Allowed

Idbi Bank v. Shihan Shariff

DRT28 Jan 2026OA/11/2024

Case brief

AI extract

What is this about?

Upon a default in loan repayment, the Debts Recovery Tribunal allowed an application for a Recovery Certificate. The Tribunal granted relief to IDBI Bank for the principal amount plus interest capped at 8% per annum, order issues to be resolved together.

What did the court decide?

Issuance of Recovery Certificate for Rs.45,55,823/- plus further interest at 8% p.a. simple interest from the date of application.

Idbi Bank versus Shihan Shariff — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.11/2024

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BETWEEN:

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IDBI Bank Limited Branch office at: Indiranagar, #326, Ashwini Complex, 80 feet Road, Indiranagar, Bengaluru- 560038

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…APPLICANT

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AND:

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Mr. Shihan Shariff

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S/o. Mr. Rahamathulla Shariff #17, 1^st Floor, 6^th main,

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3^rd Cross, Maruthi Layout BTM 1^st Stage, Dharmaram Collage, Bangalore- 560029

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M/s Landstar Homes Partnership Firm Rep by its Partners

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(a) Mr. K Uma Maheswara Reddy

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(b) Mrs Lakshmi Rangaswamy No. H-108, Sriram Spurti AECS Layout, Brookefields, Bangalore- 560037

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Mr. K Uma Maheswara Reddy S/o. Mr. K Veera Reddy Ravana No.330/2, 1^st Cross, S R Layout, Mrugesh Palya Bangalore- 560017

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Mrs. Lakshmi Rangaswamy W/o. Mr. Chennan Rangaswamy

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OA 11/2024

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No. H-108, Sriram Spurti AECS Layout, Brookefields, Bangalore- 560037

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Mrs. R Audi Lakshmi W/o. Mr. R Pratap Kumar Reddy R/at: Flat NO.4 Samhita Ritz Apartment RahathBagh, Nagavarapalya C V Raman Nagar Post, Bangalore- 560093

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Mrs. I Kavamma W/o. Late Sri I Venka Reddy R/at: No.1-134, Old Town, Kanigiri Prakasham District

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Mr. K Parameshwara Reddy S/o. Sri. Sundararama Reddy R/at: No.2-3-140/A Blossom House, Adarsh Nagar Road No.1, Nagole, Hyderabad

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M & R consult Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.45,55,823/- (Rupees forty five lakh fifty five thousand eight hundred twenty three only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA 11/2024

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It is the case of the applicant that the defendant No.1 is the borrower and Defendant No.2 is Builder/Developer. The Defendants No.3 & 4 are Partners of Defendant No.2. They have availed the following credit facilities from the applicant bank:

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i). Housing loan credit facilities of Rs.40,00,000/- (Rupees forty lakh only and

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ii). Insurance Premium loan of Rs.36,098/- (Rupees thirty six thousand and ninety eight only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with agreement of sale, sanction letter in favor of the applicant bank. Further, the defendants jointly entered into a Tripartite agreement dated 06.07.2019 with the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, 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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OA 11/2024

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 24.03.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-18 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 the proof affidavit.

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The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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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

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OA 11/2024

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admissible and are sufficient to prove availment of credit facilities as stated in the OA execution of tripartite agreement agreeing the defaults committed in the account. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this Tribunal find both these issues in favour of applicant and hence

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this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants for Home Loan purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @8% p.a.(Simple).

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In the result, OA.No.11/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.45,55,823/- (Rupees forty five lakh fifty five thousand

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eight hundred twenty three only) with further interest @8% p.a.

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(Simple),

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from the date of filing OA till the realization, from the defendants

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OA 11/2024

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jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the defendants jointly, severally and personally and their assets including the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings

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

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receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of

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in terms of this final order.

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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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 28^th day of January, 2026].

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PRESIDING OFFICER

Sd/ (T. RAJESH)

OA 11/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Uremila Sahoo, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Shihan Shariff

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Shihan Shariff

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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Case details

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