Allowed

Hdfc Bank Limited v. M/S Apd Fashion Pvt. Ltd.

DRT12 Mar 2025OA/1013/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 7,78,80,229.25 endorsed from defendant borrowers who failed to repay a sanctioned cash credit and loan facility. The court awarded interest at 12% p.a. and directed sale of mortgaged properties.

What did the court decide?

Directed defendants to pay Rs. 7,78,80,229.25 plus pendentelite and future interest at 12% p.a. and costs.

Hdfc Bank Limited versus M/S Apd Fashion Pvt. Ltd. — Banking and Recovery | DRT (2025)

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O.A. No.1013 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 1013 of 2022

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HDFC Bank Limited Department of Special Operations 5th Floor, Ansal Classique Tower, J Block Rajouri Garden, New Delhi-110027

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Applicant

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Versus

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M/s APD Fashion Pvt. Ltd. Through its Directors Having its Regd. Office at: Office no-7022/1, MPL No.-483 Main Road Mata Rajeshwari, Nehru Nagar, Near Dust Bin, New Delhi-110005

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Mr. Sanjay Kakkar B-608, Plot no.8, Katyayni Apartments Sector-6, Dwarka, New Delhi-110075

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Mr. Rakesh Kumar Flat no.39-A, DDA Flats Sector-10, Dwarka, New Delhi-110075 Defendants

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Present: Sh.Ronnie S Brara, Counsel for the applicant bank

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Date of Institution: 03.11.2022 Date of Pronouncement: 12.03.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 03.11.2022 before DRT-III Delhi and then transferred to DRT-I Delhi through Shri Anirudh Bhargav, authorized representative of the applicant bank under Section 19 of

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O.A. No.1013 of 2022

Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of Rs,7,78,80,229.25 (Rupees Seven Crores Seventy Eight Lacs Eighty Thousand Two Hundred Twenty Nine and Paisa Twenty Five only) as on 14.09.2022 along with pendentelite and future interest @18% per annum from 15.09.2022 till the date of realization and costs.

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The brief facts of the case are that at the request of Defendant no.1 through its Director/guarantor being defendant no.2 and 3 vide their application dated 01.09.2018 with KYC documents & request letter dated 18.12.2018, the applicant bank sanctioned Cash Credit Limit for Rs.500 lacs on 18.12.2018 which was enhanced to Rs.700 lacs on 19.02.2020 @9.50% interest rate per annum against hypothecation of current assets including Stocks, Book debts and mortgage of two properties owned by defendant no.2. The limits were approved by the Board of defendant no.1 in the meetings dated 18.12.2018, 19.02.2020 duly accepting the terms and conditions and authorized defendant no.2 and /or defendant no.3 to execute the documents in favour of applicant bank. The applicant bank lastly renewed the Cash Credit limit of Rs.700.00 lacs and TOL-GECL limit of Rs.98.77 lacs on 01.03.2021 as per request of defendants against first charge on current assets and mortgage of both the properties of defendant no.2.

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On the request of the defendant no.1, the applicant bank sanctioned Government Emergency Credit Line (GECL) WCTL limit of Rs.98.77 lacs on 05.06.2020 @8.25% rate of interest to be payable in 48 EMIs due to Covid-19 pandemic as per Government of India guidelines.

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O.A. No.1013 of 2022

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In order to avail the loan facilities, the defendants submitted and executed Application Form dated 01.09.2018, Request letter dated 18.10.2018, Board of Resolution, Master Facility Agreement, Deed of Hypothecation, Power of Attorney, Letter of Continuing Guarantee, Declaration cum Identity, Memorandum Recording Past Transaction of Creation of Mortgage by Delivery of Title Deeds, Deed of Indemnity, Networth Certificates, Undertaking and Debit Authority Letter all dated 18.12.2018. Defendant no.2 on behalf of Defendant No.1 also executed an Affidavit dated 16.09.2019 for claiming the interest subvention scheme for MSME towards Working Capital, Term Loan Facilities.

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That in order to secure the credit facilities, the defendant no.1 through defendant no.2 created equitable mortgage of the following properties owned by defendant no.2 on 18.12.2018:

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i) Entire First Floor without roof rights, admeasuring 130.07 Square meters, part of Residential Property No.68, Pocket A, Sector 19, Dwarka, New Delhi;

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ii) Residential Property bearing no.WZ-179, admeasuring 200 square yards with roof rights, out of Khasra No.585, Village Tihar, known as Fateh Nagar, B-Block, Guru Nanakpura, New Delhi.

