CANARA BANK vs ANOOP LAL S.R on 27 November 2025

1. Anoop Lal S.R., S/o. Sreekumar V., Aged 26 years, residing at Edamukhavoor Veedu, Ponnumangalam, Nemam P.O., Thiruvananthapuram, PIN – 695 020.

2. Sreekumar V.,

S/o. Velayudha Panicker,

Aged 54 years, residing at Edamukhavoor Veedu, Ponnumangalam, Nemam P.O., Thiruvananthapuram, PIN – 695 020.

3. Sreelatha K., W/o. Sreekumar, Aged 54 years, residing at Edamukhavoor Veedu, Ponnumangalam, Nemam P.O., Thiruvananthapuram, PIN – 695 020. …Defendants

This Original Application having been heard on 21.11.2025 in the presence of Advocate Smt. Saraswathy representing counsel for Advocate Sri. N.Rajagopalan Nair for the applicant bank and the defendants being exparte 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.11,96,470/- due under education loan account No.0819651015310 and a sum of Rs.8,05,831/- due under additional education loan account No.0819651016843, aggregating to Rs.20,02,301/- together with future interest thereon @15.95% per annum with monthly rests from the defendants, limiting the liability of the 3rd defendant to Rs.8,06,821/- (may be a mistake for Rs.8,05,831/-). Facts of the case: 2.1 The applicant, a public sector bank, having its head office at Bangalore in the State of Karnataka and having branch at Cantonment, Thiruvananthapuram District has filed this case to recover the outstanding loan amount from the defendants.

2.2 At the request of the 1st and 2nd defendants the applicant bank sanctioned education loan of Rs.4,00,000/- on 27.03.2006 which was duly acknowledged by the defendant Nos.1 and 2 in the sanctioned letter. After executing the relevant documents, the loan was disbursed. Again the 1st and 2nd defendants approached the bank for supplementary loan of Rs.3,00,000/- by submitting an application on 23.06.2007. The 3rd defendant also stood as a co-obligant for such additional loan, which was sanctioned on 28.06.2007. After execution of the security documents, the loans were disbursed. Subsequently the defendants also acknowledged the debts by executing relevant documents.

2.3. Despite issuance of lawyer notice dated 17.06.2015 for 2 loans separately, the defendants failed to repay the loans. In such premises, the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover the sum of Rs.11,96,470/- due under educational loan account No.0819651015310 and a sum of Rs.8,05,831/- due under educational loan account No.0819651016843, aggregating to Rs.20,02,301/- together with future interest thereon @15.95% per annum with monthly rests from the defendants, limiting the liability of the 3rd defendant to Rs.8,06,821/-;

(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.

3. Summons was issued to the defendants but the same could not be served. Hence the applicant issued summons to them by paper publication. But the defendants failed to appear in the case and they were set exparte on 13.09.2017. Proof Affidavit:

4. To establish the claim on behalf of the applicant bank, the Authorised Officer of the bank namely, Shri. Rajesh A. filed proof affidavit and produced the loan documents marked as Exhibits-A1 to A9. Subsequently, additional proof affidavit was filed by Smt. Gayathri G., Senior Manager on 31.01.2023 by producing the statement of accounts, which were marked as Exhibits-A10 to A12. The outstanding amount in the education loan and the subsequent additional loan comes to a total of Rs.20,02,301/- and the same is established from the account statements produced by the applicant bank and marked as

Exts.A10 to A12. As per Ext.A11 account statement produced by the applicant bank, the amount outstanding under loan account No.0819651016843 as on 22.01.2016 would come to Rs.8,05,831/- and not Rs.8,06,821/- as claimed in the OA. The applicant is entitled to get the entire outstanding from the 1st and 2nd defendants, limiting the liability of the 3rd defendant to Rs.8,05,831/-.

5. Further, it could be seen from para VI of the OA that the applicant bank has charged an amount of Rs.26,677/- and Rs.21,120/- by way of penal interest in educational loan accounts Nos.0819651015310 and 0819651016843 respectively. 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.26,677/- and Rs.21,120/- charged in the loan accounts.

6. Considering the amounts advanced, the interest and penal interest applied and the 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.11,69,793/- (i.e., after excluding the penal interest of

Rs.26,677/- from the claim amount of Rs.11,96,470/-) in educational loan account No.0819651015310 of Rs.4 lakhs and on the sum of Rs.7,84,711/- (i.e., after excluding the penal interest of Rs.21,120/- from the claim amount of Rs.8,05,831/-) in educational loan account No.0819651016843 of Rs.3 lakhs, which is reasonable in the facts and circumstances of the 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.11,96,470/- (Rupees eleven lakhs ninety six thousand four hundred and seventy only) due under educational loan account No. 0819651015310 together with pendente lite and post- decree interest @10% per annum on the sum of Rs.11,69,793/- (Rupees eleven lakhs sixty nine thousand seven hundred and ninety three only) from 29.02.2016 till realization from defendants 1 and 2;

(ii) the sum of Rs.8,05,831/- (Rupees eight lakhs five thousand eight hundred and thirty one only) due under educational loan account No.0819651016843

together with pendente lite and post-decree interest @10% per annum on the sum of Rs.7,84,711/- (Rupees seven lakhs eighty four thousand seven hundred and eleven only) from 29.02.2016 till realization from defendants 1 to 3; and

(iii) also costs and expenses borne by it for realization of the loans from the defendants, in proportion to the amount ordered to be recovered from them.

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

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

10. 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 November, 2025).

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant:

AW1: Sri. Rajesh A., Authorised Officer of the applicant bank. AW2: Smt. Gayathri G., Senior Manager of the applicant bank. Witness for Defendants: Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents Exhibit A-1 20.03.2006 Application for educational loan submitted by defendants 1 and 2. Exhibit A-2 27.03.2006 Sanction memorandum issued by the applicant bank. Exhibit A-3 27.03.2006 Loan agreement executed by the 2nd defendant. Exhibit A-4 23.06.2007 Application for educational loan submitted by defendants 1 and 2. Exhibit A-5 28.06.2007 Sanction memorandum issued by the applicant bank. Exhibit A-6

Supplemental agreement for educational loan executed by defendants 1 and 2. Exhibit A-7 28.06.2007 Guarantee Agreement executed by defendants 1 to 3. Exhibit A-8 13.06.2013 Acknowledgment of debt and security of an amount of Rs.8,33,239/- executed by defendants 1 and 2. Exhibit A-9 13.06.2013 Acknowledgment of debt and security of an amount of Rs.5,45,703/- executed by defendants 1 and 2. Exhibit A-10

Statement of account relating to education loan of Rs.4,00,000/- Exhibit A-11

Statement of account relating to education loan of Rs.3,00,000/- Exhibit A-12 04.10.2016 True copy of the Power of Attorney.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 27th November, 2025

TA No.610/2016 (OA No.332/2016)

Between

Canara Bank, Branch-Cantonment, Thiruvananthapuram, Represented by its Senior Manager and Power of Attorney Holder Mrs.Jaya Krishnan.

…Applicant

And

Anoop Lal S.R., S/o. Sreekumar V., Aged 26 years, residing at Edamukhavoor Veedu, Ponnumangalam, Nemam P.O., Thiruvananthapuram, PIN–695 020 & 2 Ors. …Defendants

F I N A L O R D E R