh.

3. M/s.VS & Sons,

TC 38/691 (2),

Marakada Road, Chala,

Thiruvananthapuram – 695 036,

Represented by its proprietrix

S.Jayabharathi.

4. M/s.VS Agencies,

TC 38/691 (2), Marakada Road, Chalai,

Thiruvananthapuram – 695 036,

Represented by its partner B.Sunitha.

5. M/s.VS Trading Company,

Marakada Road, Chala,

Thiruvananthapuram – 695 036,

Represented by its partner C.V.Senthil.

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6. V.Bhaskara Rajen,

“Sruthy Mandiram”,

Santhosh Nagar,

Neeramonkara,

Thiruvananthapuram.

7. C.V.Suresh,

“Nutshell”, Santhosh Nagar,

Neeramonkara, Thiruvananthapuram.

8. C.V.Senthil,

“V.S.Bhavanam”,

Santhosh Nagar,

Neeramonkara,

Thiruvananthapuram.

9. C.V.Sankareswari,

“V.S.Bhavanam”,

Santhosh Nagar,

Neeramonkara,

Thiruvananthapuram.

10. S.Jayabharathi,

“V.S.Bhavanam”,

Santhosh Nagar,

Neeramonkara,

Thiruvananthapuram.

11. B.Sunitha,

“Sruthy Mandiram”,

Santhosh Nagar,

Neeramonkara, Thiruvananthapuram.

12. S.Niraja Devi,

“Nutshell”, Santhosh Nagar,

Neeramonkara, Thiruvananthapuram.

13. T.Koodalingam,

TC 52/1446, Vishnu Nagar,

Poozhikunnu,

Industrial Estate P.O.,

Pappanamkode,

Thiruvananthapuram – 695 019. …Defendants

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This Original Application having been heard on 06.08.2026 in the presence of Advocate Sri.N.D.Premachandran 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.9,99,53,670.43 together with future interest and costs from the defendants and by sale of „A‟ to „E‟ schedule properties to the OA. 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 Bangalore and one of its branches at Chalai in Thiruvananthapuram District.

3. During February, 2011 the defendants approached the applicant bank for taking over loans from State Bank of Travancore. After complying with all usual banking formalities, the applicant had taken over two accounts during March, 2011 and other three loans were taken over in May, 2011. The details of loans availed by the defendants are furnished below:

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Date of sanction Type of loan Amount

Availed by Guarantors Collateral security 25.04.2011 Canara trade (SOD) loan Rs.185 lakhs 1st defendant Defendants 6 to 8 „A‟ schedule properties to the OA 25.04.2011 OCC Rs.170 lakhs 2nd defendant Defendants 6 to 9 „B‟ schedule property to the OA 30.03.2011 Canara trade loan Rs.185 lakhs 3rd defendant [10th defendant is the proprietor] Defendants 6 to 8 „C‟ schedule property to the OA 21.04.2011 OCC Rs.160 lakhs 4th defendant Defendants 6 to 9 & 11 to 13 „D‟ schedule property to the OA 26.04.2011 Canara trade (SOD) loan Rs.225 lakhs 5th defendant Defendants 6 to 9 & 11 „E‟ schedule property to the OA

After availing the aforementioned facilities, the defendants have not taken any steps to repay the loans and the accounts became NPA. Despite recall notices were issued to the defendants, they did not repay the outstanding dues. Hence the applicant was constrained to file the OA seeking relief to recover the sum of Rs.9,99,53,670.43 together with future interest and costs from the defendants and by sale of the OA schedule properties.

4. All the defendants were duly served with summons. Though the 1st defendant firm entered appearance in this case on 20.06.2014, it did not file written statement despite time granted and thereafter remained absent from the proceeding. Hence the TA 1282/2016 (OA 525/2012)

1st defendant was set exparte on 09.01.2015. Defendants 2 to 13 neither appeared nor were they represented and hence defendants 2 to 4, 10 and 13 were set exparte on 14.03.2014, defendants 6 to 9, 11 and 12 were declared exparte on 21.11.2014 and the 5 defendant was set exparte on 13.02.2015. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, Mrs.Sreedevi Nair, Manager, Mr.Hari P.V., Chief Manager and Mr.Retish K., Senior Manager of the bank have filed proof affidavit and additional proof affidavit respectively and produced the loan documents marked as Exhibits A1 to A208. The proof affidavit and additional proof affidavits filed by AW1, AW2 and AW3 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.9,99,53,670.43 is outstanding in the loan accounts as on 07.11.2012, which is clearly established from the account statements marked as Exts.A189 to A195.

