STATE BANK OF INDIA vs SHIHABUDEEN A on 31 October 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 31st day of October, 2025

TA No.1052/2016 (OA No.493/2013) Between

State Bank of India, Successor-in-interest of State Bank of Travancore, Kilikollur Branch, Kollam. Represented by the Chief Manager, Stressed Assets Resolution Centre, State Bank of India, Arpan Tower, Kadappakada, Kollam – 691 008. …Applicant [Applicant was substituted in the place of State Bank of Travancore vide order dated 13.06.2018 in IA No.1098/2017]

And

A.Shihabudeen, S/o.Abdul Aziz, Proprietor, M/s.AR Furniture Mart. Residing at Varuvila Veedu, Mythri Nagar 19, Chandanathope P.O., Kollam - 691 014.

…Defendant

This Original Application having been heard on 28.10.2025 in the presence of Advocates M/s.K.K.John and Asish K.John 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.17,82,882/- due under cash credit account together with future interest on the sum of Rs.17,30,715/- @13% per annum with monthly rests from the defendant personally and his assets and by sale ‘A’ schedule properties. Facts of the case:

2. The original applicant was State Bank of Travancore, a body corporate established under the State Bank of India (Subsidiary Banks) Act, 1959 having its head office at Thiruvananthapuram and one of its branches at Kilikollur, Kollam.

3. The defendant is a businessman carrying on the business in manufacture and sale of furniture etc. under the name and style ‘M/s.AR Furniture Mart’, Kollam. At his request, erstwhile State Bank of Travancore sanctioned a cash credit (pledge) limit of Rs.5 lakhs on 24.08.2005. The loan was primarily secured by hypothecation of stock-in-trade described in ‘A’ schedule. Thereafter the limit was enhanced to Rs.10 lakhs on

17.12.2007. The defendant availed the facility and utilized the money for business purposes but failed to repay the amount in terms of the loan agreement. Consequently, the account became NPA. The defendant executed debt acknowledgement cum linking letter on 17.12.2007 and revival letter on 15.10.2010 acknowledging the liability under the cash credit account but he did not take any step to liquidate the liability. In such premises, the OA was filed claiming the following reliefs:

(i) To recover a sum of Rs.17,82,882/- together with pendente lite and post decree interest on the sum of Rs.17,30,715/- from the defendant personally and his assets and by sale ‘A’ 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 was served with summons by way of substituted service by effecting publication of summons in Mathrubhumi daily, Kollam edition on 23.05.2024. But he neither appeared nor was he represented in this proceeding.

Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Ramesan N., Chief Manager has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A11. The availing of the loan and creation of hypothecation charge over ‘A’ schedule properties are well established from the documents placed by the applicant bank. A sum of Rs.17,82,882/- is outstanding in the cash credit account as on 10.10.2013, which is clearly established from the account statement marked as Ext.A11.

6. Considering the amount advanced, interest and penal 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 on the sum of Rs.17,30,715/- (i.e., after excluding the penal interest of Rs.52,167/- from the OA claim amount of Rs.17,82,882/-), which is reasonable in the facts and circumstances of the present case.

7. 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.17,82,882/- (Rupees seventeen lakhs eighty two thousand eight hundred and eighty-two only) due under the cash credit account from the defendant personally and by sale of ‘A’ schedule properties, if available;

(ii) pendente lite and post-decree interest @12% per annum on the sum of Rs.17,30,715/- (Rupees seventeen lakhs thirty thousand seven hundred and fifteen only) from 11.10.2013 till realization from the defendant personally and by sale of ‘A’ schedule properties, if available;

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

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 31st day of October, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 24.08.2005 Sanction letter issued by the applicant bank and duly acknowledged by the defendant. A2 24.08.2005 Promissory Note for an amount of Rs.5,00,000/- executed by the defendant in favour of the applicant bank. A3 24.08.2005 Letter of continuity executed by the defendant in favour of the applicant bank. A4 24.08.2005 Agreement for cash credit executed by the defendant in favour of the applicant bank. A5 17.12.2007 Sanction letter for enhanced cash credit issued by the applicant bank and duly acknowledged by the defendant. A6

17.12.2007 Promissory Note for an amount of Rs.5,00,000/- executed by the defendant in favour of the applicant bank A7

17.12.2007 Letter of continuity executed by the defendant in favour of the applicant bank. A8

17.12.2007 Agreement for cash credit executed by the defendant in favour of the applicant bank. A9

17.12.2007 Debt acknowledgement cum linking letter executed by the defendant. A10 15.10.2010 Revival letter executed by the defendant A11 10.10.2013 Certified copy of the account in respect of Cash credit account No.67001732708 maintained with the kilikollur Branch.

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 31st October, 2025

TA No.1052/2016 (OA No.493/2013)

Between

State Bank of India, Successor-in-interest of State Bank of Travancore, Kilikollur Branch, Kollam. Represented by the Chief Manager, Stressed Assets Resolution Centre, State Bank of India, Arpan Tower, Kadappakada, Kollam – 691 008. …Applicant

And

A.Shihabudeen, S/o.Abdul Aziz, Proprietor, M/s.AR Furniture Mart. Residing at Varuvila Veedu, Mythri Nagar 19, Chandanathope P.O., Kollam - 691 014. ...Defendant

F I N A L O R D E R