UNION BANK OF INDIA vs JOSEPH VARGHESE on 2 September 2025

1. Joseph Varghese, S/o.Varghese, Cherukarakunnel House, Valiya Thovala P.O., Ezhukumvayal Kara, Erattayar, Kalkoonthal Village, Udumpanchola Taluk, Idukki District, Kerala State.

2. Elsy Joseph @ Gils, Wife of Joseph Varghese, Cherukarakunnel House, Valiya Thovala P.O., Ezhukumvayal kara, Erattayar, Kalkoonthal Village, Udumpanchola Taluk, Idukki District, Kerala State.

…Defendants

This Original Application having been heard on 07.08.2025 in the presence of Advocates M/s.A.V.Thomas and Nidhi Sam John for the applicant bank and the defendants being absent 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.15,49,571/- due under agricultural long term and short-term loan accounts together with future interest thereon @12% per annum with half yearly rests from the defendants jointly and severally and their assets. 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 Thankamani, Idukki District.

3. The 1st defendant availed two agricultural term loans viz., long term loan and short-term loan from the applicant bank. In respect of long-term loan, the 1st defendant executed demand promissory note dated 12.11.2005 for Rs.5,19,297/- and as regards the short-term loan, he executed demand promissory note dated 12.11.2005 for Rs.5,81,854/- and letter of continuity in favour of the applicant bank. The 2nd defendant executed letter of guarantee dated 12.11.2015 guaranteeing due repayment of the loans availed by the 1st defendant. After availing the facilities, the defendants did not comply with the terms and conditions of the grant of loans and defaulted in making repayments. In spite of repeated requests, they did not regularize the accounts. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.15,49,571/- together with pendente lite and post-decree interest thereon from the defendants jointly and severally and their assets;

(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 filed written statement denying the availing of loans and execution of the loan documents. It is contended that the loan accounts mentioned in the application are forged accounts created by the then Manager against whom the Police registered Crime No.26/2006 and the matter is pending. The applicant bank has framed the suit based on forged documents and hence these defendants are not liable to pay any amount as claimed in the OA. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.Rohith K.Saleel, Branch 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 credit facilities is established from the documents placed by the applicant bank. An aggregate sum of Rs.15,49,571/- is outstanding in the loan accounts as on 20.03.2009, which is clearly established from the account statements marked as Exts.A9 to A14.

6. The defendants have not filed counter proof affidavit within the time granted. They have also failed to prove that the signatures appended in the loan documents are not theirs. In absence of any proof, the claim of the defendants cannot be accepted. Further, the allegation of fraud cannot be adjudicated in an application filed under S.19(1) of the Recovery of Debts and Bankruptcy Act, 1993, wherein the Tribunal is empowered to determine the debt due and issue recovery certificate for recovery of the same. The defendants remained absent from the proceeding from 13.08.2018 onwards and none came forward to address argument in this case. The materials on record would substantiate the claim put forth by the applicant bank.

7. Considering the amount advanced, interest applied and the facilities granted being agricultural loans, 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.15,49,571/- (Rupees fifteen lakhs forty nine thousand five hundred and seventy one only) due under the agricultural term loan accounts from the defendants jointly and severally and their assets;

(ii) Pendente lite and post-decree interest @6% per annum on the sum of Rs.15,49,571/- (Rupees fifteen lakhs forty nine thousand five hundred and seventy one only) from 29.06.2009 till realization from the defendants jointly and severally and their assets; and

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

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

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

11. 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 2nd day of September, 2025)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Sri.Rohith K.Saleel, Branch Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 12.11.2005 Certified copy of the demand promissory note for Rs.5,19,297/- executed by the 1st defendant in favour of the applicant bank in respect to long term loan. A2 29.08.2006 Payment slip/voucher for Rs.25,000/- remitted in the long term loan by the 1st defendant to the applicant bank. A3 02.09.2008 Debit Balance confirmation letter executed by the 1st defendant in favour of the applicant bank in respect to long term loan. A4 12.11.2005 Certified copy of the demand promissory note for Rs.4,81,854/- executed by the 1st defendant in favour of the applicant bank in respect to short term loan. A5 12.11.2005 Certified copy of the letter of continuity executed by the 1st defendant in favour of the applicant bank in respect to short term loan. A6 29.08.2006 Payment slip/voucher for Rs.30,000/- remitted in the short term loan by the 1st defendant to the applicant bank. A7 02.09.2008 Debit Balance confirmation letter executed by the 1st defendant in favour of the applicant bank in respect to short term loan. A8 12.11.2005 Certified copy of the letter of guarantee executed by the 2nd defendant in favour of the applicant bank. A9 .. Extract of the accounts in respect of the long term loan account for the period from 07.12.2004 to 31.12.2004.

A10 27.12.2007 Extract of the accounts in respect of the long term loan account for the period from 01.01.2005 to 30.11.2007. A11 .. Statement showing the interest accrued from 01.10.2006 to 20.03.2009 in respect of long term loan account. A12

Extract of the accounts in respect of the short term loan account for the period from 19.07.2003 to 31.12.2004 A13 27.12.2007 Extract of the accounts in respect of the short term loan account for the period from 01.01.2005 to 30.11.2007. A14 .. Statement showing the interest accrued from 01.10.2006 to 20.03.2009 in respect of short term loan account. A15 .. Statement showing the rate of interest charged in the long term loan and short term loan accounts. A16 08.07.1988 True photocopy of power of attorney executed by the applicant bank in favour of AW1. A17 .. SB account opening form signed by the 1st defendant. A18 09.12.1998 True copy of the identity card of the 1st defendant issued by the Election Commission of India. A19 .. Postal acknowledgement card signed by the 1st defendant acknowledging the receipt of notice issued by the applicant bank.

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 2nd September, 2025

TA No.147/2017 (OA NO.218/2009)

Between

Union Bank of India, Thankamani Branch, Building No.PK-IV-330, Thankamani P.O., Idukki – 685 515.

…Applicant

And

Joseph Varghese, S/o.Varghese, Cherukarakunnel House, Valiya Thovala P.O., Ezhukumvayal Kara, Erattayar, Kalkoonthal Village, Udumpanchola Taluk, Idukki District, Kerala State & another.

...Defendants

F I N A L O R D E R