CENTRAL BANK OF INDIA vs P.S AJAY on 14 May 2025

1. P.S.Ajay, S/o.Sasidharan Nair T.K.,

Kottayam.

2. K.G.Bindhu,

Kottayam District.

…Defendants

This Original Application having been heard on 17.04.2025 in the presence of Advocates M/s.Santhosh Kumar K. and Aneesh K.M. for the applicant bank and the defendants being exparte and stood over to this day for consideration, the Tribunal delivered the following:

TA 321/2016 (OA 362/2008)

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.32,14,401/- due under land purchase loan account together with future interest thereon @13.25% per annum with monthly rests from the defendants jointly and severally and by sale of ‘A’ schedule property. 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 Chander Mukhi, Nariman Point, Mumbai and one of its branches at Thiruvalla, Kottayam District.

3. The defendants submitted an application for a loan of Rs.25 lakhs for purchasing 5 acres of agricultural land. Considering the application, applicant bank sanctioned a land purchase loan of Rs.23.80 lakhs to the 1st defendant on 07.11.2005 and he availed the same after executing security documents in favour of the bank. The 2nd defendant stood as guarantor for the loan. Towards collateral security for the loan, the 1st defendant created equitable mortgage over the property purchased by him utilizing the funds advanced by the applicant by TA 321/2016 (OA 362/2008)

deposit of title deeds with the applicant on 02.02.2006. Thereafter, the 1st defendant failed to abide by the terms and conditions of the grant of loan and committed default in repayment of the monthly instalments. Despite lawyer notice was issued to the defendants recalling the liability, they did not respond to the same. Hence the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.32,14,401/- together with pendente lite and post decree interest thereon from the defendants jointly and severally and by sale of ‘A’ schedule property;

(ii) To recover the costs, charges and expenses from the defendants;

(iii) To issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

4. The defendants were duly served with summons. But they neither appeared nor were they represented and hence the defendants were set exparte on 03.03.2009. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.Pushpahasan C.V., Branch Manager has TA 321/2016 (OA 362/2008)

filed proof affidavit and produced certified copies of loan documents obtained from SPE/CBI Court, Ernakulam and marked the same as Exhibits A1 to A15. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loan and creation of mortgage over ‘A’ schedule property are well established from the documents placed by the applicant bank. A sum of Rs.32,14,401/- is outstanding in the loan account which is clearly established from the account statement marked as Ext.A15.

6. 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 @11% per annum, which is reasonable in the facts and circumstances of the case.

7. 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.32,14,401/- (Rupees thirty two lakhs fourteen thousand four hundred and one only) due under the loan account from the defendants jointly and severally and by sale of ‘A’ schedule property; TA 321/2016 (OA 362/2008)

(ii) Pendente lite and post-decree interest @11% per annum on the sum of Rs.32,14,401/- (Rupees thirty two lakhs fourteen thousand four hundred and one only) from 15.12.2008 till realisation from the defendants jointly and severally and by sale of ‘A’ schedule property; and

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

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

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

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

11. 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 14th day of May, 2025)

[SOVAN KUMAR DASH]

TA 321/2016 (OA 362/2008)

A P P E N D I X Witness for Applicant: AW1: Sri.Pushpahasan, Branch Manager of the applicant bank. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 07.11.2005 Certified copy of the loan agreement executed by the 1st defendant in favour of the applicant bank along with consent letter. A2 07.11.2005 Certified copy of the agreement for hypothecation of crops executed by the 1st defendant in favour of the applicant bank A3 10.11.2005 Certified copy of Sale Deed No.3372/2005 of Peermade SRO. A4 13.10.2005 Certified copy of the Power of Attorney No.161/2005 of Peermade SRO. A5 13.10.2005 Certified copy of the Release Deed No.3146/2005 of Peermade SRO. A6

13.10.2005 Certified copy of the Release Deed No.3154/2005 of Peermade SRO. A7

19.07.1994 Certified copy of the Release Deed No.2519/1994 of Peermade SRO. A8

24.10.1991 Certified copy of the Sale Deed No.1863/1991 of Peermade SRO. A9

24.10.1991 Certified copy of the Sale Deed No.1862/1991 of Peermade SRO. A10 22.10.2005 15.10.2005 & 07.09.2005 Certified copy of the encumbrance certificates issued by the SRO Peermade. A11 17.11.2005 & 13.10.2005 Certified copy of the possession certificates issued by the Village officer, Kokkayar. A12 17.11.2005 & 13.10.2005 Certified copy of the tax receipts issued by the Village officer, Kokkayar.

TA 321/2016 (OA 362/2008)

A13 07.11.2005 Letter of undertaking executed by the 1st defendant to the applicant bank. A14 … Certified copy of the acknowledgment cards evidencing receipt of the lawyer notice to the defendants. A15 31.11.2008 Certified copy of the statement of account relating to the land purchase loan.

Defendants’ Exhibits – Nil

RESIDING OFFICER

TA 321/2016 (OA 362/2008)

TA 321/2016 (OA 362/2008)

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 14th May, 2025

TA No.321/2016 (OA No.362/2008)

Between

Central Bank of India, Thiruvalla Branch, Thiruvalla. …Applicant

And

P.S.Ajay, S/o.Sasidharan Nair T.K.,

Kottayam & another. …Defendants

F I N A L O R D E R