STATE BANK OF INDIA vs ANIL P. JOHN on 18 August 2018

FINAL ORDER

This Original Application has been filed under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for recovery of a sum of Rs.13,29,452/- with further interest on the sum of Rs.13,29,095.25 @11.65% per annum with monthly rests from the defendants jointly and severally and by sale of ‘A’ schedule property. BRIEF FACTS OF THE CASE

1. The defendants approached the applicant bank seeking financial assistance for purchase of a house in the name of the 1st defendant. Accordingly, the applicant granted a term loan (housing loan) of Rs.12 lakhs to the defendants as co-borrowers inter alia upon the terms and conditions contained in the sanction letter dated 24.09.2004. As security for repayment of the amounts due under the said loan, the defendants executed an agreement in favour of the bank on 24.09.2004 agreeing to abide by the terms and conditions governing the grant of advance. The 1st defendant created equitable mortgage of his property described in ‘A’ schedule property to the OA on 28.03.2005 by deposit of title deed with the applicant bank’s branch at Chengannur as security for repayment of the amount due under the aforesaid term loan. The 1st defendant also executed a memorandum on 29.03.2005 evidencing the intention and deposit of title deed.

2. It is submitted by the applicant that the liability under the loan transaction was admitted/acknowledged by the defendants on 15.02.2007, 08.02.2010 and 21.12.2012 by executing revival letters in favour of the applicant whereby the agreement dated 24.09.2004 executed by them was kept in force. The defendants availed credit facility and withdrew money, but they defaulted in repayment of the installments and the interest accrued and violated the terms and conditions governing the grant of loan.

3. According to the applicant, as per the accounts maintained by them, an amount of Rs.12,19,318.08 is due under the term loan account. The sum of Rs.90,834/- being the uncollected interest and Rs.84.84 being the uncollected penal interest applied in the loan account have been reversed in the account in view of the Income Recognition and Asset Classification Norms of RBI, but the applicant is entitled to recover the said amount also. The applicant is also entitled to recover the interest accrued but not applied from 01.11.2015 to 16.12.2015, amounting to Rs.19,266.08, and thus the aggregate amount would come to Rs.13,29,503/-. The applicant has applied a total sum of Rs.356.75 towards penal interest in the term loan account and capitalized portion of the same will come to Rs.51/-. Deducting the said sum of Rs.51/-, the applicant is entitled to recover the sum of Rs.13,29,452/- with interest and costs.

4. The defendants were duly served with summons. Though the defendants had entered appearance and sought adjournment for filing written statement, they did not file any written statement despite time granted; and the 1st defendant alone has filed vakalat. Subsequently, the defendants remained absent and were not represented and as such, they were set exparte on 10.11.2016.

5. The evidence on the side of the applicant bank consists of the proof affidavit of its Manager, AW1 and Exts.A1 to A13.

6. The applicant filed a memo before this Tribunal on 19.06.2014 stating that subsequent to filing of the OA, the defendants remitted a sum of Rs.1,50,000/-, Rs.1,50,000/-, Rs.75,000/-, Rs.70,000/-, Rs.70,000/-, Rs.75,000/- and Rs.70,000/- respectively on 19.04.2016, 30.05.2016, 30.06.2016, 05.08.2016, 31.08.2016, 30.09.2016 and 31.10.2016 towards part satisfaction of the amount claimed in the OA.

7. Heard arguments of the applicant bank and perused the records of the case. The following points arise for my consideration:

(i) Whether the applicant is entitled to get the reliefs prayed for in the OA?

(ii) What order?

Findings:

Point No.1: In affirmative Point No.2: As per order

Reasons:

8. The case of the applicant bank regarding recovery of the sum of Rs.13,29,452/- claimed as due under Exts.A10 and A11 statements of account relating to the term loan (housing loan) as on 16.12.2015 together with interest pendente lite and post decree interest on the sum of Rs.13,29,095.25, less the sum of Rs.1,50,000/-, Rs.1,50,000/-, Rs.75,000/-, Rs.70,000/-, Rs.70,000/-, Rs.75,000/- and Rs.70,000/- recovered by the applicant bank respectively on 19.04.2016, 30.05.2016, 30.06.2016, 05.08.2016, 31.08.2016, 30.09.2016 and 31.10.2016, from the defendants jointly and severally and by sale of ‘A’ schedule property, is proved by the proof affidavit of its Manager, AW1 and Exts.A1 to A13.

