Allowed

Idbi Bank v. M/S Shiva Enterprises

DRT17 Dec 2025OA/476/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by IDBI Bank to recover dues of Rs.28,62,095.70 along with interest from M/s. Shiva Enterprises and guarantors. The tribunal confirmed the validity of loan documents and ordered recovery via sale of mortgaged and personal properties.

What did the court decide?

Dues of Rs.28,62,095.70 with interest granted; order to pay within two months; mortgage and personal properties liable to be sold; Recovery Certificate issued.

Idbi Bank versus M/S Shiva Enterprises — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Date of order or lroceeding	Order with signature of court	Officeaction takenwithdate
O.A.No.476/2023 17.12.2025	Judgment is signed and pronounced onseparate sheets. Separately attachedin08 sheets. Order be uploaded on the Tribunal’swebsite
	( <br>(Pravas Kumar Singh) Presiding Officer

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IN THE DEBTS RECOVERY TRIBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer Case No. Original Application No.476 of 2023

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Dated : 17.12.2025

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IDBI Bank, having Branch at 565 KA/183, Sneh Nagar, Alambagh, Lucknow, UP226005' Versus

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1. M/s. Shiva Enterprises, having its work office at 142, Vijay Nagar, Manas Nagar, Lucknow226023, through its Prop. Mr. Anubhav Awasthi also at Sant Nagar, Ahimamau Sultanpur Road, Lucknow-226002.

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1. Mr. Anubhav Awasthi, R/a 142, Vijay Nagar, Manas Nagar, Lucknow-226023. Also At 55/295 Cl, LDA Colony, Kanpur Road, Lucknow-226012 also at FIa No.4/3, Sulabgh Awas, Transport Nagar, LDA Colony, Lucknow-226012 (Near Mauray Restaurant).

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1. Mr. Sudhir Kumar, R/o H.No.551 Jha/151A, Alambagh, Lucknow-226005. Also at No.551 Jha/131, Ram Nagar, Hari Prasad Nagar, Alambagh, Lucknow-226005. Also at Ground Floor, H.No.E-711, EWS, Sitapur Road Scheme, Sector C, Aliganj, Lucknow226005. Also at H.No.11, Preeti Nagar Dudauli Near Anna Market, Road Lucknow226020.

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4 Mrs. Beena Dixit, R/o H.No.551 Jha/151A, Alambagh, Lucknow-226005. Also at No.551 Jha/131, Ram Nagar, Hari Prasad Nagar, Alambagh, Lucknow-226005. Also at First Floor, H.No.S-712/11, EWS, Sitapur Road Scheme, Sector C, Aliganj, Lucknow-

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........Applicant Bank

O.A. No.476 of 2023

Defendants

Also at H.No.11, Preeti Nagar Dudauli Near Anna Market, Road Lucknow226020.

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Ld. Counsel for the applicant-bank: Mr. Subhash Goswami, Advocate. Ld. Counsel for the defendants: None

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JUDGMENT

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This Original Application has been filed by the applicant Bank under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.28,62,095.70/-(Rupees Twenty Eight Lac, Sixty Two Thousand Ninety Five and Paisa Seventy Only) (Rs.24,34,578.70/in Cash Credit Loan Account) & (Rs.4,27,517/- in GECL Loan Account) together with pendent-lite and future interest, costs and other reliefs etc.

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The brief facts of case :-The defendant no.1 is proprietorship firm, of which, the defendant no.2 is proprietor and the defendant nos.3 & 4 are guarantors. The defendant nos.I & 2 dated 20.11.2017 approached the applicant-bank for grant of Cash Credit Facility of Rs.15.00 lac, which was duly considered and sanctioned by the applicant-bank vide sanction letter dated 24.11.2017 on certain terms and conditions (Annexure No.A-2) to this original application.

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In order to secure the aforesaid Credit facility, the defendant nos.1 & 2 had executed and signed Facility Agreement in favour of the applicantbank on 24.11.2017. The defendant nos.2 to 4 being guarantors towards the credit facility had executed and signed Common Guarantee Deed in favour of the applicant-bank acknowledging therein their liabilities same

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O.A. No.476 of 2023

and equal with the principal borrower (Annexure No.A-3 & Annexure No.A4) to this original application.

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Further, in order to secure the repayment of bank dues, the defendant nos.3 & 4 had created mortgage of their immovable property i.e. (i) 27.714 sq. mt. situated/located at Flat No.E-711, Ground Floor, Sector C, Sitapur Road Yojna, Lucknow, UP-226021 (within municipal corporation limits) & (ii) 22.285 sq. mtr. Situated/located at Flat No.S712/II, First Floor, Sector C, Sitapur Road Yojna, Lucknow, UP 226021 (within municipal corporation limits), as detailed in the petition in favour of the bank (Annexure No.A-5 to Annexure No.A-9) to this original application.

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Again, at the request of defendants, the applicant-bank enhanced Cash Credit from Rs.15 lac to Rs.21 lac, for which, the said defendants had further executed and signed various security documents in favour of the applicant-bank on 29.10.2018 and also extended the creation of mortgage (Annexure No.A-10 to Annexure No.A-18) to this original application.

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Again, at the request of defendants, the applicant-bank sanctioned GECL Loan of Rs.4.00 lac, for which, the said defendants had further also executed and signed various security documents in favour of the applicantbank on 16.6.2020 and also extended the creation of mortgage (Annexure No.A-19 to Annexure No.A-24) to this original application.