6. It is averred in paragraphs 36 to 40 of the OA as well as in the proof affidavit that the applicant has debited the following amount towards penal interest in the loan accounts:

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A/c No.0820285005249 Rs.6,19,381/- A/c No.0820285005251 Rs.3,47,108/- A/c No.0820285005250 Rs.2,76,463/- A/c No.0820285005252 Rs.1,08,661/- A/c No.0820285005253 Rs.1,68,171/-

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. Further, it could be seen from the additional proof affidavit dated 01.12.2025 filed by the applicant bank that subsequent to filing of the OA, mortgaged properties described in „A‟ to „E‟ schedules to the OA were sold in auction under the SARFAESI Act and the sale proceeds were credited into the loan accounts. Pursuant to IA Nos.1042/2014, 1503/2014, 2309/2018 and 3421/2023 filed by the applicant, documents marked as Exts.A23, A24, A25 to A28, A31 to A33, A89, A128, A129 and A162 to A164 were returned to the bank. Details of the amount recovered by the applicant bank by sale of the secured assets are furnished below: Description of property Date of sale Amount

„A‟ schedule – item No.1 03.03.2014 Rs.65,00,100/- „A‟ schedule – item No.2 16.02.2018 Rs.93,10,000/- „B‟ schedule 20.07.2013 Rs.70,00,001/- „C‟ schedule 20.04.2023 Rs.1,81,00,000/-

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„D‟ schedule 12.02.2014 Rs.75,00,071/- „E‟ schedule 20.09.2017 Rs.2,04,10,000/-

8. 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.

9. 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: A/c No. 0820285005249 Rs.2,15,87,212.49 (Rupees two crores fifteen lakhs eighty seven thousand two hundred and twelve and Paise forty nine only) together with pendente lite and post-decree interest @12% per annum on the sum of Rs.2,09,67,831.49 (Rupees two crores nine lakhs sixty seven thousand eight hundred and thirty one and Paise forty nine only) from 21.11.2017 till realization, less the amount recovered by the applicant bank by sale of „A‟ schedule properties as stated in paragraph No.7 of this final order, from defendants 1 and 6 to 8 jointly and severally;

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A/c No. 0820285005251 Rs.1,84,60,147.60 (Rupees one crore eighty four lakhs sixty thousand one hundred and forty seven and Paise sixty only) together with pendente lite and post-decree interest @12% per annum on the sum of Rs.1,81,13,039.60 (Rupees one crore eighty one lakhs thirteen thousand thirty nine and Paise sixty only) from 21.11.2017 till realization, less the amount recovered by the applicant bank by sale of „B‟ schedule property as stated in paragraph No.7 of this final order, from defendants 2 and 6 to 9 jointly and severally; A/c No. 0820285005250 Rs.2,19,58,347/- (Rupees two crores nineteen lakhs fifty eight thousand three hundred and forty seven only) together with pendente lite and post- decree interest @12% per annum on the sum of Rs.2,16,81,884/- (Rupees two crores sixteen lakhs eighty one thousand eight hundred and eighty four only) from 21.11.2017 till realization, less the amount recovered by the applicant bank by sale of „C‟ schedule property as stated in paragraph No.7 of this final order, from defendants 3 and 6 to 8 jointly and severally; A/c No. 0820285005252 Rs.1,21,29,587.34 (Rupees one crore twenty one lakhs twenty nine thousand five hundred and eighty seven and Paise thirty four only) together with pendente lite and post-decree interest @12% per annum on the sum of Rs.1,20,20,926.34 (Rupees one crore twenty lakhs twenty thousand TA 1282/2016 (OA 525/2012)

nine hundred and twenty six and Paise thirty four only) from 21.11.2017 till realization, less the amount recovered by the applicant bank by sale of „D‟ schedule property as stated in paragraph No.7 of this final order, from defendants 4, 6 to 9 and 11 to 13 jointly and severally; A/c No. 0820285005253 Rs.2,58,18,376/- (Rupees two crores fifty eight lakhs eighteen thousand three hundred and seventy six only) together with pendente lite and post-decree interest @12% per annum on the sum of Rs.2,56,50,205/- (Rupees two crores fifty six lakhs fifty thousand two hundred and five only) from 21.11.2017 till realization, less the amount recovered by the applicant bank by sale of „E‟ schedule property as stated in paragraph No.7 of this final order, from defendants 5, 6 to 9 and 11 jointly and severally; 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.

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.

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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 15th day of September, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

TA 1282/2016 (OA 525/2012)

A P P E N D I X Witness for Applicant: AW1: Mrs.Sreedevi Nair, Manager of the applicant bank. AW2: Mr.Hari P.V.. Chief Manager of the applicant bank. AW3: Mr.Retish K., Senior Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

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Documents filed along with additional proof affidavits A199 …

Statement of account of the 1st defendant. A200 …

Statement of account of the 2nd defendant. A201 …

Statement of account of the 3rd defendant A202 …

Statement of account of the 4th defendant A203 …

Statement of account of the 5th defendant

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Defendants‟ Exhibits – Nil

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 15th September, 2026

TA No.1282/2016 (OA NO.525/2012)

Between

Canara Bank, Chalai Branch, Chalai, Thiruvananthapuram.

…Applicant

And

M/s.Velayudhan Stores, Marakada Road, Chala, Thiruvananthapuram – 695 036, Represented by its partner V.Bhaskara Rajen & 12 others.

…Defendants

F I N A L O R D E R