Allowed

Idbi Bank Limited v. M Durairajan @ Durairajan

DRT27 Jan 2026OA/28/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate under Section 19(1) RDB Act. The bank successfully proved the defendant's liability for an outstanding housing loan. The order directed issuance of a certificate for realization with interest and permission to sell the mortgaged property.

What did the court decide?

Order to issue recovery certificate for Rs.30,23,036 plus 9% p.a. interest; permission to sell mortgaged property and defendant's other assets for recovery. Costs awarded.

Idbi Bank Limited versus M Durairajan @ Durairajan — Banking and Recovery | DRT (2026)

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BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 27^th day of January, 2026

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PRESENT: SHRI SHARANG DHAR UPADHYAY PRESIDING OFFICER

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OA No.28 of 2023

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IDBI Bank Limited Premier Towers No.2, Lakshmi Vilas Street Kumbakonam, Tamil Nadu – 612 001 Represented by its Letter of Authority Holder / Branch Head

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…Applicant

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Versus

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M. Durairaajan @ Durairajan S/o Mr. Murugesan Door No.36/5, Kamaraj Road Maduram Nagar, Kumbakonam – 612 001

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Also at

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No.2/1120, Main Road, Sri Nagar Colony Kumbakonam – 612 001 …Defendant

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Counsels on Record / Appeared

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Counsel for Applicant Bank :M/s E. Vijayaraghavan & V. Vishal Defendant ex-parte on 27.06.2023

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FINAL ORDER

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This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant seeking issuance of a Recovery Certificate for recovery of a sum of Rs.30,23,036/- with further interest at the rate of 11.65% per annum with

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monthly rests from the date of the application till the date of realisation

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along with costs of the application and for sale of schedule mentioned property.

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The subject matter of the case is the housing loan availed by the defendant from the Applicant Bank.

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It is the case of the applicant that the defendant approached the applicant for grant of home loan facility of Rs.75,00,000/- by submitting Loan Application dated 29.03.2016 and considering the said request the applicant sanctioned a home loan of Rs.60,00,000/- on 30.03.2016. It is stated that the defendant executed necessary loan and security documents on 30.03.2016. It is also stated that the defendant agreed to repay the principal sum of Rs.60,00,000/- in 108 Equated Monthly Installments of Rs.83,662/-

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It is also the case of the applicant that the defendant deposited the title deeds of the schedule mentioned property and created equitable mortgage over the same by executing Memorandum of Deposit of Title deeds dated 21.06.2015 registered as Doc. No.3247/2016, Joint I, SRO, Kumbakonam.

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It is also stated that the defendant was highly irregular in repayment and failed to regularize the loan account despite repeated demands and hence the loan account was classified as NPA on 20.01.2022. Despite the same

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the defendant failed to clear the outstanding dues but in vain. Hence the present OA is filed for recovery of its dues.

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Summons was taken out to the defendant was duly served. As there was no representation on behalf of the defendant continuously and on 27.06.2023, the defendant was set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 10documents, which were marked as Ex. A- 1 to A-10 on 22.04.2024. The Ld. Counsel for Applicant Bank made his submissions on 02.01.2026 and thereafter the matter stood till this date for passing final orders.

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The following issues arise for consideration in the matter: -

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(a) Whether the applicant had succeeded in proving the liability of the defendant?

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(b) What order as to cost of the proceedings need be passed?

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These issues are considered together.

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Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

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The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-10 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant

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bank remained unchallenged and rebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendant. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendant. It is clear from the statement of accounts that penal interest is not capitalized.

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In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

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In view of the fact that the loan facility availed by the defendant is a housing loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates.

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In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

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(a) OA No.28 of 2023 stands allowed.

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(b) Applicant is permitted to realize an aggregate sum of Rs.30,23,036/with further interest @9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendant after deducting all the amounts received / realized by them during the pendency of OA and also by selling the schedule property and other assets of the defendant.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendant is personally liable for all such amounts due as ordered above.

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(d) Applicant is permitted to realize cost of the proceedings and shall file

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cost memo within 15 days from the date of receipt of the copy of the order.

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(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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Sd/-

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(SHARANG DHAR UPADHYAY ) PRESIDING OFFICER DRT-II, CHENNAI

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 27^th day of January, 2026)

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EXHIBITS MARKED BY APPLICANT BANK

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S. No.	Date	Description of Documents	Exhibit Nos.
1.	29.03.2016	Loan Application by defendant	A-1
2.	30.03.2016	Sanction letter by applicant bank	A-2
3.	30.03.2016	Home Loan Agreement by defendant	A-3
4.	30.03.2016	Power of Attorney	A-4
5.	30.03.2016	Affidavit by defendant	A-5
6.	30.03.2016	Deed of Indemnity	A-6
7.	30.03.2016	BT Affidavit	A-7
8.	17.06.2016	Registered Memorandum of Deposit of Title deeds registered as Doc. No.3247/2016 Joint I, SRO, Kumbakonam	A-8
9.	07.04.2002	Registered sale deed in favour of defendant registered as Doc. No.1576/2008, Joint I, SRO, Kumbakonam	A-9
10.		Statement of Accounts along with certificates under Bankers’ Book Evidence Act.	A-10

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Sd/-

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(SHARANG DHAR UPADHYAY ) PRESIDING OFFICER DRT-II, CHENNAI

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DESCRIPTION OF PROPERTY

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In Thanjavur District, Kumbakonam Registration District, Kumbakonam

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District Registration Office, in Kumbakonam Taluk, in Ullur Vattam, in Sri Nagar

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Colony Main Road, Manai No.D-26, measuring 3030 sq. ft = 281.49 sq. meters mania and RCC building thereon with ground floor and floor and first floor with electric connection, fittings, meter, meter deposit, except the back side compound wall the three sides compound walls, one well. Comprised in R.S. No.131/1 Part. Old Door No.2/814, New Door No.2/1120. Tax Assessment No.

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E.B. connection Nos. SNC 170 and SNC 241.

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North by : Manai No. D-13 South by : Sri Nagar Colony Main Road West by : Manai No. D-25 East by : Manai No. D-27

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Sd/(SHARANG DHAR UPADHYAY ) PRESIDING OFFICER DRT-II, CHENNAI

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Idbi Bank Limited v. M Durairajan @ Durairajan

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. M Durairajan @ Durairajan

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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