INDIAN OVERSEAS BANK vs D. SASI on 23 December 2025

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated this the 23rd day of December, 2025

TA No.929/2016 (OA No.525/2015) Between

Indian Overseas Bank,

Chengannur Branch,

Mankoottathil Complex,

Court Road, Alappuzha - 682 121.

…Applicant

And

D.Sasi,

S/o.V.V.Damodaran,

Proprietor, M/s.Sree Sakthi-

Coir Industries,

Chirakkadavil,

Madathil Karazhma,

Oachira P.O., Kollam.

Residing at:

Ainuvelivadakkethil,

Pulimukkathu Varikkolil –

Puthen Veedu, Pallickal,

Vettikode P.O., Bharanikkavu,

Alleppey District.

…Defendant

This Original Application having been heard on 15.12.2025 in the presence of Advocate Arya Satheesh, representing counsel for Advocates M/s.George Varghese and P.R.Milton for the applicant bank and stood over to this day for consideration, the Tribunal delivered the following:

TA 929/2016 (OA 525/2015)

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 an aggregate sum of Rs.84,15,232/- due under the loan accounts together with future interest and costs from the defendant and by sale of the schedule properties. Facts of the case:

2. The applicant is a body corporate incorporated under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its registered office at Chennai and one of its branches at Chengannur, Alappuzha District.

3. At the request of the defendant, applicant bank sanctioned the following credit facilities: Date of sanction Type of loan Amount Collateral security 21.01.2010 Agri green credit Rs.3.50 lakhs Item Nos.1 to 6 properties Kisan credit card loan Rs.2 lakhs 06.08.2010 Term loan Rs.36 lakhs Item No.7 property OCC Rs.4 lakhs

The defendant availed the facilities but defaulted in repayment. Consequently, the accounts were classified as NPA on 30.06.2012. Thereafter, the applicant issued notice under S.13(2)

TA 929/2016 (OA 525/2015)

of the SARFAESI Act on 24.06.2013 demanding repayment of the outstanding dues but the defendant did not clear the liability. Hence the applicant was constrained to file the OA claiming the following reliefs:

(i) To recover an aggregate sum of Rs.84,15,232/- together with pendente lite and post-decree interest from the defendant and by sale of the 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 entered appearance and sought adjournment for filing written statement, but he did not file the same despite sufficient time granted. Thereafter, he remained absent from the proceeding, and none appeared to address argument in this case. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mrs.Geetha Kumari M.P., Chief Manager of the bank has filed proof affidavit and produced the loan documents marked as TA 929/2016 (OA 525/2015)

Exhibits A1 to A30. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendant. The availing of the loans is well established from the documents placed by the applicant bank. An aggregate sum of Rs.84,15,232/- is outstanding in the loan accounts as on 05.10.2015, which is clearly established from the account statements marked as Exts.A25 to A28.

6. The statement produced by the applicant bank at page No.132 of the OA would show that penal interest has been charged in the loan accounts and capitalized the same in all the accounts, the details of which are furnished below: A/c Penal interest Impact of capitalization of penal interest Term loan Rs.3,28,769/- Rs.64,868/- OCC Rs.33,373/- Rs.6,973/- Agricultural green card loan Rs.25,330/- Rs.5,607/- Kisan credit card loan Rs.17,750/- Rs.3,937/-

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 recover the aforesaid sum of Rs.64,868/-, Rs.6,973/-, Rs.5,607/- and Rs.3,937/- debited as interest on capitalization of penal interest in the term loan, OCC, agricultural TA 929/2016 (OA 525/2015)

green card loan and kisan credit card loan respectively and cannot claim any pendente lite and post-decree interest on the aforementioned penal interest of Rs.3,28,769/-, Rs.33,373/- Rs.25,330/- and Rs.17,750/- charged in the loan accounts.

7. During the pendency of the case, applicant bank filed IA No.2664/2018 seeking attachment of the property belonging to the defendant. The Tribunal has granted an order of attachment over the attachment schedule property on 21.01.2019 and hence the applicant bank is entitled to realize the amount found due by sale of the attached property also.

8. Considering the amount advanced, interest and penal interest applied, repayments effected and default committed, I am of the view that applicant bank is entitled to get pendente lite and post-decree interest in the manner stated below, 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, applicant bank is given a final order allowing it to recover the amounts as given below: Term loan account Rs.68,32,903/- (Rupees sixty eight lakhs thirty two thousand nine hundred and three only) together with TA 929/2016 (OA 525/2015)

