Allowed

Hdfc Bank Ltd. v. M/S Sangmeshwar Marketing Agencies and Others

DRT27 Jun 2025OA/277/2022

Case brief

AI extract

What is this about?

DRT allowed HDFC Bank Limited's application for recovery of Rs.36.04 lakhs against respondents who failed to repay ODAP and GECL facilities. Court awarded simple interest at 8% instead of claimed 18% directed issuance of Recovery Certificate.

What did the court decide?

Application allowed for recovery of Rs.36,04,288.81 jointly and severally with 8% simple interest; Recovery Certificate issued.

Hdfc Bank Ltd. versus M/S Sangmeshwar Marketing Agencies and… — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.277/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2022

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DATE OF DECISION: 27.06.2025

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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 at Khanna, Punjab and Chandigarh, through its duly authorized signatory and Authorized Officer Sh. Narender Kumar Nanda, working as Manager currently posted at Plot no. 28, Industrial Area, Phase-1, Chandigarh-160002.

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.. … …..Applicant Versus

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M/s Sangmeshwar Marketing Agencies, a Proprietorship firm being represented through its proprietor Sh. Deepak Kumar Verma having its place of business situated at Shop no. 13, near Ravidas Mandir, Khanna, Ludhiana Punjab.

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Sh. Deepak Kumar Verma S/o Sh. Ram Murti, Prop M/s Sangmeshwar Marketing Agencies C/O Shop No. 13, Near Ravidas Mandir, Khanna, Ludhiana, Punjab.

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2^nd Address : C-9, Jagat Colony, Chandigarh Road, Khanna, District Ludhiana-141401

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3^rd Address : H.NO.C-134, Jagat Colony, Chandigarh, Road, Khanna, District Ludhiana-141401

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Hema Verma W/O Sh. Deepak Kumar Verma R/O C-9, Jagat Colony, Chandigarh Road, Khanna, District Ludhiana-141401

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2^nd Address : H.NO.C-134, Jagat Colony, Chandigarh, Road, Khanna, District Ludhiana-141401

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…Defendants

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Advocates:

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Present Ms. Sh. Arvind Rajotia, Advocate proxy for Sh. Harinder Kumar, Advocate for Applicant Defendants are ex parte

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FINAL ORDER

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2 OA NO.277-2022 HDFC BANK LIMITED VS M/S SANGMESHWAR MARKETING AGENCIES AND OTHERS

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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 Rs.36,04,288.81p (Rupees Thirty Six Lacs Four Thousand Two Hundred Eighty Eight and Paise Eighty One Only). The Original Application has been filed through Mr. Narender Kumar Nanda, Manager o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of ODAP Limit of Rs.25.00 Lacs and further from time to time for its renewals vide Loan application dated 05.01.2016 and Renewal Applications dated 03.02.2017 and 01.02.2018, which are Annexures A2, A12 and A14 to this OA. Thereafter defendants again approached the applicant for enhancement of ODAP to Rs.40.00 Lacs vide Loan Application dated 30.01.2020, which is Annexure A26 to this OA. Later defendants approached the applicant for grant of GECL of Rs.5.60 Lacs.

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The applicant Bank sanctioned the ODAP Limit Rs.25.00 Lacs vide Sanction Letter dated 28.01.2016, which is Annexure A3 to this OA and further from time to time applicant sanctioned its renewals vide Renewal Sanction Letters dated 03.02.2018 and 10.01.2019, which are Annexures A15 and A16 to this OA. Thereafter applicant sanctioned the enhancement of ODAP Limit to Rs.29.00 Lacs vide Sanction Letter dated 09.01.2020, which is Annexure A27 to this OA. Later applicant sanctioned the GECL of Rs.5.60 Lacs vide Sanction Letter dated 10.06.2020 (GECL), which is Annexure A36 to this OA and further sanctioned the renewal of Credit facilities vide Sanction Letter dated 05.01.2021, which is Annexure A42 to this OA and the terms and conditions were duly accepted by the defendants.

