Allowed

Idbi Bank v. Durvesh Associates

DRT17 Aug 2026OA/1820/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by IDBI Bank Limited for the issuance of a Recovery Certificate against defaulting borrowers and guarantors. The Tribunal found the securities and default uncontroverted, granted recovery of the principal amount along with reduced interest at 12% and ordered execution against schedule properties.

What did the court decide?

Recovery Certificate issued against defendants for aggregate sum of Rs. 34,23,244.97 plus further interest @12% p.a. (simple) from filing date till realization, recoverable from schedule property or p

Idbi Bank versus Durvesh Associates — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 17^th Day of August, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1820/2023

¶5

BETWEEN:

¶6

IDBI Bank Limited Its Branch at IDBI Bank Ltd, Veerabhadreshwara Complex, Near Mantapa Clinic, Kuvempu Road, Shivamogga-577201. Represented by its Deputy General Manager Sri. G. Basanth Chkaravarthy.

¶7

…APPLICANT

¶8

AND:

¶9

M/s Durvesh Associated Near Chetan Garage Khata, No. 9/25, Auto Complex, Shivamogga -577204, Represented by its Sole Proprietor, Mr. Mohammed Rafeeq, S/o Abdul Hameed Sab, Also at: Left Side Tippunagar, 6^th Cross, Shivamogga -577201, First Cross, Karidevara Kere, Gandhi Bazar, Shimoga-577201.

¶10

Also At:

¶11

1^st Cross, 100 Feet Road, Manjunatha Extension New Mandi, Shimoga-577202.

¶12

Mr. Mohammed Rafeeq, S/o Abdul Hameed Sab, Aged about 43 years,

¶13

2 1820/2023

¶14

1^st Cross, 100 Feet Road, Manjunatha Extension New Mandi, Shimoga-577202. Also at: Galib Street, Lashkar Mohalla, Savarkarangar, Shivamogga-577201.

¶15

Mrs. Haleemunnisa, W/o Abdul Kalaq, Aged about 71 years, MIG 171/c, Ganga Nilaya, 2^nd Stage Kalahalli, Shimoga-577201.

¶16

Mr. S.K. Javeed Ahamed, S/o S R Abdul Kalaq, Aged about 49 years, MIG MIG 171/c, Ganga Nilaya, 2^nd Stage Kalahalli, Shimoga-577201. Also at: Almas manzil, 3^rd Cross, 1^st Stage, RML Nagar, Doddapet, Shivamogga-577204.

¶17

Mr. S.K. Nisa Ahamed S/o S R Abdul Kalaq, Aged about 51 years, R/at No. 163/1, Chalukyanagar, Gopala Extension, Shivamogga -577205.

¶18

Mrs. Fazelath Sulthana W/o S M Naiyar Ahmed, Aged about 55 years, 121, K. R. Puram Shimoga-577201. ...DEFENDANTS

¶19

Counsel on record/appeared for:

¶20

Applicant : Nagaraj Damodar Defendants : Exparte

¶21

3 1820/2023

¶22

FINAL ORDER

¶23

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 34,23,244.97/(Rupees Thirty Four Lakh Twenty Three Thousand Two Hundred Forty Four and Paise Ninety Seven Only) with further interest thereon from the date of filing the Application till realization.

¶24

It is the case of the applicant that the defendant No. 2 is the Sole Proprietor concern with defendant No. 1 along with the defendant No.3 to 6 as guarantors availed the availed the following loan facilities:-

¶25

I. Overdraft of a sum of Rs. 30,00,000/- (Rupees Thirty Lakh Only) on 18.07.2017.

¶26

II. WCTL Loan 2 of Rs. 5,00,000/- (Rupees Five Lakh Only) on 18.03.2023 and

¶27

¶28

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Demand Promissory Note, Loan Cum Hypothecation agreement, Common Guarantee Deed, Memorandum of Entry.

