Allowed

Hdfc Bank Limited v. Messrs M S Rathour Industries and Others

DRT28 Aug 2025OA/234/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank's Original Application for recovery of outstanding dues. Defendants were ordered to pay principal with modified interest charges and a Recovery Certificate was issued.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay principal sum plus costs and interest at 8% p.a.

What the court decided

Hdfc Bank Limited versus Messrs M S Rathour Industries and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.234/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.02.2025

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DATE OF DECISION: 28.08.2025

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HDFC Bank Limited, a Banking Company, incorporated and registered under the companies Act 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai 400013 and one of its Branch Office, amongst others, at SCO-32A, Samrala Road, Ludhiana (Punjab) being represented through its duly authorized official Sh. Madhur Sharma, Assistant Vice President, Department for Special Operations, HDFC Bank Ltd., 5^th Floor, B-21-14570, G T Road, Dholewal Chowk, Adjoining Gulzar Motors, Ludhiana (Punjab)-141008.

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.. … …..Applicant

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Versus

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M S Rathour Industries, a sole-proprietorship firm of Sh. Manjit Singh s/o Sh. Karnail Singh having place of business at Cabin No.1, Ground Floor, Village Kakowal Road, Near Govt. Primary School (near Dheyan Hosiery) Ludhiana-141007

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Sh. Manjit Singh S/o Sh. Karnail Singh, R/o Village Mahadipur/ Mehndipur, Machhiwara, District Ludhiana-141115 (Punjab)

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Mrs. Balwinder Kaur W/o Sh. Manjit Singh S/o Sh. Karnail Singh, R/o Village Mahadipur/Mehndipur, Machhiwara, District Ludhiana- 141115 (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Satish Kumar Arora, Advocate for Applicant

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Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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2 OA/234/2025 HDFC BANK LTD VS M/S M S RATHOUR INDUSTRIES AND OTHERS

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Rs.28,58,137.62p (Rupees Twenty Eight Lacs Fifty Eight Thousand One Hundred Thirty Seven and Paise Sixty Two Only). The Original Application has been filed through Sh. Madhur Sharma, Assistant Vice President o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 28.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant 1 through its proprietor defendant no. 2 had approached the applicant for the grant of CC Limit of Rs.25.00 Lacs vide Loan application dated 01.06.2022, which is Annexure A2 to this OA. Defendant nos. 2 and 3 stood as guarantors. Thereafter, the defendants approach the applicant for renewal of the limit vide letter dated 22.05.2023 which is Annexure A9 to this OA.

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The applicant sanctioned the CC Limit Rs.25.00 Lacs vide Sanction Letter dated 13.06.2022 which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the renewal of the limit vide sanction letter dated 15.06.2023, which is Annexure A10 to this OA. 4. Defendant 1 through its proprietor defendant no. 2 had mortgaged its movable properties i.e. stock and receivables, book debts, etc. vide deed of hypothecation dated 30.06.2022 with its Translations, which is Annexure A5 to this OA. Documents executed: - Master facility agreement dated 30.06.2022 which is Annexure A4 to this OA; Letter of Continuing Guarantee, power of attorney, declaration by customer not sign in English, all dated 28.01.2016, which are Annexures A6 to A8 to this OA; Legal recall notice dated 29.11.2024 along with postal receipts, which is Annexure A11 to this OA; Statement of account and summary of memoranda/recoverable dues, which are Annexures A12 and A13 to this OA.

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3 OA/234/2025

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HDFC BANK LTD VS M/S M S RATHOUR INDUSTRIES AND OTHERS

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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.28,58,137.62p, 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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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex- parte 05.08.2025.

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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 had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant 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.28,58,137.62p (Rupees Twenty Eight Lacs Fifty Eight Thousand One Hundred Thirty Seven and Paise Sixty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.92%p.a. besides penal charges @7.08%p.a. with from the 21.02.2025 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

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4 OA/234/2025

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HDFC BANK LTD VS M/S M S RATHOUR INDUSTRIES AND OTHERS

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the 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 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.28,58,137.62p (Rupees Twenty Eight Lacs Fifty Eight Thousand One Hundred Thirty Seven and Paise Sixty Two 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 personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.09.2025. 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: 28.08.2025

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

Hdfc Bank Limited v. Messrs M S Rathour Industries and Others

Case brief

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Hdfc Bank Limited v. Messrs M S Rathour Industries and Others

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