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3 OA NO.277-2022 HDFC BANK LIMITED VS M/S SANGMESHWAR MARKETING AGENCIES AND OTHERS

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Defendants had mortgaged his immovable property i.e. House No. C-9, Jagat Colony, Chandigarh Road, Jagat Colony, A.S. College, Khanna, vide Equitable Mortgage of Sale Deed bearing vasika no.1588 dated 07.07.2008 with its translation, which is Annexure A11(Colly) to this OA.

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Documents executed:- Demand Promissory note, Master facility agreement, Letter of Continuing Security, Letter of Continuing Guarantee, Deed of Indemnity, Declaration cum indemnity, Memorandum recording equitable Mortgage all dated 28.01.2016, which are Annexures A4 to A10 to this OA; Amendment Agreement dated 03.02.2017, which is Annexure A13 to this OA; Deed of Indemnity,

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Undertaking cum Indemnity, Supplementary Agreement, Supplementary Agreement of Hypothecation, Power of Attorney, Amendment Agreement, Letter of Continuing Guarantee all dated 24.01.2019 which are Annexures A17 to A23 to this OA; Memorandum regarding equitable Mortgage Dated 10.01.2019 which is Annexure A24 to this OA ; Declaration cum Indemnity dated 24.01.2019 which is Annexures A25 to this OA; Deed of Indemnity, Supplementary Agreement, Declaration cum indemnity, Supplementary Letter of Hypothecation, Power of Attorney, Letter of Continuing Guarantee, Memorandum recording equitable Mortgage; Addendum all dated 10.01.2020 which are Annexures A28 to A35 to this OA; Facility Agreement, Supplementary deed of Hypothecation, Declaration cum Indemnity, Memorandum recording equitable Mortgage, Supplementary Letter of Continuing Guarantee all dated 10.06.2020 which are Annexures A37 to A41 to this OA, Jamabandi with translation 201112, which is Annexures A43 (Colly) to this OA , Statement of AccountsCash Credit Account 2020-2021 which is Annexure A44 to this OA ; Memoranda of interest, which is Annexures A45 to this OA; Statement of Account Calculation chart Certified under Banker Books Evidence Act,

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4 OA NO.277-2022 HDFC BANK LIMITED VS M/S SANGMESHWAR MARKETING AGENCIES AND OTHERS

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1891 (Colly) Term Loan which is Annexures A46 to this OA; Loan Recall Notice dated 04.02.2022 which is Annexures A47 to this OA.

¶27

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs. 36,04,288.81p, 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.

¶28

The defendants were served notices to appear before this Tribunal. Sh. Sahil Vashist, Advocate appeared on behalf of defendant nos.1 and 2 and filed Power of Attorney. On 15.12.2023 Ld. proxy counsel for applicant submitted that Sh. Mohit Vasisht, who had filed Power of Attorney on behalf of defendant nos.1 and 2 has informed him that Sh. Deepak Kumar defendant no.2 has taken the file from him, therefore, he is not counsel for defendant nos.1 and 2 anymore. Since 12.04.2023 no one appeared on behalf of defendants, they were proceeded ex- parte 25.06.2025.

¶29

In support of the OA, affidavit of Mr. Narender Kumar Nanda, Manager, HDFC Bank Limited, has been filed. 8. Ld. proxy counsel for applicant present has not advanced any argument. Perused record.

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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 A47 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved

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5 OA NO.277-2022 HDFC BANK LIMITED VS M/S SANGMESHWAR MARKETING AGENCIES AND OTHERS

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that applicant bank is entitled to recover a sum of Rs.36,04,288.81p (Rupees Thirty Six Lacs Four Thousand Two Hundred Eighty Eight and Paise Eighty One 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.

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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 22.01.2022 till the realization.

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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, 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 both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶35

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,04,288.81p (Rupees Thirty Six Lacs Four Thousand Two Hundred Eighty Eight and Paise Eighty One Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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6 OA NO.277-2022 HDFC BANK LIMITED VS M/S SANGMESHWAR MARKETING AGENCIES AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 27.06.2025.

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

Hdfc Bank Ltd. v. M/S Sangmeshwar Marketing Agencies and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. M/S Sangmeshwar Marketing Agencies and Others

Case brief

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