¶29

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶30

In the above circumstances, the applicant approached this Tribunal

¶31

4 1820/2023

¶32

by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶33

Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 10.08.2026.

¶34

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-22 and got the same marked in evidence.

¶35

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

¶36

The following issues arise for consideration in this matter:

¶37

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶38

ii) What order are to be passed?

¶39

Both these issues are gone into and decided together.

¶40

The case put forth by the applicant in the Application 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 admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Mortgage and

¶41

5 1820/2023

¶42

Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim

¶43

of the applicant is well within the limitation.

¶44

Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶45

Taking into consideration the facts that the credit facilities was

¶46

availed for business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 12.00% (simple).

¶47

In the result, OA.No.1820/2023, stands allowed,

¶48

i) The applicant is allowed to recovery an aggregate sum of Rs.

¶49

34,23,244.97/- (Rupees Thirty Four Lakh Twenty Three Thousand Two

¶50

Hundred Forty Four and Paise Ninety Seven Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from

¶51

the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and

¶52

allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule to the recovery

¶53

6 1820/2023

¶54

certificate.

¶55

ii) If the sale proceeds are not found sufficient to cover the

¶56

amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for the amounts due

¶57

under the loan accounts.

¶58

iii) The applicant bank is allowed cost of the proceedings which

¶59

applicant to file cost memo within 7 days from the date of receipt of the order.

¶60

iv) The Recovery Certificate to be drawn in terms of this order and

¶61

transferred to Recovery for execution.

¶62

v) Interim application pending, if any, stands disposed of in terms

¶63

of this final order.

¶64

15. Communicate a copy of the order to the parties concerned in terms

¶65

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶66

Rules, 1993.

¶67

[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 17^th Day of August, 2026].

¶68

Sd/-

¶69

(T. RAJESH) PRESIDING OFFICER

¶70

7 1820/2023

¶71

ANNEXURES

¶72

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶73

AW-1: Brij Kishore Bilochi, Deputy General Manager of the applicant Bank

¶74

Exhibits on the part of the Applicant:

¶75

Annexure	Date	List of Documents
A1	--	Loan Application
A2	18.07.2017	Sanction Letter
A3	18.07.2017	Demand Promissory Note
A4	18.07.2017	Demand Promissory Note delivery Letter
A5	18.07.2017	Facility Agreement
A6	18.07.2017	Loan cu, Hypothecation Agreement
A7	21.07.2017	Memorandum of Deposit of title Deeds
A8	18.07.2017	Common Guarantee Deed
A9	22.07.2020	Sanction Letter
A10	14.09.2020	Demand Promissory Note
A11	14.09.2020	Hypothecation cum loan Agreement
A12	14.09.2020	Notarized Affidavit
A13	22.09.2020	Memorandum of Entry executed nu defendant No.3
A14	22.09.2020	Memorandum of Entry executed by defendant No.4
A15	16.03.2023	Letter of intent
A16	16.03.2023	Demand Promissory Note
A17	16.03.2023	Acknowledgement of Debt
A18	16.03.2023 22.05.2023	Loan Recall Notice
A20	--	Statement of Account Extract in respect of A/c No. 042865110001397
A21	--	Statement of Account Extract in respect of A/c No. 042865110001397

¶76

8 1820/2023

¶77

A22 -- Certificate U/s 2A (B) 7 A(C) of the Banker’s Book Evidence Act, 1891 (As amended)

¶78

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

¶79

-Nil -

¶80

Sd/- (T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Durvesh Associates

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Durvesh Associates

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

Coram

Case details

All orders in this case

Similar cases

Canara Bank versus Sri.H. R. Chandrappa

Canara Bank versus Smt.Narayanamma

Bank of India versus Sri.Lohit Rudrappa Bullapur

M/S Shoolini Associate versus the Baghat Urban Co. Operative Bank Ltd.

Punjab National Bank versus M/S Gyamtso Regency Hotel And Anr.

State Bank of India versus Ashok J S