Allowed

Idbi Bank Limited v. M/S D. Navalchand and Company

DRT19 Feb 2026OA/343/2022

Case brief

AI extract

What is this about?

IDBI Bank filed an application for recovery of Rs. 1.89 crore against defaulting borrowers and guarantors. The defendants appeared ex-parte. The tribunal allowed the application, directing payment of principal plus future interest at 9% p.a. and authorizing sale of mortgaged properties.

What did the court decide?

Defendants to pay Rs. 1,89,93,679/- with future simple interest at 9% p.a. from 28.06.2022. Sale of mortgaged properties authorized to recover dues.

Idbi Bank Limited versus M/S D. Navalchand and Company — Specific Performance | DRT (2026)

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Presented on: 28.06.2022 Registered on: 17.08.2022 Decided on: 19.02.2026 Duration: Y M D 03 07 22

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD

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(Before Shri Dr. J. R. Chauhan Presiding Officer)

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ORIGINAL APPLICATION No. 343/2022

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TOTAL CLAIM AMOUNT – Rs. 1,89,93,679/-

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IDBI BANK LTD.,

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A banking company incorporated and registered under the Companies Act, 1956 (1 of 1956) and also a banking company under

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Section 5(c) of the Banking Regulation Act, 1949 (10 of 1949) having its registered office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai, Maharashtra – 400005 and amongst other places one of its branch at IMA Hall, Samarth Nagar Road, Near Adalat Road,

… Applicant

(OA No.343-2022)

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Samarth Nagar Aurangabad – 431001,

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through its Branch Head/ Principal OfficerShri. Prafulla S/o Bhaskar Bhargave.

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Versus

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M/s. D. Navalchand and Company,

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Through it’s Prop.

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Devendra Nandlal Sheth

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… Defendants

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4-1-7-37, Near Swastik Transport,

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Opposite Mondha, at Aurangabad.

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District. Aurangabad, State. Maharashtra,

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PIN 431001.

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Shri. Devendra Nandlal Sheth

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R/o: 4-1-7-37 Near Swastik Transport,

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Opposite Mondha, Dist. Aurangabad,

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State. Maharashtra, PIN 431001.

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Smt. Nayana Devendra Sheth

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R/o: Plot No. 18, Riddhi Siddhi,

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Shilp Nagar, Station Road,

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Dist. Aurangabad, State Maharashtra,

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PIN 431001.

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APPEARANCES

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For the Applicant Mr. Pathak Anirudha S- Advocate For Defendants Ex-parte

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J U D G M E N T Delivered on (19.02.2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs. 1,89,93,679/- (Rs. One Crore, EightyNine Lakhs, Ninety-Three Thousand, Six Hundred and SeventyNine Only) together with interest @12.45% p.a. with monthly rests upon Cash Credit Loan Facility from 02.12.2019 till the full realization of the entire dues and costs from the Defendants.

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Brief facts of the application are as under:

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That the Defendants approached the Applicant Bank and

(OA No.343-2022)

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requested for the sanction of a Cash Credit Loan Facility. Upon considering the Defendant’s representation, request, and financial needs, the Applicant Bank sanctioned to defendant No. 1, a Cash Credit (takeover from Saraswat Bank and HDFC Bank) Loan Facility of Rs. 1,60,00,000/- vide sanction letter dated 16.10.2017. The Applicant submit that the said Loan Facility was renewed in due course of time and a letter of intent (renewal of working capital limit) Rs. 1,60,00,000/- dated 30.04.2019 on certain terms & conditions.

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The agreed rate of interest for the Cash Credit Loan Facility was @12.45% per annum with monthly rests.

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In order to secure the aforesaid Cash Credit Loan facility, the Defendants executed loan documents in favour of the Applicant Bank namely sanction letter, demand promissory note, request letter, hypothecation agreement, letter of undertaking, equitable mortgage etc. The defendant Nos.2 and 3 stood as Guarantors for the defendant No.1 for the said loan facility.

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The Applicant Bank contended that to secure the Cash Credit

(OA No.343-2022)

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Loan facility, Defendants executed Registered mortgaged dated 17.10.2017, Property power facility agreement executed by defendant No. 1 dated 17.10.2017, Deed of continuing guarantee dated 17.10.2017 executed by defendant No. 2 & 3, Original sale deed bearing day book No. 314 dated 19.01.1984, day book No. 11 dated 01.01.2001 and day book No. 5839 dated 19.09.2000 of the following property in favour of the Applicant Bank.

