Allowed

Hdfc Bank v. Mr. Aakash Sanjay Agarwal Prop. M/S Shree Sai Buildtek

DRT24 Dec 2025OA/117/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by HDFC Bank Limited for recovery of loans against two borrowers and a guarantor appearing ex parte. The court reduced the claim by deducting penal interest, modified the interest rate to 9%, and refused relief over hypothecated assets due to lack of description, directing the issuance of a recovery certificate for the reduced amoun

What did the court decide?

Recovery of Rs. 58,46,816 with future interest at 9% p.a. from the date of filing; penal interest to be deducted; relief on hypothecated assets denied for lack of description.

Hdfc Bank versus Mr. Aakash Sanjay Agarwal Prop. M/S Shree Sai… — Banking and Recovery | DRT (2025)

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Presented on: 03.09.2022 Registered on: 25.01.2023 Decided on: 24.12.2025 Duration: Y M D 03 03 21

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.117/2023.

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HDFC BANK LIMITED ,

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A Banking Company incorporated under the Companies Act, 1956, having its Office at Department for Special Operations, Peninusula Business Park, B-Wing, 4^th Floor, Lower Parel (W), Mumbai-400 013.

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Versus

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Mr. Akash Sanjay Agarwal Through its Proprietor – M/s.Shree Sai Buildtek, Age – 32 years, Occ.:- Business, Address at –

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… Applicant

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( a )- Gat No.107/108, Near Hotel Pandurang Krupa, Jyotiba Nagar, Talawade, Pune. ( b )- Plot No.102, Haridhan Bungalow, Sector No.21, Yamunanagar, Near Dinesh Supermarket, Nigdi, Pune 411 044.

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2. Mr. Sanjay Harishchandra Agarwal

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Age 54 years, Occ.:- Business, R/at-Plot No.102, Haridhan Bungalow, Sector No.21, Yamunanagar, Near Dinesh Supermarket, Nigdi, Pune 411 044.

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…Defendants

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APPEARANCES

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For the Applicant Advocate – Mrs. Tejashri Hirve. For the Defendants Ex-parte TOTAL CLAIM AMOUNT – Rs. 59,89,713.73Ps.

(OA No.117/2023)

Page 1 of 6

[ANIL]

JUDGMENT (Delivered on 24^th December, 2025)

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The Applicant Bank has filed present application for recovery of an aggregate sum of Rs.59,89,713.73Ps. [ i.e. Rs.50,74,700.73Ps towards Cash Credit Facility A/c No.50200040753557 and Rs.9,15,013/towards Term Loan (GECL) A/c No.8482964] together with further interest @18% p.a. respectively with monthly rests from the date of filing of the Original Application plus after interest, charges and damages thereon from the date of filing of O.A. till payment and /or realization of the entire dues/ debts.

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Brief facts of the application are as under: - Defendant No.1 is a borrower and engaged in business of trading of Electric Items under his proprietary concern by name and style M/s Shree Sai Buildtek. Defendant No.1 approached the Applicant Bank and applied for Cash Credit Facility of Rs.20 Lakhs for his business requirements.

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The Applicant Bank considered request of defendant No.1 and sanctioned Cash Credit Facility of Rs.20 Lakhs for his business requirements, which is covered under CGTMSE i.e. Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme of Government of India on 10.06.2019 on certain terms and conditions. Defendant No.2 stood as a guarantor by executing Letter of Continuing Guarantee on 11.06.2019 for security of Cash Credit Facility availed by Defendant No.1.

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In order to secure the aforesaid Cash Credit facility & Term Loan facilities, defendant executed loan and security documents as

(OA No.117/2023)

Page 2 of 6

[ANIL]

set out in Para No.5.7 of the Original Application, in favor of the Applicant Bank.

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Applicant Bank submits that on the request of Defendant No.1, applicant bank renewed said Cash Credit of Rs.20 lakhs to Rs.45 Lakhs vide sanction Letter dated 04.01.2020.

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The renewal sanction terms were duly accepted and acknowledged by the Defendant, as set out in Para No.5.11 of the Original Application.

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In order to secure the aforesaid renewed Cash Credit facility, defendant No.1 executed loan and security documents as set out in Para No.5.13 of the Original Application, in favor of the Applicant Bank.

