Allowed

Idbi Bank Limited v. Sh. Sewa Singh and Others

DRT19 Feb 2026OA/21/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application ex-parte. The bank proved loan execution by defendants and guarantor leading to non-payment. The Tribunal issued a recovery certificate for the principal amount plus adjusted simple interest.

What did the court decide?

Recovery certificate issued for Rs. 48,47,043.80 with simple interest @ 8.00% p.a.; parties directed to appear before Recovery Officer for execution.

Idbi Bank Limited versus Sh. Sewa Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.21/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.10.2023

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DATE OF DECISION: 19.02.2026

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IDBI Bank Limited, Company Registered under the Companies Act, 1956(1 of 1956) and a company within the meaning of the Companies Act, 2013 and banking company within the meaning of Section 5(c) of the Banking Regulation Act, 1949 (10 of 1949), and having its Registered Office at IDBI Tower, W.T.C. Complex, Cuffe Parade, Mumbai-400005 and having a Branch Office, amongst others at Ohri Tower, 14-A Model Town, GT Road, Phagwara, District Kapurthala, (Punjab), through Sh. Deepak Batra, BH/AGM and Authorized Signatory of IDBI Bank Ltd.

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……..Applicant

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Versus

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Sh. Sewa Singh S/o of Sh. Dhanna Singh, R/o of Village Dugg, Tehsil Phagwara, District Kapurthala, Punjab.

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Sh. Paramjit Singh S/o of Sh. Sewa Singh, R/o of Village Dugg, Tehsil Phagwara, District Kapurthala, Punjab.

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Sh. Harnek Singh S/o of Sh. Bhag Singh, R/o of Village Dugg, Tehsil Phagwara, District Kapurthala, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Tajender K Joshi, Advocate for Applicant

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Defendants already ex-parte vide order dated 29.11.2025

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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. 48,47,043.80 (Rupees Forty Eight Lacs Forty Seven Thousand Forty Three and Paise Eighty Only). The Original Application has been filed through Sh. Deepak Batra, Assistant General Manager o f the applicant, who is competent to

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2 OA NO.21/2024 IDBI BANK LIMITED VS. SEWA SINGH AND OTHERS

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institute the Original Application vide Delegation of powers, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for grant KCC Limit of Rs.45.00 Lacs vide Loan Application dated 25.02.2015, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs. 45.00 Lacs vide Letter of Intent dated 02.03.2015, which is Annexure A3 to this OA and the terms and conditions are accepted by defendants. Thereafter, the limit was renewed by the applicant vide letter of intent dated 1601.2021, which is Annexure A11 to this OA. 4. Defendant no. 1 mortgaged his immovable property i.e., Land Measuring 71Kanal-01Marla situated at Village Dugga, Tehsil Phagwara, District Kapurthala, Punjab vide Mortgage Deed dated 03.03.2015, which is Annexure A4 to this OA; Declaration dated 04.03.2015 under Section 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A5 to this OA. Documents executed: Hypothecation cum loan agreement, Guarantee Deed, D.P. Note, Take Delivery Letter to DPN, all dated 03.03.2015, which are Annexures A6 to A9 to this OA; Acknowledgment of Debt cum Revival Letter dated 27.08.2020, which is Annexure A10 to this OA; Recall Notice dated 18.05.2023, which is Annexure A12 to this OA; Guarantee Invocation Letter dated 14.06.2023, which is Annexure A13 to this OA; Account of Statement, which is Annexure A14 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit Rs. Rs. 48,47,043.80 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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3 OA NO.21/2024 IDBI BANK LIMITED VS. SEWA SINGH AND OTHERS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 29.11.2025.

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In support of the OA, affidavit of Sh. Deepak Batra, Assistant General Manager, IDBI Bank Ltd. h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.48,47,043.80 (Rupees Forty Eight Lacs Forty Seven Thousand Forty Three and Paise Eighty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with 2% penal interest from 13.04.2023 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 nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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4 OA NO.21/2024 IDBI BANK LIMITED VS. SEWA SINGH AND OTHERS

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Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account 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 are liable to pay to the applicant a total sum of Rs.48,47,043.80 (Rupees Forty Eight Lacs Forty Seven Thousand Forty Three and Paise Eighty Only) and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled 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. 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 07.03.2026. 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: 19.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Idbi Bank Limited v. Sh. Sewa Singh and Others

Case brief

What is this about?

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Idbi Bank Limited v. Sh. Sewa Singh and Others

Case brief

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