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All the piece and parcels of land adm. 170.80 Sq. Mtr.,

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Situated at Plot No. 18-B, CTS No. 19440-P, Shilpa Nagar,

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Station Road, Padampura, Aurangabad- 431001, in the

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State/Union Territory of Maharashtra together with all the Structures thereon and bounded as follows:-

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East :- Open Space, West :- Plot No. 18-A, South :- 12 Mtr. Road, North :- Plot No. 17.

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All that piece and parcels of property i.e. Flat No. 4, adm. 55.16 Sq. Mtr., situated at Satya Sai Apartment, CTS No.12400, Plot No. 21, Surana Nagar, Aurangabad 431001, in the State/Union Territory of Maharashtra together all the structures thereon and bounded as follows:-

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East :- Open Side, West :- Open Side, South :- Flat No. 3, North :- Open Side.

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The Applicant Bank further contended that the Defendants failed to keep their promises and commitments agreed by them with regard to the due repayment of the loan amount. The Defendants failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the sanction letter. Thereafter the Applicant Bank repeatedly made demand of loan amount and called upon the Defendants to pay with the agreed rate of interest thereon, but the Defendants

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failed and neglected to pay the same. The loan account of the Defendants became irregular and classified as NPA. Therefore on 06.05.2021, the Applicant Bank issued loan recall notice to the Defendants through their Advocate. Despite service of Notice, the Defendants failed and neglected to repay the outstanding dues of the Applicant Bank. Hence, this application is filed.

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Despite service of summons, the defendants neither appeared nor filed WS. Hence, they proceeded ex-parte vide Order dated 21.03.2024.

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The Applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Mr. Prafulla Bhaskar Bhargave, Deputy General Manager of the Applicant Bank and has produced on record the original loan transaction documents as Annex. AW-1 to AW-15 along-with list of documents Exh.5, which corroborates the case of the Applicant Bank.

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I have heard arguments of the learned Advocate for the Applicant Bank.

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Since the Defendants failed to appear and contest the

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application, I find no reason to disbelieve the unrebutted evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs as claimed.

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The Applicant Bank has claimed future interest at @12.45% per annum with monthly rests from 02.12.2019 till the full realization of the entire dues and costs from the Defendants. However, considering the facts of the case, I am of the opinion that awarding future interest at @9% per annum (simple), it would be just and reasonable.

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Hence, I pass the following order.

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ORDER

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(A) Original Application No. 343/2022 is allowed with costs.

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(B) The Defendants shall pay Jointly and Severally to the Applicant Bank a sum of Rs. 1,89,93,679/- (Rs. One Crore, Eighty-Nine Lakhs, Ninety-Three Thousand, Six Hundred and Seventy-Nine Only) along-with future

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interest at @9% per annum (simple) from the date of filing of the Original Application, i.e., 28.06.2022, till full payment/ realization of the said amount.

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(C) The aforesaid adjudicated amount is secured by mortgage of immovable property in favour of the Applicant Bank vide document as Annex. AW-6 to AW8 in list of document Exh.5. The mortgaged property is described as follows:

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All the piece and parcels of land adm. 170.80 Sq.

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Mtr., situated at Plot No. 18-B, CTS No. 19440-P,

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Shilpa Nagar, Station Road, Padampura, Aurangabad- 431001, in the State/Union Territory of Maharashtra together with all the structures thereon and bounded as follows:-

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East :- Open Space, West :- Plot No. 18-A,

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South :- 12 Mtr. Road,

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North :- Plot No. 17.

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All that piece and parcels of property i.e. Flat No. 4, adm. 55.16 Sq. Mtr., situated at Satya Sai Apartment, CTS No.12400, Plot No. 21, Surana Nagar, Aurangabad 431001, in the State/Union Territory of Maharashtra together all the structures thereon and bounded as follows:-

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East :- Open Side, West :- Open Side, South :- Flat No. 3, North :- Open Side.

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(D) The Applicant Bank is entitled to sell the mortgaged immovable properties and hypothecated articles/goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and Defendants.

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(G) File be consigned to the record room.

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Sd/-

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Place : Aurangabad Date : 19.02.2026

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(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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(OA No.343-2022)

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Idbi Bank Limited v. M/S D. Navalchand and Company

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. M/S D. Navalchand and Company

Case brief

What is this about?

What did the court decide?

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