Allowed

Hdfc Bank v. M/S Jai Ambey Casting Pvt. Ltd.

DRT22 Apr 2025OA/1310/2022

Case brief

AI extract

What is this about?

In an original application for recovery of dues, the Tribunal allowed the claim of the applicant bank against various respondents including a company, its director, and related proprietors, declaring them jointly and severally liable to pay the owed sum with interest.

What did the court decide?

Declaration of joint and several liability to pay Rs. 4,35,93,052.26 with 10% simple interest; entitlement to recover from mortgaged and personal properties.

Hdfc Bank versus M/S Jai Ambey Casting Pvt. Ltd. — Banking and Recovery | DRT (2025)

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“ORIGINALAPPLICATION” No. 1310 of 2022

¶2

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

¶4

O.A. NO. 1310 OF 2022

¶5

DATE OF DELIVERY OF ORDER 22.04.2025

¶6

HDFC Bank Limited Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, West Mumbai400013, at having its office at 5^th Floor, Ansal Classique Tower, Plot no. 1, Near Community Centre, Rajouri Garden, New Delhi- 11027 through its Authorized Officer.

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…..Applicant Bank…..

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VERSUS

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1. M/s Jai Ambey Casting Pvt. Ltd. , through its Director Mr. Satish Kumar, E-1031, RIICO Industrial Area, Chopanki, Bhiwadi, District Alwar, Rajasthan-301019.

¶10

2. Mr. Satish Kumar S/o Shri Rati Ram, R/o 1429, Chudanpena,VPO, Budli.

¶11

EF 36, Ashiana Garden, Bhiwad, District Alwar,

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Rajasthan.

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3. Mr. Rati Ram S/o Shri Banwari Lal R/o 1429, Chudanpena, VPO, Budli.

¶14

EF 36, Ashiana Garden, Bhiwad, District Alwar,

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Rajasthan.

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4. Mr. Mukesh Kumar, S/o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar.

¶17

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶18

Rajasthan.

OA No. 1310 of 2022

5. Mr. Kapil Dev S/o /o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar. - EF 36, Ashiana Garden, Bhiwad, District Alwar, Rajasthan.

¶23

6. Jay Bhagwati Steel , a proprietorship firm through its proprietor Shri Rati Ram, SPL-1 (H), Phase-1, RIICO Industrial Area, Bhiwadi, District Alwar, Rajasthan.

¶24

……Defendants…..

¶25

Counsel for the Applicant Bank	Sh. Alok Garg &
	Ms. Saloni Agarwal
Defendant no. 1 & 2	Sh. Yogesh Pujari &
	Sh.Abhishek Sharma
Defendant no. 3 & 6	None

¶26

JUDGMENT

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This Original Application was filed by the applicant bank on 07.11.2022 for recovery of outstanding amount of Rs. 4,35,93,052.26 from the Defendants.

¶28

As per the pleadings, Defendant No. 1 is a company and Defendant No. 2 is director of Defendant No. 1 and son of Defendant No.3 brother of Defendant No. 4 & 5 and Defendant No. 6 is the proprietorship firm of their father who is Defendant No. 3. Defendant No. 1 through Defendant No. 2 had applied for cash credit limit of Rs. 300 Lac and Term loan of Rs. 350 Lac for meeting of their working capital requirements. After due consideration, cash credit facility and term loan was sanctioned by the Applicant Bank vide sanction letter dated 20.08.2014. Defendants failed to maintain financial discipline and

OA No. 1310 of 2022

therefore, their loan account was classified as NPA on 31.07.2020. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendants.

¶33

Heard arguments and perused the record.

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Summons were issued to the Defendants on 13.12.2022 and on 04.07.2023 Sh. Rahul Agarwal appeared on behalf of the Defendant no. 1& 2, but none appeared on behalf of the Defendant no. 3 to 6.Till today, reply has not been filed by the defendants and their right to file reply was closed on 20.01.2025. The only defense taken by the Defendant No. 1 & 2 herein is that their account has been classified NPA during the COVID period and therefore, they are entitled for the relief.

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For classification of account as NPA is a prerequisite of Securitization Act and not RDB Act, there can be numerous instances in the account despite not being NPA if any administrative reason or other reasons the action is recalled. Besides, this they admitted that there is no other defense available with them. The Tribunal is of the opinion that affidavit of officer Sh. Kailash Sharma filed and documents stands proved.

¶36

As stated supra, the Applicant Bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit A/1 to A/27 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly &

OA No. 1310 of 2022

severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

¶41

In the result, this O.A. No. 1310 of 2022 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 4,35,93,052.26 (Rupees Four Crore Thirty Five Lac Ninety Three Thousand Fifty Two and Twenty Six Paisa only) with future interest @ 10% (Simple) p.a. from the date of filing of this Original Application.

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b) The applicant bank is entitled to recover the above amount from the sale of mortgaged properties i.e. E-1031, RIICO Industrial Area, Chopanki Bhiwadi Rajasthan standing in the name of defendant no. 1, Flat situated at EF-36, 1^st Floor, Ashiyana Garden, Bhiwadi, standing in the name of defendant no. 3 and SPL-1 (H), Phase-1, RIICO Industrial Area, Bhiwadi, standing in the name of defendant no.6 as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

OA No. 1310 of 2022

The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 15.07.2025 .

