Allowed

State Bank of India v. Roy K Jose

DRT13 May 2025OA/394/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by State Bank of India to recover an aggregate sum of Rs.55.14 lakhs with interest from three defendants for agricultural cash credit accounts and directed a Recovery Certificate to be issued for realisation.

What did the court decide?

Recovery of Rs.55,14,364.39 plus interest; sale of schedule properties; issuance of Recovery Certificate.

State Bank of India versus Roy K Jose — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

¶2

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

¶3

Dated this the 13^th day of May, 2025

¶4

ORIGINAL APPLICATION No.394/2022

¶5

Between

¶6

State Bank of India, Stressed Assets Recovery Branch, 7^th Floor, Vankarath Towers, Bypass Junction, Palarivattom, Ernakulam, Kochi – 682 024. …Applicant

¶7

And

¶8

Roy K.Jose, S/o.Jose K.K., Kooveli House, Mambra, Karukutty P.O., Ernakulam District - 683 576.

¶9

Jose K.K., S/o.Korath, Kooveli House, Mambra, Karukutty P.O., Ernakulam District - 683 576.

¶10

Mary Jose, W/o.Jose K.K., Kooveli House, Mambra, Karukutty P.O., Ernakulam District - 683 576.

¶11

Shetty Roy, W/o.Roy K.Jose, Kooveli House, Mambra, Karukutty P.O., Ernakulam District - 683 576. …Defendants

¶12

OA 394/2022

¶13

¶14

This Original Application having been heard on 17.04.2025 in the presence of Advocates M/s.K.K.John and Asish K.John for the applicant bank and the defendants being absent and stood over to this day for consideration, the Tribunal delivered the following:

¶15

F I N A L O R D E R

¶16

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.55,14,364.39 due under agricultural cash credit accounts together with future interest thereon from the defendants and by sale of ‘A’ to ‘C’ schedule properties.

¶17

Facts of the case:

¶18

The applicant is a body corporate established under

¶19

the State Bank of India Act, 1955 having its head office at Mumbai and stressed assets recovery branch at Ernakulam.

¶20

At the request of the defendants, applicant bank

¶21

sanctioned the following credit facilities:-

¶22

Date of sanction	Type of loan	Amount (Rs.)	Availed by	Guarantor	Collateral security
13.03.2019	Agriculture cash credit	20 lakhs	1^st defendant	Defendants 2 and 3	‘A’ & ‘C’ schedule properties
13.03.2019	Agriculture cash credit	Rs.22 lakhs	4^th defendant	Defendants 1 to 3	‘B’ & ‘C’ schedule properties

¶23

OA 394/2022

¶24

¶25

The defendants 1 and 4 operated the respective accounts and withdrew money from the bank but committed default in repayments. Hence the applicant bank invoked the provisions of SARFAESI Act and issued demand notice dated 20.10.2021 calling upon the defendants to repay the outstanding dues. As there is no progress in the recovery front, the applicant bank was constrained to file the OA claiming the following reliefs:

¶26

(i) To recover an aggregate sum of Rs.55,14,364.39 together with pendente lite and post-decree interest thereon from the respective defendants and by sale of ‘A’ to ‘C’ schedule properties;

¶27

(ii) To recover the costs, charges and expenses from the defendants;

¶28

(iii) To issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

¶29

The defendants were duly served with summons including substituted service of summons by way of publication in Mathrubhumi daily in respect of defendants 1 and 4. But they remained absent from the proceeding.

¶30

OA 394/2022

¶31

¶32

Proof Affidavit :

¶33

In order to establish the claim on behalf of the applicant bank, one Mr.Chacko I.C., Chief Manager of the applicant has filed proof affidavit and produced the loan documents marked as Exhibits A1 to A20. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the credit facilities and creation of hypothecation charge and mortgage over the schedule properties are well established from the documents placed by the applicant bank. An aggregate sum of Rs.55,14,364.39 is outstanding in the loan accounts as on 03.06.2022, which is clearly established from the accounts statements marked as Exts.A15 to A18.

¶34

Considering the amounts advanced, interest applied, repayments effected and default committed and also the loans granted being agricultural facilities, I am of the view that the applicant bank is entitled to get pendente lite and post-decree interest @6% per annum, which is reasonable in the facts and circumstances of the case.

