STATE BANK OF INDIA vs Hari Kumar K on 28 July 2025

1. Hari Kumar K., S/o.Late Kuttan Pillai, Prasanna Bhavan, Karumady, Ambalappuzha, Alappuzha District. (Engineer, P.O. Box 502, Dahahran 31261, KFUPM).

2. M/s.Infra Housing Pvt. Ltd., C.L.S. Building, M.G.Road, Ernakulam, Represented by its Director, George E. George, S/o.Late E.J.George, Villa No.34, Infra Meadows, CSEZ P.O., Kakkanad, Kochi.

…Defendants

This Original Application having been heard on 27.06.2025 in the presence of Advocate Sri.C.N.Baby 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.14,10,274/- together with future interest thereon @11% per annum with monthly rests from the defendants jointly and severally and by sale of the schedule property. Facts of the case:

2. The applicant is the successor of State Bank of Travancore, a body corporate constituted and governed by State Bank of India (Subsidiary Bank) Act, 1969, having its registered office at Thiruvananthapuram and a branch at Ambalappuzha.

3. The 1st defendant entered into an agreement with 2nd defendant on 21.09.2009 for purchasing an apartment No.401 on the 4th floor of the building known as ‘Infra Nouvelle’. Meanwhile, he approached the erstwhile State Bank of Travancore for a housing loan for purchasing the apartment from the 2nd defendant for a total sale consideration of Rs.22.75 lakhs. Considering the request, the bank sanctioned a housing loan of Rs.15,64,259/- as per sanction letter dated 29.06.2010. The loan amount sanctioned to the 1st defendant was disbursed to the 2nd defendant in view of the tripartite agreement dated 28.06.2010 entered between the 1st and 2nd defendants and State Bank of Travancore. The 1st defendant assured that sale deed proposed to be executed in his name by the 2nd defendant in respect of the schedule property will be deposited with the applicant bank with the intention to create a valid mortgage but he failed to create any mortgage in favour of the bank. The defendants have grossly violated the terms and conditions of the agreement and committed breach of the terms of sanction of loan. Despite repeated demands, the defendants have not cared to discharge the debt. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover the sum of Rs.14,10,274/- together with pendente lite and post-decree interest thereon from the defendants jointly and severally and by sale of the 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 entered appearance and sought adjournment for filing written statement. The 1st defendant neither filed vakalath nor written statement and he was set exparte on 01.12.2014. The 2nd defendant presented a written statement belatedly but he did not take any step to accept the same and remained absent from the proceeding and hence he was also declared exparte on 18.11.2022. Proof Affidavit:

5. To establish the claim on behalf of the applicant, one Mr.Sanal Kumar U.V., Manager of erstwhile State Bank of Travancore and Mrs.Geetha Kumary G., Chief Manager of the applicant have filed proof affidavit and additional proof affidavit respectively and produced the loan documents marked as Exhibits A1 to A19(b). The proof affidavit and additional proof affidavit filed by AW1 and AW2 and the documents produced in this case are not challenged by the defendants. The availing of the housing loan is well established from the documents placed by the applicant bank. A sum of Rs.14,10,274/- is outstanding in the loan account as on 19.06.2013, which is clearly established from the account statements marked as Exts.A8 and A9.

6. Admittedly, the 1st defendant had not created any valid mortgage over the schedule property in favour of the applicant bank and what he had executed is only an agreement to mortgage vide Ext.A7. Paragraph No.11 of Ext.A2 tripartite agreement entered into between the builder, borrower and the lender bank reads as follows:- “11. In case the loan is recalled by STATE BANK OF TRAVANCORE before the First Party has actually handed over the possession of the flat to the Second Party, the First Party shall not hand over the possession of the flat to the Second Party and shall refund the entire loan outstanding along with other dues payable to STATE BANK OF TRAVANCORE without obtaining any consent from the Second Party and the Second Party authorizes STATE BANK OF TRAVANCORE to recover the outstanding loan amount along with all other dues payable to STATE BANK OF TRAVANCORE from the First Party which have been deposited with the First Party for purchasing the said property.”

