STATE BANK OF INDIA vs PRAVEEN VIJAYAN on 28 July 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 28th day of July, 2025

TA No.1002/2016 (OA No.372/2015) Between

State Bank of India, Retail Assets Small and Medium – Enterprises Centre (RASMEC), 2nd Floor, Maheswari Buildings, M.G. Road, Thrissur.

…Applicant And

Praveen Vijayan, S/o.Vijayan K., Kizhakkepatt House, House No.135, Nattika P.O., Thrissur District - 680 566. Having address at: Abu Hilal Al Rashdi – Electrical Company LLC, Sinaw 418, Post Box No.29, Sultanate of Oman.

…Defendant

This Original Application having been heard on 30.06.2025 in the presence of Advocate Ms.S.Lakshmy for the applicant bank and Advocates M/s.P.K.Manomohanan and N.A.Ganapati for the defendant 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.26,02,767.77 together with future interest @12% per annum with monthly rests from the defendant and by sale of ‘A’ schedule property. Facts of the case:

2. The applicant is a body corporate constituted under the State Bank of India Act, 1955 having its corporate centre at Mumbai and retail assets small and medium enterprises centre at Thrissur.

3. The defendant through his Power of Attorney holder Sri.K.A.Vijayan submitted an application to the Cherpu Branch of the applicant for an NRI housing term loan for purchasing ‘A’ schedule property. Considering his request, the applicant bank sanctioned a term loan of Rs.12.90 lakhs vide sanction letter dated 18.09.2008. The defendant through his Power of Attorney holder created mortgage over the schedule property by deposit of title deed with the applicant bank and executed letter dated 08.10.2008 confirming the creation of mortgage for securing the loan. The operation of the account became highly irregular. The request made to the defendant to regularise the loan account turned futile. Hence the applicant initiated recovery proceeding under the provisions of SARFAESI Act and issued demand notice under S.13(2) of the SARFAESI Act demanding an amount of Rs.13,68,888/- from the defendant. Due to default in repayment, applicant proceeded under S.14 of the SARFAESI Act to take possession of the secured asset.

4. On inspection it is understood that the defendant had assigned an extent of 9 cents forming part of the secured asset comprised in Sy.No.173/5 of Veluthoor Village in favour of one Radha as per sale deed No.2978/2009 dated 29.09.2009. The said Radha filed a suit for permanent prohibitory injunction before the Munsiff Court, Thrissur restraining the applicant from trespassing into the property and the said court has granted an interim injunction against the applicant. As the defendant has not repaid any amount towards the dues, applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.26,02,767.77 together with pendente lite and post-decree interest thereon from the defendant and by sale of ‘A’ schedule property;

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

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

5. The defendant filed written statement claiming that he had not transferred the property to any person as claimed by the applicant. Further, he has not received any notice issued as per the provisions of SARFAESI Act. Due to financial constraints, the defendant could not repay the loan amount. After the death of his father, the applicant has not submitted the statement of account for the approval of the defendant and the claim is not correct which is barred by limitation and hence the OA may be dismissed with costs. Proof Affidavit:

6. To establish the claim on behalf of the applicant bank, one Mr.Gireesan A., Assistant General Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A10. The availing of the credit facility and creation of mortgage over ‘A’ schedule property is well established from the documents placed by the applicant bank. A sum of Rs.26,02,767.77 is outstanding in the loan account as on

30.06.2015, which is clearly established from the account statements marked as Exts.A8 and A9.

7. The defendant filed counter proof affidavit claiming that as the defendant was employed abroad, he entrusted his father to purchase the property by obtaining a loan from the applicant bank and he purchased 17 cents of land as per sale deed No.5696/2008 dated 29.09.2008. Due to some unforeseen circumstances, payment to the loan account was defaulted. The allegation of the applicant that he had transferred a portion of the mortgaged property is baseless. The encumbrance certificate obtained from the SRO, Ayyanthole would show that he is the title holder of the subject matter property. The statement of account produced by the applicant is not correct and the OA may be dismissed. The defendant has not adduced any documentary evidence to support his case.