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To avail the aforesaid credit facilities, the applicant-bank had opened two loan accounts in the name of defendant no.1/firm in order to maintain the credit facilities

O.A. No.476 of 2023

After availing the aforesaid credit facilities, the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, consequently, the loan accounts of the defendant no.1/firm were classified as NPA on 29.9.2021 by the applicantbank as per RBI guidelines (Annexure No.A-25), therefore, the applicantbank issued Recall Notice. dated 11.11.2021 (Annexure No.A-27 Annexure No.A-28) and later on also issued Demand Notice dated 11.5.2022 under Section 13(2) of the SARFAESI Act (Annexure No.A-29) followed by Possession Notice dated 11.01.2023 under Section 13(4) of the Act (Annexure No.A-30). Since, the defendants were not coming forward for repayment of bank dues, the applicant-bank issued Legal Notice dated 10.3.2023 (Annexure No.A-33), but, the defendants stated no-response and failed to repay the same and the loan accounts of the defendant no.1/firm are still un-liquidated, hence, this Original Application has been instituted .

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.28,62,095.70/- (Rupees Twenty Eight Lac, Sixty Two Thousand Ninety Five and Paisa Seventy Only) (Rs.24,34,578.70/- in Cash Credit Loan Account) & (Rs.4,27,517/- in GECL Loan Account)including interest upto17.3.2023were lying due for payment, which they did not pay despite repeated requests and demands. The applicant Bank has filed the copy of Statement of Accounts (Annexure No.A-22) to this original application.

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5 O.A. No.476 of 2023

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The cause of action for filing the present application arose firstly on 24.11.2017 when the abovementioned credit facility was sanctioned by the applicant-bank and necessary documents were executed by the defendants. The cause of action further arose on 10.3.2023when the applicant-bank had issued legal notice recalling the defendants to repay the dues of the applicant-bank, but, the defendants failed to pay the same.

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The summons was served upon the defendants through paper publication as well as by registered post, but, the defendants did not appeared before this Tribunal to contest the case, hence, the case proceeded ex-parte against them on 05.12.2024.

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The only point of consideration before this Tribunal in as to whether the bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it.

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In support of the case Mr. Deepak Rastogi, Branch Head of the applicant Bank has supported its case on affidavit. 14. On a careful scrutiny of the evidence on affidavit and Annexure marked as (AnnexureNo.A-1 to AnnexureNo.A-33 to this original application),it stands proved that the defendants had availed the credit facilities from the applicant bank by executing loan and security documents detailed as above in favour of the applicant Bank. A perusal of the application, evidence and documents relied upon clearly establishes that defendants had utilized the above loan facilities as granted to them. The applicant bank has maintained the Books of account in the ordinary course of banking business showing disbursal of the loan amount. It further

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6 O.A. No.476 of 2023

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shows that bank had regularly credited the amount paid by the defendants in the books of accounts. The Bank had also charged interest from time to time and the entries is relevant u/s 4 of the Bankers Book Evidence Act. It is also proved that the applicant bank’s claim is within limitation against the defendants, therefore, the defendants are liable to pay the dues.

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Accordingly, the defendants are directed to pay the balance dues to the applicant bank within a period of two months from the date of judgment failing which the applicant bank will be entitled to sell the mortgage properties as well as personal properties of the defendants.

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The applicant-bank has claimed interest @11.15% per annum in Cash Credit Loan Account and interest @9.25% in GECL Loan Account together with pendent lite and future interest till the actual date of its realization and costs. On the basis of the foregoing discussion, interest of justice will be served if pendent-lite and future interest is granted @9.00% per annum in both the above loan accounts with monthly rest on reducing balance from the date of filing of the O.A. till the date of realization with costs.

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1 find that the bank has proved the execution of loan documents in its favour. In the result, the Original Application succeeds against the defendants with costs. The defendants are jointly and severally liable to pay the dues of the applicant-bank and the mortgage properties as well as the personal properties are liable to be sold.

O. A. No.476 of 2023

18.It is, therefore, ordered:-

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(i) That the Original Application No.476 of 2023 of the applicant bank for issuance of Recovery Certificate to the tune of Rs.28,62,095.70/- (Rupees Twenty Eight Lac, SixtY Two Thousand Ninety Five and Paisa Seventy Only) (Rs. 24,34,578.70/- in Cash Credit Loan Account) (Rs.4,27,517/- in GECL Loan Account) together with future and pendent lite interest @9.00% per annum in both the above loan accounts from the date of filing of the Original Application i.e. 13.4.2023 till the loan is fully liquidated and costs succeeds and is hereby allowed against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgment, failing which the applicant bank will be entitled to recover the same from the secured assets, personal movables and immovable assets of the defendants.

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(iii) The applicant-bank is entitled to recover aforesaid amount by sale of mortgage properties (if not sold earlier under the provisions of the S.A.R.F.A.E.S.I. Act 2002). The amount, if anyp already recovered by sale of any mortgage properties or otherwise shall be adjusted towards the debt and only the balance amount shall be recoverable. If the dues of the applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable and

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O.A. No.476 of 2023

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immovable assets of the defendants. The applicant bank shall provide details of the statement of account.

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(iV) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the applicant bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 17.02.2026 before R.O., DRT, Lucknow.

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Judgment is pronounced in the open court.

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Dated: 17.12.2025

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/ (Pravas Kumaf b. Presiding Officei

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(Veeresh)

Idbi Bank v. M/S Shiva Enterprises

Case brief

What is this about?

What did the court decide?

Idbi Bank v. M/S Shiva Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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