STATE BANK OF INDIA vs K Kumar on 21 September 2026

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 21st day of September, 2026

TA No.1244/2016 (OA No.338/2006) Between

State Bank of India,

Jawahar Nagar Branch,

Thiruvananthapuram.

…Applicant And

K.Kumar,

S/o.Krishna Pillai,

Sole proprietor of

Zion Computers,

T.C.No.11/1272 (1),

Cliff House Road,

Nanthencode,

Thiruvananthapuram – 695 003. …Defendant

This Original Application having been heard on 06.08.2026 in the presence of Advocate Sri.S.Williams 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.14,95,670.08 due under cash credit account together with future interest and costs from the defendant and by sale of the schedule property. Facts of the case:

2. The applicant is a body corporate constituted under the State Bank of India Act, 1955 having one of its local head offices at Thampanoor, Thiruvananthapuram and a branch among other places at Jawahar Nagar, Thiruvananthapuram.

3. The defendant is the sole proprietor of M/s.Zion Computers. At his request, applicant bank sanctioned a cash credit limit of Rs.2 lakhs on 27.02.2003 towards working capital finance. The defendant availed the loan after executing general agreement and ancillary agreement and hypothecated the goods, stock, book debts etc. to secure the loan. Thereafter, considering the request of the defendant, the cash credit limit was enhanced to Rs.5 lakhs on 24.07.2003 and further enhanced to Rs.10 lakhs on 11.08.2004. After availing the loan, the defendant did not repay the same as per the terms of sanction which resulted in classification of the account as NPA. Consequently, the applicant issued a notice dated 30.10.2006 calling upon the defendant to regularise the account before 15.11.2006 but he did not respond to the same. Hence the applicant was constrained to file the OA

seeking relief to recover the sum of Rs.14,95,670.08 from the defendant.

4. The defendant filed written statement claiming that he availed credit facility from the applicant bank for the purpose of his business and the same was enhanced on various occasions to meet his business requirements. The interest charged in the account is not as per the terms of loan documents. The alleged loan documents executed in 2004 do not acknowledge the existing liability and hence the claim of the applicant in respect of the amount advanced prior to 2004 is barred by limitation. The Tribunal has no pecuniary jurisdiction to entertain such claim of the applicant. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.S.Vinayachandran, Chief Manager has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A13.

6. The defendant filed counter proof affidavit reiterating the same averments in the written statement. No document is produced by the defendant to substantiate his contentions and remained absent from the proceeding.

7. The sole issue arises for consideration is whether the applicant is entitled to get the relief as claimed in the OA?

8. Admittedly, the defendant availed the subject loan of Rs.10 lakhs from the applicant bank and executed necessary security documents. The rate of interest applied in the loan account is in tune with the terms of sanction and also the loan agreements executed by the defendant. While availing the enhanced cash credit limit of Rs.10 lakhs, the defendant executed Ext.A11 supplemental general agreement dated 11.08.2004 which is in continuation of Ext.A2 general agreement dated 27.02.2003 for Rs.2 lakhs and Ext.A6 supplementary general agreement dated 24.07.2003 for Rs.5 lakhs and he acknowledged the execution of such documents in Ext.A11. Hence the contention regarding limitation raised by the defendant is untenable. The documents produced marked as Exts.A1 to A15 would rebut the contentions raised by the defendants, rather they would establish the claim made by the applicant in this case. An amount of Rs.14,95,670.08 is outstanding under the subject loan account as on 26.12.2006, which is clearly established from the account statements marked as Exts.A14 and A15. In such backdrop, this Tribunal has pecuniary jurisdiction to adjudicate the claim and the applicant bank is entitled to recover the amount claimed in this case. The issue is answered accordingly.

9. Considering the amount advanced, 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 @10% per annum, which is reasonable in the facts and circumstances of the case.

10. 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.14,95,670.08 (Rupees fourteen lakhs ninety five thousand six hundred seventy and Paise eight only) due under the cash credit account from the defendant and by sale of the schedule property, if available;

(ii) pendente lite and post-decree interest @10% per annum on the sum of Rs.14,95,670.08 (Rupees fourteen lakhs ninety five thousand six hundred seventy and Paise eight only) from 27.12.2006 till realization from the defendant and by sale of the schedule property, if available; and

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

11. The schedule to the OA shall be appended to this final order.

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

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

14. 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 21st day of September, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.S.Vinayachandran, Chief Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 27.02.2003 Arrangement letter issued by the applicant bank sanctioning cash credit limit of Rs.2 lakhs to the defendant. A2 27.02.2003 General agreement executed by the defendant. A3 27.02.2003 Ancillary agreement executed by the defendant. A4 17.07.2003 Loan application submitted by the defendant for enhancement of the cash credit limit. A5 24.07.2003 Arrangement letter issued by the applicant bank sanctioning the enhanced cash credit limit of Rs.5 lakhs to the defendant. A6 24.07.2003 Supplemental general agreement executed by the defendant. A7 24.07.2003 Ancillary agreement No.1 executed by the defendant. A8 24.07.2003 Ancillary agreement No.3 executed by the defendant. A9 13.05.2004 Loan application submitted by the defendant for enhancement of the cash credit limit. A10 11.08.2004 Arrangement letter issued by the applicant bank sanctioning the enhanced cash credit limit of Rs.10 lakhs to the defendant. A11 11.08.2004 Supplemental general agreement executed by the defendant. A12 11.08.2004 Ancillary agreement No.1 executed by the defendant. A13 30.10.2006 Copy of recall notice issued to the defendant by the applicant bank.

A14 … Certified copy of the statement of account relating to the cash credit facility. A15 … Statement showing the unapplied interest under Ext.A14 account.

Defendant’s Exhibits – Nil

PRESIDING OFFICER

SCHEDULE

Stock and machinery items kept with the defendant.

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 21st September, 2026

TA No.1244/2016 (OA NO.338/2006)

Between

State Bank of India, Jawahar Nagar Branch, Thiruvananthapuram. …Applicant

And

K.Kumar, S/o.Krishna Pillai, Sole proprietor of Zion Computers, T.C.No.11/1272 (1), Cliff House Road, Nanthencode, Thiruvananthapuram. …Defendant

F I N A L O R D E R