CENTRAL BANK OF INDIA vs Pramod S on 20 May 2025

1. Pramod S.,

Nadappurathu House,

Perumpanachery P.O.,

Changanacherry – 686 536.

2. B.Vimala,

W/o.Balaji,

IV/35A, Pazhayamadom,

Manpuzhakkavu,

Ramankkeri P.O., Kuttanad,

Alappuzha District.

…Defendants

This Original Application having been heard on 21.04.2025 in the presence of Advocates M/s.Santhosh Kumar K. and Aneesh K.M. for the applicant bank and the defendants being absent 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.15,39,820/- due under agricultural term loan account together with future interest thereon @11% per annum with quarterly 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 central office at Chander Mukhi, Nariman Point, Mumbai and one of its branches at Changannur, Alappuzha District.

3. At the request of the defendants, applicant bank sanctioned an agricultural term loan of Rs.12 lakhs to the 1st defendant vide sanction letter dated 29.05.2006 for purchase of 4.5 acres of rubber estate and development of the rubber plantations. The 2nd defendant stood as guarantor for the loan by executing letter of guarantee dated 29.05.2006. Towards collateral security for the loan, the 1st defendant created equitable mortgage over ‘A’ schedule property by depositing sale deed

No.1590/2006 dated 30.05.2006 of Peerumade SRO. After availing the facility, the defendants committed breach of the terms and conditions of the loan agreement which resulted in classification of the loan as NPA on 31.05.2008. Thereafter, lawyer notice was issued to the defendants calling upon them to repay the outstanding dues. Even after receipt of the notice, the defendants did not turn up to liquidate the liability. Hence the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.15,39,820/- together with pendente lite and post decree interest thereon from the defendants 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 filed written statement denying the claim made by the applicant bank. It is contended inter alia that the then Manager of the bank asked the defendants to put some signatures in a printed form and they had never executed any security document in favour of the bank regarding the alleged loan transaction. These defendants have no objection in passing any order for realisation of the amount by sale of ‘A’ schedule property by exonerating them from personal liability as they have no interest or connection with the said property. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Ms.Mini Mariam Mathew, Branch Manager of the bank has filed proof affidavit and produced some loan documents marked as Exhibits A1 to A4. According to the applicant bank, some of the loan documents are seized by CBI in connection with a criminal case and hence they have produced certified copy of the documents obtained from the CBI Court. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the credit facility is well established from the documents placed by the applicant bank. A sum of Rs.15,39,820/- is outstanding in the loan account as on 11.05.2009, which is clearly established from the account statement marked as Exts.A4.

6. Despite sufficient opportunity granted, the defendants have not filed any counter proof affidavit nor adduced any documentary evidence to substantiate their case. Further, they remained absent from the proceeding from 26.09.2024 and none appeared and represented to address arguments in this case.

7. Considering the amount advanced, interest applied, repayments effected and default committed and also the loan granted being an agricultural facility, I am of the view that applicant bank is entitled to get pendente lite and post decree interest @6% per annum, which is reasonable in the facts and circumstances of the case.

8. 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.15,39,820/- (Rupees fifteen lakhs thirty nine thousand eight hundred and twenty only) due under the agricultural term loan account from the defendants jointly and severally and by sale of ‘A’ schedule property;

(ii) Pendente lite and post-decree interest @6% per annum on the sum of Rs.15,39,820/- (Rupees fifteen lakhs thirty nine thousand eight hundred and twenty only) from 15.05.2009 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.

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

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 20th day of May, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

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

Applicant’s Exhibits

Ext.No Date Particulars of documents A1 30.05.2006 Certified copy of sale deed No.1590/2006 of Peerumade SRO. A2 06.06.2006 Certified copy of possession certificate No.1198 issued by Village Officer, Kokkayar. A3 ... Acknowledgement card signed by the 2nd defendant. A4 ... Certified copy of the statement of account relating to the agricultural term loan.

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 20th May, 2025

TA No.325/2016 (OA NO.171/2009)

Between

Central Bank of India, Chengannur Branch, Chengannur.

…Applicant

And

Pramod S., Nadappurathu House, Perumpanachery P.O., Changanacherry – 686 536 & another. …Defendants

F I N A L O R D E R