Allowed

Idbi Bank v. Sri M Arul Kumar and Another

DRT16 Sept 2026OA/1901/2024

Case brief

AI extract

What is this about?

In OA No. 1901/2024, the DRT affirmed an application by IDBI Bank for a recovery certificate against two defendants for an outstanding loan sum of approximately Rs. 63.70 lakh. The defendants appeared ex parte. The Tribunal found the claim admissible, within limitation, and supported by documentary evidence including loan agreements, mortgage documents, and bank statements. The Tribunal allowed the application but reduced the interest rate to 8% simple per annum, with the recovery certificate to be enforced against the defendants' jointly and severally liable assets.

What did the court decide?

Recovery Certificate issued for Rs. 63,70,646.78 with further interest at 8% p.a. (simple) from filing date till realization, recoverable jointly and severally from defendants against schedule properties and personal assets.

Idbi Bank versus Sri M Arul Kumar and Another — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 16^th Day of September, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1901/2024

¶5

BETWEEN:

¶6

IDBI Bank Limited Retail Recovery -RBG No. 58, IDBI House Mission Road, Bangalore-560027. Represented Through its Deputy General Manager, Sri. G. Basanth Chakravarthy.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. M Arul Kumar S/o Sri. R Manikkam Aged about 35 years, #20, 1^st Floor, 11^th Cross, Coffee Board layout, Kempapura, Hebbal, Bangalore-560024.

¶10

Smt. Pooja R W/o Sri. Arul Kumar Aged about 35 years, #20, 1^st Floor, 11^th Cross, Coffee Board layout, Kempapura, Hebbal, Bangalore-560024. ...DEFENDANTS

¶11

Counsel on record/appeared for:

¶12

Applicant : T P Muthanna Defendants : Exparte

¶13

2 1901/2024

¶14

FINAL ORDER

¶15

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. 63,70,646.78/(Rupees Sixty Three Lakh Seventy Thousand Six Hundred Forty Six and Paise Seventy Eight Only) with further interest thereon from the date of filing the Application till realization.

¶16

It is the case of the applicant that the defendants availed the following credit facilities from the applicant bank:-

¶17

I. Home Loan of a sum of Rs. 57,00,000/- (Rupees Fifty Seven Lakh Only).

¶18

II. Loan for Insurance Premium of sum of Rs. 2,17,128/- (Rupees Two Lakh Seventeen Thousand One Hundred Twenty Eight Only) on 30.10.2021.

¶19

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Loan Sanction Letter, Home Loan Agreement, Power of Attorney, Absolute Sale Deed.

¶20

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.

¶21

3 1901/2024

¶22

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.

¶23

Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 04.07.2025.

¶24

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-10 and got the same marked in evidence.

¶25

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.

¶26

The following issues arise for consideration in this matter:

¶27

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

¶28

ii) What order are to be passed?

¶29

Both these issues are gone into and decided together.

¶30

The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by

¶31

the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

¶32

4 1901/2024

¶33

availment of credit facilities as stated in the OA, creation of Mortgage as

¶34

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 of the applicant is well within the limitation.

¶35

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.

¶36

Taking into consideration the facts that the credit facilities was

¶37

availed for Housing 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 8.00% (simple).

¶38

In the result, OA.No.1901/2024, stands allowed,

¶39

i) The applicant is allowed to recovery an aggregate sum of Rs. 63,70,646.78/- (Rupees Sixty Three Lakh Seventy Thousand Six Hundred Forty Six and Paise Seventy Eight Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants 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 proceeding against schedule

¶40

5 1901/2024

¶41

property. Schedule Properties to the OA be the schedule to the recovery certificate.

¶42

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

¶43

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

¶44

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

¶45

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

¶46

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶47

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

¶48

of this final order.

¶49

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

¶50

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

¶51

Rules, 1993.

¶52

[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 16^th Day of September, 2026].

¶53

Sd/-

¶54

(T. RAJESH) PRESIDING OFFICER

¶55

6 1901/2024

¶56

ANNEXURES

¶57

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶58

AW-1: P Prem Swaroop, Chief Manager of the applicant Bank

¶59

Exhibits on the part of the Applicant:

¶60

Annexure	Date	List of Documents
A1	01.10.2021	Copy of the Home Loan application
A2	31.10.2021	Copy of the Loan for Insurance Premium Application Form
A3	30.10.2021	Copy of the Loan Sanction letter
A4	30.10.2021	Copy of the Home loan Agreement
A5	30.10.2021	Copy of the Power of Attorney
A6	30.10.2021	Copy of the Affidavit
A7	30.10.2021	Copy of the declaration and undertaking
A8	06.11.2021	Copy of the Absolute Sale Deed
A9	08.11.2021	Copy of the Loan for Insurance Premium Agreement
A10	16.10.2023	Copy of the Loan Recall Notice to the Defendant No. 1 & 2
A11	--	Copy/ies of statements of Accounts duly certified under the Banker’s Books Evidence Act, showing the outstanding liability under home loan Account No. 0243675100058520

¶61

7 1901/2024

¶62

A12	--	Copy/ies of statements of Accounts duly certified
		under the Banker’s Books Evidence Act, showing
		the outstanding liability under Loan for Insurance
		Premium Account No. 0418675100010609

¶63

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

¶64

-Nil -

¶65

Sd/- (T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Sri M Arul Kumar and Another

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Sri M Arul Kumar and Another

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

Similar cases

Uco Bank versus Dilip

Hdfc Bank versus M/S Ibrahim Fish Traders Traders and Ors.

State Bank of India versus Gaurav Kumar and Ors.

Canara Bank versus Ninge Gowda

Thadiyampurath Hassan versus Urban Co. Operative Bank Ltd. 1758

Suma Pradeep versus Federal Bank