Allowed

Idfc First Bank Ltd. v. Majestic Distributors

DRT25 Nov 2025OA/616/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for issuance of a recovery certificate against defendants who were absconding, confirming the debt of Rs. 31,15,654 and granting reduced simple interest at 12%.

What did the court decide?

Recovery certificate issued for Rs. 31,15,654 inclusive of further interest at 12% p.a. simple from date of filing, recoverable from defendants jointly, severally and personally.

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

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 25^th Day of November, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.616/2022

¶5

BETWEEN:

¶6

IDFC First Bank Limited, Having branch office at C-1, R.P’s Pride, 1^st Floor, 20^th Main Road, KHB 5^th Block, Opposite to Shri Ganesh Temple, Koramangala, Bengaluru- 560 095. …APPLICANT

¶7

AND:

¶8

Masjestic Distributors, Represented by its partners, Ground Floor, No.4, 13^th Cross, Kilari Road, Bangalore- 560 053.

¶9

Sri Dhiraj Kejriwal, S/o Sri. Sushil Kerjriwal, No. 1064, Prestige South Ridge, Hosakerehalli Cross, Sy. No. 125, Near NCERT, Banashankari 3^rd Stage, Ring Road, Bangalore South, Bangalore- 560 085.

¶10

Sri. Sushil Kejriwal, S/o Late Sri Kedarnath Kejriwal, No. 1064, Prestige South Ridge, Hosakerehalli Cross, Sy No. 125, Near NCERT, Banashankari 3^rd Stage, Ring Road, Bangalore South, Bangalore- 560 085.

¶11

...DEFENDANTS

¶12

Counsel on record/appeared for:

¶13

Applicant : M/s. SA Associates Defendants : EXPARTE

OA 616/2022

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 31,15,654/- (Rupees Thirty One Lakh Fifteen Thousand Six Hundred Fifty Four Only) with further interest thereon from the date of filing the Application till realization.

¶18

It is the case of the applicant that the defendants availed business loan limit of Rs. 27,63,514/- (Rupees Twenty Seven lakh Sixty Three Thousand Five Hundred Fourteen Only).

¶19

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with business loan agreement.

¶20

It is further contended that, despite availing the credit facilities,

¶21

agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶22

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the balance amount due in the account.

¶23

Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 22.09.2023.

¶24

OA 616/2022

¶25

¶26

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-7 and got the same marked in evidence.

¶27

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶30

ii) What order are to be passed?

¶31

Both these issues are gone into and decided together.

¶32

The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶33

Hence in view of the findings arrived herein above, the Tribunal

¶34

find both these issues in favour of applicant and hence, this Tribunal is of

¶35

OA 616/2022

¶36

¶37

the view that OA is to be allowed.

¶38

Taking into consideration the facts that the credit facilities are

¶39

availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 12.00% (simple).

¶40

In the result, OA.No.616/2022 stands allowed,

¶41

i) The applicant is allowed to recovery an aggregate sum of Rs. 31,15,654/- (Rupees Thirty One Lakh Fifteen Thousand Six Hundred Fifty Four Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and also proceeding against their assets.

¶42

ii) The applicant bank is allowed cost of the proceedings which

¶43

applicant to file cost memo within 7 days from the date of receipt of the order.

¶44

iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶45

iv) Interim application pending, if any, stands disposed of in terms of this final order.

¶46

OA 616/2022

¶47

¶48

14. Communicate a copy of the order to the parties concerned in terms

¶49

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶50

Rules, 1993.

¶51

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th Day of November, 2025].

¶52

Sd/- (T. RAJESH)

¶53

PRESIDING OFFICER

¶54

ANNEXURES

¶55

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶56

AW-1: Murali R, Legal Officer, of Applicant Bank.

¶57

Exhibits on the part of the Applicant:

¶58

Exhibit Nos.	List of documents
A3	Application form dated 07.06.2019
A4	Business loan agreement dated 26.06.2019
A5	Foreclosure and statement of account
A6	Legal notice dated 18.04.2022
A7	Postal receipts dated 19.04.2022

¶59

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

¶60

Sd/- (T. RAJESH) PRESIDING OFFICER

Idfc First Bank Ltd. v. Majestic Distributors

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. Majestic Distributors

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

Basil Co. versus Kerala Gramin Bank

Uco Bank versus Sh. Bachchan Kumar Singh

Kotak Mahindra Bank Limited versus Bhagwant Singh

Indu Kumari Pandey versus Union Bank of India

Bank of Baroda versus M/S K. K. Enterprises

State Bank of India versus Mr. Praveen