UNION BANK OF INDIA vs C.C BILABIN on 13 October 2026

1. C.C.Bilabin,

S/o.A.L.Chandran,

Chaniyil House,

Kattachira,

Varanad P.O.,

Cherthala – 688 543,

Proprietor of M/s.Chaniyil Marketing.

2. A.L.Chandran,

S/o.Lambodaran,

Residing at Chaniyil House,

Kattachira, Varanad P.O.,

Cherthala – 688 543.

Proprietor of Shop Chaniyil Electricals, A.C.Road, Cherthala, Alappuzha District – 688 524.

3. Prasanna Kumari,

W/o.A.L.Chandran,

Kattachira, Varanad P.O.,

Cherthala – 688 543.

…Defendants

TA 490/2016 (OA 379/2015)

This Original Application having been heard on 08.10.2026 in the presence of Advocate Smt.Saraswathy P. 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.10,47,030/- due under two cash credit accounts together with future interest thereon @13.25% plus 2% per annum with monthly rests from the defendants jointly and severally and by sale of ‘A’ and ‘B’ 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 head office at Mumbai and one of its branches at Cherthala, Alappuzha District.

3. The defendants approached the applicant bank seeking financial assistance and considering their request, the following facilities were granted: Date of sanction Type of loan Amount

Availed by Guarantor/ mortgagor Collateral security 25.05.2007 Cash credit Rs.5 lakhs 1st defendant 2nd defendant ‘A’ and ‘B’ schedule properties

TA 490/2016 (OA 379/2015)

29.11.2005 Cash credit Rs.5 lakhs 2nd defendant 3rd defendant ‘A’ and ‘B’ schedule properties

The defendants availed the facilities but committed default in repayment. Despite lawyer notice was issued to the defendants recalling the liability, they did not settle the accounts. Being unable to recover the outstanding dues, the applicant filed the OA seeking relief to recover an aggregate sum of Rs.10,47,030/- together with future interest and costs from the defendants jointly and severally and by sale of ‘A’ and ‘B’ schedule properties.

4. The defendants filed vakalath on 01.10.2016 but they have not filed written statement and remained absent from the proceeding. Hence the defendants were set exparte on 23.02.2024. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Muralee Krishnan, Senior Manager of the bank has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A24. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the cash credit facilities is well established from the documents placed by the applicant bank. An amount of Rs.10,47,030/- is outstanding in the loan accounts as TA 490/2016 (OA 379/2015)

on 30.06.2015, which is clearly established from the account statements marked as Exts.A14 and A24.

6. It could be seen from paragraph No.19 of the OA that applicant bank has charged a sum of Rs.13,667.31 and Rs.14,078.51 by way of penal interest in cash credit A/c No.360905010051024 and cash credit A/c No.360905010051018 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. Pending the OA, the Tribunal vide order dated 25.08.2015 in IA No.2154/2015 had granted an ad-interim injunction restraining the 2nd defendant from alienating or encumbering the mortgaged property and the said order was made absolute on 08.10.2026.

8. 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.

TA 490/2016 (OA 379/2015)

9. 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.5,23,904/- (Rupees five lakhs twenty three thousand nine hundred and four only) due under cash credit A/c No.360905010051024 together with pendente lite and post-decree interest @12% per annum on the sum of Rs.5,10,236.69 (Rupees five lakhs ten thousand two hundred and thirty six and Paise sixty nine only) from 17.08.2015 till realization from defendants 1 and 2 jointly and severally and by sale of ‘A’ and ‘B’ schedule properties;

(ii) the sum of Rs.5,23,126/- (Rupees five lakhs twenty three thousand one hundred and twenty six only) due under cash credit A/c No.360905010051018 together with pendente lite and post-decree interest @12% per annum on the sum of Rs.5,09,047.49 (Rupees five lakhs nine thousand forty seven and Paise forty nine only) from 17.08.2015 till realization from defendants 2 and 3 jointly and severally and by sale of ‘A’ and ‘B’ schedule properties; and

TA 490/2016 (OA 379/2015)

(iii) 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. ‘A’ and ‘B’ schedules to the OA shall be appended to this final order.

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

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

13. 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 13th day of October, 2026)

[SOVAN KUMAR DASH] PRESIDING OFFICER

TA 490/2016 (OA 379/2015)

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

Applicant’s Exhibits

TA 490/2016 (OA 379/2015)

Defendants’ Exhibits – Nil

PRESIDING OFFICER

TA 490/2016 (OA 379/2015)

TA 490/2016 (OA 379/2015)

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 13th October, 2026

TA No.490/2016 (OA NO.379/2015)

Between

Union Bank of India, Cherthala Branch, Cherthala – 688 524, Alappuzha District. …Applicant

And

C.C.Bilabin, S/o.A.L.Chandran, Chaniyil House, Kattachira, Varanad P.O., Cherthala – 688 543, Proprietor of M/s.Chaniyil Marketing & 2 others.

…Defendants

F I N A L O R D E R