Allowed

Idbi Bank Limited v. Amar Singh and Another

DRT23 Jun 2025OA/1260/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by IDBI Bank Limited against two defendants under Section 19 of the RDBFI Act, 1993, for recovery of Rs.28,93,111. Proceeding ex-parte, the tribunal decreed the loan amount and reduced the claimed interest to 8% p.a., permitting recovery via property sales under the SARFAESI Act. Parties were directed to appear before the Recovery O

What did the court decide?

Decree ordered for Rs.28,93,111 plus costs and simple interest at 8% p.a.; Recovery Certificate issued; parties summoned before Recovery Officer.

Idbi Bank Limited versus Amar Singh and Another — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1260/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 01.10.2024

¶4

DATE OF DECISION: 23.06.2025

¶5

IDBI Bank Limited, i.e. a company incorporated under the provisions of company act, 1956 and a banking company within the meaning of the Banking Regulations Act, 1949 and having its head office at IDBI tower, WTC Complex, Cuffe Parade, Mumbai 400005 and its branches at various places including office at IDBI Bank Limited, Patiala Chandigarh Road, Near ITI Chowk, Rajpura, Punjab through its asstt. General Manager Duly Constituted Attorney Sh. Yogesh Chhabra.

¶6

……..Applicant

¶7

Versus

¶8

Sh. Amar Singh S/o Sh. Gajjan Singh R/o Village Chalheri Kalan, Post office Pola, District Fatehgarh Sahib, Punjab.

¶9

Sh. Pritpal Singh S/o Sh. Gajjan Singh R/o Village Chalheri Kalan, Post office Pola, District Fatehgarh Sahib, Punjab.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Ms. Lovedeep Kaur, Advocate proxy for Sh. Sukhvinder Singh, Advocate for the applicant Defendants are ex parte

¶13

FINAL ORDER

¶14

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.28,93,111.00p (Rupees Twenty Eight Lacs Ninety Three Thousand One Hundred Eleven only). The Original Application has been filed through Sh. Yogesh Chhabra, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide Copy of Delegation of powers dated 20.03.2020, which is Annexure A1 to this OA.

¶15

The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs

¶16

2 OA NO.1260-2024 IDBI BANK LIMITED VS AMAR SINGH AND ANOTHER

¶17

vide Loan application dated 05.02.2015, which is Annexure A2 to this OA.

¶18

The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Sanction letter dated 13.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶19

Defendant no.1 had hypothecated his immovable property i.e. total land measuring 36Kanal situated at Village Chhaleri Kalan, Hadbast No.274, Tehsil and District Fatehgarh Sahib, Punjab vide Declaration u/s 4(1) dated 13.02.2015, with its translations, which are Annexures A7 & A8 to this OA.

¶20

Documents executed: -Copy of D.P. Note, Copy take delivery letter, Copy of hypothecation agreement , Copy of guarantee deed duly executed by defendant no.2 all dated 18.02.2015,which are Annexures A4 to A6 & A9 to this OA; Copy of recall notice issued to defendant no.1 & 2 dated 16.04.2024 & 22.05.2024, which are Annexures A10 & A11 to this OA; Copy of statement of account with certificate, which is Annexure A12 to this OA and Copy of acknowledgement of debt cum revival letter dated 14.11.2017, which is Annexure A13 to this OA.

¶21

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.28,93,111.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 16.06.2025. 7. In support of the OA, affidavit of Sh. Yogesh Chhabra, Authorized Signatory, IDBI Bank Limited, h as been filed. 8. Heard arguments and perused record.

¶22

3 OA NO.1260-2024 IDBI BANK LIMITED VS AMAR SINGH AND ANOTHER

¶23

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,93,111.00p (Rupees Twenty Eight Lacs Ninety Three Thousand One Hundred Eleven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶24

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75%p.a. along with penal interest @2.00%p.a. with half yearly rests from 27.03.2024 till the realization.

¶25

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶26

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

¶27

4 OA NO.1260-2024 IDBI BANK LIMITED VS AMAR SINGH AND ANOTHER

¶28

Rs.28,93,111.00p (Rupees Twenty Eight Lacs Ninety Three Thousand One Hundred Eleven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶29

Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.07.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶30

Pronounced by me in the open Tribunal . Dated: 23.06.2025

¶31

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Idbi Bank Limited v. Amar Singh and Another

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. Amar Singh and Another

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

Coram

Case details

Similar cases

Bank of Baroda versus M/s M.H. Industries

Hdfc Bank Limited versus Rohtash Kumar and Others

Karnataka Bank Limited versus M/S Hari Om Trading Company and Others

Hdfc Bank Ltd. versus Sh. Harshpinder Singh and Others

Punjab National Bank versus M/S Rajat Agro Products and Another

Punjab Gramin Bank versus Usha Devi and Others