Allowed

Idbi Bank v. Sri Vishwanath C

DRT27 Aug 2026OA/1905/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application for a Recovery Certificate against a defaulting borrower who appeared ex parte. The claim for the housing loan and insurance premium was admitted, interest was reduced to 8% p.a., and a certificate for recovery from scheduled properties and other assets was issued.

What did the court decide?

Recovery Certificate granted for Rs.1,18,18,796.00 with future interest at 8% p.a. to be recovered from scheduled properties and other assets.

Idbi Bank versus Sri Vishwanath C — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of August 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA. No.1905/2024

¶5

BETWEEN:

¶6

IDBI Bank Limited Retail Recovery-RBG No.58, IDBI House, Mission Road, Bangalore-560027.

¶7

… APPLICANT

¶8

AND:

¶9

Sri.Vishwanath.C S/o.Late.Chandrashekaraiah # 333, 3^rd Main, 5^th Cross, Kesare 3^rd Stage, Mysore-570007.

¶10

...DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : M & R Consult Defendant : Exparte

¶13

: FINAL ORDER:

¶14

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.1,18,18,796.00 (Rupees One Crore Eighteen Lakhs Eighteen Thousand Seven Hundred and Ninety-Six Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶15

2 OA No.1905/2024

¶16

The Defendant availed a sum of Rs.86,00,000/- (Rupees Eighty-Six Lakhs Only) for purpose of Housing Loan.

¶17

The Defendant availed Rs,2,27,069.00 (Rupees Two Lakh TwentySeven Thousand Sixty-Nine Only) for purpose of Insurance Premium.

¶18

It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage, over the Schedule properties.

¶19

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

¶20

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.

¶21

Despite, service of summons on the defendant, they failed to appear, resulting the defendant being set exparte on 21.02.2025.

¶22

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A13 and got the same marked in evidence.

¶23

3 OA No.1905/2024

¶24

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.

¶25

The following issues arise for consideration in this matter:

¶26

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

¶27

ii) What order are to be passed?

¶28

Both these issues are gone into and decided together.

¶29

The case put forth by the applicant in the Application remains unrebutted as defendant 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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶30

Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

¶31

4 OA No.1905/2024

¶32

Taking into consideration the facts that the credit facility was availed for Housing Loan and also that 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% p.a.(simple)

¶33

In the result, OA.No.1905/2024 stands allowed,

¶34

i) The applicant is allowed to recover an aggregate sum of Rs.1,18,18,796.00 (Rupees One Crore Eighteen Lakhs Eighteen Thousand Seven Hundred and Ninety-Six Only) along with current and future interest 8% from the date of the OA till the date of realization, from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶35

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

¶36

amount due and payable to the applicant bank, the defendant and his other assets are liable for all such amounts due in loan accounts.

¶37

iii) The applicant bank is allowed cost of the proceeding which applicant to file cost memo within 7 days from the date of receipt of the order.

¶38

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

¶39

transferred to Recovery for execution.

¶40

5 OA No.1905/2024

¶41

v) Interim Application pending, if any, stands disposed of with

¶42

this Final Order.

¶43

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

¶44

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶45

[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August 2026].

¶46

Sd/(T. RAJESH) PRESIDING OFFICER

¶47

ANNEXURES

¶48

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶49

AW-1: Sri. Vageesha Javali, Manager of the Applicant Bank.

¶50

Exhibits on the part of the Applicant:

¶51

Sl. No.	Description of Documents	Exhibits Number
1.	Original of the Home Loan Application dated 24.06.2019	A1
2.	Original of Loan Sanction Letter dated 24.07.2019	A2
3.	Original of Home Loan Agreement dated 31.07.2019	A3
4.	Original of Power of Attorney dated 31.07.2019	A4
5.	Original of Declaration and Undertaking dated 31.07.2019	A5

¶52

6.	Original of the MODTD dated 20.09.2019	A6
7.	Original of the Absolute Sale Deed dated 12.09.2019	A7
8.	Original of the Loan for Insurance Premium Application Form dated 31.07.2019	A8
9.	Original of the Loan for Insurance Premium Sanction dated 31.07.2019	A9
10.	Original of the Loan for Insurance Premium Agreement dated 31.07.23019	A10
11.	Original of the Loan Recall Notice to the Defendant dated 19.10.2023	A11
12.	Copy of the Statement of account certified under Banker’s Book of Evidence Act-showing the outstanding liability under Homem Loan A/c. No.0363675100008303	A12
13.	Copy of Statement of account certified under Banker’s Book of Evidence Act-showing the outstanding liability under Loan for Insurance Premium A/c No.0363675100008310	A13

¶53

Sd/(T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Sri Vishwanath C

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Sri Vishwanath C

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

Icici Bank Limited versus Shilpy

Bank of India versus Sh. Hardev Singh

Bank of India versus Amarjit Kaur

Santosh Kumari versus Central Bank of India

State Bank of India versus Mokksh

Ms Tamanna Enterprises versus Indian Bank