STATE BANK OF INDIA vs SUSHMI SIRAJ on 3 November 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 3rd day of November, 2025

TA No.613/2016 (OA No.319/2016) Between

State Bank of India, Nanthencode Branch, Nanthencode, Kowdiar P.O.,

Thiruvananthapuram.

…Applicant [Applicant was substituted in the place of State Bank of Travancore as per order dated 13.10.2017 in IA No.1753/2017] And

Sushmi Siraj, Tintu Sushmi, Manakadu Nagar, 126, Vadakkevila P.O., Pallimukku, Kollam - 691 010. Also at: Flat No.3C, Choice Heights, Museum Road, Nanthencode, Kowdiar P.O., Thiruvananthapuram. Proprietrix, Chic 25 Fashion Store. Now at: TC-5/2541, Anupama, Golf Links Road,

Thiruvananthapuram – 695 003. …Defendant This Original Application having been heard on 31.10.2025 in the presence of Advocate Sri.Saju N.A for the applicant bank 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.11,13,389/- and Rs.1,46,021/- due under cash credit account and term loan account respectively together with future interest thereon @13.25% plus penal interest @2% per annum with monthly rests in cash credit account and @13.50% plus penal interest @2% per annum with monthly rests in term loan account from the defendant and her assets and by sale of OA schedule property. Facts of the case:

2. The applicant is a body corporate constituted under the provisions of State Bank of India Act, 1955 having its branches though out India including one at Nanthencode, Thiruvananthapuram.

3. At the request of the defendant, erstwhile State Bank of Travancore sanctioned a cash credit limit of Rs.10 lakhs and medium-term loan of Rs.9 lakhs for her proprietary concern as per sanction letter dated 02.09.2010. As security for the loans, the defendant executed hypothecation-cum-working capital agreement whereby it was agreed that the movables described in the schedule shall stand hypothecated in favour of the bank. The defendant availed the facilities and withdrew money from the bank but committed default in repayment of the amount. She executed revival letters acknowledging the liability under the loan accounts. Despite lawyer notice was issued to the defendant calling upon her to repay the dues, she did not clear the liability. Hence the bank was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.12,59,410/- together with pendente lite and post-decree interest thereon from the defendant and her assets 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 contending inter alia that she has made prompt repayments in both the loan accounts and has never been a chronic defaulter and the repayments became delayed only for a short duration in 2015 on account of shifting of defendant’s shop to a new premises. She never executed any revival letters as alleged by the bank. The defendant remitted a sum of Rs.2 lakhs towards final outstanding amount in the term loan account vide cash receipt dated 10.3.2016 produced along with the written statement. Thereafter, the branch manager made endorsement in the statement of account that the term loan account stood closed. Several requests were made to the bank to issue an account statement in respect of the cash credit account showing the actual amount outstanding but they did not issue the same. The rate of interest claimed in the OA is untenable. The OA lacks merits and hence the same may be dismissed with costs. Proof Affidavit:

5. In order to establish the claim on behalf of the applicant bank, one Mr.Shrankhala Yadav, Assistant Manager has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A8. 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 is well established from the documents placed by the applicant bank.

6. Despite time granted, the defendant has not filed any counter proof affidavit and hence the chance of filing the same stood closed on 14.11.2018. Thereafter on 20.12.2018, the defendant has come out with a counter proof affidavit along with IA No.2961/2018 to accept the same but none appeared to move the IA and hence the counter proof affidavit was not accepted on record. The defendant remained absent from the proceeding from 30.05.2023 and none came forward to address argument in this case.

7. On careful evaluation of the submissions and the available materials, it appears that there is no dispute with regard to the availing of the credit facilities. It is the contention of the defendant that she has not executed the revival letters produced by the applicant. On perusal of records, it could be seen that the revival letters dated 19.08.2013 marked as Exts.A5 and A6 were executed by the defendant by affixing her signature on the same with seal of her proprietary concern viz., ‘M/s.CHIC25 fashion store’ acknowledging the liability under the cash credit and term loan accounts. Mere denial of execution of the aforesaid documents cannot be accepted. Further to that, the defendant has closed the term loan account by paying the outstanding dues, which fact is admitted by the applicant bank at paragraph 6 of their proof affidavit. The applicant is claiming a sum of Rs.11,13,389/- due under the cash credit account as on 04.02.2016 which is clearly established from the account statement marked as Ext.A8.

8. Considering the amount advanced, interest applied and repayments effected, I am of the view that applicant bank is entitled to get pendente lite and post decree interest @10% per annum, which is reasonable in the facts and circumstances of the case.

9. 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.11,13,389/- (Rupees eleven lakhs thirteen thousand three hundred and eighty-nine only) due under the cash credit account from the defendant and by sale of ‘A’ schedule property, if available;

(ii) pendente lite and post-decree interest @10% per annum on the sum of Rs.11,13,389/- (Rupees eleven lakhs thirteen thousand three hundred and eighty nine only) from 05.02.2016 till realization from the defendant and by sale of ‘A’ schedule property, if available; and

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

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

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

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

13. 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 3rd day of November, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

A P P E N D I X Witness for Applicant: AW1: Sri.Shrankhala Yadav, Assistant Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 02.09.2010 Sanction letter issued by the bank and acknowledged by the defendant. A2 02.09.2010 Hypothecation cum working capital agreement executed by the defendant in favour of the bank. A3 02.09.2010 Term loan agreement executed by the defendant in favour of the bank. A4 02.09.2010 Hypothecation agreement for term loan executed by the defendant in favour of the applicant bank. A5 19.08.2013 Revival letter for cash credit facility executed by the defendant acknowledging the liability. A6 19.08.2013 Revival letter for medium term loan facility executed by the defendant acknowledging the liability. A7 13.10.2015 Office copy of the lawyer’s notice issued to the defendant. A8 02.02.2016 Certified copy of the statement of account relating to the cash credit facility.

Defendant’s Exhibits – Nil

PRESIDING OFFICER

SCHEDULE

Stock of all fabrics, dress materials, book debts, assets, machinery, buildings, receivable etc. of the defendant.

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 3rd November, 2025

TA No.613/2016 (OA NO.319/2016)

Between

State Bank of India, Nanthencode Branch, Nanthencode, Kowdiar P.O., Thiruvananthapuram. …Applicant And

Sushmi Siraj, Tintu Sushmi, Manakadu Nagar, 126, Vadakkevila P.O., Pallimukku, Kollam- 691 010. Also at: Flat No.3C, Choice Heights, Museum Road, Nanthencode, Kowdiar P.O., Thiruvananthapuram. Proprietrix, Chic 25 Fashion Store. Now at: TC-5/2541, Anupama, Golf Links Road,

Thiruvananthapuram. ...Defendant

F I N A L O R D E R