Debts Recovery Tribunal upheld the bank's original application to recover agricultural medium term loans. The court ordered recovery of principal sums with 6% annual interest from defaulting borrowers and directed issuance of a recovery certificate.
Recovery of principal plus 6% annual interest; deduction of Rs.3 lakhs paid; issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM
PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER
Dated this the 22nd day of April, 2025
ORIGINAL APPLICATION No.807/2022
Between
The Federal Bank Ltd., Moonnupeedika Branch, E K S Complex, Kaipamangalam, Moonnupeedika, Kaipamangalam P.O., Thrissur – 680 681. Registered Office at: Federal Towers, Aluva, Ernakulam – 683 101. …Applicant
And
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This Original Application having been heard on 08.04.2025 in the presence of Advocates M/s.Varughese Cherian, Jayakala S.S. and Farhana K.H. for the applicant bank and the defendants being exparte and stood over to this day for consideration, the Tribunal delivered the following:
F I N A L O R D E R
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.1,08,22,992.36 due under agricultural medium term loan accounts together with future interest on the sum of Rs.1,02,28,891.28 from the defendants and by sale of ‘A’ to ‘C’ schedule properties.
Facts of the case:
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3. At the request of the defendants, applicant bank
sanctioned the following credit facilities:-
| Date of sanction |
Type of loan | Amount | Availed by | Collateral security |
|---|---|---|---|---|
| 29.04.2017 | Agricultural medium term loan [AMTL-1] |
Rs.40 lakhs |
Defendants 1 & 2 |
‘A’ to ‘C’ schedule properties |
| 29.04.2017 | Agricultural medium term loan [AMTL-2] |
Rs.40 lakhs |
Defendants 1, 3 & 4 |
‘A’ to ‘C’ schedule properties |
The defendants availed the facilities and withdrew money from
the applicant but committed default in repayment. Consequently, the accounts turned NPA and the applicant initiated recovery proceeding under the provisions of SARFAESI Act. Despite demand notice under S.13(2) of the SARFAESI Act was issued to the defendants on 20.08.2019 demanding repayment of the entire amount due under the loan accounts, they did not respond to the notice. Hence the applicant bank was constrained to file the OA claiming the following reliefs:
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Proof Affidavit :
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subsequent to filing of the OA, the borrower had made a payment of Rs.3 lakhs into the agricultural medium term loan (AMTL-1) account on 22.03.2023.
order on the following lines:
In the result, the applicant bank is given a final order allowing it to recover:
(i) the sum of Rs.62,79,210.98 (Rupees sixty two lakhs seventy nine thousand two hundred and ten and Paise ninety eight only) due under agricultural medium term loan (AMTL-1) account together with pendente lite and post-decree interest @6% per annum on the sum of Rs.59,04,457/- (Rupees fifty nine lakhs four thousand four hundred and fifty seven only) from 13.12.2022 till realisation, less the sum of
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Rs.3,00,000/- (Rupees three lakhs only) paid by the defendants on 22.03.2023, from defendants 1 and 2 jointly and severally and by sale of ‘A’ to ‘C’ schedule properties;
(ii) the sum of Rs.45,43,781.38 (Rupees forty five lakhs forty three thousand seven hundred and eighty one and Paise thirty eight only) due under agricultural medium term loan (AMTL-2) account together with pendente lite and post-decree interest @6% per annum on the sum of Rs.43,24,434.28 (Rupees forty three lakhs twenty four thousand four hundred and thirty four and Paise twenty eight only) from 13.12.2022 till realisation from defendants 1, 3 and 4 jointly and severally and by sale of ‘A’ to ‘C’ schedule properties; and
this final order.
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(Dictated to my PA, corrected and pronounced by me in the open Tribunal on this the 22nd day of April, 2025)
[SOVAN KUMAR DASH] PRESIDING OFFICER
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A P P E N D I X
Witness for Applicant: AW1: Sri.C.M.Ravish Nair, Associate Vice President and Branch Head of the applicant bank.
Witness for Defendant(s): Nil
Applicant’s Exhibits
| Ext.No | Date | Particulars of documents | |
|---|---|---|---|
| A1 | 29.04.2017 | Demand executed of the app |
Promissory Note for Rs.40,00,000/- by the defendant nos.1 and 2 in favour licant bank in respect of the AMTL-1. |
| A2 | 29.04.2017 | Security defendant bank in re |
delivery letter executed by the nos.1 and 2 in favour of the applicant spect of the AMTL-1. |
| A3 | 29.04.2017 | Agreemen defendant bank in re |
t for agricultural loans executed by the nos.1 and 2 in favour of the applicant spect of the AMTL-1. |
| A4 | 29.04.2017 | Demand executed favour of AMTL-2. |
Promissory Note for Rs.40,00,000/- by the defendant nos.1, 3 and 4 in the applicant bank in respect of the |
| A5 | 29.04.2017 | Security defendant applicant |
delivery letter executed by the nos.1, 3 and 4 in favour of the bank in respect of the AMTL-2. |
| A6 | 29.04.2017 | Agreemen defendant applicant |
t for agricultural loans executed by the nos.1, 3 and 4 in favour of the bank in respect of the AMTL-2. |
| A7 | 30.04.2017 | Letter con executed Schedule ‘ |
firming creation of equitable mortgage by the 1stdefendant in respect of B’ and ‘C’ properties. |
| A8 | 18.01.2020 | Balance defendant bank in re |
confirmation letter executed by the nos.1 and 2 in favour of the applicant spect of the AMTL-1. |
| A9 | 18.01.2020 | Balance defendant applicant |
confirmation letter executed by the nos.1, 3 and 4 in favour of the bank in respect of the AMTL-2. |
| A10 | 20.08.2019 | Copy of th Act issued |
e Sec.13(2) notice under the SARFAESI to the defendants. |
| A11 | 12.12.2022 | Statemen Books Evi with A/c N |
t of account as certified under Bankers dence Act/I.T. Act in respect of AMTL-1 o.15176600000039. |
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| A12 | 12.12.2022 | Statement of account as certified under Bankers Books Evidence Act/I.T. Act in respect of AMTL-2 with A/c No.15176600000047 |
|---|---|---|
| A13 | 12.12.2022 | Statement showing the penal interest charged in the Exhibit A11 account and compounding impact thereof. |
| A14 | 12.12.2022 | Statement showing the penal interest charged in the Exhibit A12 account and compounding impact thereof. |
| A15 | .. | Statement showing the different rate of interest charged in the Exhibit A11 account. |
| A16 | .. | Statement showing the different rate of interest charged in the Exhibit A12 account. |
Defendants’ Exhibits – Nil
RESIDING OFFICER
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PRESIDING OFFICER
IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM
PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER
Dated the 22nd April, 2025
OA NO.807/2022
Between
The Federal Bank Ltd., Moonnupeedika Branch, E K S Complex, Kaipamangalam, Moonnupeedika, Kaipamangalam P.O., Thrissur – 680 681. Registered Office at: Federal Towers, Aluva, Ernakulam – 683 101. …Applicant And Shahul Hameed P.M., S/o.Muhammad, Puzhankarayillathu House, Chalingad P.O., Kaipamangalam, Thrissur District – 680 681 & 3 others. ...Defendants
F I N A L O R D E R
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest.
Whether the sum paid by the defendants ought to be deducted from the claim.
3 provisions across 3 enactments
The Federal Bank Ltd.
Shahul Hameed P.M.
Subaida V.S.
Mujeeb Rahman P.S.
Bismitha P.K.
SOVAN KUMAR DASH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
