STATE BANK OF INDIA vs ABITHA NOUSHAD on 7 May 2025

1. Abitha Noushad,

W/o.Noushad E.H.,

Thrissur District – 680 567.

2. Noushad E.H.,

S/o.Hamsa,

Thrissur District – 680 567.

…Defendants

This TA (OA) having been heard on 02.05.2025 in the presence of Advocates M/s.K.C.Viswambharan and N.T.Nandakumaran for the applicant bank and the defendants being exparte, and stood over to this day for consideration, the Tribunal delivered the following:-

F I N A L O R D E R

This is an application filed under S.31A of the Recovery of Debts and Bankruptcy Act, 1993 by the applicant bank, who is the decree holder in OS No.1684/2010, for issuance of Recovery Certificate in terms of the decree dated 06.06.2011 for recovery of the amount due thereunder.

2. The applicant bank filed OS No.1684/2010 before the Sub Court, Thrissur for recovery of amount due under the loan account and obtained decree dated 06.06.2011 allowing it to recover the sum of Rs.9,40,691/- together with interest on Rs.8,61,569/- @11.50% per annum from the date of suit i.e., 03.12.2010 till the date of decree i.e., 06.06.2011 and thereafter @6% per annum till realization and also its costs amounting to Rs.1,00,289/- from the defendants and their assets. According to the applicant bank, the defendants did not pay any amount due under the decree and it is prayed to issue Recovery Certificate for recovery of the amount in terms of the decree dated 06.06.2011 in OS No.1684/2010.

3. The defendants were duly served with summons. But they neither appeared nor were they represented and hence the defendants were set exparte on 05.04.2017.

4. S.31A was incorporated by way of amendment made to the Act as per Act 1 of 2000, which came into force on 17.01.2000. When any decree passed by a civil court after introduction of S.31A in the statute, which remained unexecuted and the decreetal debt grew after calculating the interest beyond Rs.10 lakhs (Rs.20 lakhs w.e.f. 01.07.2019), can be executed by the Tribunal not by the civil court in view of the ratio decided by the Hon'ble High Court of Kerala in the case titled V.D.Mathew v. State Bank of Travancore, reported in 2008 (2) D.R.T.C 695 (Kerala). Here in this case at the time of passing the decree by the Sub-Court on 06.06.2011, the decreetal amount was Rs.9,40,691/-. At the time of initiation of this proceeding on 31.12.2015, the total recoverable amount is above Rs.10 lakhs inclusive of accrued interest and costs. The ratio decided by the Hon'ble High Court is squarely applicable to the facts and circumstances of this case and the Tribunal is empowered to issue Recovery Certificate for recovery of amount due under the award (i.e., the decree passed on or after 17.01.2000) which grew beyond the statutory limit of Rs.10 lakhs. The Tribunal, therefore, is required to issue Recovery Certificate for recovery of the amount due under the award.

5. In view of the above discussion, the applicant bank is entitled to get a final order directing to issue Recovery Certificate on the following lines: In the result, it is ordered to issue Recovery Certificate in terms of the decree dated 06.06.2011 in OS No.1684/2010 of the Sub-Court, Thrissur for recovery and payment to the applicant bank the sum of Rs.9,40,691/- (Rupees nine lakhs forty thousand six hundred and ninety one only) with interest on the sum of Rs.8,61,569/- (Rupees eight lakhs sixty one thousand five hundred and sixty nine only) @11.50% per annum from 03.12.2010 to 06.06.2011 and thereafter @6% per annum till realization and Rs.1,00,289/- (Rupees one lakh two hundred and eighty nine only) as the costs awarded by the Sub-Court and also the costs of the applicant bank in this proceeding from the defendants and their assets.

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

7. 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 7th day of May, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 7th May, 2025

TA No.666/2016 (OA No.19/2016)

Between

State Bank of India (Successor of State Bank of - Travancore), Triprayar Branch, Triprayar, Thrissur. ...Applicant

And

Abitha Noushad,

W/o.Noushad E.H.,

Thrissur District – 680 567 & another. …Defendants

F I N A L O R D E R