STATE BANK OF INDIA vs SUMA SATHYAPALAN on 3 September 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 short ‘the Act’) for recovery of a sum of Rs.39,78,733.92 due under the cash credit (hypothecation) account together with future interest on the sum of Rs.39,17,817.92 @14.75% per annum with monthly rests from the defendants to the extent of the assets of deceased N.G.Sathyapalan devolved upon them and by sale of ‘A’ to ‘G’ schedule properties; and the sum of Rs.6,37,490.63 due under the cash credit (SME credit plus) account together with future interest on the sum of Rs.6,27,997.63 @14.75% per annum with monthly rests from the defendants to the extent of the assets of deceased N.G.Sathyapalan devolved upon them and by sale of ‘A’ to ‘G’ schedule properties. BRIEF FACTS OF THE CASE

1. The applicant, a banking corporation incorporated under State Bank of India Act, 1955 and is represented by the Asst. General Manager of its Alleppey Branch who is having authority to act for and on behalf of State Bank of India. Sri.N.G.Sathyapalan, proprietor of M/s.N.G.S.Coir Works (since deceased) approached the applicant for financial accommodation for his business. Accordingly, the applicant granted a cash credit (hypothecation) limit of Rs.8 lakhs to the said N.G.Sathyapalan as per sanction letter dated 29.12.1998.29.12.1998. As security for repayment of the amounts in the aforesaid loan, N.G.Sathyapalan executed a general agreement and ancillary agreement in favour of the applicant on 29.12.1998 whereby he hypothecated all the stocks of raw materials, semi-finished goods etc.

described in ‘A’ schedule to the OA in favors of the applicant. N.G.Sathyapalan also executed an agreement on 29.12.1998 in favour of the applicant with respect to the machinery items described in ‘B’ schedule as security for the aforesaid loan.

2. N.G.Sathyapalan on 29.12.1998 created mortgage of his properties described in ‘C’ schedule by deposit of relative title deeds with the applicant as collateral security for repayment due in the cash credit (hypothecation) limit of Rs.8 lakhs. He also executed confirmation letter on 02.01.1999 evidencing the intention and deposit of title deeds. Subsequently, at the request of said N.G.Sathyapalan the cash credit limit of Rs.8 lakhs was enhanced to Rs.15 lakhs, the applicant sanctioned an additional cash credit (hypothecation) limit of Rs.7 lakhs as per sanction letter dated 29.12.1999 which was availed by him on and from 30.12.1999.

3. As security for repayment of the amounts that may become due under the additional cash credit (hypothecation) limit of Rs.7 lakhs, the said N.G.Sathyapalan on 30.12.1999 executed a supplemental general agreement and an ancillary agreement in favour of the applicant agreeing/undertaking to the various terms and conditions of the grant of advance. By the said agreement N.G.Sathyapalan hypothecated all the stocks of raw materials etc. described in ‘A’ schedule in favour of the applicant as security. The said N.G.Sathyapalan executed a balance confirmation letter in favour of the applicant bank on 30.12.1999 confirming the balance under the cash credit account as on 29.12.1999. N.G.Sathyapalan also executed debt acknowledgment-cum-linking letter dated 30.12.1999 in favour of the applicant bank.

4. The said N.G.Sathyapalan called on the applicant’s branch at Alappuzha on 30.12.1999 and admitted and declared that the benefit of mortgage already created over ‘C’ schedule property shall stand extended to cover repayment of the dues under the additional cash credit limit of Rs.7 lakhs and executed a memorandum on 05.01.2000 in confirmation thereof. By way of additional collateral security for repayment of the balance in the cash credit (hypothecation) limit aggregating to Rs.15 lakhs, the said N.G.Sathyapalan on 30.12.1999 created mortgage of his property described in ‘D’ schedule by deposit of title deed with the applicant and he also executed a confirmation letter on 05.01.2000.

5. The said N.G.Sathyapalan on 30.12.1999 created mortgage of his property described in ‘E’ schedule by deposit of title deed with the applicant and also executed a confirmation letter on 05.01.2000 as additional collateral security for repayment of the balance in the cash credit (hypothecation) limit aggregating to Rs.15 lakhs,. Subsequently, at the request of said N.G.Sathyapalan, the applicant sanctioned an additional cash credit (hypothecation) limit of Rs.10 lakhs on 11.12.2000 as per sanction letter dated 11.12.2000 which was availed by him on and from 12.12.2000. As security for repayment of the amounts towards the additional cash credit (hypothecation) limit of Rs.10 lakhs, the said N.G.Sathyapalan on 12.12.2000 executed a supplemental agreement and an ancillary agreement in favour of the applicant bank hypothecated all the stocks of raw materials, semi-finished and finished goods etc. described in ‘A’ schedule in favour of the applicant.

