Allowed

Idbi Bank Ltd. v. Balwinder Kaur and Others

DRT8 Jul 2025OA/354/2025

Case brief

AI extract

What is this about?

Bank applicant was reposed contentment apart from mortgage was granted. The original aided security interest-recover the outstanding dues. The Tribunal allowed the application, confirming the claim but reducing the interest rate from the claimed 10.55% to 8% per annum uniform simple interest from the date of OA filing till realization. Recovery certificate was issued.

What did the court decide?

The application was allowed; the applicant was directed to recover the amount of Rs.21,38,232.26p with 8% per annum simple interest from the date of filing via sale of mortgaged properties or attachme

Idbi Bank Ltd. versus Balwinder Kaur and Others — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.354/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2025

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DATE OF DECISION: 08.07.2025.

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IDBI Bank Limited, a company within the meaning of the companies Act, 2013 and a Banking Company within the meaning of Section 5(c) of the Banking Regulation Act, 1949 and having its Registered Office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai-400005 and its branches at various places including a Branch Office at Mukandpur Road, Banga -144505 District Nawanshehr Punjab through its Branch Head/Authorized Officer Sh. Prashant Kumar Verma.

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……..Applicant

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Versus

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1. Balwinder Kaur W/o Sh. Joginder Singh (since deceased represented by her legal heir;-

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Mukhtiar Singh S/o Sh. Joginder Singh (Son)

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Harwinder Singh S/o Sh. Joginder Singh (Son)

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Gurinder Singh S/o Sh. Joginder Singh (Son)

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All R/o VPO Ladian, Tehsil Banga, District SBS Nagar, Punjab.

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Mukhtiar Singh S/o Sh. Joginder Singh R/o VPO Ladian, Tehsil Banga, District SBS Nagar, Punjab.

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….……Defendants

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Advocates:

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Argued by, Sh. J.S. Sehgal, advocate for Applicant Defendants are ex parte

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FINAL ORDER

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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.21,38,232.26p (Rupees Twenty One Lacs Thirty Eight Thousand Two Hundred Thirty Two & Paise Twenty Six only). The Original Application has been filed through Sh. Prashant Kumar Verma, Branch manager, o f the applicant, who is competent to institute the Original

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2 OA NO.354-2025

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IDBI BANK LIMITED VS LATE BALWINDER KAUR AND OTHERS

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Application vide Delegation of power, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1(since deceased) and defendant no.2 had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan application dated 13.08.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Letter of Intent dated 22.08.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged her immovable properties i.e. total land measuring 28K-00M-1S detailed as a. land measuring 14K-18M-1S situated at Village Ladian, Tehsil Banga, District SBS Nagar, Punjab b. land measuring 13K-02M-0S situated at Village Jindiala, Tehsil Banga, District SBS Nagar, Punjab vide Registered Mortgaged Deed bearing vasika no.904 dated 22.08.2014, with its translations, which are Annexures A12 & A13 to this OA. Documents executed: Hypothecation cum loan agreement, Common guarantee, Demand Promissory Note all dated 22.08.2014, which are Annexures A4 to A6 to this OA; Acknowledgement of debts cum revivals letters dated 11.04.2016, 13.06.2018, 06.04.2020& 02.09.2021, which are Annexures A7 to A11 to this OA; Mutation Jamabandi dated 25.08.2014 22.08.2014, which are Annexures A14 to A17 to this OA; notice dated 08.07.2024 & 09.07.2024 along with postal receipts, which are Annexures A18 to A21 to this OA and Statement of accounts along with account closure enquiry, which is Annexure A22 to this OA. 5. 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.21,38,232.26p, which is recoverable and the defendants

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3 OA NO.354-2025

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IDBI BANK LIMITED VS LATE BALWINDER KAUR AND OTHERS

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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.

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The legal heirs of deceased defendant no.1 and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 02.07.2025.

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In support of the OA, affidavit of Sh. Prashant Kumar Verma, Branch manager, IDBI Bank Limited, h as been filed.

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Heard arguments and perused record.

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It was argued by learned 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 A22 to this OA, it is proved that the defendant no.1(since deceased) and defendant no.2 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 defendant no.1(since deceased) and defendant no.2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1(since deceased) and defendant no.2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,38,232.26p (Rupees Twenty One Lacs Thirty Eight Thousand Two Hundred Thirty Two & Paise Twenty Six only) along with interest from the legal heirs of deceased defendant no.1 and defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest

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4 OA NO.354-2025

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IDBI BANK LIMITED VS LATE BALWINDER KAUR AND OTHERS

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@10.55%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.11.2024 till the realization.

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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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 and defendant no.2 are liable to pay to the applicant a total sum of Rs.21,38,232.26p (Rupees Twenty One Lacs Thirty Eight Thousand Two Hundred Thirty Two & Paise Twenty Six 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 legal heirs of deceased defendant no.1 and defendant no.2 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 legal heirs of deceased defendant no.1 and defendant no.2. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.07.2025.

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5 OA NO.354-2025 IDBI BANK LIMITED VS LATE BALWINDER KAUR AND OTHERS

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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. Pronounced by me in the open Tribunal . Dated: 08.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Idbi Bank Ltd. v. Balwinder Kaur and Others

Case brief

What is this about?

What did the court decide?

Idbi Bank Ltd. v. Balwinder Kaur and Others

Case brief

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What did the court decide?

What the court decided

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