Allowed

Idfc First Bank Ltd. v. Mandeep Singh

DRT18 Dec 2025OA/854/2023

Case brief

AI extract

What is this about?

In an original application filed under the RDBFI Act and Securitization Act, the Debt Recovery Tribunal, relying on proved documentary evidence, ordered the defendants to jointly and severally pay the applicant bank the outstanding principal amount along with future interest at 12% per annum and costs, issuing a recovery certificate.

What did the court decide?

Directed defendants to pay Rs.53,26,959/- along with future interest at 12% per annum and costs; issuance of Recovery Certificate.

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

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O.A. No. 854 of 2023

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

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 854 of 2023

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IDFC First Bank Ltd.

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(e-Capital First Limited)

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Upper Ground Floor No.62/20, Opposite New Prem Dhaba & Big Bazar New Rohtak Road, Karol Bagh New Delhi-110005

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Applicant

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Versus

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Mr. Mandeep Singh Ground Floor, 6260/1, Dev Nagar Gali No.1, Block No.06 Karol Bagh, New Delhi-110005

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Mrs.Abinash Kaur

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Ground Floor, 6260/1, Dev Nagar Gali No.1, Block No.06 Karol Bagh, New Delhi-110005

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M/s Akaal Designs Ground Floor, 6260/1, Dev Nagar Gali No.1, Block No.06 Karol Bagh, New Delhi-110005 Defendants

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Present: Sh.Harshit Singh Sisodia, Counsel for applicant bank

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Date of Reserve: 04.12.2025

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Date of Pronouncement: 18.12.2025

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FINAL ORDER

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This original application has been filed by the applicant on 25.10.2023 through Shri Ashutosh Sharma, authorized representative of the applicant bank under Section 19 of

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O.A. No. 854 of 2023

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to be read with Sub-Section (10) of Section 13 of Securitization Act 2002 against the defendants for recovery of a sum of Rs.53,26,959/- (Rupees Fifty Three Lacs Twenty Six Thousand Nine Hundred Fifty Nine Only) as on 30.09.2023 together with pendentelite and future interest @ contractual rate of interest from 01.10.2023 along with costs.

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The brief facts of the case are that at the request of defendants, applicant bank sanctioned Loan Against Property Loan of Rs.97.70 lacs (Rupees Ninety Seven Lacs Seventy Thousand Only) on 16.09.2019 and disbursed the amount subject to periodical review I renewal against property situated at Fateh Nagar, New Delhi.

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In order to avail the loan against property facility, the defendants submitted Loan Application Form and executed Sanction Letter with terms and conditions and Loan Agreement on 16.09.2019 in favour of applicant bank.

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That in order to secure the loan against property facility, the defendants created security interest of immovable property being All that piece and parcel of Residential Second Floor with Roof Rights, Property bearing No.WZ-760, Part of Plot No.A168, out of Khassra No.615, Fateh Nagar, in the area of Village Tihar, New Delhi with the applicant bank.

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It has been submitted by the applicant that after availing the aforesaid loan against property facility, the defendants failed to comply with the terms and conditions either towards principle or interest or charges despite several requests, personal visits by representatives of the Applicant Bank. The applicant bank classified the account as NPA on 03 03.2021 as

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O.A. No. 854 of 2023

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per RBI guidelines but no response from defendants to clear the outstanding dues, hence the applicant bank has approached this tribunal for recovery of its dues.

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Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 11.04.2021 was issued to the defendants to liquidate the outstanding of Rs.1,02,93,790.89. The applicant bank took physical possession of property and auctioned the property on 28.01.2022 for Rs.67,00,000/-. The applicant bank issued Sale Certificate dated 03.03.2022 to highest bidder and appropriated the amount in the account of defendants and issued demand notice dated 10.10.2023 for repayment of remaining dues.

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Notices of this O.A. were issued to the defendants and despite proper service including publication in newspaper, the defendants have chosen to absent from the proceedings. As per order dated 25.03.2025, 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.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Ashutosh Sharma, authorized representative of the applicant who has proved the documents as Letter of Authority Exhibit AW-1/1„ Loan Application Form Exhibit AW-1/2, Loan Agreement Exhibit AW1/3, Sanction Letter Exhibit AW-1/4, Demand Notice u/s 13(2) Exhibit AW-1/5, Sale Certificate Exhibit AW-1/6, Certified Statement of Account under Bankers Book Evidence Act Exhibit AW-1/7, Demand Notice dated 10.10.2023 Exhibit AW-1/8.

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O.A. No. 854 of 2023

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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.

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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.

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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, 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.

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

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.53,26,959/- (Rupees Fifty Three Lacs Twenty Six Thousand Nine Hundred Fifty Nine Only) as on 30.09.2023 together with

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O.A. No. 854 of 2023

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pendentelite and future interest @12% per annum from 01.10.2023 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.

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

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(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 16.02.2026.

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

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

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(Dictated and pronounced in open court) Dated: 18.12.2025

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