Federal Bank v. Aliyar
Case brief
What is this about?
The Tribunal allowed the bank's application for recovery of outstanding loan dues. It ruled that penal interest cannot be capitalised. The Tribunal directed payment of principal amounts with interest at 10% (FKCC) and 11% (ODCC) per annum pending realisation.
What did the court decide?
Directed respondents to pay principal amounts with interest at 10% (for FKCC) and 11% (for ODCC) per annum from 29.11.2021, and for sale of mortgaged property.
What the court decided
Fair order
IN THE DEBTS RECOVERY TRIBUNAL-1 AT ERNAKULAM
DATED THIS 22nd DAY OF OCTOBER, 2025
PRESENT: Su. WILLYAHM, B.Sc., M.L. [DISTRICT JUDGE - Retd] PRESIDING OFFICER
OA No.76/2022
Between
The Federal Bank Ltd. Registered Office at Aluva and Branch at Kaloor Kaloorkad (Via) Kaloor Ernakulam District – 686 668
---Applicant
And
- Aliyar V. A. S/o. Hassan Vadakkeputhenpurayil House Ezhalloor P.O., Thodupuzha Idukki – 685 605
- Fathima Aliyar W/o. Aliyar V. A. Vadakkeputhenpurayil House Ezhalloor P.O., Thodupuzha Idukki – 685 605
OA 76/2022
Issues for consideration
3 issues framed by the court
Whether penal interest charged by the bank can be capitalised and interest charged on such penal interest allowed.
What rate of interest pendente-lite and post final order interest is appropriate for FKCC and ODCC loan accounts on equitable consideration.
Whether the applicant bank has proved its case for recovery of outstanding loan dues along with security for sale.
Parties & counsel
- applicant
The Federal Bank Ltd.
- respondent
Aliyar V. A.
- respondent
Fathima Aliyar
- respondent
Sajin Aliyar
- respondent
Hasbi Hassaan
Case details
As recorded by the court registry
Similar cases
Judgements on the same questions, provisions and authorities, from every court