6. The said N.G.Sathyapalan executed a balance confirmation letter dated 12.12.2000 in favour of the applicant confirming the balance in the cash credit account as on 11.12.2000 and he also executed a debt acknowledgment-cum-linking letter dated 12.12.2000 in favour of the bank. In this connection, the said N.G.Sathyapalan called on the applicant’s branch at Alappuzha on 12.12.2000 and admitted and declared that the benefit of mortgage already created by him with respect to ‘C’ to ‘E’ schedule properties shall stand extended to cover repayment of the dues under the additional cash credit limit of Rs.10 lakhs granted to him. He also executed memoranda on 16.12.2000 in confirmation thereof.

7. Further the said N.G.Sathyapalan on 12.12.2000 created mortgage of his property described in ‘F' schedule by deposit of title deed with the applicant by way of additional security for repayment of the balance in the cash credit (hypothecation) limit aggregating to Rs.25 lakhs,. He also confirmed the deposit of title deed vide confirmation letter dated 16.12.2000 evidencing the deposit of title deed. Subsequently, at the request of said N.G.Sathyapalan, the applicant granted an additional cash credit (hypothecation) limit of Rs.5 lakhs on 18.06.2002 as per sanction letter dated 18.06.2002 which was availed by him on and from 27.06.2002.

8. As security for repayment of the amounts under the additional cash credit (hypothecation) limit of Rs.5 lakhs, the said N.G.Sathyapalan on 27.06.2002 executed a supplemental general agreement and an ancillary agreement in favour of the applicant agreeing/undertaking to the terms and conditions of the grant of advance and hypothecated all the stocks of raw materials, semi- finished and finished goods etc. described in ‘A’ schedule in favour of the applicant. The said N.G.Sathyapalan confirmed the balance in the cash credit account as on 25.06.2002 by executing a balance confirmation letter dated 27.06.2002. He also executed a debt acknowledgment-cum-linking letter in favour of the applicant bank on 27.06.2002.

9. The said N.G.Sathyapalan called on the applicant’s branch at Alappuzha on 27.06.2002 and admitted and declared that the benefit of mortgage already created with respect to ‘C’ to ‘F’ schedule properties shall stand extended to cover repayment of the dues under the additional cash credit limit of Rs.5 lakhs granted to him. He also executed memoranda on 03.07.2002 in confirmation thereof. Further N.G.Sathyapalan on 27.06.2002 created mortgage of his property described in ‘G' schedule by deposit of title deed and executed confirmation letter on 03.07.2002 evidencing the intention and deposit of title deed with the applicant for the cash credit (hypothecation) limit aggregating to Rs.30 lakhs.

10. Subsequently, at the request of said N.G.Sathyapalan, the applicant granted an additional cash credit (hypothecation) limit of Rs.6 lakhs on 27.08.2003 as per sanction letter dated 27.08.2003 which was availed by him on and from 18.11.2003. As security for towards the additional cash credit (hypothecation) limit aggregating to Rs.36 lakhs, the said N.G.Sathyapalan on 18.11.2003 executed a general agreement and an ancillary agreement in favour of the applicant and hypothecated all the stocks of raw materials, semi- finished and finished goods etc. described in ‘A’ schedule in favour of the applicant. The said N.G.Sathyapalan also executed an agreement on 18.11.2003 with respect to the machinery items described in ‘B’ schedule as security for repayment of the amounts due under the cash credit limit aggregating to Rs.36 lakhs granted to him. He also executed a debt acknowledgment-cum-linking letter in favour of the applicant bank on 18.11.2003.

11. In this connection, the said N.G.Sathyapalan called on the applicant’s branch at Alappuzha on 18.11.2003 and admitted the benefit of mortgage already created by him with respect to ‘C’ to ‘G’ schedule properties and extended to cover repayment of the dues under the cash credit limit aggregating to Rs.36 lakhs granted to him and the same was confirmed vide memoranda on 22.11.2003. The applicant also granted an SME credit plus of Rs.7.20 lakhs to the said N.G.Sathyapalan for his business as per sanction letter dated 09.01.2004 which was availed by him on and from 09.01.2004.

