Allowed

Idfc First Bank Ltd. v. M/S Ludhiana Dairy and Others

DRT4 Sept 2025OA/605/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Chandigarh, allowed an application filed by IDFC First Bank Ltd. for recovery of outstanding dues of Rs. 1.98 Crore from M/s Ludhiana Dairy and individual proprietors. The Tribunal condemned the debt and ordered payment with a reduced uniform simple interest rate of 8% per annum instead of the claimed 24%. A Recovery Certificate is issued to attach and sell defendants'

What did the court decide?

Defendants directed to pay Rs. 1,98,35,002.54 jointly and severally with simple interest @ 8% p.a. from filing date. Recovery Certificate issued for attachment/sale of assets.

Idfc First Bank Ltd. versus M/S Ludhiana Dairy and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.605/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 17.05.2024

¶5

DATE OF DECISION: 04.09.2025

¶6

IDFC First Bank Ltd. Erstwhile Capital First Limited inter alia having its registered office at KRM Towers, 7^th Floor, No. 1 Harrington Road, Chetpet, Chennai-600031 and having its branch office at Plot No. 28, Industrial Area, Phase 1, Chandigarh through its authorized Representative, Sh. Vassu Bhasin, Manager, Legal.

¶7

……..Applicant

¶8

Versus

¶9

M/s Ludhiana Dairy Through Proprietor Sh. Hardial Singh, GT Road, Salem Tabri, District Ludhiana, Punjab- 141001.

¶10

2^nd Address: - House No. 223, Salem Tabri, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab- 141001.

¶11

3^rd Address: - House no. B-XXV 378/7/4, Jalandhar Bye Pass, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab141001.

¶12

Sh. Amandeep Singh S/o Sh. Hardial Singh, R/O GT Road, Salem Tabri, District Ludhiana, Punjab- 141001.

¶13

2^nd Address: House No. 223, Salem Tabri, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab- 141001.

¶14

3^rd Address: House no. B-XXV 378/7/4, Jalandhar Bye Pass, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab141001.

¶15

Smt. Harinder Kaur D/o Sh. Wasswa Singh, R/O GT Road, Salem Tabri, District Ludhiana, Punjab- 141001.

¶16

2^nd Address: House No. 223, Salem Tabri, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab- 141001.

¶17

2 OA NO.605/2024

¶18

IDFC FIRST BANK LIMITED Vs. M/S LUDHIANA DAIRY AND OTHERS

¶19

3^rd Address: House no. B-XXV 378/7/4, Jalandhar Bye Pass, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab141001.

¶20

Sh. Hardial Singh S/o Sh. Uttam Singh R/O GT Road, Salem Tabri, District Ludhiana, Punjab- 141001. 2^nd Address: House No. 223, Salem Tabri, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab- 141001. 3^rd Address: House no. B-XXV 378/7/4, Jalandhar Bye Pass, Opposite Petrol Pump, G T Road, District Ludhiana, Punjab141001.

¶21

….……Defendants

¶22

Advocates:

¶23

Argued by Sh. Abhishek Bhateja, Advocate for Applicant

¶24

Defendants are ex parte

¶25

FINAL ORDER

¶26

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.1,98,35,002.54p (Rupees One Crore Ninety Eight Lacs Thirty Five Thousand Two and Paise Fifty Four Only). The Original Application has been filed through Sh. Vassu Bhasin, Manager, o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 11.03.2024, which is Annexure A1 to this OA.

¶27

The brief facts of the OA are that the defendants had approached the applicant for the grant of Loans of Rs.1.50 Crore and Rs. 35.00 Lacs vide Loan Application dated 22.03.2016, 18.06.2016 and 07.09.2018 which is Annexure A2 to this OA. 3. The applicant sanctioned the loan against property of Rs.34.00 Lacs, vide sanction letter dated 25.05.2016 and Loan against property Rs. 46.75 Lacs vide sanction letters dated 20.09.2018, which is Annexure A3 to this OA and the terms and conditions were duly

¶28

3 OA NO.605/2024

¶29

IDFC FIRST BANK LIMITED Vs. M/S LUDHIANA DAIRY AND OTHERS

¶30

accepted by the defendants. Loans against property of Rs. 96.00 Lacs was also sanctioned by the applicant. Mortgage loan agreement dated 27.05.2016 (of loan of Rs. 96.00 Lacs), Mortgage loan agreement dated 17.06.2016 (of Loan of Rs. 34.00 Lacs) and mortgage loan agreement dated 21.09.2018 (of loan of Rs. 46.75 Lacs), which are Annexure A4 to this OA.

¶31

Defendants mortgaged their immovable properties i.e. Plot measuring 605 Sq. Yards, situated in the Village Salem Tabri, Locality known as Salem Tabri East, Tehsil and District Ludhiana. However, the same has been sold by the applicant under SARFAESI Act, and Sale Certificate, dated 08.02.2024, is Annexure A6 to this OA.

¶32

Documents executed: Demand Notice U/S 13(2) dated 15.01.2020, which is Annexure A5 to this OA; Notice dated 29.04.2024, along with postal receipts, which is Annexure A7 to this OA and Detailed calculation sheet, statement of accounts along with Certificate under Banker’s book Evidence Act, which is Annexure A8 to this OA.

¶33

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit Rs.1,98,35,002.54p, 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.

¶34

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 12.08.2025.

¶35

In support of the OA, affidavit of Sh. Vassu Bhasin, Manager, Legal IDFC First Bank Ltd. h as been filed. 8. Heard ex-parte arguments and perused record.

¶36

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

¶37

4 OA NO.605/2024

¶38

IDFC FIRST BANK LIMITED Vs. M/S LUDHIANA DAIRY AND OTHERS

¶39

Annexures A1 to A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,98,35,002.54p (Rupees One Crore Ninety Eight Lacs Thirty Five Thousand Two and Paise Fifty Four Only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶40

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24.00%p.a. along with monthly rests from 30.04.2024 till the realization.

¶41

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/hypothecated assets, undertaking of the defendants, quantum of loans 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 all 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.

¶42

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,98,35,002.54p (Rupees One Crore Ninety Eight Lacs Thirty Five Thousand Two and Paise Fifty Four Only) jointly and severally, with

¶43

¶44

OA NO.605/2024

¶45

IDFC FIRST BANK LIMITED Vs. M/S LUDHIANA DAIRY AND OTHERS

¶46

costs, current and future simple interest @8.00%p.a. in all 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 by the attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶47

12. Any other application pending stands disposed of.

¶48

Issue Recovery Certificate accordingly.

¶49

Parties to appear before Learned Recovery Officer of this Tribunal on 30.09.2025.

¶50

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.

¶51

Pronounced by me in the open Tribunal .

¶52

Dated: 04.09.2025

¶53

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

Idfc First Bank Ltd. v. M/S Ludhiana Dairy and Others

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. M/S Ludhiana Dairy and Others

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

Icici Bank Limited versus Roshni Transport Corporation and Others

Punjab Gramin Bank versus Gurbir Singh

Union Bank of India versus M/S T S Warsi Collection

Punjab National Bank versus M/S the Lady Fashion and Another

Bank of Maharashtra versus Sh. Lavish Sharda and Another

Punjab National Bank versus M/s. Jiya Collection and Another