Allowed

Punjab National Bank v. Biju K Mathai

DRT5 Feb 2026OA/273/2022

Case brief

AI extract

What is this about?

In an original application under the RDDBFI Act for recovery of a housing loan, the Tribunal allowed the case after excluding legal expenses and penal interest from the claimed amount, directing the respondents to pay the principal sum with future interest and authorizing the sale of schedule property.

What did the court decide?

Directing respondents to pay Rs. 21,85,576.95 with future interest; authorizing sale of schedule property to realize dues.

Punjab National Bank versus Biju K Mathai — Banking and Recovery | DRT (2026)

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Fair order

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IN THE DEBTS RECOVERY TRIBUNAL-1 AT ERNAKULAM

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DATED THIS 05^th DAY OF FEBRUARY, 2026

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

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OA No.273/2022

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Between

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Punjab National Bank, Perumbavoor Branch, Represented by SASTRA, Broadway, Ernakulam – 682 031 Through its Chief Manager & Power of Attorney Holder, Sri. Avinash P. Nair, S/o. Late S. K. P. Nair

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---Applicant Bank

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And

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Fr. Biju K. Mathai, S/o. K. P. Mathai, Kadavan House, Chooramudy, Kombanadu P.O., Mudakuzha, Perumbavoor, Ernakulam – 683 546

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Jyothi Ann John, W/o. Binu K. Mathai, Kadavan House, Chooramudy, Kombanadu P.O., Mudakuzha, Perumbavoor, Ernakulam – 683 546

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---Defendants

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OA 273/2022

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This Original application coming on 25.11.2025 for final hearing before me in the presence of Ms. Umarani M. N., Advocate appeared for Applicant Bank and Defendants having been set exparte and upon hearing the arguments of Counsel for the applicant Bank and upon perusing the materials on record and having stood over for consideration till this day, this Tribunal delivered the following:

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O R D E R

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This application has been filed on 17.03.2022 under Section 19(1) of RDDBFI Act (now amended as the Recovery of Debts and Bankruptcy Act, 1993) by the applicant bank to recover from the defendants, jointly and severally, a sum of Rs.21,95,323.95 being the amount due under the Home loan facility (Account No.433900NC00001821) as on 03.03.2022 together with interest thereon @ 8.50% per annum with monthly rests plus penal interest on Rs.21,95,323.95 from 04.03.2022 till date of realisation and by sale of OA schedule property and with costs.

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The brief averments of the application filed by the Applicant Bank are as follows:-

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The defendants 1 & 2 are joint borrowers and they approached the applicant bank for financial assistance for purchase of house and the applicant bank sanctioned a Housing loan to the tune of Rs.18,00,000/- to the defendants on 13.01.2015 and the defendants executed necessary security documents on 14.01.2015. The 2^nd defendant created equitable mortgage over her property more particularly described in Schedule ‘A’ to the OA and executed letter evidencing deposit of title deed dated 27.03.2015.

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The defendants defaulted in the repayment of the amounts as per the terms and conditions of the agreement and therefore, the account was classified as NPA on 31.03.2021. The applicant bank thus recalled the entire loan outstanding and initiated recovery proceedings under SARFAESI and issued notice under Section 13(2) on 28.06.2021 to the defendants and demanded repayment of the entire loan liability. Since the amount due to the applicant has not been paid by the defendants, the applicant bank filed this OA for recovery of the amounts due to it.

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In spite of granting sufficient time, Vakalath and written statement for the Defendants not filed. Subsequently, the defendants were set exparte on 06.10.2022.

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Page 2 of 6

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OA 273/2022

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Mr. Avinash P. Nair, Chief Manager and Power of Attorney Holder of the Applicant Bank, as AW1 filed proof affidavit and got the documents marked as Exhs.A1 to A10 in support of its case.

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According to the applicant bank, the defendants availed Housing loan for a sum of Rs.18,00,000/- on execution of necessary security documents viz. Sanction letter dated 13.01.2015 Exh.A1, Agreement for Housing loan dated 14.01.2015 Exh.A2, Letter confirming deposit of title deed dated 27.03.2015 Exh.A5 and Balance and Security Confirmation letters dated 15.11.2017 and 11.11.2020 Exhs.A6 & A7 respectively in order to prove the case of the applicant bank for realisation of the amounts claimed in the Original Application.

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The applicant has failed to produce the English translated version of document No.4 as per Rule 3(2) of the Debts Recovery Tribunal (Procedure) Rules, 1993. This Tribunal is not in a position to read the contents of the document and understand the same. However, it appears that this document pertains to the OA schedule property.

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Exh.A9 is the certified copy of the statement of account relating to the Housing loan account No.433900NC00001821 availed by the defendants. The amount claimed as due under Exh.A9 account is inclusive of the sum of Rs.9,747/- (being legal and other expenses). But it has not stated as to how is it entitled to claim the aforesaid charges added to the ledger balance to arrive at the amount claimed as due under the OA as on 03.03.2022. The applicant bank ought to have incorporated the above expenses and charges by way of debit entries under Exh.A9 account after such account became non-performing asset. The applicant bank has not produced any proof in respect of such claim. Therefore, such charges and expenses cannot be construed to be taken as certified under Section 2A of the Banker’s Books Evidence Act, 1891. Therefore, the applicant bank is not entitled to recover the aforesaid amount claimed by way of expenses and charges under Exh.A9 account from the defendant.