8. During the hearing, learned counsel for the defendant strenuously submitted that due to financial stringency, the defendant was unable to repay the dues. Further, it is submitted that the defendant has not transferred the mortgaged property to any person as claimed by the applicant. The demand notice issued by the applicant under S.13(2) of the SARFAESI Act was not served on the defendant or his Power of Attorney holder and hence the said notice is not admissible in law.

9. There is no dispute about availing of the housing loan of Rs.12.90 lakhs from the applicant bank on 18.09.2008 and creation of mortgage over the schedule property by deposit of sale deed No.5696/2008 dated 29.09.2008 of Ayyanthole SRO marked as Ext.A6 with the applicant bank to secure the loan transaction. Admittedly, there is default in repayment of the loan. The defendant did not challenge non-service of demand notice issued under S.13(2) of the SARFAESI Act in this case as the Tribunal exercises different jurisdiction while sitting over a matter under S.19(1) of the Recovery of Debts and Bankruptcy Act, 1993. The materials available on record would substantiate the case of the applicant bank and they are entitled to recover the amount claimed in the OA.

10. In case of alienation of the property after mortgage with the applicant bank, the said alienation is subject to mortgage and the subsequent purchaser is bound to repay the liability over the property acquired. The subsequent purchaser is not a party to this proceeding. The applicant bank may proceed against the property if the subsequent purchaser will not take any interest in redeeming the loan.

11. Considering the amount advanced, interest applied and default committed 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.

12. 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.26,02,767.77 (Rupees twenty six lakhs two thousand seven hundred and sixty seven and Paise seventy seven only) due under the term loan (housing loan) account from the defendant and by sale of ‘A’ schedule property;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.26,02,767.77 (Rupees twenty six lakhs two thousand seven hundred and sixty seven and Paise seventy seven only) from 31.07.2015 till realisation from the defendant and by sale of ‘A’ schedule property; and

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

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

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

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

16. 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: Shri.Gireesan A., Assistant General Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 16.09.2008 General Power of Attorney executed by the defendant in favour of the K.A. Vijayan. A2 18.09.2008 Arrangement letter issued by the applicant bank and signed by the defendant through its power of attorney Holder, K.A. Vijayan. A3 26.09.2008 Memorandum of term loan agreement for home loan granted to the public duly executed by the defendant through its power of attorney Holder, K.A. Vijayan. A4 26.09.2008 Affidavit executed by the defendant through its power of attorney Holder, K.A. Vijayan. A5 26.09.2008 Agreement to mortgage executed by the defendant through its power of attorney Holder, K.A. Vijayan. A6 29.09.2008 Sale Deed No.5696/2008 of Ayyanthole SRO. A7 08.10.2008 Letter confirming the deposit of title deed executed by the defendant through its power of attorney Holder, K.A. Vijayan. A8 10.07.2015 Certified statement of account from 26/09/2008 to 11/09/2014in respect to housing loan. A9 10.07.2015 Statement of unapplied but accrued interest along with the rate of interest in the Exhibit A8 account. A10 10.07.2015 Statement of rate of interest in the Exhibit A8 account.

Defendant’s 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.1002/2016 (OA No.372/2015)

Between

State Bank of India, Retail Assets Small and Medium – Enterprises Centre (RASMEC), 2nd Floor, Maheswari Buildings, M.G.Road, Thrissur. …Applicant

And

Praveen Vijayan, S/o.Vijayan K., Kizhakkepatt House, House No.135, Nattika P.O., Thrissur District - 680 566. Having address at: Abu Hilal Al Rashdi – Electrical Company LLC, Sinaw 418, Post Box No.29, Sultanate of Oman. ...Defendant

F I N A L O R D E R