9. The evidence of the applicant bank by way of proof affidavit of its Manager, duly authorized Power of Attorney AW1, reiterates the facts pleaded in the OA the affidavit is corroborated by the above referred Exhibits A1 to A13 which clearly establishes the case of the applicant bank to allow the present OA. Even otherwise the whole case of the applicant bank is based on the documentary evidence and the witness has duly proved all the documents exhibited by him. It is quite evident from the documents placed on record by the applicant bank that defendants have availed the financial assistance from the applicant bank and have failed to repay the amount towards the laon account. Added to this, it appears that the defendant did not file written statement inspite of opportunity as he admitted the entire case of the applicant as sought for in the OA. In view of the above, the present OA is to be allowed with costs as sought by the applicant bank.

10. Having regard to the amount advanced, the interest and penal interest applied and the chronic default committed, the Tribunal of the view that the applicant bank is entitled to get pendente-lite and post-decree interest @11.65% per annum with monthly rests, as prayed for.

ORDER

11. The OA is allowed with costs.

12. The applicant bank is allowed to recover the sum of Rs.13,29,452/- (Rupees thirteen lakhs twenty nine thousand four hundred and fifty two only) with further interest on the sum of Rs.13,29,095.25 (Rupees thirteen lakhs twenty nine thousand ninety five and Paise twenty five only) @11.65% per annum with monthly rests from 17.12.2015 till realization and also its costs, less the sum of Rs.1,50,000/- (Rupees one lakh fifty thousand only), Rs.1,50,000/-

(Rupees one lakh fifty thousand only), Rs.75,000/- (Rupees seventy five thousand only), Rs.70,000/- (Rupees seventy thousand only), Rs.70,000/- (Rupees seventy thousand only), Rs.75,000/- (Rupees seventy five thousand only) and Rs.70,000/- (Rupees seventy thousand only) recovered by the applicant bank respectively on 19.04.2016, 30.05.2016, 30.06.2016, 05.08.2016, 31.08.2016, 30.09.2016 and 31.10.2016, from the defendants jointly and severally and by sale of ‘A’ schedule property.

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

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

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

16. The Registry is directed to communicate copy of the order to the parties concerned by speed post or registered post with AD. [Dictated to the PS, transcribed by her, corrected by me and then pronounced in the open court on this the 18th day of August, 2018]

(S.V.GOWRAMMA)

A P P E N D I X

Witness for Applicant: AW1: Anilkumar.S, Manager of the applicant bank.

Witness for Defendant(s): Nil

Exhibits on the part of the applicant

Ext.No. Date Particulars of documents

A1 24.09.2004 Sanction letter acknowledged by the defendants. A2 24.09.2004 Memorandum of term loan agreement executed by the defendants in favour of the applicant bank. A3 25.09.2004 Sale deed No.2398/2004 of Chengannur SRO. A4 29.03.2005 Memorandum of deposit of title deed executed by the 1st defendant. A5 15.02.2007 Revival letter executed by the defendants in favour of the applicant bank. A6

08.02.2010 Revival letter executed by the defendants in favour of the applicant bank. A7

08.02.2010 Revival letter executed by the 2nd defendant in favour of the applicant bank. A8

21.12.2012 Revival letter executed by the defendants in favour of the applicant bank. A9

21.12.2012 Revival letter executed by the 2nd defendant in favour of the applicant bank. A10 … Certified copy of the statement of account relating to the term loan. A11 … Statement showing the accrued unapplied interest in the term loan account. A12 … Certificate showing the rate of interest applied in the term loan account from time to time. A13 … Certificate showing the penal interest applied in term loan account and its capitalized portion thereof.

Defendants’ Exhibits – Nil

(PRESIDING OFFICER)

IN THE DEBTS RECOVERY TRIBUNAL- 2, KERALA AT ERNAKULAM

Dated this the 18th day of August, 2018

Present: S.V.Gowramma, B.A., LL.B

T.A No.4/2016 (O.A No.32/2016) Between State Bank of India

…Applicant And Anil.P.John & another. …Defendants

FINAL ORDER