Allowed

Idfc First Bank Ltd. v. Pragya Impex

DRT24 Nov 2025OA/65/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by a bank for recovery of dues from three defendant-borrowers who absented themselves. The court fixed interest at 12% p.a. instead of the contractual rate, citing a global fall in rates, and directed the issuance of a recovery certificate.

What did the court decide?

Directed respondents to pay Rs.22,90,621.89 with 12% p.a. interest from 02.01.2024 and costs within 30 days. Recovery certificate to be issued to the bank.

Idfc First Bank Ltd. versus Pragya Impex — Specific Performance | DRT (2025)

¶1

O.A. No. 65 of 2024

¶2

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

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

O.A. No. 65 of 2024

¶5

I DFC First Bank Ltd. Upper Ground Floor No.62/20 Opposite to New Prem Dhaba New Rohtak Road, Karol Bagh New Delhi-110005 Applicant

¶6

Versus

¶7

Pragya Impex H-16/114, Gali no.2, Tank Road Karol Bagh, New Delhi-110005 2. Sh.Sanyam Jain 9/318, Block-9, Sector-3 Rajendra Nagar, Shalimar Garden, Pasonda, Ghaziabad, U.P-201005 Also at: Sh.Sanyam Jain CIO Pragya Impex H-16/114, Gali no.2, Tank Road Karol Bagh, New Delhi-110005 3. Anil Kumar Jain 9/318, Block 9, Sector-3 Rajendra Nagar, Shalimar Garden Pasonda, Ghaziabad, U.P-201005 Also at: Anil Kumar Jain c/o Pragya Impex H-16/114, Gali no.2, Tank Road Karol Bagh, Delhi-110005 Defendants Present: Ms. Shalka Lal, Counsel for the applicant bank Date of Reserve: 04.11.2025 Date of Pronouncement: 24.11.2025

O.A. No. 65 of 2024

FINAL ORDER

This original application has been filed by the applicant on 20.01.2024 through Shri Prateek Chibber, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 as amended upto date along with pendentelite interest against the defendants for recovery of a sum of Rs.22,90,621.89 (Rupees Twenty Two Lacs Ninety Thousand Six Hundred Twenty One and paisa Eighty Nine only) as on 02.01.2024 together with pendentelite and future interest at contractual rate with monthly rests from 02.01.2024 till the date of realization along with costs.

¶12

The brief facts of the case are that at the request of defendant no.1 through its defendant no.2 vide loan application dated 14.11.2017, the applicant bank sanctioned Business Installment Loan for a sum of Rs.12,80,000/- @19% interest per annum, which was to be repayable in 36 Equated Monthly Installments of Rs.46,920/- each. The defendant no.3 stood as co-borrower for the credit facility sanctioned to defendant no.1.

¶13

That in order to avail the loan facility, the defendant no.1 through defendant no.2 as proprietor executed Loan Application Form on 14.11.2017 and Loan Agreement in favour of the applicant bank on 22.11.2017.

¶14

It has been submitted by the applicant that after availing the loan facility, the defendants failed to comply with the terms and conditions and failed to adhere to the terms and conditions of sanction either towards principle or interest despite several

5d -

O.A. No. 65 of 2024

requests of the Applicant Bank. The applicant bank issued loan recall notice dated 03.01.2024 calling the outstanding amount but defendants failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

¶19

Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 09.09.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

¶20

In order to prove its case, the applicant bank has filed its evidence by way of documents to prove its case such as Letter of Authority of Shri Prateek Chibber, authorized representative of the applicant bank, Loan Application Form, Loan Agreement, Loan Recall Notice, Statement of Account & Foreclosure Statement marked as Ex.AW-1/1 to Ex.AW-1/5.

¶21

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 proved.

¶22

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.

¶23

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,

O.A. No. 65 of 2024

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

¶28

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

¶29

ORDER

¶30

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.22,90,621.89 (Rupees Twenty Two Lacs Ninety Thousand Six Hundred Twenty One and paisa Eighty Nine only) as on 02.01.2024 together with pendentelite and future interest ©12% per annum from 02.01.2024 till the date of realization along with costs. In case of shortfall, the aforesaid amount shall be recovered from the sale of movable and immovable property of the defendants.

¶31

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

¶32

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 22.01.2026.

¶33

¶34

O.A. No. 65 of 2024

¶35

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

¶36

5 (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

¶37

(Dictated and pronounced in open court) Dated: 24.11.2025

¶38

Idfc First Bank Ltd. v. Pragya Impex

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. Pragya Impex

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

Manish Kumar versus Punjab National Bank

Hdfc Bank versus Dilbag Trading Co.

Jammu and Kashmir Bank Limited versus M/S Aijaz Ahmad Kuchay, (Erstwhile M/S Aijaz Brick Kiln)

Punjab National Bank versus M/S Deepak Electric Company

Hdfc Bank versus Jagjeevan Singh Bhullar

Indian Bank versus M/S Prince Enterprises