Allowed

Idfc First Bank Ltd. v. M/S Shraman Strips Pvt. Ltd. and Others

DRT22 Jun 2026OA/1440/2024

Case brief

AI extract

What is this about?

In an ex-parte original application under RDB Act 1993, the Tribunal allowed the bank's claim for recovery of outstanding dues. The debt of Rs. 7.06 crore was reduced to Rs. 6.34 crore for recovery after accounting for prior sale of mortgaged property. Simple interest was granted at 8% p.a.

What did the court decide?

Directing respondents to pay Rs. 6,34,47,541.10 plus simple interest @ 8% p.a. with a Recovery Certificate.

Idfc First Bank Ltd. versus M/S Shraman Strips Pvt. Ltd. and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1440/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.12.2024

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DATE OF DECISION: 22.06.2026

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IDFC First Bank Ltd (Erstwhile Capital First Limited) inter alia having its Registered Office at KRM Towers, 7th Floor, No. 1, Harrington Road, Chetpet, Chennai-600031 and having its Branch Office at Plot No. 28, Industrial Area, Phase-1, Chandigarh

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through its Authorized Representative Sh. Vaasu Bhasin.

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……..Applicant

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Versus

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M/s Shraman Strips Pvt. Ltd., through its Director, having Office at Vishawkarma Colony, Ludhiana, Punjab-141003

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M/s Jain Steel Industries, through its Director/Partner/ Authorized Representative, having its Office at 997/18, Vishvkarma Colony, Street No. 4, Ludhiana, Punjab-141003

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M/s Garg & Co., through its Director/Partner/Authorized Representative, having its Office at 441, Overlook Road, Miller Ganj, Ludhiana, Punjab-141003

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Sh. Harish Kumar, R/o H. No. 77-A, Shastri Nagar, Ludhiana, Punjab -141002

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Sh. Umesh Jain, R/o H. No. 77-A, Shastri Nagar, Ludhiana, Punjab-141002

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Sh. Janeshwar Kumar Jain, R/o H. No. 21-A, Shastri Nagar, Ludhiana, Punjab -141002

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Sh. Chander Shekhar, R/o H. No. 21-A, Shastri Nagar, Ludhiana, Punjab-141002

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Sh. Parmesh Jain, R/o H. No. 66-A, Shastri Nagar, Ludhiana, Punjab-141002

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Sh. Satish Jain, R/o H. No. 66-A, Shastri Nagar, Ludhiana, Punjab -141002

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2 OA/1440/2024 IDFC FIRST BANK LTD. VS M/S SHRAMAN STRIPS PVT. LTD. AND OTHERS

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Sh. Kailash Jain, R/o H. No. 66-A, Shastri Nagar, Ludhiana, Punjab -141002

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Sh. Lokesh Jain, R/o H. No. 102-A, Shastri Nagar, Ludhiana, Punjab -141001

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2^nd Address for Defendant nos. 4 to 11: Property measuring 1B-13B-16B Comprised in Khasra No. 406-407-408-409-417419-420-414-412-418, Khatta No. 179/332-255/473 to 474260/484 to 486-219/419 to 423-209/392 to 394-210/395 to 398-212/402 to 404-208/388-391-220/424 to 426-224/433 to 434 as per Jamabandi for year 1997-98 situated at Village Jugiana, Hadbast No. 244, Tehsil & District Ludhiana, Punjab.

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……..Defendants

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Advocates:

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Argued by Sh. Abhishek Bhateja, Advocate for Applicant

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None for Defendants (Already ex-parte vide order dated 15.05.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.7,06,83,145.27 (Rupees Seven Crore Six Lacs Eighty Three Thousand One Hundred Forty Five and Paise Twenty Seven Only). The Original Application has been filed through Sh. Vaasu Bhasin , Authorized Representative of the applicant who is competent to institute the Original Application vide Letter of Authorization dated 11.03.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its Director defendant nos. 9 and the defendant nos. 2 to 11 as coapplicants approached the applicant (erstwhile Capital First Bank Ltd.) for grant of Mortgage Loan of Rs.8 Crore vide loan application dated 28.09.2016, 05.10.2016, 24.11.2016 and thereafter approached for grant of Mortgage Loan of Rs.1.30 Crore vide loan application dated 09.04.2018.

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3 OA/1440/2024 IDFC FIRST BANK LTD. VS M/S SHRAMAN STRIPS PVT. LTD. AND OTHERS

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Thereafter, defendant no. 1 through its Director Defendant no. 9 and defendant nos. 6, 9, 10 and one Smt. Rohini Jain as co-applicants approached the applicant for grant of Business Loan of Rs.50 Lacs vide loan application dated 26.04.2019.

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Thereafter, defendant no. 2 through its Partners defendant nos. 6 & 9 and defendant nos. 6 & 9 as co-applicants approached the applicant for grant of Business Loan of Rs.20 Lacs vide loan application dated 17.10.2018.

