Allowed

Idbi Bank v. Mohamed Mustafa

DRT20 Mar 2026TA/672/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the debtor-recovery application filed by IDBI Bank Ltd against respondents for repaying a home loan and insurance premium. An ex-parte order was earlier passed due to non-appearance of respondents. The Bank proved its claim via affidavit and documents.

What did the court decide?

Order allowing OA and permitting recovery of Rs. 30,04,020/- plus interest. Bank authorized to sell mortgaged property if dues not paid, with liberty to further auction personal assets if necessary.

Idbi Bank versus Mohamed Mustafa — Banking and Recovery | DRT (2026)

¶1

T.A. No. 672 of 2023

¶2

20.03.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 20^th day of March, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 672 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 70/2022 and thereafter transferred to this Tribunal and renumbered as TA No 672 of 2023)

¶9

M/s IDBI Bank Ltd Rep. by its Branch Manager, Pe Ve plaza,No 9, Lakshmi nagar Arcot road, Porur, Chennai -600 116. ….Applicant

¶10

-Vs-

¶11

Mr. A.Mohamed Mustafa, S/O Mr.Appas, Old no.6, New No.17, Dr Govindan road, West Mambalam, Chennai- 600 033.

¶12

Also at Mr. A.Mohamed Mustafa MAM Imports NO.64/7,Model treatment Road, CIT Nagar, Nandanam,Chennai

¶13

Mrs.Sabena W/O A.Mohamed Mustafa, Old No.6,New No.17, Dr Govindan road, West Mambalam, Chennai- 600 033. …..Defendants

¶14

Counsels on record / appeared:

¶15

Counsel for Applicant : Sh. S. Parthasarathy

¶16

Defendants 1 and 2 were set ex-parte on 19.02.2024

¶17

: - FINAL ORDER - :

¶18

This Original Application is filed on 17.11.2021 by the applicant

¶19

T.A. No. 672 of 2023

¶20

¶21

20.03.2026

¶22

bank under Section 19 (1) of Recovery ofDebts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks andFinancial Institutions Act, 1993) against the defendants jointly and severally for recovery of a total sum of Rs. 30,04,020/- (Rupees Thirty Lakhs Four thousand and twenty only) as follows:

¶23

(i) A sum of Rs.29,34,076/- (Rupees Twenty Nine Lakhs Thirty Four Thousand and Seventy Six only) due in respect of Home loan (Account No. 1085675100004305) repayable together with interest at contractual rate of 9.30% with monthly rests from the date of filing the OA till date of realization in full;

¶24

(ii) A sum of Rs.69,944/- (Rupees Sixty Nine Thousand Nine Hundred and Forty Four only) due in respect of Loan Insurance Premium (Account No. 108567510004329) with interest at contractual rate of 9.30% with monthly rests from the date of filing the OA till date of realization in full;

¶25

for sale of immovable property more fully detailed in Schedule to the OA and for costs of this application.

¶26

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.70 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.70 of 2022 stood transferred to this Tribunal and renumbered as TA No.672 of 2023.

¶27

T.A. No. 672 of 2023

¶28

¶29

20.03.2026

¶30

Brief Facts of the case:

¶31

The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

¶32

It is the case of the applicant bank that the Defendants have approached them on 05.09.2019 for sanction of Home Loan. Considering the said request of the defendants, the Applicant bank had sanctioned Home Loan to the tune of Rs.25,00,000/- on 30.09.2019 in Loan Account No.1085675100004305 with rate of interest at 9.30% per annum compounded with monthly rests with repayment terms for the tenure of 180 monthly installments with each EMI amounting to Rs.25,805/-.

¶33

In order to secure the loan, the 1^st defendant had created equitable mortgage over the vacant house site bearing Plot No.14, measuring an extent of 2000 Sq.ft bearing in Survey Nos.14/8A and 14/8C, situated at No.108, Kondavakkam Village, Sriperumbudur Taluk and Kancheepuram District known as “Spanish City”. The defendants have executed the following documents in favour of applicant bank:

¶34

a) Home Loan Agreement dated 30.09.2019 for the sanctioned amount in favour of applicant bank agreeing to the terms and conditions in the agreement.

¶35

b) Power of attorney dated 30.09.2019.

¶36

c) Declarations and undertaking.