12. N.G.Sathyapalan executed a supplemental general agreement and an ancillary agreement on 09.01.2004 agreeing to the various terms and conditions of the grant of advance towards the for repayment of the amounts under the SME credit plus of Rs.7.20 lakhs and hypothecated all the stocks of raw materials, semi-finished and finished goods etc. described in ‘A’ schedule in favour of the applicant. He executed a debt acknowledgment-cum-linking letter in favour of the applicant on 09.01.2004.

13. Further on 09.01.2004 he has also admitted and declared that the benefit of mortgage already created with respect to ‘C’ to ‘G’ schedule properties stand extended to cover repayment of the dues under the SME credit plus of Rs.7.20 lakhs granted to him vide memoranda dated 12.01.2004. The said N.G.Sathyapalan executed a revival letter on 28.02.2006 in favour of the applicant acknowledging the liability under the cash credit accounts. He also executed a balance confirmation letter in favour of the applicant on 31.03.2006 confirming the balance under the cash credit accounts as on 31.03.2006.

14. According to the applicant, the said N.G.Sathyapalan availed the credit facilities, operated on the respective accounts and withdraw money from the applicant, but failed to adhere to the terms and conditions governing the grant of loans and defaulted repayment on the amounts due to the applicant. Hence, the applicant caused to issue a lawyer notice dated 04.05.2007 demanding repayment of the dues to the applicant, to which the 1st defendant sent a reply notice dated 17.06.2006. It is learnt that Sri.N.G.Sathyapalan died and the defendants, who are his legal representatives, are liable to pay the amounts due to the applicant under the credit facilities availed by the said N.G.Sathyapalan from the applicant to the extent of the assets/estate inherited from the deceased and they are also liable to the extent of the value of such assets in the event of their failure to satisfactorily account for the same.

15. As per the accounts maintianed by the applicant, an amount of Rs.39,79,273.89 is due to the applicant as on 12.07.2007

under the cash credit (hypothecation) account. The applicant has applied a total sum of Rs.60,916/- towards penal interest in the cash credit account and capitalized portion of the same will come to Rs.539.97; deducting the said sum of Rs.539.97, the applicant is entitled to recover the sum of Rs.39,78,733.92 from the defendants. Under the cash credit (SME credit plus) account, an amount of Rs.6,37,574.39 is due as on 12.07.2007. The applicant has applied a total sum of Rs.9,493/- towards penal interest in the cash credit (SME credit plus) account and capitalized portion of the same will come to Rs.83.76; deducting the said sum of Rs.83.76, the applicant is entitled to recover the sum of Rs.6,37,490.63 from the defendants.

16. The defendants jointly filed written statement on 07.11.2007 contending inter alia that the defendants are not aware of the transactions undertaken by late Sathyapalan with the applicant. These defendants are not parties to various documents alleged to have been executed by him in favour of the applicant and they are not liable for repayment of the alleged loan amounts as stipulated in the alleged loan documents. The rates of interest charged by the applicant are exorbitant and contrary to RBI directives. The loan documents do not provide for charging of interest on quarterly rests and penal interest. The terms and conditions governing the transactions between the applicant and late Sathyapalan appears to have been set out in the loan documents and such documents do not stipulate the rate of interest nor the rests on which interest is debited to the account.

17. It is contended by the defendants that the applicant cannot fall back upon the sanction letter to claim interest, since the same is superseded by the loan documents executed subsequently between the parties. The confirmation letters executed by late Sathyapalan set out the terms of bargain between the applicant and the borrower and, therefore, registration of the confirmation letter is essential for the alleged mortgage to be enforceable. The requirement of registration cannot be dispensed with merely because of the lapse of time between the deposit of title deeds and execution of letter of confirmation. The claim in the OA is barred by limitation. The last acknowledgment of debt dated 31.03.2006 alleged to be executed by late Sathyapalan is not duly stamped. Even the acknowledgment of debt dated 18.11.2003 and 09.01.2004 alleged to be executed by late Sathyapalan are not duly stamped and, therefore, the claim of the applicant against these defendants is liable to be dismissed.