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The applicant bank has charged Rs.37,905.90 as penal interest on the Housing loan account availed by the defendants in terms of the agreement in sanction letter. It is well settled that penal interest cannot be capitalised and no interest can be charged on penal interest. The applicant bank, therefore, is not entitled to get any further interest on the aforesaid amount of penal interest, as laid down by the Hon'ble Supreme Court of India in Central Bank of India v. Ravindra [reported in AIR 2001 SC 3095] .

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Having regard to the submissions made by the learned Counsel for the applicant bank, the Tribunal considered all the materials available on record

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Page 3 of 6

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OA 273/2022

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in totality. The case of the applicant bank regarding recovery of the sum of Rs.21,95,323.95 less the aforesaid sum of Rs.9,747/- i.e. Rs.21,85,576.95 claimed as due under Exh.A9 certified copy of the statement of account relating to the Housing loan account with interest pendentelite and post final order interest on the sum of Rs.21,47,671.05 from the defendants, jointly and severally, is proved by the uncontroverted averments in the proof affidavit of AW1 along with Exts.A1 to A10.

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Accordingly, this Tribunal holds that since the applicant bank has proved its case through its proof affidavit and the documents marked, the Original Application is allowed, and the defendants 1 & 2 are directed to pay to the applicant bank, jointly and severally, as per the following lines :

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“A sum of Rs.21,85,576.95 (Rupees Twenty One Lakhs Eighty Five Thousand Five Hundred Seventy Six and Paise Ninety Five only) due under the Housing loan account No.433900NC00001821 with future interest on the sum of Rs.21,47,671.05 (Rupees Twenty One Lakhs Forty Seven Thousand Six Hundred Seventy One and Paise Five only) @8.50% per annum from 04.03.2022 till realisation.”

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On failure to pay the above said debts to the Applicant Bank, the Applicant Bank is directed to bring the OA schedule property, for sale to realize its dues and its proportionate costs.

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The Registry is directed to prepare DRC in terms of this final order. The Applicant Bank shall file memo of costs within 10 days from the date of this order. Registry is directed to communicate the copy of this order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993, as amended in 2003.

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Typed by PS, transcribed, corrected and pronounced by me in the open court on this the 05^th day of January, 2026.

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(Su. WILLYAHM) PRESIDING OFFICER

Page 4 of 6

OA 273/2022

SCHEDULE

‘A’ SCHEDULE

District : Ernakulam Sub District : Perumbavoor Taluk : Kunnathunadu Village : Perumbavoor Re. Sy. No. : 21 Sy.No. :264/7A-2 Extent : 1.42 Ares

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Description of property

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All that piece and parcel of the land admeasuring 1.42 ares and residential building therein in Re.Sy.No.21( Sy.No.264/7A/2) of Perumbavoor Village, Kunnathunadu Taluk, Ernakulam District belonging to the 2^nd defendant covered under Sale Deed No.166/2015 dated 14.01.2015 of Perumbavoor SRO together with all improvements thereon.

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Boundaries as per title deed

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East : Properties of Kuttappan and Others. North : Municipal Road. West : Concrete Road South : Remaining Property of vendors.

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(Su. WILLYAHM) PRESIDING OFFICER

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Page 5 of 6

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OA 273/2022

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LIST OF DOCUMENTS FILED BY THE APPLICANT BANK

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Sl. No.	Date		Description of document	Exhibits
1	22.12.2014	The defe	application submitted by the ndants.	Exh.A1
2	13.01.2015	The the d	sanction letter duly acknowledged by efendants.	Exh.A2
3	14.01.2015	The exec	Agreement for Housing Loan uted by the defendants.	Exh.A3
4	14.01.2015	The Peru	Sale Deed No. 166/2015 of mbavoorSRO.	Exh.A4
5	27.03.2015	The oftit	confirmation letter evidencing deposit le deeds executed by 2^nd defendant.	Exh.A5
6	15.11.2017	The Lette	Balance and Security Confirmation rs executed by the defendants.	Exh.A6
7	11.11.2020	The Lette	Balance and Security Confirmation rs executed by the defendants	Exh.A7
8	28.06.2021	The defe	demand notice issued to the ndants under SARFAESI Act.	Exh.A8
9	----	Stat Hou No.4	ement of account pertaining to the sing Loan account 33900NC00001	Exh.A9
10	----	Stat hous	ement of interest charged in the ingloanaccount	Exh.A10

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(Su. WILLYAHM) PRESIDING OFFICER

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Page 6 of 6

Punjab National Bank v. Biju K Mathai

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Biju K Mathai

Case brief

What is this about?

What did the court decide?

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