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10.Prepare Recovery Certificate accordingly.

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11.A copy of the Judgment and Recovery Certificate be given

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or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 22.04.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1310 of 2022

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶60

PRESENT- SHRI VIMAL GUPTA

¶61

PRESIDING OFFICER

¶62

O.A. NO. 1310 OF 2022

¶63

DATE OF DELIVERY OF ORDER 22.04.2025

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

1. M/s Jai Ambey Casting Pvt. Ltd., through its Director Mr. Satish Kumar, E-1031, RIICO Industrial Area, Chopanki, Bhiwadi, District Alwar, Rajasthan-301019.

¶70

2. Mr. Satish Kumar S/o Shri Rati Ram, R/o 1429, Chudanpena,VPO, Budli.

¶71

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶72

Rajasthan.

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3. Mr. Rati Ram S/o Shri Banwari Lal R/o 1429, Chudanpena, VPO, Budli.

¶74

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶75

Rajasthan.

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4. Mr. Mukesh Kumar, S/o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar.

¶77

EF 36, Ashiana Garden, Bhiwad, District Alwar,

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Rajasthan.

OA No. 1310 of 2022

5. Mr. Kapil Dev S/o /o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar.

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EF 36, Ashiana Garden, Bhiwad, District Alwar,

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Rajasthan.

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6. Jay Bhagwati Steel , a proprietorship firm through its proprietor Shri Rati Ram, SPL-1 (H), Phase-1, RIICO Industrial Area, Bhiwadi, District Alwar, Rajasthan.

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……Defendants…..

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Recovery Certificate for Rs. 4,35,93, 052.26

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In terms of final order dated 22.04.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

¶89

a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 4,35,93,052.26 (Rupees Four Crore Thirty Five Lac Ninety Three Thousand Fifty Two and Twenty Six Paisa only) with future interest @ 10% (Simple) p.a. from the date of filing this Original Application.

¶90

b) The applicant bank is entitled to recover the above amount from the sale of mortgaged properties i.e. E-1031, RIICO Industrial Area, Chopanki Bhiwadi Rajasthan standing in the name of defendant no. 1, Flat situated at EF-36, 1^st Floor, Ashiyana Garden, Bhiwadi, standing in the name of defendant no. 3 and SPL-1 (H), Phase-1, RIICO Industrial Area, Bhiwadi, standing in the name of defendant no.6 as well as from the personal movable and immovable properties/assets of

OA No. 1310 of 2022

Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 15.07.2025.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on 22.04.2025 .

¶99

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1310 of 2022

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶104

PRESENT- SHRI VIMAL GUPTA

¶105

PRESIDING OFFICER

¶106

O.A. NO. 1310 OF 2022

¶107

DATE OF DELIVERY OF ORDER 22.04.2025

¶108

SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/s Jai Ambey Casting Pvt. Ltd ., through its Director Mr. Satish Kumar, E-1031, RIICO Industrial Area, Chopanki, Bhiwadi, District Alwar, Rajasthan-301019.

¶114

2. Mr. Satish Kumar S/o Shri Rati Ram, R/o 1429, Chudanpena,VPO, Budli.

¶115

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶116

Rajasthan.

¶117

3. Mr. Rati Ram S/o Shri Banwari Lal R/o 1429, Chudanpena, VPO, Budli.

¶118

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶119

Rajasthan.

¶120

4. Mr. Mukesh Kumar, S/o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar.

¶121

EF 36, Ashiana Garden, Bhiwad, District Alwar,

¶122

Rajasthan.

OA No. 1310 of 2022

5. Mr. Kapil Dev S/o /o Shri Rati Ram, R/o H.No.1677, VPO Badli, Jhajjar. - EF 36, Ashiana Garden, Bhiwad, District Alwar, Rajasthan.

¶127

6. Jay Bhagwati Steel , a proprietorship firm through its proprietor Shri Rati Ram, SPL-1 (H), Phase-1, RIICO Industrial Area, Bhiwadi, District Alwar, Rajasthan.

¶128

……Defendants…..

¶129

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	1,50,000.00
2	Process Fee (Inc. Publication)	906.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	1,52,156.00

¶130

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1310 of 2022

Date : 22.04.2025

¶135

Counsel:

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Sh. Alok Garg, Counsel for Applicant Bank Sh. Yogesh Pujari & Sh. Abhishek Sharma, Counsel for the Defendant No. 1 & 2

¶137

None for the Defendant no. 3 to 6

¶138

Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

¶139

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1310 of 2022

Date : 22.04.2025

¶144

Counsel:

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Sh. Alok Garg, Counsel for Applicant Bank

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Sh. Yogesh Pujari & Sh. Abhishek Sharma, Counsel for the Defendant No. 1 & 2

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None for the Defendant no. 3 to 6

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The Tribunal vide order dated 22.04.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 22.04.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate is prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

¶150

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

¶151

Hdfc Bank v. M/S Jai Ambey Casting Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. M/S Jai Ambey Casting Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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