STATE BANK OF INDIA vs MOHANDAS on 25 November 2016

**FINAL ORDER**

This Original Application has been filed on 07.04.2010 under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for recovery of the sum of Rs.19,59,774/- due under the agricultural term loan account with further interest @11.75% per annum with quarterly rests from the defendant and by sale of the OA schedule properties.

**BRIEF FACTS OF THE CASE**

1. At the request of the defendant, the applicant had sanctioned an agricultural term loan of Rs.20 lakhs on 15.01.2007 and the defendant accepted the terms and conditions of the loan and endorsed his signature on the arrangement letter dated 15.01.2007. To secure the said facility, the defendant executed agreement for hypothecation dated 15.01.2007 in favour of the applicant bank. As collateral security, the defendant deposited 2TA 1481/2016(OA 191/2010)

original settlement deed Nos.2226/1988 and 930/1991 of Vithura SRO relating to 1 Acre 82 cents of land in Vithura Village and 80 cents of land in Tholicode Village with the applicant bank and confirmed the creation of equitable mortgage over the aforesaid properties on 18.01.2007.

2. It is the case of the applicant that the defendant agreed to repay the agricultural term loan amount of Rs.20 lakhs with interest @11.75% in 24 equated quarterly installments of Rs.83,340/- each commencing from January, 2008. However, the defendant violated the terms and conditions and covenants under which the loan was availed and committed breach of the same. The applicant bank was constrained to send a legal notice to the defendant on 14.12.2009 demanding him to repay the amount due to the bank within 15 days, he did not heed to the request made in the notice.

3. Simultaneously, the applicant issued notice to the defendant under S.13(2) of the SARFAESI Act demanding repayment of the amount due. It is submitted that the total amount due under the agricultural term loan as on the date of this application is Rs.19,59,774/- and the applicant bank is entitled to recover the said sum with further interest @11.75% per annum with quarterly rests till realization from the defendant and by sale of the OA schedule properties.

4. The defendant was duly served with summons. But he neither appeared nor was he represented and thus the defendant was set exparte as early on 15.11.2012.

3TA 1481/2016 (OA 191/2010)

5. The applicant has adduced their evidence by way of affidavit of its Branch Manager along with Exts.A1 to A9.

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

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

(ii) *What order?*

7. The case of the applicant bank regarding recovery of the sum of Rs.19,59,774/- claimed as due under Ext.A8 statement of account relating to the agricultural term with interest pendentite lite and post decree interest thereon @11.75% per annum with quarterly rests from the defendant and by sale of the OA schedule properties, is proved by the proof affidavit of its Branch Manager, AW1 and Exts.A1 to A9. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, I am of the view that the applicant bank is entitled to get interest pendentite-lite and post-decree interest @11.75% per annum with quarterly rests, as prayed for in the OA.

8. The applicant bank, therefore, is entitled to get a final order on the following lines:-

**ORDER**

The applicant bank is given a final order allowing it to recover the sum of Rs.19,59,774/- (Rupees nineteen lakhs fifty nine thousand seven hundred and seventy four only) with further TA 1481/2016 (OA 191/2010)4

interest thereon @11.75% per annum with quarterly rests from 07.04.2010 till realization and also its costs from the defendant and by sale of the OA schedule properties.

1. 9. The schedule to the OA shall be appended to this order.

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

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

4. 12. 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 25^th day of November, 2016.]*


TA 1481/2016 (OA 191/2010)5**APPENDIX**

Witness for Applicant:

AW1: G.K.Gore, Branch Manager of the applicant bank.

Witness for Defendant(s): Nil

**Exhibits on the part of the applicant**

<table><thead><tr><th><u>Ext.No.</u></th><th><u>Date</u></th><th><u>Particulars of documents</u></th></tr></thead><tbody><tr><td>A1</td><td>14.12.2006</td><td>Loan application submitted to the applicant bank.</td></tr><tr><td>A2</td><td>15.01.2007</td><td>Letter of arrangement issued by the applicant.</td></tr><tr><td>A3</td><td>15.01.2007</td><td>Agreement of loan-cum-hypothecation executed by the defendant in favour of the applicant.</td></tr><tr><td>A4</td><td>27.12.1988</td><td>Settlement deed No.2226/1988 of Vithura SRO.</td></tr><tr><td>A5</td><td>31.05.1991</td><td>Settlement deed No.930/1991 of Vithura SRO.</td></tr><tr><td>A6</td><td>18.01.2007</td><td>Letter executed by the defendant confirming the creation of equitable mortgage in favour of the applicant bank.</td></tr><tr><td>A7</td><td>14.12.2009</td><td>Copy of lawyer notice issued to the defendant by the applicant.</td></tr><tr><td>A8</td><td>...</td><td>Certified copy of the statement of account relating to the agricultural term loan.</td></tr><tr><td>A9</td><td>24.12.2009</td><td>Revival letter executed by the defendant in favour of the applicant bank.</td></tr></tbody></table>

Defendant's Exhibits - Nil

TA 1481/2016 (OA 191/2010)6**SCHEDULE OF PROPERTY No.1**

**1 Acre 82 cents** [95 cents in Re.Sy.No. 4/2 + 87 cents in Re.Sy.No. 4/3] of land and all other things attached thereto in Vithura Village, Nedumangadu Taluk, Thiruvananthapuram District.

**BOUNDARIES OF SCHEDULE PROPERTY in Re.Sy.No 4/2**

North	-	Property of Ajith Babu
East	-	Road
West	-	Property of Chandra Babu
South	-	Property of Cilia

**BOUNDARIES OF SCHEDULE PROPERTY in Re.Sy.No.4/3**

North	-	Property of Chandra Babu
East	-	Property of Mohandas
West	-	Property of Mohandas
South	-	Property of Cilia

**SCHEDULE OF PROPERTY No.2**

**80 cents** in Re.Sy.No.47/2-1 of land and all other things attached thereto in Tholicode Village, Nedumangadu Taluk, Thiruvananthapuram District.

**BOUNDARIES OF SCHEDULE PROPERTY No.2**

North	-	Property of Chandra Babu
East	-	Property of Cilia and Nandu
West	-	Road
South	-	Property of Vilasini and Jayachandra Babu

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

Dated this the 25^th day of November, 2016

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

T.A No.1481/2016 (O.A No.191/2010)

Between

State Bank of India ...Applicant

And

Mohandas ...Defendant

FINAL ORDER