18. The records would reveal the fact that at the time of filing the OA, as the defendants 3 and 4 were minors, the applicant bank filed IA No.1231/2007 to appoint the 1st defendant as guardian of minor defendants 3 and 4. As the 1st defendant has no objection in allowing the aforesaid IA and submitted before the Tribunal that she was willing to act as guardian of minor defendants 3 and 4, the 1st defendant was appointed as guardian of minor defendants 3 and 4 as per order dated 19.09.2007 in IA No.1231/2007. Subsequently, when the defendants 3 and 4 attained the age of majority, the 1st defendant (mother of defendants 3 and 4) was discharged from the guardianship. As the learned counsel appearing for the defendants submitted that defendants 3 and 4 had not come forward to give vakalat, fresh summons was ordered to be issued to defendants 3 and 4 by registered post with acknowledgment due as per proceedings dated 17.06.2015. Accordingly, the applicant bank sent summons to defendants 3 and 4 by registered post with acknowledgment due on 29.06.2015; however, the defendants 3 and 4 did not appear before the Tribunal nor were they represented and as such, they were set exparte on 21.09.2016.

19. The evidence on the side of the applicant bank consists of the proof affidavit of its Asst. General Manager (AW1) and Exts.A1 to A65. Though the 1st defendant filed counter proof affidavit for herself and on behalf of other defendants reiterating the averments made by them in the written statement, she has not adduced any documentary evidence to support their case.

20. Heard arguments 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:

21. The materials on record would reveal the fact that late N.G.Sathyapalan had availed credit facilities from the applicant bank and executed security documents, besides hypothecating the movables described in ‘A’ and ‘B’ schedules to the OA and creating valid equitable mortgage over ‘C’ to ‘G’ schedule properties set out in the OA.

22. It is the contention of the defendants that the rates of interest charged by the applicant are exorbitant and run contrary to RBI directives and that the loan documents do not provide for charging of interest on quarterly rests and penal interest.

23. It could be discernible from Ext.A1, Ext.A8, Ext.A18 and Ext.A28 sanction letters issued by the applicant bank that there is a clear mention about the charging of interest at 1.50% above the State Bank advance rate and this rate is, however, subject to change as per RBI directives/change in SBAR from time to time. It is also specifically stated in the sanction letters that the interest will be applied with quarterly rests at the end of each calendar quarter and that the bank reserves the right to charge penal interest @2% per annum over and above the rate of interest mentioned earlier with appropriate interest tax in the event of violation of any of the terms and conditions enumerated in the sanction letters. Evidently, late Sathyapalan had countersigned the sanction letters in token of having accepted the terms and conditions thereof.

24. Further, the materials on record would divulge the fact that in the loan agreements executed by late Sathyapalan while availing/extending the credit facilities as well, there is a clear mention about the rate of interest to be charged in the loan accounts. In the above circumstance, the defendants being the legal heirs of borrower cannot be heard to contend that the rates of interest charged by the applicant are exorbitant and against RBI directives and the loan documents do not provide for charging of interest on quarterly rests and penal interest, that too without producing any material to substantiate their case. The mere allegation/averments of the defendants do not merit any consideration of the Tribunal.

25. Yet another contention raised by the defendants is that the confirmation letters executed by late Sathyapalan set out the terms of bargain between the applicant and the borrower and, therefore, registration of the confirmation letter is essential for the alleged mortgage to be enforceable. It is also contended that the requirement of registration cannot be dispensed with merely because of the lapse of time between the deposit of title deeds and execution of letter of confirmation.

26. Per contra, learned counsel for the applicant bank submitted that there is no legal requirement to register the confirmation letters confirming creation of equitable mortgage over the OA schedule properties. The applicant bank is relying on the judgment of the Hon’ble Apex Court rendered in the case titled State of Haryana vs. Navir Singh [2013 (4) KLT 207 (SC)] and also the judgment of the Hon’ble High Court of Kerala in the case titled Joseph vs. Michael [2000(1) KLT 857].

27. S.58(f) of the Transfer of Property Act permits a mortgage by deposit of title deeds to be created by a mortgagor in favors of his creditor by delivering his title deeds in any notified towns and S.59 of the Transfer of Property Act requires all other mortgage except equitable mortgage to be compulsorily registered.

The aforesaid provisions of Transfer of Property Act fortify the legal position that creation of equitable mortgage at a notified place with an intention to create a charge thereon does not require registration. In the instant matter, late Sathyapalan has created equitable mortgage over ‘C’ to ‘G’ schedule properties described in the OA by deposit of respective title deeds with the applicant bank’s Alappuzha Branch, which is a notified town, as security for the credit facilities availed by him and subsequently he executed Exts.A7, A13, A15, A17, A23, A24, A25, A27, A33, A34, A36, A42 to A45, A50 to A53 memoranda of deposit of title deeds confirming the creation and extension of equitable mortgage in favour of the applicant bank. As the memoranda of deposit of title deeds are mere letters recording a transaction which has already been concluded and the said documents do not confer any right, title or interest by itself, they do not require registration. Evidently, valid equitable mortgage has been created over ‘C’ to ‘G’ schedule properties in favour of the applicant bank by late Sathyapalan and the same is enforceable in the eye of law in view of the default committed by him in repaying the loans.

