Allowed

Idfc First Bank Ltd. v. Basaveshwara Timbers

DRT22 Sept 2025OA/631/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by IDFC First Bank Limited for a recovery certificate against three defendants for a business loan default. Granting the application despite defendants appearing ex-parte, the Tribunal directed recovery of the disputed sum with reduced interest at 15% p.a.

What did the court decide?

Recovery certificate direction for Rs. 35,68,283/- with simple interest at 15% p.a. from date of filing until realization, jointly and severally from respondents.

Idfc First Bank Ltd. versus Basaveshwara Timbers — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 22^nd Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.631/2022

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BETWEEN:

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IDFC First Bank Limited, Registered office at KRN Towers, 7^th Floor, No.1, Hamington Road, Chetpet, Chennai- 600 031 and 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, Represented by its Authorized Representative, Sri. Suresh Mingal Siddi.

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…APPLICANT

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AND:

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Sri Basaveshwara Timbers, Represented by its Partners, No. 10, Industrial Suburb, Near Met Factory, Tumkur Road, Yeshwanthpur, Bangalore- 560 022.

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Sri. Sunil Shivananjappa, S/o. Sri Shivananjappa, Aged about 47 years, No. 89, 1st Cross, Sharada Colony, 3rd Stage, 4th Block, Basaveshwaranagar, Bangalore- 560 079.

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Sri. Kiran S, S/o Sri. Shivananjappa, Aged about 51 years, No. 89, 1st Cross, Sharada Colony, 3rd Stage, 4th Block, Basaveshwaranagar, Bangalore- 560 079.

...DEFENDANTS

OA 631/2022

Counsel on record/appeared for:

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Applicant : M/s. SA Associates Defendants : Exparte

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FINAL ORDER

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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. 35,68,283/- (Rupees Thirty Five lakh Sixty Eight Thousand Two Hundred and Eighty Three Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant No.1 as borrower and defendant No. 2 & 3 as Co-borrowers availed business loan of Rs. 51,88,305/- (Rupees Fifty One Lakh Eighty Eight Thousand Three Hundred and Five).

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount

OA 631/2022

due in the account.

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 20.12.2024.

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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-10 and got the same marked in evidence.

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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.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim

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as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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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, creation of hypothecation and the defaults committed in the accounts. The liability of the

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OA 631/2022

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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.

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

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are 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 15.00% (simple).

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In the result, OA.No.631/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 35,68,283/- (Rupees Thirty Five lakh Sixty Eight Thousand Two Hundred and Eighty Three Only) with further interest @15.00 % 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 proceedings against the defendants jointly, severally and personally and also proceeding against their assets.

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ii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the

OA 631/2022

order.

iii) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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iv) Interim application pending, if any, are disposed of with this

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Final Order.

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

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22^nd Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Jacob P L S/o Lazar PL, Legal Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant’s Evidence
A2	List of documents
A3, A4 & A5	Application forms dated 11.01.2017
A6	Business loan agreement dated 28.01.2017
A7	Foreclosure and statement of account
A8	Legal notice dated 18.04.2022
A9	Postal receipts dated 19.04.202
A10	Returned postal status dated 05.04.2022

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OA 631/2022

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Idfc First Bank Ltd. v. Basaveshwara Timbers

Case brief

What is this about?

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Idfc First Bank Ltd. v. Basaveshwara Timbers

Case brief

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