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Defendant No.1 again approached the applicant bank and requested for Term Loan (GECL) during COVID-19 Pandemic in accordance with Reserve Bank of India guidelines. Applicant bank granted and sanctioned GECL Facility of Rs.9,19,000/- to Defendant No.1 on 05.06.2020 on certain terms and conditions.

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Defendants signed and executed Declaration cum Undertaking dated 25.08.2020 in favour of the applicant bank of availing said Term Loan (GECL) of Rs.9,19,000/-.

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In addition to this, Defendant has hypothecated property with applicant bank i.e.

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(i)- Stock in trade, consisting of raw materials, goods in process of manufacturing finished good, and other merchandise whatsoever being movable properties, now stored at or being or which may

(OA No.117/2023)

Page 3 of 6

[ANIL]

hereafter be brought into or stored at the premises, factories or warehouses or at any such place of the Borrower, any of the above which is or may be in course of transit or awaiting transit by any mode of transport to the Borrower’s factory or premises or at any other place whatsoever and whatsoever in the Borrower’s possession or occupation or at any other premises or place, and /or ;

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(ii)- All the Debts, that is, all the book debts, outstanding, monies receivable, claims, bills, invoice documents, contracts, guarantees, and rights which are now due and owing or which may at any time hereafter the during the continuance of this security becomes due and owing to the borrower in the course of its business by any person, firm, company or body corporate or by a Government Department or Office or any Municipal or Local or Public or Semi-Government Body or Authority or any Body Corporate or Project whatever in the Public Sector, more particular described in Schedule-I of the Original Application.

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The Applicant Bank contended that the defendants failed to maintain proper financial discipline and committed defaults on regular basis in repayment of installments of Loans and committed breach of the sanction terms. Defendant No.1 deliberately and knowingly failed to repay as agreed in spore of repeated requests by the Applicant Bank. Consequently, the loan accounts of Defendant No.1 became NPA on 28.02.2022.

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Thereafter, the Applicant Bank has issued Recall Notice dated 09.06.2022 to the defendants to pay the outstanding amount due in the Cash Credit Account & Term Loan Account. But the defendants

(OA No.117/2023)

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[ANIL]

failed to pay the said outstanding amount.

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Hence, this application is filed.

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Defendant No.1 & 2 failed to appear despite service of summons. Hence, the application proceeded ex parte against them vide Order dated 16.07.2025 passed below the Application (Exh-01).

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The Applicant Bank has filed Claim Affidavit (Exhibit-6) of Mr. Niraj Surendra Tiwari, Manager and produced on record the Loan Transaction documents at Exhibits.AW-1 to AW-25, 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 application, I find no reason to disbelieve the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for the reliefs claimed.

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The Applicant Bank has claimed Penal Interest of Rs.1,42,897.36Ps towards Cash Credit Facility, which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs. 59,89,713.73Ps. is reduced to Rs. 58,46,816.37Ps.

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The Applicant Bank has claimed relief in respect of hypothecated assets. However, there is no detailed description with respect to the hypothecated assets. Therefore, the relief in terms of hypothecated assets cannot be granted.

(OA No.117/2023)

Page 5 of 6

[ANIL]

The Applicant Bank has claimed interest @ 18% p.a. for Cash Credit and Term Loan facilities availed by defendant No.1. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order:-

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ORDER

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(A) Original Application No.117/2023 is allowed with costs.

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(B) Defendants jointly or severally shall pay an aggregate sum of Rs.58,46,816/- [i.e. Rs.49,31,803 /- towards Cash Credit Facility A/c No.50200040753557 and Rs.9,15,013 /- towards Term Loan (GECL) A/c No.8482964] with future interest @ 9.00% per annum from the date of filing of the Original Application i.e.03.09.2022 till payment /realization of the amount mentioned in this operative order, to the Applicant Bank.

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(D) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the Defendants.

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Place : Pune Date: 24.12.2025

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Sd/(Dilip G. Murumkar) Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.117/2023)

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Page 6 of 6

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[ANIL]

Hdfc Bank v. Mr. Aakash Sanjay Agarwal Prop. M/S Shree Sai Buildtek

Case brief

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Hdfc Bank v. Mr. Aakash Sanjay Agarwal Prop. M/S Shree Sai Buildtek

Case brief

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