Allowed

Hdfc Bank v. Business Point

DRT19 Nov 2025OA/1115/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 49.63 lakhs. The court confirmed the bank's entitlement to the principal, interest at 8% p.a., costs, and a recovery certificate, ordering the sale of hypothecated and personal assets if dues remained unpaid.

What did the court decide?

Recovery Certificate issued for Rs. 49,63,454.63 with 8% interest; directions to pay dues and allow sale of assets.

Hdfc Bank versus Business Point — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Date of order or I Order with signature of court Office action
proceeding taken with
date
O. A. No. 1115/2023
19. 1 1.2025 The Judgment is signed and
pronounced on separate sheets. Separately
attached in 06 sheets.
Order be uploaded on the Tribunal’s
website.
(Dictated)
<br>(Pravas Kumar SIngh)I
Presiding Officer
(Mugish)

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N THE DEBTS RE(...'OVERY TRIBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh9 Presiding Officer

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Case No. Original Application No.1115 of 2023

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Dated: 19.11.2025

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HDFC Bank Limited, having Branch at 17/4-A, lst Floor, Nikhilesh Palace, Ashok Marg, lucknow _ 226001/ U.p.

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........Applicant-bank

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Versus

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Business Point, Through its Proprietor Smt' Sapna Garg, Address: Tandon Rice Mill, Rupaidiha/ Bahraich – 271881, Uttar Pradesh

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Smt. Papna Garg, W/o Virendra Kumar Agarwal1 Address: 1096/ Main Market, Bhira ......Defendants Kheri – 262901, Uttar Pradesh

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Ld. Counsel for Applicant-bank: Shri Ritesh Goel, Advocate

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Ld. Counsel for the Defendants: None.

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JUDGEIVIENT

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This Original Application has been filed by the Applicant-bank under

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Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.49,63,454.63/- (Rupees Forty Nine Lacs, Sixty Three Thousand, Four Hundred Fifty Four and Paisa Sixty Three Only) together with pendent-lite and future interest, costs and other reliefs etc.

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The brief facts of case are that the defendants No.1 is a borrower and

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the defendant no.2 is the co-borrower. The defendant no.2 on behalf of defendant no.1 approached the Applicant-bank for financial assistance. The Applicant-bank considered the request of the defendants and sanctioned

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O.A. No. 1115 of 2023

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Cash Credit Limit of Rs.45.00 lacs vide its sanction letter dated 12.05.2022 on certain terms and conditions (Exhibit No. A-3) to this Original Application. 3. To secure aforesaid credit facility, defendants had executed and signed various security documents in favour of the Applicant-bank on 25.05.2022 (Exhibit No.A-4 to Exhibit No.A-7).

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To avail the aforesaid credit facility, the Applicant_bank had opened loan accounts in the name of defendant No. 1 in order to maintain the credit facilities.

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5' After availing the aforesaid credit facility, the defendants failed to maintain financial discipline and also failed to comply with the tenns and conditions of the loan agreement, consequentIY, the loan account of the defendant no'1/arm was classified as NPA on 21.05.2023 by the bM as per MI guidelines, themaRer the Applicant-bank issued Recall Notice dated 18'09'2C)23 to the defendants (Exhibit N,.A-8/9)9 b„t9 th, defendants stated no-response and they failed to repay the same and the loan accounts of the defendants are Still un-liquidated) hence9 this Original Application has been Instituted.

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6' As per books of the bank maintained in the usual and ordinary course o banking business’ an outstanding of Rs'49’63,454'63/- (Rupees Forty Nine acs’ Sixty Three Thousand’ Four Hundred Fifty Four and Paisa Sixty Three Only) including interest UPto 11.09.2023, were lying due for payment for which the defendants are jointly and severally liable to repay the same which they did not pay despite repeated requests and demand. The APplicant-bank filed the Statement of loan Accounts. (Exhibit No.A_lo) to this Original Application

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O.A. No. 1115 of 2023

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The cause of action for filing the present application arose firstly on 12.05.2022 when the aforesaid credit facility were sanctioned by the Applicant-bank and the same were availed by the defendants and necessary documents were executed by the defendants on 25.05.2022. The cause of action further arose on when Recall Notice dated 18.09.2023 was sent to the defendants, recalling the entire outstanding dues and they failed to pay the same.