28. It is the further contention of the defendants that the claim in the OA is barred by limitation as the last acknowledgment of debt dated 31.03.2006 alleged to be executed by late Sathyapalan is not duly stamped. It is also submitted that even the acknowledgment of debt dated 18.11.2003 and 09.01.2004 alleged to be executed by late Sathyapalan are not duly stamped and, therefore, the claim of the applicant against these defendants is liable to be dismissed.

29. Per contra, it is the case of the applicant that the plea of limitation raised by the defendants is unsustainable as Sri.Sathyapalan executed acknowledgment letters acknowledging the relative liability and kept the security documents in force favoring the applicant bank.

30. Records would indicate that the applicant bank filed the instant OA before the Tribunal on 13.07.2007 for recovery of amounts due under the cash credit (hypothecation) account and cash credit (SME credit plus) account, aggregating to Rs.46,16,224.55 as on 12.07.2007. It could be inferred from the original documents produced by the applicant bank that equitable mortgage over ‘C’ to ‘G’ properties were created by late Sathyapalan in favour of the applicant bank respectively on 29.12.1998, 30.12.1999, 30.12.1999, 12.12.2000 and 27.06.2002. Further, late Sathyapalan has executed Ext.A54 revival letter on 28.02.2006 acknowledging his liability under the cash credit accounts and also executed Ext.A55 balance confirmation letter dated 31.03.2006 confirming the balance under the cash credit (hypothecation) and cash credit (SME credit plus) accounts as on 31.03.2006; and that the Tribunal could not find any legal infirmity in Ext.A54 revival letter and Ext.A55 balance confirmation letter executed by late Sathyapalan. In view of the above, it could be construed that the above OA filed by the applicant bank before the Tribunal on 13.07.2007 is well within the period of limitation prescribed under the Act.

31. Having regard to the amounts advanced, the interest and penal interest applied and the chronic default committed, the tribunal is of the view that the applicant bank is entitled to get pendente-lite and post-decree interest @14.75% per annum with monthly rests, as prayed for.

FINAL ORDER

32. The OA is allowed with costs. The applicant bank is allowed to recover:

(i) the sum of Rs.39,78,733.92 (Rupees thirty nine lakhs seventy eight thousand seven hundred thirty three and Paise ninety two only) due under the cash credit (hypothecation) account with further interest on the sum of Rs.39,17,817.92 (Rupees thirty nine lakhs seventeen thousand eight hundred seventeen and Paise ninety two only) @14.75% per annum with monthly rests from 13.07.2007 till realization by sale of ‘A’ to ‘G’ schedule properties and also from the defendants to the extent of the value of assets/properties inherited by them from deceased N.G.Sathyapalan;

(ii) the sum of Rs.6,37,490.63 (Rupees six lakhs thirty seven thousand four hundred ninety and Paise sixty three only) due under the cash credit (SME credit plus) account with further interest on the sum of Rs.6,27,997.63 (Rupees six lakhs twenty seven thousand nine hundred ninety seven and Paise sixty three only) @14.75% per annum with monthly rests from 13.07.2007 till realization by sale of ‘A’ to ‘G’ schedule properties and also from the defendants to the extent of the value of assets/properties inherited by them from deceased N.G.Sathyapalan; and

(iii) also its costs by sale of ‘A’ to ‘G’ schedule properties and also from the defendants to the extent of the value of assets/properties inherited by them from deceased N.G.Sathyapalan.

33. ‘A’ to ‘G’ schedules to the OA shall be appended to this order.

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

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

36. 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 03rd day of September, 2018]

(S.V.GOWRAMMA)

Presiding Officer

A P P E N D I X Witness for Applicant: AW1: T.V.Madhavan, Asst. General Manager of the applicant bank.