¶37

T.A. No. 672 of 2023

¶38

20.03.2026

¶39

¶40

d) Plot Purchase Affidavit dated 30.09.2019.

¶41

The Applicant further submits that subsequent to availing of loan, the Defendants have defaulted in repayment in Home loan and the same was accumulated to a sum of Rs.29,34,076 in Loan account No. 1085675100004305 as on 30.10.2021 with further revised rate of interest at 9.30% per annum with monthly rests. The Defendants have failed to respond to the reminders, personal contacts and repeated demands made by the applicant bank. The Defendants are also liable to pay 2% additional interest chargeable for default in making repayment till the date of realization along with the costs due to the applicant bank.

¶42

It is the further case of the applicant bank that the Defendants have approached the applicant bank for sanction of Insurance premium payment at the time of sanctioning of Home loan. Considering the said request, the applicant bank had sanctioned the Loan for Insurance Premium to the tune of Rs.56,371/- on 30.09.2019 in loan account No. 108567510004329, which is repayable with the interest at 9.30% per annum compounded with monthly rests with repayment terms for the tenure of 168 monthly installments with each EMI amounting to Rs.601/-. The 1^st Defendant has executed the loan for insurance premium agreement, dated 30.09.2019 for Rs.56,371/- in favour of Applicant bank.

¶43

The Applicant submits that the Defendants have defaulted in repayment for insurance premium and the same was accumulated to a

¶44

T.A. No. 672 of 2023

¶45

20.03.2026

¶46

¶47

sum of Rs.69,944/- in Loan account No. 108567510004329 as on 30.10.2021 with the further revised rate of interest at5 9.30% per annum with monthly rests. The Defendants have failed to respond to the reminders, personal contacts and repeated demands made by the applicant bank. The Defendants are also liable to pay 2% additional interest chargeable for default in making repayment till the date of realization along with costs due to the applicant bank. The applicant has classified the Borrower^’ s account as Non-Performing Asset on 10.10.2020. The defendants are jointly and severally liable to pay a sum of Rs.30,04,020/- as on 30.10.2021 towards Home Loan and the facility for insurance premium to the applicant bank with applicable rate of interest from the date of filing of this original application. The Bank has issued Recall Notice to the Defendants on 15.05.2021 calling upon them to repay the entire outstanding, despite which the defendants did not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶48

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned as ‘left & Unclaimed’ in respect of D-1 and^‘ left^’ in respect of D-2 respectively. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.02.2024 even after giving sufficient time, there was no appearance or representation from

¶49

T.A. No. 672 of 2023

¶50

20.03.2026

¶51

¶52

the defendants. Hence, defendants 1 and 2 were placed ex-parte on 19.02.2024.

¶53

Heard the submissions of Applicant Bank and perused the

¶54

records.

¶55

To prove the case of the Applicant Bank, Sh. Naveen Kumar Agarwal , Branch Manager of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-14 .

¶56

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

¶57

The defendants were set ex-parte on 19.02.2024, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim

¶58

T.A. No. 672 of 2023

20.03.2026

against defendants.

With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

¶63

: O R D E R:

¶64

The OA is allowed with costs,

¶65

(a) The applicant bank is allowed to recover from the Defendants a total sum of Rs. 30,04,020/- (Rupees Thirty Lakhs Four thousand and twenty only) as follows:

¶66

¶67

¶68

(b) In the event of failure of the defendants to pay the aforesaid

¶69

T.A. No. 672 of 2023

¶70

¶71

20.03.2026

¶72

amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property morefully detailed in the OA.

¶73

¶74

(d) If the sale proceeds of the immovable property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 1^st and 2^nd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 1^st and 2^nd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 1 and 2.

¶75

(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by defendants to the applicant bank.

¶76

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶77

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

¶78

T.A. No. 672 of 2023

¶79

¶80

20.03.2026

¶81

A copy of this order be communicated to the parties concerned.

¶82

Sd/-

¶83

(S.V. GOWRAMMA)

¶84

PRESIDING OFFICER, DRT-III, CHENNAI

¶85

(Dictated to Steno, transcribed by her, corrected, signed and pronounced by me on

¶86

this the 20^th day of March, 2026)

¶87

ANNEXURES

¶88

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶89

AW-1: Sh. Naveeen Kumar Agarwal, Branch Manager representing the Applicant Bank.

