BANK OF INDIA vs SURESH KUMAR P.R on 29 November 2025

1. Suresh Kumar P.R.,

S/o.Aravindakshan Nair,

Punjhayil House,

Vallarakkad Post,

Thrissur – 680 584.

Additional address:

Punchayil House,

Door No.11/874,

Vyloppilly Nagar,

II Street, Nellankara,

East Fort P.O.,

Thrissur District – 680 005.

2. Ambili Sureshkumar,

W/o.Suresh Kumar P.R.,

Punjhayil House,

Vallarakkad Post,

Thrissur – 680 584.

Additional address:

Punchayil House,

Door No.11/874,

Vyloppilly Nagar,

II Street, Nellankara,

East Fort P.O.,

Thrissur District – 680 005.

…Defendants

This Original Application having been heard on 25.11.2025 in the presence of Advocate Sri.Vinod Jabar 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.21,69,731/- due under housing loan account together with future interest thereon @11.45% per annum with monthly rests from the defendants jointly and severally and by sale of the OA schedule property. Facts of the case:

2.1 The applicant, a public sector bank having its head office at Mumbai and one of its branches at Ayyanthole, Thrissur, has filed this case to recover the outstanding loan amount from the defendants. 2.2 The first and second defendants, who are husband and wife, availed a housing loan of Rs.20 lakhs on 09.04.2010 for the purpose of purchasing a land with building and other structures standing thereon by executing promissory note and agreement for home loan and also by depositing title deed of the said property towards creation of equitable mortgage after purchasing the same from the sanctioned loan amount. The 2nd defendant executed guarantee agreement dated 10.04.2010 in favour of the applicant bank. All the relevant documents including the original title deeds with the memorandum of deposit are produced in this case. 2.3 After availing the loan, the defendants did not repay the loan and the account became irregular. Subsequently, they executed a letter of acknowledgement on 04.02.2013. In spite of the same, they defaulted in repaying the loan. An Advocate notice was issued on 31.12.2015 calling the defendants to liquidate the liability but they did not respond to the same. As the defendants committed breach of promise of agreement, the applicant was constrained to file the OA claiming the following reliefs:

(i) to recover a sum of Rs.21,69,731/- due in the Housing Loan Account as on 11.01.2016 together with future interest @ 11.45% per annum with monthly rests from 12.01.2016 onwards till realization;

(ii) to recover the entire costs of the proceedings from the defendants jointly and severally and also through sale of the property included in the schedule and their other personal assets in case the secured assets are found insufficient to cover the debts and such other modes of recovery as are deemed fit and proper;

(iii) to issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

3. In this case after due service of summons by paper publication, the defendants did not appear to contest the case and remained absent all alone. Hence they are placed exparte on 08.08.2017. Proof Affidavit:

4. To establish the claim on behalf of the applicant bank, the Senior Manager of the concerned Branch namely, Shri. Anirudh A. filed proof affidavit and produced the loan documents marked as Exhibits-A1 to A12. From the affidavit it can be seen that the applicant realized an amount of Rs.22,10,000/- during pendency of the OA by sale of the mortgaged property and the balance amount of Rs.4,16,242/- is due from the defendants. As per Annexure-A14 statement produced along with the OA, the total outstanding as on 11.01.2016 was Rs.21,69,731.00 including penal interest of Rs.1,41,133/-.

5. The defendants having not appeared in this case and did not dispute the claim, there is no reason to disbelieve the statement of account which was duly certified. Hence the applicant bank is entitled to recover the outstanding amount from the first and second defendants, who are jointly and severally liable to pay the same, subject to adjustment of the recovery of Rs.22,10,000/- on 20.04.2017.

6. It could be seen from the statement of account produced along with the OA that an amount of Rs.1,41,133/- is charged as penal interest in the housing 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 over the said amount.

7. Considering the amount involved, interest and penal interest applied, default committed and substantial recovery effected by sale of the secured asset and also the loan granted being a housing loan, the applicant bank is entitled to get pendente lite and post-decree interest @9% per annum on the sum of Rs.20,28,598/- (i.e., after excluding the penal interest of Rs.1,41,133/- from the OA claim amount of Rs.21,69,731/-), which is reasonable in the facts and circumstances of the present 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.21,69,731/- (Rupees twenty one lakhs sixty nine thousand seven hundred and thirty one only) due under the housing loan account, less the sum of Rs.22,10,000/- (Rupees twenty two lakhs ten thousand only) recovered by the applicant bank on 20.04.2017, from the defendants jointly and severally;

(ii) pendente lite and post-decree interest @9% per annum on the sum of Rs.20,28,598/- (Rupees twenty lakhs twenty eight thousand five hundred and ninety eight only) from 14.01.2016 till realization, less the sum of Rs.22,10,000/- (Rupees twenty two lakhs ten thousand only) recovered by the applicant bank on 20.04.2017, from the defendants jointly and severally; 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 29th day of November, 2025)

[SOVAN KUMAR DASH]

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

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 01.04.2010 Home loan application submitted by the defendants. A2 09.04.2010 Sanction letter issued by the applicant bank sanctioning housing loan of Rs.20 lakhs to the defendants. A3 10.04.2010 demand promissory note for Rs.20 lakhs executed by the 1st defendant. A4 10.04.2010 Letter executed by the 1st defendant in favour of the applicant bank. A5 10.04.2010 Agreement for home loan executed by the 1st defendant. A6

10.04.2010 Composite agreement executed by the 1st defendant. A7

10.04.2010 Deed of guarantee executed by the 2nd defendant. A8

04.02.2013 Letter of acknowledgement executed by the defendants. A9

31.12.2015 Copy of lawyer notice issued to the defendants. A10 31.12.2015 Copy of postal receipts (2 Nos.) evidencing despatch of lawyer notice to the defendants. A11 … Returned postal envelopes (2 Nos.) sent to the defendants. A12 … Certified copy of the statement of account relating to the housing loan.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 29th November, 2025

TA No.425/2016 (OA NO.97/2016)

Between

Bank of India, Ayyanthole Branch, Akkarapattiakkal Building, Thrissur District. …Applicant

And

Suresh Kumar P.R., S/o.Aravindakshan Nair, Punjhayil House, Vallarakkad Post, Thrissur – 680 584. Additional address: Punchayil House, Door No.11/874, Vyloppilly Nagar, II Street, Nellankara, East Fort P.O., Thrissur District – 680 005 & another.

...Defendants

F I N A L O R D E R