STATE BANK OF INDIA vs K V Vijaya Kumar on 27 August 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 27th day of August, 2025

TA No.1254/2016 (OA No.108/2009) Between

State Bank of India, SME Kottayam Branch, Successor-in-interest of State Bank of Travancore, S.M.E. Branch, Sasthri Road, Kottayam – 686 001.

...Applicant

And

K.V.Vijaya Kumar,

S/o.E.R.Krishna Pillai,

Proprietor,

Vijaya Rubber Industries,

Development Plot,

Poovanthuruthu P.O.,

Kottayam - 686 012.

Residing at:

Mundackal House,

Poovanthuruthu P.O.,

Panachikkadu,

Kottayam – 686 012.

…Defendant

This Original Application having been heard on 08.08.2025 in the presence of Advocate Sri.K.K.John for the applicant bank and Advocate Sri.Varughese Cherian 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 an aggregate sum of Rs.34,63,814/- together with future interest and costs from the defendant and by sale of ‘A’ to ‘C’ schedule properties. Facts of the case:

2. The original applicant State Bank of Travancore, which was vested with the applicant bank w.e.f. 01.04.2017, is a body corporate incorporated under the State Bank of India (Subsidiary Banks) Act, 1959 having its head office at Thiruvananthapuram and its S.M.E. Branch at Kottayam.

3. The defendant is a businessman carrying on the business of manufacture and marketing of door mats, hollow mats and other molded articles in the name and style ‘M/s.Vijaya Rubber Industries’. Considering the request of the defendant, erstwhile State Bank of Travancore sanctioned the following credit facilities: Date of sanction Type of loan Amount Collateral security 01.03.2006 Cash credit Rs.6 lakhs ‘A’ and ‘C’ schedule properties

01.03.2006 Term loan Rs.18.50 lakhs ‘B’ and ‘C’ schedule properties

After availing the facilities, the defendant failed to adhere to the terms and conditions contained in the loan agreements. Hence the bank issued a lawyer’s notice to the defendant on 30.05.2008 demanding repayment of the outstanding dues within ten days. Despite receipt of the notice, the defendant has not taken any step to liquidate the liability. In such premises, the bank was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.34,63,814/- together with pendente lite and post-decree interest thereon from the defendant and by sale of ‘A’ to ‘C’ schedule properties;

(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.

4. The defendant filed written statement admitting that he availed a cash credit limit of Rs.6 lakhs and term loan of Rs.18.50 lakhs on 01.03.2006 and the said facilities were secured by way of hypothecation of ‘A’ and ‘B’ schedule properties.

Further, it is contended that he has not executed the revival letters, and no amount is due from him as claimed by the applicant. Hence the application may be dismissed with costs. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.Valsalan V.V., Chief Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A16. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendant. The availing of the credit facilities and creation of charge over ‘A’ to ‘C’ schedule properties are well established from the documents placed by the applicant bank.

6. Despite time granted, the defendant has not filed any counter proof affidavit nor adduced any documentary evidence to substantiate his case.

7. On careful evaluation of the materials, it appears that the defendant availed the cash credit limit of Rs.6 lakhs and term loan of Rs.18.50 lakhs from erstwhile State Bank of Travancore after executing Ext.A1 hypothecation-cum-working capital agreement, Ext.A3 term loan agreement and Ext.A4 hypothecation agreement on 01.03.2006. The proceeding of the General Manager, District Industries Centre, Kottayam marked as

Ext.A8 would show that the property described in ‘C’ schedule was allotted to the defendant, who in turn deposited the same with the bank and executed Ext.A9 memorandum of deposit of title deeds dated 21.01.2009 confirming the deposit of title deed with the bank with an intent to create mortgage by way of collateral security for the amount due to the bank from him. Further, it could be seen that Exts.A2 and A5 revival letters dated 20.01.2009 were executed by the defendant acknowledging the liability under the cash credit account and term loan account respectively. Exts.A12, A13, A15 and Ext.A16 account statements would establish the claim made by the applicant bank in this case. No material is placed by the defendant to refute the claim of the applicant bank and hence the same cannot be denied.

8. Pending the OA, the Tribunal had passed an order of conditional attachment on 01.06.2009 vide IA No.992/2009 over the property scheduled thereto belonging to the defendant. As the defendant failed to furnish security for the required sum or to show cause why such security should not be furnished within the stipulated time, the attachment over the said property has been made absolute on 03.01.2024. Hence the applicant bank is entitled to realise the amount found due as above by sale of the attached property also.

9. 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 @12% per annum, which is reasonable in the facts and circumstances of the case.

10. 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: Cash credit account the sum of Rs.7,30,571/- (Rupees seven lakhs thirty thousand five hundred and seventy one only) together with pendente lite and post-decree interest thereon @12% per annum from 19.03.2009 till realisation from the defendant and by sale of ‘A’ and ‘C’ schedule properties and also the property attached under IA No.992/2009; Term loan account the sum of Rs.27,29,817/- (Rupees twenty seven lakhs twenty nine thousand eight hundred and seventeen only) together with pendente lite and post-decree interest thereon @12% per annum from 19.03.2009 till realisation from the defendant and by sale of ‘B’ and ‘C’ schedule properties and also the property attached under IA No.992/2009; and costs and expenses borne by it for realization of the loans from the defendant.

11. ‘A’ to ‘C’ schedules to the OA and schedule to IA No.992/2009 shall be appended to this final order.

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

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

14. 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 27th day of August, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Shri.Valsalan V.V., Chief Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 01.03.2006 Hypothecation cum working capital agreement executed by the defendant. A2 20.01.2009 Revival letter executed by the defendant acknowledging the liability under the cash credit account. A3 01.03.2006 Term loan agreement executed by the defendant. A4 01.03.2006 Hypothecation agreement for term loan executed by the defendant. A5 20.01.2009 Revival letter executed by the defendant acknowledging the liability under the term loan account. A6

25.02.2006 Letter of the General Manager, District Industries Centre, Kottayam. A7

27.02.2006 Agreement to mortgage executed by the defendant. A8

02.02.2006 Proceedings of the District Industries Centre, Kottayam. A9

21.01.2009 Memorandum of deposit of title deeds executed by the defendant. A10 30.05.2008 Copy of lawyer notice issued to the defendant recalling the liability. A11 02.06.2008 Acknowledgement cards (2 Nos.) signed by the defendant. A12 … Certified copy of the statement of account relating to the cash credit facility. A13 … Statement showing the unapplied interest under Ext.A12 account. A14 … Statement showing the penal interest charged in Ext.A12 account. A15 … Certified copy of the statement of account relating to the term loan.

A16 … Statement showing the unapplied interest under Ext.A15 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 27th August, 2025

TA No.1254/2016 (OA NO.108/2009)

Between

State Bank of India, SME Kottayam Branch, Successor-in-interest of State Bank of Travancore, S.M.E. Branch, Sasthri Road, Kottayam – 686 001. ...Applicant

And

K.V.Vijaya Kumar, S/o.E.R.Krishna Pillai, Proprietor, Vijaya Rubber Industries, Development Plot, Poovanthuruthu P.O.,

Kottayam - 686 012. Residing at: Mundackal House, Poovanthuruthu P.O., Panachikkadu, Kottayam – 686 012. ...Defendant

F I N A L O R D E R