Allowed

Idfc First Bank Ltd. v. Harjeet Singh

DRT19 Nov 2025OA/363/2024

Case brief

AI extract

What is this about?

Applicant bank filed original application under section 19 of RDB Act for recovery of car loan amount. Tribunal allowed application despite defendant's absence, awarding sum with interest at 12% p.a. pending decree from date of filing.

What did the court decide?

Direct defendant to pay Rs.41,88,699.35 with interest at 12% p.a. from filing date. In case of default, recovery from sale of hypothecated vehicle.

Idfc First Bank Ltd. versus Harjeet Singh — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 363 of 2024

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 363 of 2024

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IDFC First Bank Limited

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Upper Ground Floor no.62/20 New Rohtak Road, Karol Bagh New Delhi-110005

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Applicant

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Versus

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Harjeet Singh 10A/17 18, East Patel Nagar Patel Nagar, SO Central Delhi New Delhi-110008

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Also at:

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Harjeet Singh G/F 9A 75, West Extn Area Channa Market, Karol Bagh Central Delhi, New Delhi-110005 Defendant

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Present: Mr. Harshit Singh, Counsel for applicant bank.

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Date of Reserve: 29.10.2025

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Date of Pronouncement: 19.11.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 29.05.2024 through Mr. Shakti Singh, authorized representative of the applicant bank, under section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.41,88,699.35 (Rupees Forty One Lacs Eighty Eight Thousand Six Hundred Ninety Nine and Paisa Thirty Five only) as on 23.04.2024 along with pendentelite and future interest at contractual rate from date

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O.A. No. 363 of 2024

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of filing of this application till the date of realization along with costs. Further, the name of Ms. Meesha Bhabra was substituted as authorized representative in place of Mr. Shakti Singh, erstwhile AR for the applicant bank.

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The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned Used Car Loan Facility to the tune of Rs.50,00,000/- (Rupees Fifty Lacs only) @16% per annum, which was to be repayable in 60 Equated Monthly Installments of Rs.1,18,950/- against hypothecation in order to purchase Mercedes Benz GLC car.

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That in order to avail the loan facility, the defendant submitted Loan Application Form on 11.06.2022 and executed Approval/Sanction Letter, Vehicle Loan cum Hypothecation Agreement dated 20.06.2022 with the applicant bank.

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That in order to secure the car loan facility, the defendant hypothecated the car namely Mercedes Benz GLC (2016-2019) having Registration No. DL-SCAR-9477, Chassis No. WDC2539036L005578, Engine No.65192134018665 with the applicant bank.

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It has been submitted by the applicant bank that after availing the car loan facility, the account maintained by defendant remained irregular and failed to comply with the terms and conditions of sanction. Ultimately, the applicant bank issued Loan Recall Notice dated 27.04.2024 to the defendant for adjustment of the account but defendant failed to clear the outstanding dues.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent

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O.A. No. 363 of 2024

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from the proceedings. As per order dated 29.05.2025, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Mr. Shakti Singh, authorized representative of the applicant bank who has proved the documents such as Letter of Authorization, Loan Application Form, Sanction Letter, Vehicle Loan cum Hypothecation Agreement, Statement of Account & Foreclosure Statement marked Exhibit A-1 to Exhibit A-6.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion

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O.A. No. 363 of 2024

that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.41,88,699.35 (Rupees Forty One Lacs Eighty Eight Thousand Six Hundred Ninety Nine and paisa Thirty Five only) as on 23.04.2024 together with pendentelite and future interest @12% per annum with monthly rests from the date of filing of this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated vehicle i.e. Mercedes Benz GLC (2016-19) car bearing Registration No. DL8CAR9477, Chassis no.WDC2539036L005578 Engine No.65192134018665. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 16.01.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. � c 5d

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�\o-t>") (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 19.11.2025

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