DHANALAKSHMI BANK vs ALLY MATHEW on 12 October 2026

1. Ally Mathew,

W/o.Mathew,

Ayarkunnam,

Kottayam – 686 564.

2. Mathew Thomas,

S/o.Thomas,

Ayarkunnam,

Kottayam – 686 564.

…Defendants

This Original Application having been heard on 11.09.2026 in the presence of Advocate Sri.V.A.Ajai Kumar for the applicant bank and stood over to this day for consideration, the Tribunal delivered the following:

TA 493/2016 (OA 117/2015)

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.3,81,59,255.87 due under two cash credit accounts together with future interest thereon @12.75% per annum with monthly rests from the defendants jointly and severally and by sale of the schedule properties. Facts of the case:

2. The applicant is a scheduled commercial bank incorporated under the Indian Companies Act, 1956, having its registered office at Trichur and one of its branches at Ayarkunnam, Kottayam.

3. Defendants 1 and 2 are the proprietors of M/s.Ally Rubber Traders and M/s.Thirunilathil Rubbers respectively and they are doing business in rubber products and trading. At their request, applicant bank sanctioned the following facilities: Date of sanction Type of loan Amount

Availed by Guarantor/ mortgagor Collateral security 21.03.2013 [renewed on 12.07.2014] Cash credit Rs.100 lakhs 1st defendant 2nd defendant OA schedule properties 21.03.2013 [renewed on 28.05.2014] Cash credit Rs.250 lakhs 2nd defendant 1st defendant OA schedule properties

TA 493/2016 (OA 117/2015)

Initially, the defendants were operating the accounts properly but thereafter they defaulted in repayment which resulted in classification of the accounts as NPA on 01.11.2014. The applicant bank issued notice under S.13(2) of the SARFAESI Act on 03.12.2014 demanding repayment of the outstanding dues. Though the defendants received the notice, they did not settle the liability. Being unable to recover the outstanding dues, the applicant filed the OA seeking relief to recover an aggregate sum of Rs.3,81,59,255.87 together with future interest and costs from the defendants jointly and severally and by sale of the OA schedule properties.

4. The defendants entered appearance and filed vakalath as early on 15.09.2015 but they have not filed any written statement despite time granted; and none appeared and represented for them to address argument in this case. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Aneesh V.M. and Mr.Joby K.Mathew, Branch Managers of the bank have filed proof affidavit and additional proof affidavit respectively and produced the loan documents marked as Exhibits A1 to A46. The proof affidavit and additional proof affidavit filed by AW1 and AW2 and the documents produced in this case are TA 493/2016 (OA 117/2015)

not challenged by the defendants. The availing of the cash credit loans is well established from the documents placed by the applicant bank. An aggregate sum of Rs.3,81,59,155.87 is outstanding in the loan accounts as on 28.02.2015, which is clearly established from the account statements marked as Exts.A41 and A42.

6. Further, it could be seen from the statements marked Exts.A43 and A44 that applicant bank has charged a sum of Rs.2,43,776.91 and Rs.85,037/- by way of penal interest in cash credit A/c No.009910100000154 of M/s.Ally Rubber Traders and cash credit A/c No.009910100000161 of M/s.Thirunilathil Rubbers 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 cash credit accounts.

7. In the affidavit filed by the applicant along with IA No.3485/2024, it is averred that during the pendency of the OA, the applicant bank by invoking the provisions of the SARFAESI Act has sold the secured assets in public auction on 20.06.2024 for a total amount of Rs.1,16,10,000/- and the amount was adjusted in the two cash credit accounts. The account statements produced TA 493/2016 (OA 117/2015)

by the applicant bank marked as Exts.A45 and A46 would show that Rs.33,10,000/- was credited in cash credit A/c No.009910100000154 of M/s.Ally Rubber Traders on 21.06.2024 and Rs.83,00,000/- was credited in cash credit A/c No.009910100000161 of M/s.Thirunilathil Rubbers on 21.06.2024. It is claimed that the accounts are not closed even after adjusting the sale proceeds. The title deeds marked as Exts.A32 to A40 were returned to the applicant bank on 14.10.2024 as per order dated 07.10.2024 in IA No.3485/2024.

8. Considering the amount advanced, interest and penal interest applied, repayments effected, default committed and considerable amount was recovered 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, the applicant bank is given a final order allowing it to recover:

(i) the sum of Rs.1,12,03,849.01 (Rupees one crore twelve lakhs three thousand eight hundred and forty TA 493/2016 (OA 117/2015)

nine and Paise one only) due under cash credit A/c No.009910100000154 together with pendente lite and post-decree interest @10% per annum on the sum of Rs.1,09,60,072.10 (Rupees one crore nine lakhs sixty thousand and seventy two and Paise ten only) from 17.03.2015 till realization, less the sum of Rs.33,10,000/- (Rupees thirty three lakhs ten thousand only) recovered by the applicant by sale of the secured assets on 21.06.2024, from the defendants jointly and severally;

(ii) the sum of Rs.2,69,55,306.86 (Rupees two crores sixty nine lakhs fifty five thousand three hundred and six and Paise eighty six only) due under cash credit A/c No.009910100000161 together with pendente lite and post-decree interest @10% per annum on the sum of Rs.2,68,70,269.86 (Rupees two crores sixty eight lakhs seventy thousand two hundred and sixty nine and Paise eighty six only) from 17.03.2015 till realization, less the sum of Rs.83,00,000/- (Rupees eighty three lakhs only) recovered by the applicant by sale of the secured assets on 21.06.2024, from the defendants jointly and severally; and TA 493/2016 (OA 117/2015)

(iii) costs and expenses borne by it for realization of the loans from the defendants.

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.

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 12th day of October, 2026)

[SOVAN KUMAR DASH]

TA 493/2016 (OA 117/2015)

A P P E N D I X Witness for Applicant: AW1: Mr.Aneesh V.M., Branch Manager of the applicant bank. AW2: Mr.Joby K.Mathew, Branch Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

TA 493/2016 (OA 117/2015)

TA 493/2016 (OA 117/2015)

TA 493/2016 (OA 117/2015)

45. Statement of account of M/s.Ally Rubber Traders showing the credit of sale proceeds.

46. Statement of account of M/s.Thirunilathil Rubbers showing the credit of sale proceeds. [Document Nos.32 to 40 were returned to the applicant bank on 14.10.2024]

Defendants’ Exhibits – Nil

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 12th October, 2026

TA No.493/2016 (OA NO.117/2015)

Between

Dhanlaxmi Bank Ltd., Ayarkunnam Branch, Kottayam District.

…Applicant

And

Ally Mathew, W/o.Mathew,

Ayarkunnam, Kottayam – 686 564 & another. …Defendants

F I N A L O R D E R