Allowed

Idfc First Bank Ltd. v. Chesa Dental Care Services Limited Rep by Its Director Sri.Vijay Chetan Lilaramani

DRT28 Apr 2025OA/779/2022

Case brief

AI extract

What is this about?

In an OA under RDB Act 1993, the Tribunal allowed the bank's application for a recovery certificate against defendant companies and individuals for a loan default, noting the defendants appeared ex parte.

What did the court decide?

Recovery Certificate issued for Rs.21,52,794 plus interest at 14% p.a. to be executed for recovery.

Idfc First Bank Ltd. versus Chesa Dental Care Services Limited Rep by… — Arbitration | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of April, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.779/2022

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BETWEEN:

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IDFC First Bank Limited, Registered office at KRN Towers, 7th Floor, No.1, Hamington Road, Chetpet, Chennai - 600 031 and Having branch office at C-1, R.P's Pride, 1st Floor, 20th Main Road, KHB 5th Block, Opposite to Shri Ganesh Temple, Koramangala, Bengaluru - 560095, Represented by its Authorized Representative, Sri. Suresh Mingal Siddi … APPLICANT

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AND:

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Chesa Dental Care Services Limited, Represented by its Director Vijay Chetan Lilaramani, Aged about 25 years 51-52, EPLP Zone, KIDAB Industrial Area, White Field, Bangalore - 560 066

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Mr. Vijay Chetan Lilaraman: Aged about 25 years Villa 16, Adarsh Palm Outer Ring Road, 1st Phase, Devara Beesanahalli, Bangalore-560 103

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Mrs. Anju Vijay Lilaramani, W/o Sri. Vijay Chetan Lilaramani, Aged about 55 years,

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2 OA/779/2022

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Villa 16, Adarsh Palm Outer Ring Road, 1st Phase, Devara Beesanahalli, Bangalore560 1032 ..DEFENDANTS

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Counsel on record/appeared for: Applicant : M/s. S A Associates Defendant : 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 for seeking issuance of Recovery Certificate against the defendants for Rs.21,52,794/- (Rupees Twenty One Lakh Fifty Two Thousand Seven Hundred and Ninety Four 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 defendants availed a loan of Rs.40,95,055/-. It is also the case of the applicant that defendants have undertaken to repay the liability, subject to annual review or on Demand to pay with interest for the value received and further to pay the interest at such rate as revised by the bank from time to time.

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It is also the case of the applicant that, in view of the above financed the amount, the defendants have executed necessary loan documents.

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3 OA/779/2022

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in defaults 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 due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 21.06.2024.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A8 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

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claim as against the defendants?

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4 OA/779/2022

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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

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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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

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Hence in view of the above finding which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed and also that the OA claim is arrived at by calculating

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interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest @14.00% p.a (simple).

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5 OA/779/2022

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In the result, OA.No.779/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs.21,52,794/- (Rupees Twenty One Lakh Fifty Two Thousand Seven Hundred and Ninety Four only) with further interest of 14.00% p.a.(simple) from the date of filing OA till the realization, after giving credit to all the amount recovered and received during the pendency of the OA.

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ii) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to proceed against the defendants jointly, severally and defendant No.2 and 3 personally and their other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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

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

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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6 OA/779/2022

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

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of April 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ms. Amrutha S, Legal Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Applicant Evidence
A2	List of Documents
A3	Business loan application form
A4	Business installment loan agreement dated 29.11.2018
A5	Foreclosure and Statement of Account
A6	Legal notice dated 04.04.2022
A7	Postal receipts dated 04.04.2022
A8	Returnedpostal cover

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Idfc First Bank Ltd. v. Chesa Dental Care Services Limited Rep by Its Director Sri.Vijay Chetan Lilaramani

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. Chesa Dental Care Services Limited Rep by Its Director Sri.Vijay Chetan Lilaramani

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

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