Allowed

Hdfc Bank Limited v. Mr. Sajid Khan

DRT2 May 2025OA/122/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application filed by a bank for recovery of dues and interest against borrowers and guarantors, finding them jointly and severally liable based on documentary evidence and an affidavit.

What did the court decide?

Ordered payment of Rs. 35,632 jointly/severally with Defendant 2, Rs. 41,64,956.98 jointly/severally with Defendant 3, plus interest at 9.51% p.a., costs, and proceeds against hypothecated vehicle.

Hdfc Bank Limited versus Mr. Sajid Khan — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.II AT HYDERABAD DATED THIS THE SECOND DAY OF [4AY, 2025

¶2

PRESENT: SH. RAMESHWAR KOTHE, B.COM, L.LB. (HONS.), M.A. PRESIDING OFFICER

¶3

ORIGINAL APPLICATION NO. L22 OF 2022

¶4

HDFC Bank Limited 1- 10-60/3, 3'd Floor Suryodaya Complex Begumpet Hyderabad-500016 Rep. by its Authorised Signatory. .....Applicant.

¶5

Versus

¶6

Mr. Sajid Khan, S/o Siraj Khan Aqed about 45^years Occ: Business l-2-54/4 Shanthi Nagar Adilabad Village & Mandal- 504 001.

¶7

Also at: H. No.2-14-287 Bokkalg uda Adilabad Dist.504 001.

¶8

Mt. Shaik Moin, S/o Shaik Vazeer Aged about 42 yearc Occ: Business, H. No.2-2-lt7/7, Khanapur, Ambedkar Nagar Adilabad - 504 001.

¶9

Mr. Amjad Khan, S/o Siraj Khan Aged about 41 years Occ: Business, H. No. 7-2-5414 Shanthi Nagar, Adilabad Dist.504 001. ..... Defendants.

):''

oa.t2212022

Counsel for the Applicant Counsel for Defendants

¶14

Mr. M. Srinivas Reddy.

¶15

Mr. Mohammed Ghouse.

¶16

:: ORDER::

¶17

The Applicant Bank filed the present OA u/s 19 of The Recovery of Debts & Bankruptcy Act, 1993 for recovery of a sum of Rs.35,632/- from defendant No.1 joinuy and severally with defendant No.2 and Rs.41,64,956.98ps with defendant No.3 with future interest @18% p.a. from the date of filing of the OA till the date of realisation along with costs and sale of OA schedule vehicle.

¶18

The relevant averments of the applicant bank as per the OA, briefly. are that lst defendant availed three commercial vehicle loans and defendants 2 and 3 are the guarantors. Defendants failed and neglected to repay the loan amount in accordance with the agreed terms. The loan accounts have become NpA. Applicant issued a demand notice on 03.08.2021 through Advocate. Defendants neither paid any amount nor gave reply to the said notice. Applicant sold two of the hypothecated vehicles in respect of loan accounts 93627038 and 83627042 and adjusted the sale proceeds to those accounts. After adjusting the sale proceeds, there remains still an amount of Rs.2O,82,478.49ps due in each of the two accounts. In addition to this, defendants are liable to pay Rs.35,632l_ towards toan account No.82704407 and Rs.7,67t,429/_ towards the credit card account of 1st defendant. As the defendants failed to discharge the tiabitity, the present OA is fiteO, Dd$ ry. j.rlrb -/ !r^- \r

¶19

oa.122lZO22

¶20

Defendants filed written statement. The relevant submissions of the written statement filed by defendants, in brief, are that defendants are engaged in transportation business and for this purpose they have availed loan facilities for purchase of trucks from the applicant bank. Defendants were the transporters to the Manikgarh Cement Factory, Gadchandur. However, due to fall in sale of cement, defendants transportation business was badly affected leading to default in repayment of loan amounts. Applicant bank has not furnished any details of amount realised from the sale of vehicles. The outstanding amount relating to the credit card account has been paid from 1.t defendant,s account. Applicant charged excess and exorbitant rates of interest. The signatures of the defendants were obtained on blank documents and subsequenfly filled up by the applicant bank for filing the present OA. Copies of loan documents were not furnished to the defendants. Defendants have almost closed their transport business and are not in a position to make the payment of loan amounts. The applicant bank seized the vehicles which are the main source of income to the defendants.

¶21

The Applicant Bank examined V.V. pavan Kumar. ManagerLegal, as AW-1 and marked 11 documents through him as Ex. A.1 to Ex. A.11.

¶22

The 1* defendant examined himself as DW.1 and marked no documents.

¶23

The 3d defendant examined himself as DW. 2 and marked no documents.

7fu'1"s

oA.12212022

Both side counsel reported no oral arguments. Perused the written arguments flled by both the parties and the materlal placed on record.

¶28

The^point that arises for consideration is:-

¶29

whether the Applicant Bank is entitled for the OA claim against the Defendants 1to 3 and oA schedule vehicle as^prayed for?

¶30

Admittedly. defendants committed default in repayment of loan amount due to slump in transportation business. Further, defendants admitted their helplessness to repay the dues as they have closed the transportation business. Defendants contention that the applicant bank made use of the blank loan documents executed by them for the^purpose of the^present SA cannot be considered at this stage^particularly in the absence of any supporting material to^prove that they ever took up this matter other than the pleadings in the written statement. Under these facts and circumstances, applicant bank has^proved its claim against the defendants 1 to 3 by virtue of Evidence Affidavit of AW,1 coupled with the recitals in the documents viz., Exs. A.1 to A.11 marked on behalf of the Applicant Bank. Hence, I hold that defendants 1 to 3 are^jointly and severally liable to pay the OA claim to the Applicant Bank with future interest and costs.

¶31

In the result, the^present Original Application No.L22l2O22 is attowed as under: - ffirr"

¶32

oa.r22l2022

¶33

i) The 1st defendant is liable to^pay to^the Applicant Bank a sum of Rs.35,632/-^jointly and severally with defendant No.2^and Rs.41,64,956.98Ps^jointly and severally with defendant No.3 respectively along^with interest @9.51olo^p.a. simple from the date of application till the date of realization;

¶34

ii) the applicant bank is entitled to^proceed against the hypothecated vehicle describedⁱⁿ the schedule annexed to the OA for realization of its dues;

¶35

iii) the applicant bank is also entitled to^proceed against the person and properties of defendants 1 to 3 for realisation of its dues; and

¶36

iv) the applicant bank is entitled for the costs.

¶37

The Applicant Bank is directed to Rle Cost Memo within 2 weeks from the date of receipt of this Order.

¶38

Issue Recovery Certificate accordingly.

¶39

Communicate a copy of this order to the^parties concerned and upload in official Web Portal.

¶40

(Dictated to the steno, signed and pronounced by me in the open court on this the 2"d day of May, 2025).

¶41

O"w,"* (RAICIESHWAR KOTHE) PRESIDING OFFICER

Hdfc Bank Limited v. Mr. Sajid Khan

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Mr. Sajid Khan

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

Ms Adarsa Educational Society versus Canara Bank

Bommak Prem Kumar versus Union Bank of India

c shekar singh versus Repco Bank

Bank of Maharashtra versus M/S. Ss Infra Structure Development Consultants Ltd.

Icici Bank Limited versus Mrs. Gujjala Padma

Bank of Baroda versus Smt Thanneeru Sridivya