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Loan applications dated 28.09.2016, 05.10.2016, 24.11.2016, 09.04.2018 and 26.04.2019 are Annexure A2(Colly) to this OA. 3. The applicant sanctioned the Mortgage Loans of Rs.1.48 Crore, Rs.1.48 Crore, Rs.2.04 Crore vide sanction letters dated 28.10.2016 and Mortgage Loan of Rs.1.08 Crore vide Sanction Letter dated 17.04.2018 to defendant nos. 1 to 11 and terms and conditions were duly accepted by defendant nos. 1 to 11.

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Thereafter, the applicant sanctioned Business Loan of Rs.35.70 Lacs vide Sanction Letter dated 21.05.2019 to defendant no. 1, 6, 9, 10 and one Smt. Rohini Jain and terms and conditions were duly accepted by them. Sanction Letters dated 28.10.2016 and 21.05.2019 are Annexure A3 (Colly) to this OA. Thereafter, the applicant sanctioned Business Loan of Rs.20 Lacs to defendant nos. 2, 6 & 9 and terms and conditions were duly accepted by them. 4. Defendant No.1 mortgaged immovable property i.e. All piece and parcel of property measuring 1B-13B-16B situated at Village Jugiana, Hadbast No. 244, Tehsil & District Ludhiana, Punjab 141001. However, the mortgaged property has already been sold by applicant in proceedings under SARFAESI Act and Sale Certificate dated 15.02.2024, is Annexure A6 to this OA. Documents executed: Mortgage Loans Agreements dated 28.10.2016, 24.11.2016, 18.04.2018, 21.05.2019 & 30.11.2018 which

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4 OA/1440/2024 IDFC FIRST BANK LTD. VS M/S SHRAMAN STRIPS PVT. LTD. AND OTHERS

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are Annexure A4(Colly) to this OA; Demand Notice dated 28.02.2020 u/s 13(2) of SARFAESI Act Possession Intimation dated 20.04.2022, along with postal receipts, which are Annexure A5(Colly) to this OA; Legal Notice dated 20.05.2024, along with postal receipts which is Annexure A7 to this OA; Interest Calculation Sheet, which is Annexure A8 to this OA; Statement of Account along with certificate under Bankers Book Evidence Act, which are Annexure A9 & A10 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.7,06,83,145.27 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal but after service of summons upon defendants, no one appeared on behalf of defendants and they were proceeded ex-parte on 15.05.2026.

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In support of the OA, affidavit of Sh. Vaasu Bhasin, Authorized Representative, IDFC First Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. No one appeared on behalf of defendants for arguments. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendants approached the applicant for availing various loan facilities. Mortgage Loans of Rs. 1.48 Crore, Rs.1.48 Crore, Rs.2.04 Crore & Rs. 1.08 Crore were granted to defendant nos. 1 to 11. Business Loan of Rs. 35.70 Lacs was granted to defendant nos. 1,6,9 & 10 and Business Loan of Rs.20 Lacs was granted to defendant nos. 2,6 & 9. They executed all the relevant documents in

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5 OA/1440/2024 IDFC FIRST BANK LTD. VS M/S SHRAMAN STRIPS PVT. LTD. AND OTHERS

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favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.6,34,47,541.10 (Rupees Six Crores Thirty Four Lacs Forty Seven Thousand Five Hundred Forty One and Paise Ten Only) from defendant nos. 1 to 11, Rs. 52,29,439.47 (Rupees Fifty Two Lacs Twenty Nine Thousand Four Hundred Thirty Nine and Paise Forty Seven Only) from defendant nos. 1, 6, 9 and 10 and a sum of Rs. 20,06,164.70 (Rupees Twenty Lacs Six Thousand One Hundred Sixty Four and Paise Seventy Only) from defendant nos. 2, 6 and 9, along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant has claimed interest @24%p.a. from 17.05.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @08.00% p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants nos. 1 to 11 are liable to pay to the applicant a sum of Rs.6,34,47,541.10 (Rupees Six Crores Thirty Four Lacs Forty Seven Thousand Five Hundred Forty One and Paise Ten Only), defendants nos. 1,6,9 and 10 are liable to pay to the applicant a sum of

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6 OA/1440/2024 IDFC FIRST BANK LTD. VS M/S SHRAMAN STRIPS PVT. LTD. AND OTHERS

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Rs. 52,29,439.47 (Rupees Fifty Two Lacs Twenty Nine Thousand Four Hundred Thirty Nine and Paise Forty Seven Only) and defendant nos. 2,6 and 9 are liable to pay to the applicant a sum of Rs. 20,06,164.70 (Rupees Twenty Lacs Six Thousand One Hundred Sixty Four and Paise Seventy Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.07.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 22.06.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Idfc First Bank Ltd. v. M/S Shraman Strips Pvt. Ltd. and Others

Case brief

What is this about?

What did the court decide?

Idfc First Bank Ltd. v. M/S Shraman Strips Pvt. Ltd. and Others

Case brief

What is this about?

What did the court decide?

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