Allowed

Idbi Bank v. Mohammed Faruk Khan

DRT5 Aug 2025OA/243/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by IDBI Bank Ltd. for recovery of an outstanding home loan of Rs. 48,05,950/- against three borrowers who failed to maintain financial discipline, holding them jointly and severally liable and directing the issuance of a recovery certificate.

What did the court decide?

Defendants ordered to pay Rs. 48,05,950/- with future interest; Recovery Certificate issued; Sale of hypothecated/mortgaged properties authorized for recovery.

Idbi Bank versus Mohammed Faruk Khan — Company and Corporate | DRT (2025)

¶1

“ORIGINALAPPLICATION” No. 243 of 2024

¶2

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶3

PRESENT- SHRI VIMAL GUPTA

¶4

PRESIDING OFFICER

¶5

O.A. NO. 243 OF 2024

¶6

DATE OF DELIVERY OF ORDER 05.08.2025

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IDBI Bank Ltd ., D-24, Durlabh Niwas, Prithviraj Road, C- Scheme, Jaipur (Raj.) through its Manager (Retail Recovery) & Authorized Representative, Satya Prakash Verma.

¶8

…..Applicant Bank…..

¶9

VERSUS

¶10

1. Mohammed Faruk Khan (alias Mohammed Farooq Khan) S/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

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2. Babu Ali Khan S/o Shri Mukarab Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

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3. Smt. Taj Bano W/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317 .

¶13

……Defendants…..

¶14

Counsel for the Applicant Bank Sh. Sanjay Rahar Counsel for the Defendants Sh. B. C. Jain

OA No. 243 of 2024

JUDGMENT

This Original Application was filed by the applicant bank on 06.12.2023 for recovery of outstanding amount of Rs. 48,05,950/- from the Defendants.

¶19

As per the pleadings, Defendant No. 1, 2 and 3 had approached the applicant bank for home loan facility. After due consideration, home loan facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2015 vide sanction letter dated 09.07.2015 for a sum of Rs. 45 Lac. Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA on 31.07.2021. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendants.

¶20

Summons were issued to the Defendants on 15.03.2024. Sh. B. C. Jain filed Vakalatnama on behalf of the Defendants, but reply has not been filed by the defendants.

¶21

Heard arguments and perused the record.

¶22

As stated supra, the Applicant Bank filed the evidence affidavit of Shri Satya Prakash Verma coupled with the recitals in the documents, viz Exhibit A/1 to A/29 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

¶23

Argument heard and record perused: -

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OA No. 243 of 2024

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a) In this matter, the main grievance of the applicant is that he was assured by the bank that if he deposits an amount of Rs. 8.50 Lac, the account will be regularized. Despite depositing an amount of Rs. 9.25 Lac, the account was not regularized.

¶27

b) On the contrary, the counsel for the applicant bank submits that no such assurance was given. In the reply, defendant has denied the mortgaged of the property and submitted that no charge was created over property.

¶28

c) Counsel for the bank submits that the SA filed by the defendants is listed at item no. 28. On perusal of that SA, the Tribunal observes that in that SA, availment of housing loan is admitted, creation of mortgaged is also admitted, therefore this defense of the defendants is not sustainable.

¶29

d) He has also raised a question of charging of the penal interest, the bank is permitted to charge the penal interest, but the same cannot be compounded. There is a myth regarding compounding of the penal interest, this Tribunal would like to clear the same, if any recoveries are made towards the penal interest then subsequent charging of the penal interest on the balance does not amount of compounding of penal interest, it is only when there is no recovery made, no interest can be charged on such penal interest, but in the present case, the bank has got ample recoveries to

¶30

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OA No. 243 of 2024

¶32

recover the interest portion because much more than the penal interest has already been deposited.

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e) There is no defense left with the defendants, in view of the SA being filed.

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Therefore, OA stands allowed as under:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 48,05,950/- (Rupees Forty Eight Lac Five Thousand Nine Hundred and Fifty only) with pendente lite and future interest @ 10% interest monthly rest from the date of filing of OA till disposal.

¶36

b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and mortgaged properties –

¶37

The property of Mohammad Faruk Khan s/o Shri Babu Ali Khan, part of Commercial plot part of Khasra No. 340/1, measuring 1196 sq. yard and residential plot part of Khasra No. 340/1, measuring 29.90 sq. yards, Village Rajas, Tehsil Laxmangarh, Sikar and

¶38

1. The property of Babu Ali Khan s/o Shri Mukarab Ali Khan, land comprised in and forming part measuring 1217.28 sq. yards of residential plot Patta No. 3, Village Rajas, Tehsil Laxmangarh, Sikar and

¶39

1. The property of Smt. Taj Bano w/o Shri Babu Ali Khan, piece and parcel of land comprised in and forming part of Commercial plot part of Khasra No.

