STATE BANK OF INDIA vs V.K MOHAMMED RIYAS on 9 October 2026

1. V.K.Mohammed Riyas,

S/o.Kunjumarakkar,

Vakkayil House, III/228,

Kallur P.O., Vadakkekkadu,

Thrissur District.

2. Sarojini,

W/o.Manikkan,

Arithottathu House,

Anandapuram Desam,

Anandapuram Village,

Mukundapuram Taluk,

Thrissur District.

3. Ammini,

D/o.Manikkan,

Arithottathu House,

Anandapuram Desam,

Anandapuram Village,

Mukundapuram Taluk,

Thrissur District.

…Defendants

This Original Application having been heard on 06.10.2026 in the presence of Advocate Shri.S.Sarath Prasad 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.20,99,274.99 due under term loan (home loan) account together with future interest thereon @8.50% per annum with monthly rests from the defendants 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 its corporate centre at Mumbai and one of its branches at Irinjalakkuda in Thrissur District.

3. The 1st defendant approached the applicant bank seeking financial assistance for purchase of property and construction of house. Considering his request, applicant bank sanctioned a term loan (home loan) of Rs.18,97,500/- on 10.08.2009. He availed the loan after executing necessary security documents in favour of the bank. The defendants 2 and 3 executed guarantee agreement dated 10.08.2009 guaranteeing due repayment of the amount due under the term loan account. Towards collateral security for the loan, the 1st defendant created equitable mortgage over the schedule property and executed letter dated 22.08.2009 confirming the deposit of title deed with the applicant bank. After availing the loan, the defendants violated the terms and conditions of the agreement and the account became irregular. The applicant issued a lawyer notice to the defendants on 18.08.2010 calling upon them to repay the outstanding dues but they did not liquidate the liability. In such premises, the OA was filed seeking relief to recover the sum of Rs.20,99,274.99 together with future interest and costs from the defendants and by sale of the schedule property.

4. All the defendants were duly served with summons. The 1st defendant neither appeared nor was he represented and hence he was set exparte on 03.09.2014.

5. Defendants 2 and 3 filed written statement denying the averments in the OA. It is claimed that they did not execute any documents as guarantors for availing of any loan by the 1st defendant. The applicant is not entitled to get any relief as against these defendants on the strength of the documents produced in this case which are the result of fraud and hence the OA may be dismissed with costs. Proof Affidavit:

6. To establish the claim on behalf of the applicant bank, one Mr.R.V.Suresh, Chief Manager of the bank has filed proof affidavit and additional proof affidavit and produced the loan documents marked as Exhibits A1 to A8. The availing of the loan is well established from the documents placed by the applicant bank.

7. Defendants 2 and 3 filed counter proof affidavit claiming that signatures were obtained by the applicant by concealing the fact that the document was a guarantee agreement. Hence the OA may be dismissed insofar as the claim made against these defendants.

8. From the respective case of the applicant and defendants 2 and 3, the sole issue arises for consideration is whether the applicant is entitled to get the relief as claimed in this case against all the defendants?

9. On careful analysis of the pleadings and evidence available on record, it appears that pursuant to the application submitted by the 1st defendant, applicant bank sanctioned a home loan of Rs.18,67,000/- and a home loan insurance cover of

Rs.30,500/-, totalling to Rs.18,97,500/- as per Ext.A1 sanction letter dated 10.08.2009, which was countersigned by defendants 1 to 3 in token of having accepted the terms and conditions thereof. The 1st defendant had executed Ext.A2 loan agreement and deposited Ext.A4 sale deed with the bank to secure repayment of the loan and executed Ext.A5 letter dated confirming the deposit of title deeds with the applicant bank on 20.08.2009.

10. Further, it could be seen that defendants 2 and 3 had executed guarantee agreement dated 10.08.2009 marked Ext.A3 wherein it is agreed that they shall be jointly and severally liable to the bank for the entire outstanding in respect of the subject loan availed by the 1st defendant. Even though defendants 2 and 3 claimed that they were unaware of the loan availed by the 1st defendant and they have not executed any agreement of guarantee, they could not substantiate their such claim and no material evidence is placed to establish the plea of fraudulent creation of the loan documents including Ext.A3 guarantee agreement. In absence of any rebuttal evidence, contention of defendants 2 and 3 cannot be accepted. The documents marked as Exts.A1 to A8 would establish the claim made by the applicant in this case. Hence the issue is answered in favour of the applicant.

11. Considering the amount advanced, interest applied, repayments effected and default committed, I am of the view that applicant bank is entitled to get pendente lite and post decree interest @8% per annum, which is reasonable in the facts and circumstances of the case and the defendants no. 1 to 3 are jointly and severally liable to pay the entire dues.

12. 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.20,99,274.99 (Rupees twenty lakhs ninety nine thousand two hundred and seventy four and Paise ninety nine only) due under the term loan (home loan) account together with pendente lite and post-decree interest thereon @8% per annum from 27.09.2010 till realization from the defendants 1 to 3 and by sale of ‘A’ schedule property; and

(ii) costs and expenses borne by it for realization of the loan from the defendants.

13. ‘A’ schedule to the OA shall be appended to this final order.

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

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

16. 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 9th day of October, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.R.V.Suresh, Chief Manager of the applicant bank. Witness for Defendant(s):

DW1:

Smt.Ammini, 3rd defendant.

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 10.08.2009 Sanction letter issued by the applicant bank sanctioning housing loan of Rs.18,97,500/- to the 1st defendant. A2 10.08.2009 Memorandum of loan agreement executed by the 1st defendant. A3 10.08.2009 Guarantee agreement executed by defendants 2 and 3. A4 11.08.2009 Sale deed No.2315/2009 of Cherpu SRO. A5 22.08.2009 Letter executed by the 1st defendant confirming the deposit of title deeds with the applicant bank. A6 18.08.2010 Copy of lawyer notice issued to the defendants. A7 … Certified copy of the statement of account relating to the home loan. A8 … Statement showing the accrued and unapplied interest under Ext.A7 account.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 9th October, 2026

TA No.863/2016 (OA NO.410/2010)

Between

State Bank of India, Irinjalakkuda Branch, Door No.V/50, PB No.32, Main Road, Irinjalakkuda. …Applicant

And

V.K.Mohammed Riyas, S/o.Kunjumarakkar, Vakkayil House, III/228, Kallur P.O., Vadakkekkadu, Thrissur District & 2 others.

…Defendants

F I N A L O R D E R