In such premises, the applicant bank may recover the amount from the builder/2nd defendant in this case and proceed in respect of the subject matter property in accordance with law.

7. Considering the amount advanced, interest applied, repayments effected and the facility granted being a housing loan, I am of the view that the applicant bank is entitled to get pendente lite and post-decree interest @9% 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.14,10,274/- (Rupees fourteen lakhs ten thousand two hundred and seventy four only) due under the housing loan account from the defendants jointly and severally;

(ii) pendente lite and post-decree interest thereon @9% per annum from 27.06.2013 till realisation from the defendants jointly and severally; and

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

9. The 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 28th day of July, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.Sanal Kumar U.V., Manager of the bank. AW2: Smt.Geetha Kumary G., Chief Manager of the applicant. Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 21.09.2009 Agreement for sale executed between the defendants. A2 28.06.2010 Tripartite agreement executed between the erstwhile State Bank of Travancore and defendants. A3 24.09.2009 General power of attorney executed in favour of Mr. K. Sreekumar. A4 21.06.2010 Letter of confirmation of power of attorney issued by the 1st defendant to the erstwhile State Bank of Travancore. A5 29.06.2010 Sanction letter issued by the erstwhile State Bank of Travancore and duly signed by the 1st defendant through his power of attorney holder. A6 29.06.2010 Agreement for loan executed by the 1st defendant through his power of attorney holder in favour of the erstwhile State Bank of Travancore. A7 28.06.2010 Agreement to mortgage executed by the 1st defendant through his power of attorney holder in favour of the erstwhile State Bank of Travancore. A8 20.06.2013 Certified statement of account pertaining to the housing loan a/c no.67114657799. A9 20.06.2013 Statement showing the interest accrued from 01.11.2011 to 19.06.2013 in the Exhibit A8 account. A10 20.06.2013 Statement showing the period and rate of interest applied in the Exhibit A8 account.

A11 20.06.2013 Statement showing the penal interest applied and capitalized portion of the same in the Exhibit A8 account. A12(a) 03.09.2010 Letter issued by the 2nd defendant to the erstwhile State Bank of Travancore for the receipt of Rs.4,50,000/-. A12(b) 07.08.2010 Receipt no.000963 issued by the 2nd defendant for the receipt of Rs.4,50,000/-. A13(a) 10.12.2010 Letter issued by the 2nd defendant to the erstwhile State Bank of Travancore for the receipt of Rs.2,25,000/-. A13(b) 06.12.2010 Receipt no.001085 issued by the 2nd defendant for the receipt of Rs.2,25,000/-. A14(a) 10.05.2011 Letter issued by the 2nd defendant to the erstwhile State Bank of Travancore for the receipt of Rs.2,25,000/-. A14(b) 05.05.2011 Receipt no.001305 issued by the 2nd defendant for the receipt of Rs.2,25,000/-. A15 02.09.2011 Letter issued by the 2nd defendant to the erstwhile State Bank of Travancore for the issuance of cheque for Rs.2,25,000/-. A16 24.09.2011 Office copy of the covering letter of the erstwhile State Bank of Travancore enclosing DD for Rs.2,25,000/- A17 28.01.2013 Office copy of the letter issued by the erstwhile State Bank of Travancore to the 2nd defendant. A18 24.05.2013 Letter issued by the 2nd defendant to the erstwhile State Bank of Travancore. A19(a) 31.03.2017 Bill submitted by the approved valuer to the erstwhile State Bank of Travancore for the inspection of the property. A19(b) .. Photograph of the building submitted by the by the approved valuer to the erstwhile State Bank of Travancore.

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 28th July, 2025

TA No.1061/2016 (OA No.325/2013)

Between

State Bank of India, Successor of State Bank of Travancore, Ambalappuzha Branch, Sree Valsom Shopping Complex, Alappuzha.

…Applicant And

Hari Kumar K., S/o.Late Kuttan Pillai, Prasanna Bhavan, Karumady, Ambalappuzha, Alappuzha District. (Engineer, P.O. Box 502, Dahahran 31261, KFUPM) & another.

...Defendants

F I N A L O R D E R