Allowed

Hdfc Bank Limited v. M/S Kiran Rice and General Mills Private Limited and Others

DRT26 Dec 2025OA/1418/2024

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed an Original Application filed by HDFC Bank Limited against M/S Kiran Rice and General Mills Pvt. Ltd. and directors for recovery of a debt of approximately Rs. 79 Lacs. The Tribunal noted a cash credit facility with hypothecation of assets and mortgage of properties. Proceedings were held ex parte as defendants did not appear. The court decreed recovery with modifie

What did the court decide?

Decreed recovery of Rs. 79,38,482.40 plus 8% p.a. simple interest and costs, with liberty to enforce via sale of mortgaged assets or attachment under SARFAESI Act.

Hdfc Bank Limited versus M/S Kiran Rice and General Mills… — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1418/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.11.2024

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DATE OF DECISION: 26.12.2025

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HDFC Bank Limited, a Banking Company, incorporated under Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, lower Parel (West), Mumbai-400013, Maharashtra having one of its branch Dholewal Chowk, Ludhiana, through its duly authorized signatory and Authorized officer Sh. Madhur Sharma, working as Assistant Vice President, presently posted and case file is dealt with the Department of Special Operations having its place of sitting at 5^th Floor, B-21-14 570, G.T. Road, Dholewal Chowk, Adjoining Gulzar Market141008.

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… …..Applicant Versus

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M/S Kiran Rice and General Mills Pvt. Ltd., a Private Limited Company through its Directors Sh. Roop Singh S/o Sh. Charan Singh and Sh. Tarlochan Singh S/o Sh. Charan Singh, having its place of Business Ramgarh Road, Near Railway Line, Sahnewal, Ludhiana, Punjab-141120.

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Sh. Roop Singh S/o Sh. Charan Singh, Director M/S Kiran Rice and General Mills Pvt. Ltd., having its place of business at Ramgarh Road, Near Railway Line, Sahnewal, Ludhiana, Punjab 141120. 2^nd Address: Ward No. 3, Near Railway Line, Sahnewal, Ludhiana, Punjab 141120. 3^rd Address: C/o Roop Singh and Company, Grain Market, VPO Sahnewal, Ludhiana, Punjab 141120.

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Sh. Tarlochan Singh S/o Sh. Charan Singh, Director M/S Kiran Rice and General Mills Pvt. Ltd., having its place of business at Ramgarh Road, Near Railway Line, Sahnewal, Ludhiana, Punjab 141120. 2^nd Address: Ward No. 3, Near Railway Line, VPO Sahnewal, Ludhiana, Punjab 141120.

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….……Defendants

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2 OA/1418/2024 HDFC BANK LIMITED VS. M/S KIRAN RICE AND GENERAL MILLS PRIVATE LIMITED AND OTHERS

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Advocates:

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Argued by Sh. Harinder Kumar, Advocate for Applicant Defendants already ex parte

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FINAL ORDER

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1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against
the defendants for recovery of Rs.79,38,482.40 (Rupees Seventy Nine Lacs Thirty Eight Thousand Four Hundred Eighty Two and Paise Forty
Only). The Original Application has been filed throughSh. Madhur Sharma, Assistant Vice Presidentof the applicant, who is competent to
institute the Original Application vide Board Resolution dated
22.11.2023, which isAnnexure A1to this OA.
2. The brief facts of the OA are that the defendant no. 1 through its directors approached the applicant for Takeover of Cash Credit Limit
from Centurion Bank of Punjab in the year 2007. Thereafter the
defendant no. 1 through its directors approached the applicant for renewal of the Cash Credit Limit of Rs. 84.00 Lacs. Renewal request
letter dated 27.03.2017 and 17.02.2021, which areAnnexures A20
and A28to this OA.
3. The applicant sanctioned the Renewal of the CC Limit of Rs.84.00
Lacs vide sanction letter dated 07.04.2011, which isAnnexure A7to
this OA. Thereafter, the applicant renewed the limit for Rs. 82.00 Lacs
vide renewal sanction letter dated 21.05.2012 and 05.09.2012, which
areAnnexures A12 and A13to this OA. Thereafter, the applicant
renewed the limit for Rs. 75.00 Lacs vide renewal sanction letter dated
29.03.2013, 04.11.2013, 27.03.2014, 04.11.2014, 12.08.2015,
15.10.2016, 30.03.2017, 06.04.2018, 15.03.2019 and 19.02.2020,
22.02.2021 and 14.03.2022, which areAnnexures A14 to A19, A21,
A24 to A26, A29 and A30to this OA and the terms and conditions
were duly accepted by the defendants.
4. Defendant no. 1 through its directors hypothecated stocks and book debts.

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3 OA/1418/2024 HDFC BANK LIMITED VS. M/S KIRAN RICE AND GENERAL MILLS PRIVATE LIMITED AND OTHERS

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Defendant no. 1 through its directors mortgaged its immovable properties detailed as under: (i) All that part and parcel of commercial property measuring 7 Kanal 11 Marla, situated at Sahnewal Kalan No. 1, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale Deed bearing vasika no. 8624 dated 17.10.1983, along with its translation, which is Annexure A5 to this OA. ii) Land and Building measuring 10 Kanal 8 Marla, situated at Sahnewal Kalan No. 1, Tehsil and District Ludhiana, Punjab vide Sale Deed bearing vasika no. 8485 dated 12.10.1983, along with its translation, which is Annexure A6 to this OA.

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Documents executed: Police Report dated 06.09.2011, regarding fire with translations, which is Annexure A2 to this OA; Panchnama dated 03.10.2011 regarding files, which is Annexure A3 to this OA; Destruction document regarding loss dated 10.02.2012, which is Annexure A4 to this OA; Addendum/ Supplementary Agreement dated 07.04.2011, which is Annexure A8 to this OA; Undertaking dated 07.04.2011, which is Annexure A9 to this OA; Letter of Acknowledgment of debt dated 01.11.2011, which is Annexure A10 to this OA; Letter of Confirmation of limit in force dated 17.12.2011, which is Annexure A11 to this OA; Amendment Agreement and Demand Promissory note, both dated 30.03.2017 which are Annexures A22 and A23 to this OA; Addendum dated 19.02.2020, which is Annexure A27 to this OA; Statement of Accounts, Calculation chart Certified under Banker Books Evidence Act, 1891, which is Annexure A31 to this OA; Memoranda of interest, which is Annexures A32 to this OA; Loan Recall Notice dated 15.05.2024, which is Annexures A33 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.79,38,482.40, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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4 OA/1418/2024 HDFC BANK LIMITED VS. M/S KIRAN RICE AND GENERAL MILLS PRIVATE LIMITED AND OTHERS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex- parte 12.08.2025. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Assistant Vice President, HDFC Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A33 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.79,38,482.40 (Rupees Seventy Nine Lacs Thirty Eight Thousand Four Hundred Eighty Two and Paise Forty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%p.a. with monthly rests from the 09.07.2024 till the realization. The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till

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5 OA/1418/2024

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HDFC BANK LIMITED VS. M/S KIRAN RICE AND GENERAL MILLS PRIVATE LIMITED AND OTHERS

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realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.79,38,482.40 (Rupees Seventy Nine Lacs Thirty Eight Thousand Four Hundred Eighty Two and Paise Forty Only), jointly and severally with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.01.2026. 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 26.12.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Kiran Rice and General Mills Private Limited and Others

Case brief

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Hdfc Bank Limited v. M/S Kiran Rice and General Mills Private Limited and Others

Case brief

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