Witness for Defendant(s): Nil

Exhibits on the part of the applicant

Ext.No. Date Particulars of documents

A1 29.12.1998 Sanction letter issued by the applicant sanctioning cash credit (hypothecation) limit of Rs.8 lakhs which was countersigned by late N.G.Sathyapalan in token of having accepted the terms and conditions thereof. A2 29.12.1998 General agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A3 29.12.1998 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A4 29.12.1998 Agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A5 02.05.1988 Sale deed No.1966/1988 of Mararikulam SRO. A6 02.05.1988 Sale deed No.1967/1988 of Mararikulam SRO. A7 02.01.1999 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank. A8 29.12.1999 Sanction letter issued by the applicant bank. A9 30.12.1999 Supplemental general agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A10 30.12.1999 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A11 30.12.1999 Balance confirmation letter executed by late N.G.Sathyapalan confirming the balance under the cash credit account. A12 30.12.1999 Debt acknowledgment-cum-linking letter executed by late N.G.Sathyapalan in favour of the applicant bank. A13 05.01.2000 Memorandum executed by late N.G.Sathyapalan confirming the creation of mortgage and the extension thereof. A14 23.07.1999 Sale deed No.2010/1999 of Puthanambalam SRO. A15 05.01.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank. A16 14.02.1994 Sale deed No.416/1994 of Puthanambalam SRO. A17 05.01.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank. A18 11.12.2000 Sanction letter issued by the applicant bank. A19 12.12.2000 Supplemental general agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A20 12.12.2000 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A21 12.12.2000 Balance confirmation letter executed by late N.G.Sathyapalan confirming the balance under the cash credit account. A22 12.12.2000 Debt acknowledgment-cum-linking letter executed by late N.G.Sathyapalan in favour of the applicant bank. A23 16.12.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A24 16.12.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A25 16.12.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A26 27.10.2000 Sale deed No.2610/2000 of Puthanambalam SRO. A27 16.12.2000 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank. A28 18.06.2002 Sanction letter issued by the applicant. A29 27.06.2002 Supplemental general agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A30 27.06.2002 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A31 27.06.2002 Balance confirmation letter executed by late N.G.Sathyapalan confirming the balance under the cash credit account. A32 27.06.2002 Debt acknowledgment-cum-linking letter executed by late N.G.Sathyapalan. A33 03.07.2002 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A34 03.07.2002 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A35 05.10.2000 Sale deed No.2390/2000 of Puthanambalam SRO. A36 03.07.2002 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank. A37 27.08.2003 Sanction letter issued by the applicant bank. A38 18.11.2003 General agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A39 18.11.2003 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A40 18.11.2003 Agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A41 18.11.2003 Debt acknowledgment-cum-linking letter executed by late N.G.Sathyapalan. A42 22.11.2003 Memorandum executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A43 22.11.2003 Memorandum executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A44 22.11.2003 Memorandum executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A45 22.11.2003 Memorandum executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A46 09.01.2004 Sanction letter issued by the applicant bank. A47 09.01.2004 Supplemental general agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A48 09.01.2004 Ancillary agreement executed by late N.G.Sathyapalan in favour of the applicant bank. A49 09.01.2004 Debt acknowledgment-cum-linking letter executed by late N.G.Sathyapalan. A50 12.10.2004 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A51 12.10.2004 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A52 12.10.2004 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A53 12.10.2004 Letter executed by late N.G.Sathyapalan confirming the deposit of title deed with the applicant bank and the extension thereof. A54 28.02.2006 Revival letter executed by late N.G.Sathyapalan acknowledging the liability under the cash credit accounts. A55 31.03.2006 Balance confirmation letter executed by late N.G.Sathyapalan confirming the balance under the cash credit accounts. A56 04.05.2007 Copy of lawyer notice issued to defendants 1 and 2 by the applicant bank. A57 17.05.2007 Reply to Ext.A56 sent by the 1st defendant. A58 …. Certified copy of the statement of account relating to the cash credit (hypothecation) limit. A59 …. Calculation statement showing the accrued interest under Ext.A58 account. A60 …. Statement showing the period and rate of interest applied in Ext.A58 account. A61 …. Statement showing the penal interest applied in Ext.A58 account and capitalization value thereof. A62 …. Certified copy of the statement of account relating to the cash credit (SME credit plus) limit. A63 …. Calculation statement showing the accrued interest under Ext.A62 account. A64 …. Statement showing the period and rate of interest applied in Ext.A62 account. A65 …. Statement showing the penal interest applied in Ext.A62 account and capitalization value thereof.

(PRESIDING OFFICER)

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

Dated this the 03rd day of September, 2018

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

TA No.1243/2016 (OA No.129/2007) Between State Bank of India

…Applicant And Suma Sathyapalan & 3 others. …Defendants

FINAL ORDER