future interest @11% per annum on the sum of Rs.65,04,134/- (Rupees sixty five lakhs four thousand one hundred and thirty four only) from 06.10.2015 till realization from the defendant and by sale of item No.7 property and also by sale of the attachment schedule property; OCC Rs.6,77,000.30 (Rupees six lakhs seventy seven thousand and Paise thirty only) together with future interest @11% per annum on the sum of Rs.6,43,627.30 (Rupees six lakhs forty three thousand six hundred and twenty seven and Paise thirty only) from 06.10.2015 till realization from the defendant and by sale of item No.7 property and also by sale of the attachment schedule property; Agricultural green card loan Rs.5,37,766/- (Rupees five lakhs thirty seven thousand seven hundred and sixty six only) together with future interest @6% per annum on the sum of Rs.5,12,436 (Rupees five lakhs twelve thousand four hundred and thirty six only) from 06.10.2015 till realization from the defendant and by sale of item Nos.1 to 6 properties and also by sale of the attachment schedule property; Kisan credit card loan Rs.2,86,178/- (Rupees two lakhs eighty six thousand one hundred and seventy eight only) together with future interest @6% per annum on the sum of Rs.2,68,428/- (Rupees two lakhs sixty eight thousand four hundred and twenty eight only) from 06.10.2015 till realization from the defendant and by sale of item TA 929/2016 (OA 525/2015)

Nos.1 to 6 properties and also by sale of the attachment schedule property; and proportionate costs and expenses borne by it for realization of the loans from the defendant.

10. The schedule to the OA and schedule to IA No.2664/2018 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 23rd day of December, 2025)

[SOVAN KUMAR DASH] PRESIDING OFFICER

TA 929/2016 (OA 525/2015)

A P P E N D I X Witness for Applicant: AW1: Smt.Geetha Kumari M.P., Chief Manager of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 … Credit sanction advice issued by the applicant bank sanctioning agri green credit of Rs.3.50 lakhs to the defendant. A2 21.01.2010 Demand promissory note for Rs.3.50 lakhs executed by the defendant. A3 21.01.2010 Letter of hypothecation executed by the defendant. A4 … Credit sanction advice issued by the applicant bank sanctioning KCC limit of Rs.2 lakhs to the defendant. A5 21.01.2010 Demand promissory note for Rs.2 lakhs executed by the defendant. A6 21.01.2010 Letter of hypothecation in respect of the KCC loan executed by the defendant. A7 06.06.2006 Sale deed No.876/2006 of Cheriyanad SRO. A8 06.06.2006 Sale deed No.877/2006 of Cheriyanad SRO. A9 06.06.2006 Sale deed No.882/2006 of Cheriyanad SRO. A10 21.01.2008 Sale deed No.139/2008 of Cheriyanad SRO. A11 21.01.2010 Letter executed by the defendant confirming the deposit of title deeds with the applicant bank. A12 21.01.2010 Consent-cum-authorisation letter executed by the defendant. A13 03.01.2013 revival letter executed by the defendant acknowledging the liability under the agricultural loan accounts. A14 06.08.2010 Credit sanction advice issued by the applicant bank sanctioning term loan of Rs.36 lakhs and OCC limit of Rs.4 lakhs to the defendant.

TA 929/2016 (OA 525/2015)

A15 06.08.2010 Demand promissory note for Rs.36 lakhs executed by the defendant. A16 06.08.2010 Term loan agreement executed by the defendant. A17 06.08.2010 Letter executed by the defendant in favour of the applicant bank. A18 06.08.2010 Letter of undertaking executed by the defendant. A19 06.08.2010 Demand promissory note for Rs.40 lakhs executed by the defendant. A20 06.08.2010 Letter of hypothecation executed by the defendant. A21 15.02.2010 Sale deed No.586/2010 of Oachira SRO. A22 03.08.2010 Letter executed by the defendant confirming the deposit of title deed with the applicant bank. A23 03.06.2013 Revival letter executed by the defendant acknowledging the liability under the OCC and term loan accounts. A24 24.06.2013 Copy of demand notice under S.13(2) of the SARFAESI Act issued to the defendant. A25 … Certified copy of the statement of account relating to the term loan. A26 … Certified copy of the statement of account relating to the cash credit facility. A27 … Certified copy of the statement of account relating to the KCC facility. A28 … Certified copy of the statement of account relating to the agri green credit facility. A29 … Statement showing the penal interest charged in the accounts and capitalized portion thereof. A30 … Statement showing the rate of interest applied in the loan accounts from time to time.

Defendant’s Exhibits – Nil

PRESIDING OFFICER

TA 929/2016 (OA 525/2015)

TA 929/2016 (OA 525/2015)

TA 929/2016 (OA 525/2015)

TA 929/2016 (OA 525/2015)

TA 929/2016 (OA 525/2015)

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 23rd December, 2025

TA No.929/2016 (OA NO.525/2015)

Between

Indian Overseas Bank, Chengannur Branch, Mankoottathil Complex, Court Road, Alappuzha - 682 121. …Applicant

And

D.Sasi, S/o.V.V.Damodaran, Proprietor, M/s.Sree Sakthi- Coir Industries, Chirakkadavil,

Madathil Karazhma, Oachira P.O., Kollam. Residing at: Ainuvelivadakkethil, Pulimukkathu Varikkolil – Puthen Veedu, Pallickal, Vettikode P.O., Bharanikkavu, Alleppey District. …Defendant

F I N A L O R D E R