Allowed

Idbi Bank Ltd. v. Navneet Kaur and Another

DRT26 May 2026OA/405/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 35.19 lakhs. The court directed recovery of the principal along with simple interest at 8% p.a. and granted recovery of dues through execution proceedings under SARFAESI or attachment of assets.

What did the court decide?

Recovery of Rs. 35,19,448.32 with simple interest at 8% p.a. Recovery Certificate issued. Parties directed to appear before Recovery Officer.

Idbi Bank Ltd. versus Navneet Kaur and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.405/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2023

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DATE OF DECISION: 26.05.2026

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IDBI Bank Limited, Company registered under the Companies Act, 1956 (1 of 1956) and a Company within the meaning of section 2 (20) of the Companies Act, 2013 and a 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, Maharashtra- 400005 and having a Branch Office amongst others at Ohri Tower, 14A, Model Town, G.T. Road, Phagwara, District Kapurthala, Punjab- 144401 through Ms. Kapil Goyal, BH/AGM and Authorized Signatory of IDBI Bank Ltd.

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……..Applicant

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Versus

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Smt. Navneet Kaur, W/o Sh. Lakhbir Singh, R/o Village Dosanjh Kalan, Tehsil Phillaur, District Kapurthala, Punjab- 144401

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Sh. Harjit Singh, S/o Sh. Faqir Singh, R/o Village Dosanjh Kalan, Tehsil Phillaur, District Kapurthala, Punjab- 144401

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….……Defendants

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Advocates:

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Argued by Sh. Ram Paul Khole, Advocate proxy for Sh. Tajender K. Joshi, Advocate for applicant (through VC)

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None for defendants (already ex parte vide order dated 22.05.2026)

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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. 35,19,448.32 (Rupees Thirty Five Lacs Nineteen Thousand Four Hundred Forty Eight and Paise Thirty Two Only). The Original Application has been filed through Ms. Kapil Goyal, Branch Head of the applicant, who is competent to institute the Original Application vide DOP, which is Annexure A1 to this OA.

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2 OA NO. 405/2023 IDBI BANK LIMITED VS. NAVNEET KAUR AND ANOTHER

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of KCC Limit of Rs. 30.00 Lacs vide Loan Application dated 25.03.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs. 30.00 Lacs vide Letter of Intent dated 27.03.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 mortgaged her immovable property i.e. Land measuring 12K 06M situated at Village Dosanjh Kala, Phillaur, District Jalandhar, Punjab vide Mortgage Deed and Declaration u/s 4 (1) of the Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, both dated 30.03.2015, which are Annexure A4 and A5 to this OA.

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Defendant no. 1 hypothecated her crops of paddy, wheat, vegetables and fodder vide Deed of Hypothecation dated 30.03.2015, which is Annexure A6 to this OA.

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Documents executed: Guarantee Deed and DP Note, both dated 30.03.2015, which are Annexure A7 and A8 to this OA; AOD dated 02.03.2017 and 04.09.2020, which is Annexure A9 to this OA; Recall Notice dated 09.12.2022, which is Annexure A10 to this OA; Guarantee Invocation Letter dated 10.01.2023, which is Annexure A11 to this OA and Account Statement, which is Annexure A12 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 35,19,448.32, which is recoverable and the defendants were served recall notice 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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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 22.05.2026. 7. In support of the OA, affidavit of Ms. Kapil Goyal, Branch Head, IDBI Bank Limited has been filed.

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Heard ex-parte arguments and perused record.

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3 OA NO. 405/2023 IDBI BANK LIMITED VS. NAVNEET KAUR AND ANOTHER

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It was argued by learned proxy counsel (through VC) for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A12 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facility which was granted to her. Defendant no. 2 stood as guarantor. Defendants had executed all the relevant documents in favour of the bank. 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. 35,19,448.32 (Rupees Thirty Five Lacs Nineteen Thousand Four Hundred Forty Eight and Paise Thirty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest in @12%p.a. and @2% p.a. penal interest w.e.f. 01.11.2022 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 Tribunal deems it just and appropriate to grant simple interest @08.00% 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.

¶29

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.35,19,448.32 (Rupees Thirty Five Lacs Nineteen Thousand Four Hundred Forty Eight and Paise Thirty Two Only) jointly and severally,

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¶31

OA NO. 405/2023

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IDBI BANK LIMITED VS. NAVNEET KAUR AND ANOTHER

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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 mortgaged property/hypothecated assets of defendant no. 1 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 26.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Idbi Bank Ltd. v. Navneet Kaur and Another

Case brief

What is this about?

What did the court decide?

Idbi Bank Ltd. v. Navneet Kaur and Another

Case brief

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