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The summons were served upon the defendants through registered post, the defendants through counsel appeared before this Tribunal and filed Written Statement mainly claiming that wrong rate of interest has been thrusted upon the defendants, however any evidence for the same has not been produced.

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9' The onIY point of consideration before this Tribunal is as to whether bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it.

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IO' in support of the case Shri Saurabh Singh, Legal Manager of the Applicant-bank has filed an affidavit.

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11' On a carefu1 scrutinY of the evidence on affidavit and Exhibits marked as Exhibit No.A-1 to Exhibit No.A-10/ it is proved that defendants had availed the credit facilities fr,m the Appli'.',.t_b,nk by ex,cuting loan and securitY documents detailed as above in favour of the Applicant_bank. A perusal of the application, evidence and documents relied upon clearly show that defendant had ”tili,ed the ,b.,e I.,. f„ilitie, as gra„ted to them' The Applicant-bank had maintained the Books of at..count in the

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\. J'

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O.A. No. 1115 of 2023

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ordinary course of banking business showing disbursal of the loan amount. The Bank had also charged interest from time to time and the entries are relevant u/s 4 of the Banker Books of Evidence Act. It is also proved that the Applicant-bank’s claim is within limitation against defendants, therefore, the defendants are jointly and severally liable to pay the dues.

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Accordingly, the defendants are directed to pay the balance dues to the Applicant-bank within a period of 2 months from the date of judgement failing which the Applicant-bank will be entitled to sell the hypothecated assets and personal assets/ properties of the defendants.

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The Applicant-bank has claimed interest@9% per annum with monthly rest w.e.f. 12.09.2023 till the date of realization and (..,osts. On the basis of foregoing discussion, interest of justice will be served if pendent_ lite and future interest is granted @8% per annum with monthly rest reducing balance from the date of filing of the o.A. till the date of realization with costs

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14' 1 find th't the bank h” p,',„,d th, ,x„„ti,„ of loan documents and creatlon of mortgage in its favour. In th, „suIt, th, Origina1 Applicatio, succeeds as proceeded against the defendants with costs. The bank has proved the loan execution of loan documents in favour of the bank and availment of credit facility. The liability of the defendant No.1 & 2 are joint and several and hypothecated asset as well as the personal properties are to be sold.

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It is, therefore , ordered

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b
-/
L in

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O.A. No. 1115 of 2023

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(i) That the Original Application No.1115 of 2023 of the Applicant bank for issuance of Recovery Certificate to the tune of Rs.49/63/454.63/(Rupees Forty Nine Lacs/ sixty Three Thousand, Four Hundred Fifty Four and Paisa sixty Three Only) along with the interest @8% per annum with monthly rest from the date of filing of the Original Application i.e. 03.11.2023 till the loan is fully liquidated and costs succeeds as proceeded against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgement, failing which the Applicant-bank will be entitled to recover the same from the secured assets, personal movabIes and immovable assets of the defendants.

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(iii) The Applicant–bank is entitled to recover aforesaid amount by sale of hypothecated assets (if not sold earlier under the provision of the S.A.R.F.A.E.S.I. Act 2002). The amount, if any already recovered by sale of any hypothecated assets or otherwise shall be recoverable, if the dues of the Applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable assets of the defendant jointly and severally.

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(iV) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the Applicant-bank.

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'v’

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O.A. No. 1115 of 2023

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 28.01.2026 before R.O., DRT, Lucknow.

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(vi) The Applicant-bank is directed to file a memo of cost for preparing Recovery Certificate u/s 19(22) of the Recovery of Debts Bankruptcy Act, 1993 .

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Judgment is pronounced in the open court.

Dated: 19.11.2025

(Pravas Kumar ,lngh) Presiding Officer

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(MK)

Hdfc Bank v. Business Point

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Business Point

Case brief

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What did the court decide?

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