¶40

¶41

OA No. 243 of 2024

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340/1, measuring 1196 sq. yard and residential plot part of Khasra No. 340/1, measuring 29.90 sq. yards, Village Rajas, Tehsil Laxmangarh, Sikar

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as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

¶45

The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

¶46

Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 27.10.2025 .

¶47

10.Prepare Recovery Certificate accordingly.

¶48

11.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

¶49

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

¶50

Order pronounced in the open court today i.e. 05.08.2025 .

¶51

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

¶52

¶53

OA No. 243 of 2024

¶54

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶55

PRESENT- SHRI VIMAL GUPTA

¶56

PRESIDING OFFICER

¶57

O.A. NO. 243 OF 2024

¶58

DATE OF DELIVERY OF ORDER 05.08.2025

¶59

RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

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IDBI Bank Ltd ., D-24, Durlabh Niwas, Prithviraj Road, C- Scheme, Jaipur (Raj.) through its Manager (Retail Recovery) & Authorized Representative, Satya Prakash Verma.

¶62

…..Applicant Bank…..

¶63

VERSUS

¶64

1. Mohammed Faruk Khan (alias Mohammed Farooq Khan) S/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

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2. Babu Ali Khan S/o Shri Mukarab Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

¶66

3. Smt. Taj Bano W/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317 .

……Defendants…..

OA No. 243 of 2024

Recovery Certificate for Rs. 48,05,950/-

¶71

In terms of final order dated 05.08.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 48,05,950/- (Rupees Forty Eight Lac Five Thousand Nine Hundred and Fifty only) with pendente lite and future interest @ 10% interest monthly rest from the date of filing of OA till disposal.

¶73

b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and mortgaged properties –

¶74

The property of Mohammad Faruk Khan s/o Shri Babu Ali Khan, part of Commercial plot part of Khasra No. 340/1, measuring 1196 sq. yard and residential plot part of Khasra No. 340/1, measuring 29.90 sq. yards, Village Rajas, Tehsil Laxmangarh, Sikar and

¶75

The property of Babu Ali Khan s/o Shri Mukarab Ali Khan, land comprised in and forming part measuring 1217.28 sq. yards of residential plot Patta No. 3, Village Rajas, Tehsil Laxmangarh, Sikar and

¶76

The property of Smt. Taj Bano w/o Shri Babu Ali Khan, piece and parcel of land comprised in and forming part of Commercial plot part of Khasra No. 340/1, measuring 1196 sq. yard and residential plot part of Khasra No. 340/1, measuring 29.90 sq. yards, Village Rajas, Tehsil Laxmangarh, Sikar

¶77

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OA No. 243 of 2024

¶79

as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 27.10.2025 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 05.08.2025 .

¶83

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

¶84

¶85

OA No. 243 of 2024

¶86

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶87

PRESENT- SHRI VIMAL GUPTA

¶88

PRESIDING OFFICER

¶89

O.A. NO. 243 OF 2024

¶90

DATE OF DELIVERY OF ORDER 05.08.2025

¶91

SCHEDULE TO RECOVERY CERTIFICATE

¶92

MEMO OF COST

¶93

IDBI Bank Ltd ., D-24, Durlabh Niwas, Prithviraj Road, C- Scheme, Jaipur (Raj.) through its Manager (Retail Recovery) & Authorized Representative, Satya Prakash Verma.

¶94

…..Applicant Bank…..

¶95

VERSUS

¶96

1. Mohammed Faruk Khan (alias Mohammed Farooq Khan) S/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

¶97

2. Babu Ali Khan S/o Shri Mukarab Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317.

¶98

3. Smt. Taj Bano W/o Shri Babu Ali Khan, R/o VPO Rajas, Tehsil Lachhmangarh, District Sikar-332317 .

……Defendants…..

OA No. 243 of 2024

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	51,000.00
2	Process Fee (Inc. Publication)	77.88
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	52,327.88

¶103

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 243 of 2024

05.08.2025

Counsel: Sh. Sanjay Rahar, Counsel for Applicant Bank Sh. B. C. Jain, Counsel for the Defendants

¶108

Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

¶109

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 243 of 2024

05.08.2025

Counsel:

Sh. Sanjay Rahar, Counsel for Applicant Bank Sh. B. C. Jain, Counsel for the Defendants

¶115

The Tribunal vide order dated 05.08.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

¶116

The Registrar vide order dated 05.08.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

¶117

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

Idbi Bank v. Mohammed Faruk Khan

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Mohammed Faruk Khan

Case brief

What is this about?

What did the court decide?

What the court decided

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