STATE BANK OF INDIA vs JAYANIDHI N on 28 November 2025

1. Jayanidhi N.,

Kottayam District.

2. Jayadevan N.,

Kottayam District.

…Defendants

This Original Application having been heard on 25.11.2025 in the presence of Advocates M/s.K.K.John and Asish K.John for the applicant bank, and stood over to this day for consideration, the Tribunal delivered the following:

TA 503/2016 (OA 125/2008)

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.18,95,577/- due under agricultural term loan account together with future interest thereon @13.75% per annum with half yearly rests from the defendants jointly and severally and by sale of ‘A’ and ‘B’ schedule properties. Facts of the case:

2. At the request of the 1st defendant, applicant bank sanctioned an agricultural term loan of Rs.14 lakhs as per sanction letter dated 19.04.2005 and the 2nd defendant stood as guarantor for the loan. The defendants availed the facility after executing security documents and hypothecated the movable assets described in ‘A’ schedule. As collateral security for the loan, the defendants created mortgage over ‘B’ schedule property by deposit of title deeds with the applicant bank on 19.04.2005 and executed letter of confirmation of mortgage dated 20.04.2005. After availing the loan, the defendants failed to repay the dues and hence a lawyer notice was issued demanding repayment of the outstanding dues but the defendants did not liquidate the liability. In such premises, applicant bank was constrained to file the OA claiming the following reliefs:

TA 503/2016 (OA 125/2008)

(i) To recover the sum of Rs.18,95,577/- together with pendente lite and post-decree interest thereon from the defendants jointly and severally and by sale of ‘A’ and ‘B’ schedule properties;

(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. Despite service of summons, the defendants did not appear and hence they were declared exparte on 18.06.2008. Proof Affidavit:

4. To establish the claim on behalf of the applicant bank, one Mr.P.K.Surendran Nair, Branch Manager has filed proof affidavit and produced the loan documents marked as Exts.A1 to A14. Thereafter, the applicant bank produced an account statement along with a memo dated 30.06.2025 which is marked as Ext.A15. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loan is well established from the documents placed by the applicant bank. A sum of Rs.18,95,577/- is outstanding in the loan account as TA 503/2016 (OA 125/2008)

on 16.04.2008, which is clearly established from the account statements marked as Exts.A12 and A13.

5. The applicant bank filed a memo on 07.04.2025 stating that an amount of Rs.12,78,349/- was adjusted in the loan account on 28.06.2008 under the Debt Waiver Scheme, 2008, which is evident from the account statement produced along with memo dated 30.06.2025.

6. Considering the amount advanced, interest applied and default committed and also the facility granted being an agricultural loan, I am of the view that applicant bank is entitled to get pendente lite and post-decree interest @6% per annum, which is reasonable in the facts and circumstance 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.18,95,577/- (Rupees eighteen lakhs ninety five thousand five hundred and seventy seven only) due under the agricultural term loan account, less the sum of Rs.12,78,349/- (Rupees twelve lakhs seventy eight thousand three hundred and forty nine TA 503/2016 (OA 125/2008)

only) adjusted in the loan account under Debt Waiver Scheme on 28.06.2008, from the defendants jointly and severally and by sale of ‘A’ and ‘B’ schedule properties;

(ii) Pendente lite and post-decree interest @6% per annum on the sum of Rs.18,95,577/- (Rupees eighteen lakhs ninety five thousand five hundred and seventy seven only) from 17.04.2008 till realization, less the sum of Rs.12,78,349/- (Rupees twelve lakhs seventy eight thousand three hundred and forty nine only) adjusted in the loan account on 28.06.2008, from the defendants jointly and severally and by sale of ‘A’ and ‘B’ schedule properties; and

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

8. A’ and ‘B’ schedules 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.

TA 503/2016 (OA 125/2008)

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 28th day of November, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

TA 503/2016 (OA 125/2008)

A P P E N D I X Witness for Applicant: AW1: Sri.P.K.Surendran Nair, Branch Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 19.04.2005 Sanction letter issued by the applicant bank sanctioning agricultural term loan of Rs.14 lakhs to the 1st defendant. A2 19.04.2005 Consent letter executed by the 1st defendant. A3 19.04.2005 Letter of consent executed by the 2nd defendant. A4 19.04.2005 Agreement of hypothecation executed by the 1st defendant. A5 … English translation of Ext.A4 agreement. A6 19.04.2005 Guarantee agreement executed by the 2nd defendant. A7 … English translation of Ext.A6. A8 18.10.1986 Gift deed No.3480/86 of Pampady SRO. A9 … English translation of Ext.A8. A10 20.04.2005 letter executed by the defendants confirming the deposit of title deed with the applicant bank. A11 16.02.2005 Notarised copy of General Power of Attorney executed by the 2nd defendant in favour of the 1st defendant. A12 … Certified copy of the statement of account relating to the agricultural term loan. A13 … statement showing the interest accrued under Ext.A12 account. A14 … Statement showing the rate of interest applied in Ext.A12 account from time to time.

TA 503/2016 (OA 125/2008)

A15 26.06.2025 Statement showing the credit of Rs.12,78,349/- in the loan account on 28.06.2008.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

TA 503/2016 (OA 125/2008)

TA 503/2016 (OA 125/2008)

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 28th November, 2025

TA No.503/2016 (OA No.125/2008)

Between

State Bank of India, Kottayam Branch, Kottayam District.

…Applicant

And

Jayanidhi N.,

Kottayam District & another.

…Defendants

F I N A L O R D E R