CENTRAL BANK OF INDIA vs Kurian V Jacob on 11 August 2025

1. Kurian V.Jacob,

Vandanathuvayalil House,

Kanjirapara P.O.,

Devagiri,

Kottayam District.

2. Lalu C.Philip,

Changanacherry,

Near Parel Church,

Kurisimoodu P.O.,

Changanacherry,

Kottayam District.

...Defendants

This Original Application having been heard on 05.08.2025 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:

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.30,30,492/- due under agriculture 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 Mumbai and a branch among other places at Thiruvalla.

3. The defendants applied for agricultural loan of Rs.24 lakhs to the applicant bank on 25.08.2005 for purchasing ‘A’ schedule property. Considering the request, applicant bank sanctioned a loan of Rs.22.70 lakhs to the 1st defendant and the 2nd defendant stood as co-obligant/surety to the loan. The defendants executed the security documents and hypothecated the crops standing over the agricultural land in favour of the bank. Towards collateral security for the loan, the 1st defendant deposited title deeds in respect of 4 acres 80 cents of land purchased by him utilizing the funds advanced by the applicant bank with the intent to create equitable mortgage over the same. Due to default in repayment of the loan, the account fell in heavy arrears. Despite lawyer notice was issued to the defendants on 25.08.2008 recalling the liability, they did not respond to the same. Hence the applicant bank filed the OA claiming the following reliefs:

(i) To recover a sum of Rs.30,30,492/- together with pendente lite and post-decree 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. The 1st defendant entered appearance and sought adjournment for filing written statement but he did not file any written statement despite time granted and remained absent from the proceeding and hence he was declared exparte on 24.06.2014. The 2nd defendant neither appeared nor was he represented and hence he was set exparte as early on 03.03.2009.

5. It is averred by the applicant bank in the affidavit filed in IA No.74/2016 that after filing of the OA, original documents pertaining to the subject loan transaction along with other loan accounts were taken over by the Investigating Officer as part of investigation of a criminal case registered by CBI and hence certified copy of documents obtained from CBI court are produced along with the proof affidavit. Proof Affidavit:

6. To establish the claim on behalf of the applicant bank, one Mr.Siddhartha Sukumar, Senior Manager of the applicant has filed proof affidavit and produced certified copy of the loan documents marked as Exhibits A1 to A11. 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.30,30,492/- is outstanding in the loan account as on 30.11.2008, which is established from the account statement marked as Ext.A10.

7. Considering the amount advanced, interest applied and default committed and the loan granted being an agricultural facility, I am of the view that the 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.30,30,492/- (Rupees thirty lakhs thirty thousand four hundred and ninety-two only) due under agriculture 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.30,30,492/- (Rupees thirty lakhs thirty thousand four hundred and ninety-two only) from 15.12.2008 till realisation from the defendants jointly and severally and by sale of ‘A’ schedule property; and

(iii) costs and expenses borne by it for realisation 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 11th day of August, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 25.08.2005 Certified copy of loan cum hypothecation agreement executed by the 1st defendant. A2 10.11.2005 Certified copy of sale deed No.3370/2005 of Peerumedu SRO. A3 17.05.1982 Certified copy of sale deed No.613/1982 of Peerumedu SRO. A4 05.02.1991 Certified copy of sale deed No.230/1991 of Peerumedu SRO. A5 29.06.1976 Certified copy of purchase certificate No.215/1976 issued by Land Tribunal, Peerumedu. A6

03.08.2005 Certified copy of encumbrance certificate No.4594/2005. A7

29.07.2005 Certified copy of encumbrance certificate No.4560/2005. A8

29.07.2005 Certified copy of encumbrance certificate No.4562/2005. A9

28.07.2005 Certified copy of possession certificate Nos.430/2005 and 428/2005 issued by Village Officer, Kokkayar. A10 ... Certified copy of the statement of account relating to the agricultural loan. A11 25.08.2008 Copy of lawyer notice issued to the defendants by the applicant.

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 11th August, 2025

TA No.1232/2016 (OA No.363/2008)

Between

Central Bank of India, Thiruvalla Branch, Thiruvalla.

…Applicant

And

Kurian V.Jacob, Vandanathuvayali House, Kanjirapara P.O., Devagiri, Kottayam District & another.

...Defendants

F I N A L O R D E R