¶90

Exhibits on the part of the Applicant:

¶91

Sl. No.	Dated	Description of Documents	Exhibit No.
1.	05.06.2019	Application of defendant for Home loan	A-1
2.	30.09.2019	Sanction letter of Home loan for Rs.25,00,000/- and loan for Insurance premium for Rs.56,371/- duly acknowledged by the Defendants	A-2
3.	30.09.2019	Home loan agreement executed by the Defendants for Rs.25,00,000/-	A-3
4.	30.09.2019	Power of attorney duly executed by the Defendants in favour of applicant bank	A-4
5.	30.09.2019	Declaration and undertaking executed by Defendants in favour of applicant	A-5
6.	30.09.2019	Plot purchase affidavit duly signed by the defendants with Notarized	A-6
7.	30.09.2019	DRF-Disbursement Request form for LIP duly signed by the 1^stDefendant to the applicant bank	A-7
8.	30.09.2019	Loan for Insurance Premium agreement executed by 1^st Defendant for Rs.56,371/-	A-8
9.	09.10.2019	Sale deed in document No 7323 of 2019 stands in the name of the 1^stdefendant	A-9
10.	09.10.2019	Memorandum of deposit of title deeds in	A-10

¶92

T.A. No. 672 of 2023

¶93

¶94

20.03.2026

¶95

		document no 7328 of 23019 executed by 1^stdefendant
11.	15.05.2021	Loan recall notice issued by the Defendants	A-11
12.	29.06.2021	Demand notice under Section 13 (2) of SARFAESI to the Defendants	A-12
13.	30.10.2021	Statement of account for Loan A/C No. 1085675100004305 along with certificate under Banker’s Book evidence Act	A-13
14.	30.10.2021	Statement of account for Loan A/C No. 108567510004329 along with certificate under Banker’s Book evidence Act	A-14

¶96

Witness Examined for the Defendants: -Nil-

¶97

List of Documents Exhibited for the Defendants: -Nil –

¶98

SCHEDULE OF PROPERTY

¶99

(STANDS IN THE NAME OF 1^st DEFENDANT COVERED UNDER SALE DEED IN DOCUMENT NON 7323 OF 2019, DATED 09.10.2019)

¶100

SCHEDULE ‘A’

¶101

(Entire lands comprised in the layout of “SPANISH CITY” PhaseIII)

¶102

All that piece and parcel of land bearing Survey No.10/4B1, 4B2, 4C, 4E, 4F, 14/8A, 8B, 8C Situated at No. 108,kondavakkam village, Sriperumbudur Taluk, D.T.C.P. approved layout vide DTCP No. 140/2015/SE MA3,dated 28.10.2015,”SPANISH CITY” measuring an extent of 2000 Sq.ft., Situated within the registration District of Chengalpattu and Sub-Registration District of Sriperumbudur.

¶103

SCHEDULE –B

¶104

(Description of House site/Mortgaged property)

¶105

All the piece and parcel of vacant house site bearing plot no.14 measuring to a total extend of 2000 Sq.ft bearing in Survey Nis.14/8A and 14/8C situated No. 108, kondavakkam village, Sriperumbudur Taluk, D.T.C.P. approved layout vide DTCP No. 140/2015/SE MA3,dated

¶106

T.A. No. 672 of 2023

¶107

20.03.2026

¶108

¶109

28.10.2015,”SPANISH CITY” measuring an extent of 2000 Sq.ft., Situated within the registration District of Chengalpattu and Sub-Registration District of Sriperumbudur.

¶110

Plot no.14

¶111

Bounded on the

¶112

North by : 40 feet road; South by : Plot No.15; East by : Plot No.13; West by : 23 feet road; Admeasuring North by : 40 feet South by : 40 feet East by : 50 feet West by : 50 feet

¶113

Totally to an extent of 2000 Sq.ft.,

¶114

Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Idbi Bank v. Mohamed Mustafa

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Mohamed Mustafa

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

Coram

Case details

Similar cases

Indian Overseas Bank versus M/S Subra System

Punjab National Bank versus Spire Works Rep By R Sekar

Rizwan versus Dcb Bank Limited

State Bank of India versus Prathapsingh

A J Satheshkumar versus Idbi Bank

City Union Bank Limited versus Jothi Impex and others