Allowed

Idbi Bank v. Shabari Borewells and pumps

DRT24 Oct 2025OA/1038/2023

Case brief

AI extract

What is this about?

In an amount due application under the RDB Act, the Dribunal, Bengaluru allowed the applicant bank's claim for a recovery certificate against defaulting borrowers in an ex-parte proceeding, calculating interest at agreed rates while declining a prayer for monthly penal interest.

What did the court decide?

Recovery certificate issued for an aggregate sum of Rs. 68,89,056.27 with further interest on various loan components; recovery to be effected from persons and property of the defendants.

Idbi Bank versus Shabari Borewells and pumps — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 24^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1038/2023

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BETWEEN:

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IDBI Bank Ltd., Branch Office at: No.26/1, Soubhagya Complex 24^th Main, 5^th Phase, J.P. Nagar, Bengaluru-560078

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…APPLICANT

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AND:

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M/s. Shabari Borewells and Pumps. A Proprietary Concern Having its office at: No.13, 29^th ‘A’ Main, BTM 1^st Stage, Bengaluru-560068 And also at BTM 2^nd Stage, Near Commercial Hardware, Beside Raj Inn/ Fresh Chicken Bengaluru-560068, Represented herein by its Proprietor Sri. G. Sandeep

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Sri. G. Sandeep S/o. Sri. Gopal Naidu

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Smt. G. Bindurani, W/o G. Sandeep

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No.2 and 3 are R’/at: No.92, Indiravasa, GPR Grande Attibele Hobli, Anekal Road, Bengaluru- 560081

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OA 1038-2023

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Sri. P HemanthKumar S/o. M Parashuram, No.352, Coffee Board Colony, K.G. Halli, Bengaluru- 560045

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Y.P. Gokul Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.68,89,055.27/- (Rupees sixty eight lakh eighty nine thousand fifty five and paisa twenty seven only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 is a Proprietary Concern with Defendant No.2 as its Proprietor. Further, the defendants availed the following credit facilities from the applicant bank:-

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I. Cash Credit Facility of a sum of Rs.10,00,000/- (Rupees Ten Lakh Only) from which defendants No.2 & 4 are liable and it was later enhanced from time to time,

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OA 1038-2023

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II. GECL loan limit of Rs.3,76,000/- (Rupees Three lakh seventy six thousand Only) from which defendants No.1 & 2 are liable,

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III. Housing Loan limit of Rs.25,00,000/- (Rupees Twenty Five Lakh Only) from which defendants No.2 & 3 are liable and it was later enhanced,

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IV. Top up Housing loan of Rs.25,00,000/- (Rupees Twenty Five Lakh Only) from which defendants No.2 & 3 are liable.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with demand promissory note, common guarantee, sanction letter and memorandum of deposit in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA 1038-2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 27.08.2024.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-41 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the

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OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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OA 1038-2023

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendant for Cash Credit facility, Housing

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purpose, this Tribunal in view of the rate of interest as claimed need not be reduced. However, as the OA Claim is arrived at by calculating interest at the agreed rate and also by applying

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default interest, the prayer for monthly rest and future penal interest are declined.

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In the result, OA.No.1038/2023, stands allowed,

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OA 1038-2023

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.68,89,056.27 (Rupees sixty eight lakh eighty nine

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thousand fifty six and paisa twenty seven only) consisting of:-

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a) Rs.18,26,603.91 (Rupees eighteen lakh twenty six thousand six hundred three and paisa ninety one Only) with further interest @ 15.65% p.a. (Simple),

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b) Rs. 1,41,785.50 (Rupees one lakh forty one thousand

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seven hundred eighty five and paisa fifty Only) with further interest @ 11.25% p.a. (Simple),

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c) Rs.21,39,608.95 (Rupees twenty one lakh thirty nine thousand six hundred eight and paisa ninety five Only) with further interest @11.50% p.a. (Simple), and

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d) Rs.27,81,056.91 (Rupees twenty seven lakh eighty one

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thousand fifty six and paise ninety one Only) with further interest @ 11.80% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA

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and allowed the same to be recovered by proceedings against

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the schedule property. Properties schedule to the OA be the

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OA 1038-2023

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schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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personally and their other assets are liable to be proceeded

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against for the balance amount due in respective loans.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 24^th day of October, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1038-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: G. Basanth Chakravarthy, Deputy General Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Shabari Borewells and pumps

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Shabari Borewells and pumps

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

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Case details

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