BANK OF INDIA vs Sony N S on 17 June 2025

1. Sony N.S.,

S/o.Stanley,

Kattakkada, Thiruvananthapuram – 695 572.

2. Aleeshya Sony, W/o.Sony N.S.,

Kattakkada, Thiruvananthapuram – 695 572. …Defendants This Original Application having been heard on 09.06.2025 in the presence of Advocates M/s.P.Balakrishnan and Sasi N. 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 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.26,18,664.09 due under term loan account together with future interest thereon @11.95% per annum with monthly rests from the defendants jointly and severally and by sale of the hypothecated asset scheduled to the OA (No schedule of hypothecated asset is annexed to the OA). 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 Spencer Junction, Thiruvananthapuram.

3. The defendants approached the applicant bank seeking financial assistance for purchase of one Leyland Deere Backhoe Loader. Considering their request, applicant bank sanctioned a term loan of Rs.22 lakhs vide sanction letter dated 21.01.2013 and the defendants availed the loan after executing security documents including hypothecation-cum-loan agreement in favour of the bank. As the defendants failed to repay the loan, the applicant bank issued demand notice under S.13(2) of the

SARFAESI Act calling upon them to repay the outstanding loan amount but they did not settle the liability. Thereafter, the applicant bank issued lawyer notice to the defendants recalling the loan and the defendants did not respond to the said notice also. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.26,18,664.09 together with pendente lite and post decree interest thereon from the defendants jointly and severally and by sale of the hypothecated asset;

(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 declared exparte on 20.12.2023. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.Rejeesh M., Chief Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A19. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loan is well established from the documents placed by the applicant bank. A sum of Rs.26,18,664.09 is outstanding in the loan account as on 16.08.2015, which is clearly established from the account statements marked as Exts.A18 and A19.

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 @10% 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.26,18,664.09 (Rupees twenty six lakhs eighteen thousand six hundred and sixty four and Paise nine only) due under the term loan account from the defendants jointly and severally and by sale of the hypothecated asset, if available;

(ii) Pendente lite and post decree interest @10% per annum on the sum of Rs.26,18,664.09 (Rupees twenty six lakhs eighteen thousand six hundred and sixty four and Paise nine only) from 26.08.2015 till realisation from the defendants jointly and severally and by sale of the hypothecated asset, if available; and

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

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

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

10. 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 17th day of June, 2025)

[SOVAN KUMAR DASH]

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 16.01.2013 Loan application submitted to the applicant by the defendants. A2 16.01.2013 Invoice issued by TV Sundaram Iyengar & Sons Limited. A3 21.01.2013 Sanction letter issued by the applicant bank sanctioning term loan of Rs.22 lakhs to the defendants. A4 21.01.2013 Demand promissory note for Rs.22 lakhs executed by the defendants. A5 21.01.2013 Instalment letter executed by the defendants in favour of the applicant bank. A6

21.01.2013 Hypothecation-cum-loan agreement executed by

A7

21.01.2013 Consolidated stamped agreement executed by the defendants. A8

31.07.2013 Acknowledgement of debt and security executed by the defendants. A9

31.07.2013 Letter submitted by the 1st defendant undertaking to clear the overdue amount. A10 31.07.2013 Letter of authorization executed by the defendants. A11 31.07.2013 Demand promissory note for Rs.22,71,067/- executed by the defendants. A12 31.07.2013 Supplemental term loan agreement executed by

A13 25.07.2014 Copy of demand notice under S.13(2) of the SARFAESI Act issued to the 1st defendant.

A14 25.07.2014 Copy of demand notice under S.13(2) of the SARFAESI Act issued to the 2nd defendant. A15 16.05.2015 Copy of lawyer notice issued to the defendants calling upon them to repay the outstanding dues. A16 20.05.2015 Postal receipts (2 Nos.) evidencing dispatch of lawyer notice to the defendants. A17 26.05.2015 Copy of acknowledgement card signed by the 1st defendant. A18 ... Certified copy of the statement of account relating to the term loan. A19 ... Worksheet in respect of the term loan account.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 17th June, 2025

TA 986/2016 (OA NO.447/2015)

Between

Bank of India, Main Branch, Thiruvananthapuram. …Applicant

And

Sony N.S., S/o.Stanley,

Kattakkada, Thiruvananthapuram – 695 572 & another.

...Defendants

F I N A L O R D E R