Allowed

M/s Idbi Bank Ltd., v. Mr. K. Raja Durai

DRT20 Nov 2025OA/91/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Originating Application filed by IDBI Bank. The bank proved an agricultural loan despite defendant absence. The application for penalty interest was rejected as it is an agricultural loan. Recovery is permitted with contractual interest and sale of mortgaged properties.

What did the court decide?

OA allowed. Applicant permitted to recover Rs.78,03,332 plus simple interest at 7% per annum from application date. Recovery through sale of property or personal liability.

M/s Idbi Bank Ltd., versus Mr. K. Raja Durai — Banking and Recovery | DRT (2025)

¶1

BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 20^th day of November, 2025

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PRESENT: SHRI SHARANG DHAR UPADHYAY PRESIDING OFFICER

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OA No.91 of 2023

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M/s IDBI Bank Ltd., Rep. by its Branch Manager Kumbakonam Branch, Premier Towers No.2 Lakshmi Vilas Street Kumbakonam – 612 001

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…Applicant

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Versus

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Mr. K. Raja Durai Son of Mr. Kaliyamurthy No.9A, Mela Kuppankuzhi Kattumannar Koil, Rajendra Cholagam Cuddalore – 608 301

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Mr. K.S. Krishnamurthy Son of Sourirajan No.2, Karunanidhi Street Kuppankuzhi, Kattumannar Koil Cuddalore – 608 301

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Mr. Ramasamy Son of Rathinam No.70, Middle Street, Edayankurichi Village Udayarpalayam, Ariyalur – 621 719 …Defendants

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Counsels on Record / Appeared

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Counsel for Applicant Bank : Mr. S. Parthasarathy Defendants ex-parte on 24.08.2023

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FINAL ORDER

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This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants’seeking issuance of a Recovery Certificate for recovery of a sum of Rs.78,03,332/- with further interest at the rate of 7.00% per annum with monthly rests from the date of the application till the date of realisation along with costs of the application and for sale of schedule mentioned properties.

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The subject matter of the case is the agricultural loan availed by the defendants from the Applicant Bank.

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It is the case of the applicant that the defendants approached the applicant bank for grant of Crop Cash Credit facility for agriculture and allied activities. Considering the said request the applicant sanctioned credit facility of Rs.50 lakhs to the defendants vide sanction dated 23.06.2015. The facility was sanctioned with terms and conditions that the crop loan will be disbursed in phased manner as per the requirements of cropping season / pattern followed by the defendants. It is stated that the KCC limit is valid for 5 years subject to annual review.

¶17

It is also the case of the applicant that the defendants 1 and 2 executed various loan and security documents on 03.09.2015. It is stated that the

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3^rd defendant deposited the title deeds of the schedule mentioned properties with the applicant bank on 03.09.2015 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 05.08.2016 registered as Doc. No.3526 of 2016, SRO, Kumbakonam. It is the further case of the applicant that the defendants 1 and 2 executed Balance Debt Confirmation Letter dated 14.08.2020, revival letter dated 14.08.2020.

¶19

It is also the case of the applicant bank that the defendants defaulted in repayment and hence the loan account was classified as NPA on 02.04.2022 and as no payment was forthcoming the applicant bank issued a legal notice dated 10.08.2022. Despite the said notice the defendants did not come forward to clear the outstanding dues, hence the present OA is filed for recovery of its dues.

¶20

Summons was taken out to the defendants were served. As there was no representation on behalf of the defendants continuously and on 24.08.2023 the defendants were called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 17 documents, which were marked as Ex. A-1 to A-17 on 27.06.2024. The Ld. Counsel for Applicant Bank made his submissions on 30.10.2025 and thereafter the matter stood till this date for passing final orders.

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The following issues arise for consideration in the matter: -

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(a) Whether the applicant had succeeded in proving the liability of the defendants?

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(b) What order as to cost of the proceedings need be passed?

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These issues are considered together.

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Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

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The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-17 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendant. It is clear from the statement of accounts that penal interest is not capitalized.

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In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

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In view of the fact that the loan facility availed by the defendants is an agricultural loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates and prayer for award of overdue interest is rejected.

¶29

In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

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(a) OA No.91 of 2023 stands allowed.

