STATE BANK OF INDIA vs KOCHUTHRESSIA P.C on 15 September 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 15th day of September, 2025

TA No.697/2016 (OA No.1/2016) Between

State Bank of India, RASMECC, Thrissur.

…Applicant

And

Kochuthressia P.C., W/o.Joseph P.D., Perumpanachi House, KSHB, Plot No.32, M.G.Kavu, Thrissur – 680 581. …Defendant

This Original Application having been heard on 28.08.2025 in the presence of Advocates M/s.R.S.Kalkura and M.S.Kalesh for the applicant bank and the defendant 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 a sum of Rs.11,82,680/- together with future interest @12.05% per annum with monthly rests from the defendant and by sale of the 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 branches at various places including State Bank of India, RASMECC at Thrissur.

3. Pursuant to the application submitted by the defendant, applicant bank granted a vehicle loan of Rs.13,16,124/- vide sanction letter dated 30.10.2013. The defendant executed loan cum hypothecation agreement dated 30.10.2013 undertaking inter alia to hypothecate the vehicle purchased by her out of the loan availed from the applicant. After availing the loan, the defendant did not adhere to the repayment schedule and the account became grossly irregular. Despite a notice was issued to the defendant on 26.05.2015 demanding to discharge the liability, she did not settle the dues. Hence the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover a sum of Rs.11,82,680/- together with pendente lite and post-decree interest thereon from the defendant and by sale of the 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.

4. The defendant filed written statement admitting that the applicant bank sanctioned a car loan to her and she purchased a Renault Fluence E2 diesel VS IV car but the vehicle could not be registered in her name for the reason that the manufacturing month and year and the engine number of the vehicle are different from Form 22. Hence she filed a private complaint against TV Sundaram Iyengar & Sons and MD of Renault India Pvt. Ltd. and the investigation is going on. Later she approached the Consumer Redressal Forum, Thrissur and the case is ripe for trial. It is submitted that she is ready to pay off the entire amount due to the bank and requested to keep the OA pending till the case filed before the Consumer Forum is disposed of.

Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.B.Balagopal, Assistant General Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A6. The availing of the credit facility is well established from the documents placed by the applicant bank.

6. The defendant filed counter proof affidavit claiming that applicant bank is the 3rd respondent in the complaint filed before the Consumer Forum. It is contended that the OA claim is highly excessive and the statement produced is not correct. It is prayed that the applicant bank shall not proceed with coercive steps including taking possession of the vehicle as well as moving against her immovable property until final adjudication in C.C.No.584/2015 pending before the Consumer Forum. Along with counter proof affidavit, the defendant produced certified copy of the impleading petition filed by the bank before the Consumer Forum and version filed by the applicant therein.

7. After filing the written statement and counter proof affidavit, the defendant remained absent from the proceeding from 11.07.2022 and none appeared and represented for her to address argument in this case nor produced any material to show the outcome of the complaint filed by her. Further, there is no dispute with regard to the availing of the vehicle loan from the applicant bank and she undertook to repay the entire dues to the bank. According to the applicant bank, a sum of Rs.11,82,680/- is outstanding in the loan account as on 25.11.2015, which is clearly established from the account statement marked as Ext.A6. Merely because the defendant has filed a consumer case, she cannot be absolved in paying the loan availed by her from the applicant bank. Hence the applicant is entitled to recover the amount claimed in the OA from the defendant and also from the vehicle hypothecated to the bank.

8. The account statement produced by the applicant bank would show that the bank has charged a sum of Rs.8,862/- by way of penal interest in the vehicle loan account. It is well settled that penal interest cannot be capitalized and no interest can be charged on penal interest and hence the applicant bank is not entitled to get any pendente lite and post-decree interest on the aforesaid penal interest of Rs.8,862/- charged in the loan account.

9. Considering the amount advanced, interest and penal interest applied and default committed, I am of the view that the applicant bank is entitled to get pendente lite and post decree interest @10% per annum on the sum of Rs.11,73,818/- (i.e., after excluding the penal interest of Rs.8,862/- from the OA claim amount of Rs.11,82,680/-), 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:

(i) the sum of Rs.11,82,680/- (Rupees eleven lakhs eighty two thousand six hundred and eighty only) due under the vehicle loan account from the defendant and by sale of the schedule property;

(ii) pendente lite and post-decree interest @10% per annum on the sum of Rs.11,73,818/- (Rupees eleven lakhs seventy three thousand eight hundred and eighteen only) from 09.12.2015 till realisation from the defendant and by sale of the schedule property; and

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

11. The schedule to the OA 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 15th day of September, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Shri.B.Balagopal, Assistant General Manager of the applicant bank. DW1: Smt.Kochuthressia, defendant.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 24.10.2013 Application form for car loan submitted by the defendant to the applicant bank. A2 30.10.2013 Letter of arrangement duly endorsed by the defendant in favour of the applicant bank. A3 30.10.2013 Loan cum hypothecation agreement executed by the defendant in favour of the applicant bank. A4 30.10.2013 Letter of consent executed by the defendant in favour of the applicant bank. A5 26.05.2015 Office copy of the notice issued by the applicant bank to the defendant. A6 .. Certified copy of the statement of account relating to the vehicle loan.

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 15th September, 2025

TA No.697/2016 (OA No.1/2016)

Between

State Bank of India, RASMECC, Thrissur. …Applicant

And

Kochuthressia P.C., W/o.Joseph P.D., Perumpanachi House, KSHB, Plot No.32, M.G.Kavu, Thrissur. ...Defendant

F I N A L O R D E R