Allowed

Idbi Bank v. Lakshmi

DRT24 Jun 2026OA/204/2022

Case brief

AI extract

What is this about?

Allowed an Original Application filed by IDBI Bank seeking issuance of Recovery Certificate against the defendant for approximately Rs. 86.35 Lakhs arising from defaulted home loans. The Tribunal reduced the applicable interest rate to 8% per annum before permitting recovery from personal assets or schedule properties.

What did the court decide?

Recovery Certificate to be drawn for aggregate sum of Rs. 86,35,572/- plus interest at 8% p.a. (simple) from date of filing, recoverable personally or from schedule properties.

Idbi Bank versus Lakshmi — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.204/2022

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BETWEEN:

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The IDBI Bank Ltd Branch office at: No. 58, Mission Road, Bangalore – 560 027

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Represented by its Deputy General Manager Hemant Kumar Patra …APPLICANT

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AND:

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Smt. Lakshmi Srinivasa W/o. Sri. Srinivasa K V R/at: #14, 2^nd Main Road, Opp. Malleswaram Railway Station, Gandhi Grama, Gayathri Nagar, Bangalore – 560 021

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Also, at: Flat no. 001, Ground Floor, Bock B, Wing D, Sri. Krishna Excel Stone, Balagere, Varthur Hobli, Bengaluru – 560 066

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Also, at: Prop: Laxmi Garments Subramanya Nagar, 14, 2^nd Main Road, Gandhi Grama, Gayathri Nagar, Bangalore – 560 021 ...DEFENDANT

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OA-204/2022

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Counsel on record/appeared for:

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Applicant : Sri. T P Muthanna Defendant : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs 86,35,572/- (Rupees Eighty-Six Lakhs Thirty-Five Thousand Five Hundred and Seventy-Two only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant is availed the credit facilities:

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Home loan of Rs. 75,00,000/- (Rupees Seventy-Five Lakhs Only) for purchase of flat.

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Loan insurance premium of Rs. 71,657/- (Rupees Seventy-One Thousand Six Hundred and Fifty-seven Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with deposit of title deeds.

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It is further contended that, despite availing the credit facilities, 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 accounts as NPA.

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OA-204/2022

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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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Despite, service of summons on the defendant, she failed to appear, resulting the defendant being set ex parte on 09.10.2024.

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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-11 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 proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA

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claim as against the defendant?

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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 remains unrebutted as defendant remained ex parte. The evidence tendered

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by the applicant remains uncontroverted and undisputed.

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The evidences put forth by the applicant were found admissible

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and are sufficient to prove availment of credit facilities as stated in

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OA-204/2022

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the OA, and the defaults committed in the accounts. The liability of

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the defendant and the claim of the amount due is also proved by the

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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, the Tribunal finds that both these issues are in favour of applicant and hence, 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 are

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availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view

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that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.204/2022, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 86,35,572/- (Rupees Eighty-Six Lakhs Thirty-Five Thousand Five

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Hundred and Seventy-Two only with further interest @8.00% p.a.(simple) from the date of filing OA till the realization, from the

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defendant personally, after giving credit to all the amount recovered

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and received during the pendency of the OA and allowed the same to

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be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-204/2022

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

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amount due and payable to the applicant bank, the defendant personally and her assets are liable for all such amounts due under the loan accounts.

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iii) 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 receipt of the order.

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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-204/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Urmila Saheo, W/o. Subhendu Saheo, Asst. General Manager,

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of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Copy of the home loan application dated 07.12.2016
A2	Copy of the loan for insurance premium application dated 26.12.2016
A3	Copy of sanction letter dated 26.12.2016
A4	Copy of home loan agreement executed by defendant dated 28.12.2016
A5	Copy of power of attorney dated 28.12.2016
A6	Copy of loan for insurance premium agreement executed by defendant dated 28.12.2016
A7	Copy of the declaration and undertaking in the matter mortgage by deposit of tittle deeds dated 08.02.2017
A8	Copy of the memorandum of entry dated 08.02.2017
A9	Copy of the loan recall notice dated 15.06.2021
A10	Copy of statement of account certified under bankers’ book of evidence act–home loan account no. 0202675100103275
A11	Copy of statement of account certified under bankers’ book of evidence act–home loan account no. 0202675100103343
Witne	ss Examined for the Defendant: -Nil -
List of	Documents Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Idbi Bank v. Lakshmi

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Lakshmi

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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