¶35

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

¶36

OA 394/2022

¶37

¶38

In the result, the applicant bank is given a final order

¶39

allowing it to recover:

¶40

Agricultural cash credit A/c No.38328729101	Rs.21,54,404.82 (Rupees twenty one lakhs fifty four thousand four hundred and four and Paise eighty two only) together with_pendente_ _lite_and post-decree interest thereon @6% per annum from 06.06.2022 till realisation from defendants 1 to 3 personally and by sale of ‘A’ and ‘C’ schedule properties;
Agricultural cash credit A/c No.38321859536	Rs.33,59,959.57 (Rupees thirty three lakhs fifty nine thousand nine hundred and fifty nine and Paise fifty seven only) together with _pendente lite_and post-decree interest thereon @6% per annum from 06.06.2022 till realisation from defendants 1 to 4 personally and by sale of ‘B’ and ‘C’ schedule properties; and

¶41

also costs and expenses borne by it for realization of the loans from the defendants, in proportion to the amounts ordered to be recovered from them.

¶42

‘A’ to ‘C’ schedules to the OA shall be appended to

¶43

this final order.

¶44

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

¶45

OA 394/2022

¶46

¶47

Recovery Certificate shall be drawn up and issued to

¶48

the Recovery Officer in terms of the final order.

¶49

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.

¶50

(Dictated to my PA, corrected and pronounced by me in the open Tribunal on this the 13^th day of May, 2025)

¶51

[SOVAN KUMAR DASH] PRESIDING OFFICER

OA 394/2022

A P P E N D I X

Witness for Applicant:

¶56

AW1: Sri.Chacko I.C., Chief Manager of the applicant bank.

¶57

Witness for Defendant(s): Nil

¶58

Applicant’s Exhibits

¶59

Ext.No Date Particulars of documents

¶60

A1	...	Letter of Arrangement issued by the Applicant Bank to defendants 1 to 3.
A2	13.03.2019	Hypothecation agreement executed by the first defendant.
A3	13.03.2019	Deed of guarantee executed by defendants 2 and 3.
A4	...	Letter of Agreement issued by the Applicant Bank to defendants 4 and 1 to 3.
A5	13.03.2019	Hypothecation Agreement executed by the 4^th defendant.
A6	13.03.2019	Deed of guarantee executed by defendants 1 to 3.
A7	07.11.2006	Settlement Deed No.7545/2006 of Chengamanad SRO.
A7(a)	...	English translation of Ext.A7.
A8	14.03.2019	Letter of confirmation for Creation of Equitable Mortgage (Form A) executed by the first defendant.
A9	29.12.2021	Copy of lawyer notice issued to the defendants calling upon them to repay the outstanding dues.
A10	03.01.2022	Postal acknowledgement signed by the 2^nd defendant.
A11	03.01.2022	Postal acknowledgement card signed by the 3^rd defendant.
A12	...	Returned postal envelope addressed to the 1^st defendant.
A13	...	Returned postal envelope addressed to the 4^th defendant.
A14	10.01.2021	Reply sent by the first defendant to the lawyer notice issued by the applicant bank.
A15	...	Certified copy of the statement of account relating to agricultural cash credit Account No.38328729101.
A16	...	Calculation Statement showing unapplied interest
		and the total amount due in ACC A/c. No.38328729101.

¶61

OA 394/2022

¶62

¶63

A17 ...	Certified copy of the statement of account relating to cash credit account No.38321859536.
A18 ...	Calculation Statement showing the unapplied interest and the total amount due in A/c. No.38321859536.
A19 ... A20 ...	Certificate showing the different rates of interest charged in ACC A/c. No.38328729101. Certificate showing the different rates of interest charged in ACC A/c. No.38321859536.
Defendants’Exhibits	– Nil

¶64

PRESIDING OFFICER

OA 394/2022 9

OA 394/2022

PRESIDING OFFICER

¶69

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

¶70

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

¶71

Dated the 13^th May, 2025

¶72

OA NO.394/2022

¶73

Between

¶74

State Bank of India, Stressed Assets Recovery Branch, 7^th Floor, Vankarath Towers, Bypass Junction, Palarivattom, Ernakulam, Kochi – 682 024. …

¶75

… Applicant

¶76

And

¶77

Roy K.Jose, S/o.Jose K.K., Kooveli House, Mambra, Karukutty P.O., Ernakulam District - 683 576 & 3 others. ...Defendants

¶78

F I N A L O R D E R

State Bank of India v. Roy K Jose

Case brief

What is this about?

What did the court decide?

State Bank of India v. Roy K Jose

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Mr Tapas Mondal versus Punjab National Bank

Kaushik Paul versus Punjab National Bank

Bank of India versus Mahesh

Hdfc Bank versus Sh. Ramandeep Singh

State Bank of India versus Jaspinder Singh

Kotak Mahindra Bank Limited versus Mrs. Nidhi v