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That in order to avail the said loan facility, the defendants submitted and executed Board Resolutions dated 18.12.2018 & 19.02.2020, An Addendum, Master Facility Agreemei ,t, Deed of Hypothecation, Power of Attorney for Hypothecated Book Debts, Letter of Continuing Guarantee, Declaration cum Indemnity, Networth Certificates, Undertaking and Debit Authority Letter, Supplemental Agreement, Supplementary Letter of Hypothecation, Deed of Indemnity, Power of Attorney, Letter of Continuing Guarantee, Demand Promissory Note,

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0.A. No.1013 of 2022

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Affidavit, Letter of Continuing Security, Undertaking and Debit Authority Letter all dated 18.12.2018, 28.02.200 and 20.09.2020. The defendant no.2 created Mortgage of both the properties by Delivery of Title Deeds on 18.12.2018 and again on 28.02.2020. In addition to the above, the defendant no.1 passed Board Resolution dated 05.06.2020 for GECL loan facility sanctioned and executed Facility Agreement and Declaration cum Undertaking dated 06.06.2020 and Affidavit dated 01.08.2020 for subsidy claim, Supplemental Deed of Hypothecation dated 20.09.2020.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendants failed to comply with the terms and conditions of sanction despite several requests and reminders. The defendant failed to operate the account regularly and not abide the terms of sanction and did not pay the outstanding dues in time to the applicant bank. The applicant bank classified the account as NPA on 30.04.2022 and issued Loan Recall notice dated 03.09.2022 but defendants failed to regularize the account nor paid the dues in the account, hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 05.12.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even no written statement, evidence and affidavit of assets has been filed on behalf of the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Anirudh Bhargav, authorized representative of the applicant bank who has proved the

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O.A. No.1013 of 2022

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documents as Board Resolution EXH.AW-1/1, Copy of Master Data of the Defendant No.1 EXH.AW-1/2, Application Form along with KYC documents EXH.AW-1/3(Colly), Letter dated 18.12.2018 EXH.AW-1/4, Sanction Letter dated 18.12.2018 & 19.02.2020 EXH.AW-1/5, AW-1/28 & AW-1/38, Annexure A- 30, Board Resolutions EXH.AW-1/6, AW-1/19 dt AW1/31(Colly), Master Facility Agreement EXH.AW-1/7 & AW1/32, Deed of Hypothecation EXH.AW-1/8, Power of Attorney EXH.AW-1/9 & AW-1/24, Letter of Continuing Guarantee EXH.AW-1/10 & AW-1/25, Declaration Cum Identity EXH.AW1/11 & AW-1/33, Memorandum Recording Past Transaction of Creation of Mortgage by Delivery of Title Deeds EXH.AW-1/12, AW-1/28 & AW-1/36, Deed of Indemnity EXH.AW-1/13 & AW1/23, Net worth Certificates EXH.AW-1/14(Colly), Undertaking and Debit Authority Letter EXH.AW-1/15 & AW-1/29, Affidavit EXH.AW-1/16 & AW-1/34, Letters EXH.AW-1/17, Addendum AW-1/20, Supplemental Agreement EXH.AW-1/21, Supplementary Letter of Hypothecation EXH.AW-1/22 & AW1/35, Demand Promissory Note EXH.AW-1/26, Letter of Continuing Security EXH.AW-1/27, Renewal Letter EXH.AW1/37, Affidavit EXH.AW-1/39, Loan Recall Notice EXH.AW1/40(Colly), Statement of Account and Certificate under Banker's Book of Evidence Act EXH.AW-1/41(Colly), Title Deeds of the Mortgaged properties EXH.AW-1/42(Colly), Valuation reports EXH.AW-1/43(Colly).

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The applicant bank has fully corroborated the averments • made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank has proved its case beyond reasonable doubts.

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O.A. No.1013 of 2022

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.7,78,80,229.25/- (Rupees Seven Crores Seventy Eight Lacs Eighty Thousand Two Hundred Twenty I"ne and Paisa Twenty Five only) along with pendentelite and future interest @12% per annum with monthly rest from the date of filing this application till the date of realization with costs, failing which the aforesaid amount shall be recovered from sale of hypothecated stocks, book debts etc. and mortgaged properties viz.:

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O.A. No.1013 of 2022

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i) Entire First Floor without roof rights, admeasuring 130.07 Square meters, part of Residential Property No.68, Pocket A, Sector 19, Dwarka, New Delhi;

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ii) Residential Property bearing no.WZ-179, admeasuring 200 square yards with roof rights, out of Khasra No.585, Village Tihar, known as Fateh Nagar, B-Block, Guru Nanakpura, New Delhi.

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In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(Ill) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 12.05.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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"?p-3--(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 12.03.2025

Hdfc Bank Limited v. M/S Apd Fashion Pvt. Ltd.

Case brief

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Hdfc Bank Limited v. M/S Apd Fashion Pvt. Ltd.

Case brief

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