Dismissed

Veerankutty v. Kerala Gramin Bank

DRT10 Sept 2025SA/918/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal dismissed the applicant's Securitization Application. The applicant claimed no valuation report existed, but the Tribunal found valuation reports filed and accepted them. The applicant failed to submit material proving asset value criticisms.

What did the court decide?

The Securitization Application seeking to set aside the sale notice is dismissed with no order as to costs.

Veerankutty versus Kerala Gramin Bank — Company and Corporate | DRT (2025)

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL - 1 AT ERNAKULAM

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DATED THIS 10^th DAY OF SEPTEMBER, 2025

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PRESENT: Su. WILLYAHM, B.Sc., M.L. [DISTRICT JUDGE - Retd] PRESIDING OFFICER

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S.A No. 918 of 2024

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Between

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Veerankutty, S/o.Kunjayin, Proprietor Hiba Super Market and General Merchant, Main Road, Perumanna P.O., Kozhikode, Pin-673019.

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--- Applicant

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And

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Kerala Gramin Bank, Represented by its Authorised Officer, Regional Office, Kozhikode-673001.

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Kerala Gramin Bank, Peruvayal Branch, Represented by its Branch Manager, Poovattuparamba P.O. Kozhikode-673008.

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--- Defendants

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This Securitization Application coming on 08.08.2025 for final hearing before me in the presence of Mr. P. Samsudin, Counsel appearing for the Applicant and Mr. K.Madhusoodanan, Counsel appearing for the defendants and upon hearing arguments of learned Counsels for the parties and upon perusing the material on records, this Tribunal delivered the following:

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SA No.918 of 2024

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O R D E R

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This Securitisation Application was filed on 04.12.2024 praying to set aside Annexure A3 sale notice and direct the defendants not to proceed with the steps to dispossess the applicant of the secured assets pending disposal of the SA.

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The applicant has admitted the availment of credit facilities from the 2^nd defendant bank upon creation of equitable mortgage over his immovable properties admeasuring 1.82 Ares in Re.Sy. No.52/B and 1.215 Ares in Re.Sy. No.53/3 of Perumanna Village as the collateral security in favour of the 2^nd defendant bank.

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The applicant has also admitted his default in repayment of the outstanding loan due to the defendant bank. According to the defendants, since the applicant failed to discharge his loan accounts, his loan account accounts came to be classified as Non-performing Asset and demand notice dated 2.3.2024 was issued to the applicant and subsequently possession notice dated 20.09.2024 Annexure-A2 was issued. The applicant has also admitted the receipt of the possession notice.

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It is seen from the perusal of the averments of the SA that the applicant neither sent any objection/representation to the demand notice nor did he clear off his liability due to the defendant bank. Therefore, the defendants issued Annexure-A3 sale notice dated 6.11.2024 for sale of the secured assets on 11.12.2024. The applicant having aggrieved against the above measures filed this SA seeking for the reliefs stated supra.

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The counsel appearing for the applicant submitted that the value of the secured assets is more than Rs.1 Crore and that but the reserve price fixed for the secured asset is Rs.56,00,000/- and that no valuation report was obtained prior to issuance of the sale notice and that therefore SA may be allowed setting aside Annexure-A3 sale notice.

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The counsel appearing for the defendants submitted that the direction of the Hon'ble High Court of Kerala in its judgment Annexure-A4 to pay a sum of Rs.30,40,870/- out of the entire outstanding amount on or before 01.04.2022 and balance amount in 14 equated monthly instalments was not complied with by the applicant and that the applicant has not produced any proof to show value of the secured assets is more than Rs.1 Crore and that reserve price fixed for the secured assets after obtaining valuation reports Annexure-B1 and B2 in respect of both items of secured assets and that possession notice was published in two leading newspapers and

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Page 2 of 4

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SA No.918 of 2024

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that it was affixed on the conspicuous part of the secured assets and that the SA may be dismissed with costs to the defendants.

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The applicant has not produced any material before this Tribunal to substantiate his claim that the value of the secured assets is more than Rs.1 Crore. Admittedly, the reserve price fixed for the secured assets is Rs.56,00,000/-. A perusal of Annexure-B1 and B2 valuation reports shows that the approved Valuer after having inspected the secured assets fixed the value for the first item of the secured asset at Rs.27,00,000/- and Rs.23,00,000/- for the second item of the secured assets. It is also seen from Annexure-B1 and B2 that the approved Valuer has taken into consideration of the guideline value and the location of the properties prior to fixation of the value for the properties. Therefore, this Tribunal does not find any infirmity or irregularity in respect of fixation of the value for both items of the secured assets. The applicant has also not made any specific contention in the SA with regard to issuance, affixture and publication of Annexure-A3 sale notice. It is pertinent to mention herein that the applicant failed to comply with the direction of the Hon'ble High Court of Kerala passed in Annexure-A4 judgment.

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The applicant has failed to prove his case so as to get the relief sought for in the SA.

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Resultantly, S.A No.918 of 2024 stands dismissed. However, there shall be no order as to costs.

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Dictated to Steno, taken down, transcribed, typed by him, corrected and pronounced by me in the open court on this the 10^th day of September, 2025.

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(Su. WILLYAHM) PRESIDING OFFICER

Mj/

Page 3 of 4

SA No.918 of 2024

List of documents filed by the Applicant along with the S.A.

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Sl.	Date	Particulars
No.
1.	…..	True copy of the pass book in respect of Housingloanaccount ofthe applicant.	Annexure-A1
2.	20.09.2024	True copy of possession notice.	Annexure-A2
3.	06.11.2024	True copy of sale notice.	Annexure-A3
4.	24.03.2022	True copy of the judgment in W.P.(c) No.10018/2022 of the High court of Kerala.	Annexure-A4
5.	……	True copy of the account statement.	Annexure-A5

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List of documents filed by the defendants along with the written statement

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Sl.	Date	Particulars
No.
1.	24.10.2024	Valuation report	Annexure-B1
2.	24.10.2024	Valuation report	Annexure-B2

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(Su. WILLYAHM) PRESIDING OFFICER

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Mj/

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Page 4 of 4

Veerankutty v. Kerala Gramin Bank

Case brief

What is this about?

What did the court decide?

Veerankutty v. Kerala Gramin Bank

Case brief

What is this about?

What did the court decide?

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