Debts Recovery Tribunal allowed a bank's original application for recovery of dues against a defaulting borrower. The Court adjusted the claim amount and reduced future interest to 9% per annum while rejecting penal interest.
Defendant to pay adjusted sum of Rs.25,54,399/- with future interest @9% p.a. Recovery certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Presented on: 13.03.2020 Registered on: 18.05.2022 Decided on: 23.04.2025 Duration: Y M D 05 01 10
IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.512/2022.
HDFC BANK LIMITED ,
A Banking Company incorporated under the Companies Act, 1956, having its Registered Office at HDFC Bank House, C.S.No.6/242, Senapati Bapat Marg, Lower Parel, Mumbai-13 and branch office at Department for Special Operations, Peninusula Business Park, B-Wing, 4th Floor, Lower Parel (W), Mumbai-400 013.
… Applicant
Versus
APPEARANCES
For the Applicant For the Defendant
Advocate– Mrs.Tejashri Y. Hirve Ex-parte.
TOTAL CLAIM AMOUNT – Rs. 26,02,404.14Ps.
(OA No.512/2022)
Page 1 of 5
[ANIL]
JUDGMENT (Delivered on 23rd April, 2025)
The applicant bank states that defendant is a Proprietary concern engaged in business of executing Government Civil Contracts and was in need of financial assistance and, therefore, approached to the applicant bank and requested for financial assistance by way of Cash Credit of Rs.25 Lakhs. The Applicant Bank on 06.03.2018 granted and sanctioned Cash Credit facility of Rs.25,00,000/- to the defendant, on certain terms and conditions.
In order to secure the aforesaid Cash Credit facility, defendant executed loan and security documents as set out in Para No.5.6 of the Original Application, in favor of the Applicant Bank.
Thereafter, upon request of the defendant, applicant bank renewed said cash credit facility of Rs.25 lakhs on 03.04.2019 and 22.07.2019, on certain terms and conditions.
The applicant bank further submits that from beginning till its last renewal, said cash credit facility was covered under CGTMSE of Government of India.
(OA No.512/2022)
Page 2 of 5
[ANIL]
Hence, this application is filed.
(OA No.512/2022)
Page 3 of 5
[ANIL]
5.The Defendant failed to appear despite service of summons. Hence, the application proceeded ex-parte as per order dated 27.06.2024 passed below Application (Exhibit-1).
6.The Applicant Bank has filed Claim Affidavit (Exhibit-06) of Mr. Ashwin Narayan Indulkar and produced on record the Loan Transaction documents alongwith with list Exh.7 (Exhibits.AW-1/1 to AW-1/13), which corroborates the case of the Applicant Bank.
10.The applicant bank has claimed Penal Interest of Rs.48,005.57Ps. which cannot be granted and the same is required to be deducted from the total claim amount. Therefore, the total claim amount of Rs.26,02,404.14Ps is reduced to Rs.25,54,399/-.
(OA No.512/2022)
Page 4 of 5
[ANIL]
11.The Applicant Bank has claimed interest @12% p.a. for Cash Credit facility availed by the defendant. However, considering the facts of the case, I am of the opinion that if future interest is granted @9.00% per annum (simple), it would be just and reasonable rate of interest.
12.Hence, I pass the following order:-
ORDER
(A) Original Application No.512/2022 is allowed with costs.
(B) Defendant shall pay sum of Rs.25,54,399/- (Rupees Twenty Five Lakhs Fifty Four Thousand Three Hundred Ninety Nine only) towards Cash Credit Loan Account No.50200029063681 with future interest @9.00%p.a. (Simple) from the date of filing of the Original Application i.e. 09.08.2016 till payment / realization of the amount mentioned in this operative order, to the Applicant Bank.
(C) Issue Recovery Certificate.
(D) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the Applicant Bank and the Defendant.
Sd/-
(Dilip G. Murumkar) Place : Pune Presiding Officer, Date: 23.04.2025 Debts Recovery Tribunal, Pune.
(OA No.512/2022)
Page 5 of 5
[ANIL]
3 issues framed by the court
Whether the Debt Recovery Tribunal should allow the original application for recovery of dues from a defaulting cash credit account.
What amount of interest should be granted in future on the claimed sum.
Whether penal interest claimed by the bank should be allowed.
1 provisions across 1 enactments
HDFC Bank Limited
M/s Adishakti Construction
Mr. Anand Dharma Nayak A
Dilip G. Murumkar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