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(b) Applicant is permitted to realize a sum of Rs.78,03,332/- with further interest @7% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the schedule property and other assets of the defendants.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendants are personally liable for all such amounts due as ordered above.

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(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

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(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

¶35

Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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Sd/-

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(SHARANG DHAR UPADHYAY ) PRESIDING OFFICER

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DRT-II, CHENNAI

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 20^th day of November, 2025)

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EXHIBITS MARKED BY APPLICANT BANK

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S. No.	Date	Description of Documents	Exhibit Nos.
1.	03.09.2015	Loan application for Rs.50 lakhs	A-1
2.	23.06.2015	Sanction letter for Rs.50 lakhs	A-2
3.	03.09.2015	Demand Promissory Note for Rs. 50 lakhs executed by defendants 1 and 2	A-3
4.	03.09.2015	Demand Promissory Note delivery letter by defendants 1 and 2	A-4
5.	03.09.2015	Hypothecation cum loan agreement for Rs. 50 lakhs executed by defendants 1 and 2	A-5

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6.	03.09.2015	Common Guarantee deed executed by defendants 1 and 2	A-6
7.	03.09.2015	Mortgage deed letter executed by defendants 1 and 2	A-7
8.	03.09.2015	Declaration signed by defendants 1 and 2 in favour of the applicant.	A-8
9.	03.09.2015	Memorandum regarding vernacular language signed by defendants 1 and 2	A-9
10.	14.08.2020	Balance Debit Confirmation Letter executed by the defendants 1 and 2	A-10
11.	14.08.2020	Acknowledgement of Debt and Confirmation letter executed by defendants 1 and 2	A-11
12.	14.08.2020	The Revival Letter signed by the defendants 1 and 2.	A-12
13.	18.09.2014	Sale deed – Doc. No.4202 of 2014 in the name of 3^rddefendant	A-13
14.	18.09.2014	Sale deed – Doc No.4198 of 2014 in the name of 3^rddefendant	A-14
15.	05.08.2016	Memorandum of Deposit of Title deeds executed by 3^rddefendant registered as Doc. No.3526 of 2016	A-15
16.	13.08.2022	Legal notice	A-16
17.		Statement of Accounts along with certificates under Bankers’Book Evidence Act.	A-17

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Sd/- (SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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DESCRIPTION OF PROPERTY

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Item No.1

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In Thanjavur District, Kumbakonam Registration District, in Kumbakonam Town, in municipal ward No.4, in A.R.R. Road, Comprised in T.S. No.1527/2, measuring East to West on Northern Side 43 Sq. ft. 1 Inch on Southern side 48 Sq. ft. 4 Inches, South to North on Western side 34 Sq. ft. on Eastern side 24 ft., and total 1548.42 sq. ft. and bounded on the

¶47

East by : K.S. Krishnamoorthy property South by : Pillayar Kovil West by : A.R.R. Road North by : N. Naryanasamy, N. Vijayalakshmi, N. Ravichandran, R. Dinesh, N. Mohan, Smt. Shanthi, Smt. Prema and A. Sarangan Lands

¶48

Item No.2

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In Thanjavur district, Kumbakonam Registration District, in Kumbakonam Town, In Municipal Ward No.4, in A.R.R. Road, comprised in T.S. No.1527/3P2, Measuring East to West on Northern Side 100 Sq. ft. on Southern Side 100 Sq. ft. South to North on Western side 80 Sq. ft. on Eastern side 80 ft., total 8000 Sq. ft. = 743.22 sq. meters vacant mania and bounded on the

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East to K.S. Krishnamoorthy property

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South to N. Narayanasamy, N. Vijayalakshmi, N. Ravichandran, R. Dinesh, N. Mohan, Smt. Shanthi, Smt. Prema and A. Sarangan lands West to A.R.R. Road

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North to Municipality sanitary lane

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The mortgage of the said properties registered by way of Memorandum of Deposit of Title deeds in Doc. Nos.3526 of 2016, dated 05.08.2016 held in the name of the 3^rd defendant herein within the limits of Kumbakonam Registration District, in favour of the applicant.

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Sd/-

¶55

(SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

M/s Idbi Bank Ltd., v. Mr. K. Raja Durai

Case brief

What is this about?

What did the court decide?

M/s Idbi Bank Ltd., v. Mr. K. Raja Durai

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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