Allowed

Idbi Bank v. Sh. Jagdish Prasad Swami

DRT1 Feb 2025TA/275/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by IDBI Bank Ltd. for recovery of dues from the defendant who failed to appear. The court directed payment of the principal amount with interest and authorized recovery from hypothecated assets.

What did the court decide?

Recovery of Rs. 30,03,449.85 with interest from the defendant, to be recovered from sale of hypothecated stocks, book debts, and mortgage of immovable property.

Idbi Bank versus Sh. Jagdish Prasad Swami — Specific Performance | DRT (2025)

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T.A. No.275 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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T.A. no. 275 of 2023

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IDBI Bank Ltd. 208, Ground Floor, Coronation Building Fatehpuri Chowk, Chandni Chowk Delhi-110006

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Arplicant

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Versus

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Shri Jagdish Prasad Swami s/o Sh.Bhol Dass Proprietor of Jagdish Papers Corporation At: 947/49, Shop No.5 Panch Ratna Market Chota Chhipiwara, Chawri Bazar Delhi-110006

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Also at:

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H.No.171, Tagore Park, Kingsway Camp Model Town, Delhi-110009

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Defendant

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Present: Shri Vivek Kumar, Counsel for the applicant bank

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Date of Institution: 11.08.2021

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Date of Pronouncement: 01.02.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 11.08.2021 filed before DRT-III Delhi & then transferred to DRT-I Delhi through Sh.Nitin Kumar, authorized representative of the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act,

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T.A. No.275 of 2023

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1993 against the defendant for recovery of Rs.30,03,449.85 (Rupees Thirty Lacs Three Thousand Four Hundred Forty Nine and paisa Eighty Five only) as on 07.03.2021 along with pendentelite and future interest @13.30% per annum with monthly rest from 07.03.2021 till the date of realization and costs.

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The brief facts of the case are that at the request of defendant as proprietor of M/s Jagdish Papers Corporation, the applicant bank sanctioned Cash Credit limit of Rs.40,00,000/(Rupees Forty Lacs only) @11.30% interest per annum on 24.08.2017 and renewed on 10.10.2018 against hypothecation of stocks, book debts and mortgage of property of defendant.

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That in order to avail the loan facility, the defendant executed Hypothecation-cum-Loan Agreement, Demand Promissory Note, Demand Promissory Note Delivery Letter, Declaration and Undertakings on 24.08.2017.

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IN order to secure the loan facility, the defendant executed Memorandum of Deposition of Title Documents of immovable property on Ground Floor bearing Private No.5, Municipal Nos. 947, 948 & 949, Chhota Chhipiwara Khurd, Chhata Shahji, Chawri Bazar, Delhi in favour of applicant bank.

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The defendant acknowledged the debit and confirmed the security in favour of applicant bank on 10.10.2018.

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It has been submitted by the applicant bank that after availing the loan facility, the defendant failed to comply with the terms and conditions despite several requests. The defendant failed to deposit interest and installments with the applicant bank due to which the applicant bank classified the

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T.A. No.275 of 2023

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account as Non Performing Asset on 06.04.2020 and issued notice dated 18.01.2020 to adjust the outstanding dues but defendant neglected the notice. Hence, the applicant Lank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings and none appeared on behalf of defendant. As per order dated 20.12.2023, the defendant has been proceeded ex-parte due to non filing of written statement, evidence and affidavit of assets before this Tribunal.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Nitin Kumar, authorized representative of the applicant bank who has proved the documents as Delegation of Power Ex.AW1/1, Sanction Letter Ex.AW1/2, D.P.Note Ex.AW1/3, D.P.Note Delivery Letter Ex.AW1/4, Hypothecation-cum-Loan Agreement Ex.AW1/5, Declaration & Undertaking Ex.AW1/6, Acknowledgement Letter Ex.AW1/7, Memorandum of Deposition / Entry Ex.AW1/8, Copy of Sale Deed Ex.AW1/9, Loan Recall Notice Ex.AW1/10, Certified Statement of Account Ex.AW1/1, Certificate under Section 2A of Bankers Book Evidence Act Ex.AW1/12 and Election I-Card, Pan Card Mark-1 (colly).

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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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10.^{The case filed by the applicant bank gone unrebutted and} there is no question of disbelieving the case of the applicant

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T.A. No.275 of 2023

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bank and applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.30,03,449.85 (Rupees Thirty Lacs Three Thousand Four Hundred Forty Nine and paisa Eighty Five only) along with pendentelite and future interest @13.30% p.a. with monthly rest from 07.03.2021 failing which the aforesaid amount shall be recovered from sale of hypothecated stock, book debts and mortgage of immovable property on Ground Floor, Private No.5, Municipal Nos.947, 948 & 949, Chhota Chhipiwara Khurd, Chhata Shahji, Chawri Bazar, Delhi. In case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the defendant.

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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 the Recovery} Officer, DRT I, Delhi on 03.04.2025.

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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: 01.02.2025

Idbi Bank v. Sh. Jagdish Prasad Swami

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Sh. Jagdish Prasad Swami

Case brief

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What did the court decide?

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