Allowed

Hdfc Bank Limited v. M/s Ess Kay Impex

DRT8 May 2025OA/567/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of dues under the RDBFI Act. The court fixed simple interest at 8% p.a., authorizing recovery via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery of Rs.1,59,90,532 with costs and simple interest @8% p.a. enforceable via sale of mortgaged properties or attachment of personal assets.

Hdfc Bank Limited versus M/s Ess Kay Impex — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.567/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 27.01.2022

¶4

DATE OF DECISION: 08.05.2025

¶5

HDFC Bank Limited, a Banking Company incorporated and registered under the Companies Act 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai400013 and one of its Branch Office, amongst at Plot B 19SE, LGF, The First Mall, Mall Road, Ludhiana (Punjab), being represented through its authorized representative Sh. Sunil Kalra, Legal Manager, Department for special operations, HDFC Bank Limited, Plot no.28, industrial Area Phase –I, Chandigarh-160002

¶6

……..Applicant

¶7

Versus

¶8

M/s Ess Kay Impex, a sole proprietorship firm being represented through its proprietor Sh. Sunny Sharma S/o Late Sh. Satish Kumar Sharma having its place of Business at 65, Mohindra Enclave, Moti Nagar, Ludhiana(Punjab)-143412

¶9

Sh. Sunny Sharma S/o Late Sh. Satish Kumar Sharma, R/o H.No.568, sector 39, Urban Estate, Chandigarh Road, Ludhiana(Punjab)

¶10

Smt. Suman Lata W/o S/o Late Sh. Satish Kumar Sharma, R/o H.No.568, sector 39, Urban Estate, Chandigarh Road, Ludhiana(Punjab)

¶11

M/s Jai Udyog, a sole proprietorship firm being represented through its proprietor Smt. Suman Lata W/o Late Sh. Satish Kumar Sharma, having its place of business at Plot No.6, Saini Colony, Moti Nagar, Ludhiana(Punjab)

¶12

………Defendants

¶13

2 OA NO.567/2022 HDFC BANK LIMITED VS M/S ESS KAY IMPEX AND OTHERS

¶14

Advocates: Argued by Sh. Satish Kumar Arora, Advocate for the applicant (through VC) Defendants are ex-parte

¶15

FINAL ORDER

¶16

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.1,59,90,532.00 (Rupees One Crore Fifty Nine Lacs Ninety Thousand Five Hundred Thirty Two only). The Original Application has been filed through Sh. Sunil Kalra, Legal Manager 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 for the grant of CC Limit of Rs.80.00 Lacs vide Loan Application dated 07.02.2016, which is Annexure A2 to this OA and further for its renewal. Thereafter defendants again approached the applicant for enhancement of CC Limit to Rs.120.00 Lacs. Later for GECL Term Loan of Rs.24.88 Lacs and further for FITL of Rs.5,51,265.00. 3. The applicant sanctioned the CC Limit of Rs.80.00 Lacs vide Sanction Letter dated 29.02.2016, which is Annexure A3 to this OA and further Sanctioned its renewal vide Sanction Letters dated 27.01.2017 and 06.0.2018, which are Annexures A11 and A14 to this OA. Thereafter applicant sanctioned the enhancement of CC Limit to Rs.120.00 Lacs vide Sanction Letter dated 04.02.2019, which is Annexure A15 to this OA. Later for GECL Term Loan of Rs.24.88 Lacs vide Sanction Letter dated 20.06.2020, which is Annexure A28 to this OA and further sanction FITL of Rs.5,51,265.00 vide Sanction Letter dated 03.11.2020, which is Annexure A33 to this OA and the terms and conditions were duly accepted by the defendants.

¶17

3 OA NO.567/2022

¶18

HDFC BANK LIMITED VS M/S ESS KAY IMPEX AND OTHERS

¶19

Defendant nos. 3 had mortgage her immovable properties i.e.

¶20

a. all part and parcel of built up plot bearing no.6, measuring 250 Sq. yards situated at Sherpur Kalan, Hadbast No.176, Saini Colony, Moti Nagar, Ludhiana vide Equitable Mortgaged of Sale deed bearing vasika no.2018-19/106/1/6478 dated 01.11.2018 and vasika no.201819/106/1/6479 dated 01.11.2018 along with their Translations, which are Annexures A25 and A26 to this OA.

¶21

b. all part and parcel of built up plot bearing no.11, measuring 250 Sq. yards situated at Sherpur Kalan, Hadbast No.176, Saini Colony, Moti Nagar, Ludhiana vide Equitable Mortgaged of Sale deed bearing vasika no.12211 dated 18.12.2014 along with its Translation, which is Annexure A10 to this OA.

¶22

Documents executed:- Master Facility Agreement, Deed of Hypothecation, Power of Attorney all dated 29.02.2016, which are Annexures A4 to A6 to this OA; Correspondence with Axis Bank/takeover dated 02.02.2016, which is Annexure A7 to this OA; Memorandum regarding creation of Mortgage and Declaration both dated 30.03.2016, which are Annexures A8 and A9 to this OA; DP Note, Amendment Agreement both dated 27.01.2017, which are Annexures A12 and A13 to this OA; DP Note, Letter of Continuing Security, Supplement Agreement, Supplementary Letter of Hypothecation, Power of Attorney, Amendment Agreement, Supplementary letter for continuing Guarantee, Memorandum regarding creation of Mortgage and Declaration all dated 04.02.2019, which are Annexures A16 to A24 to this OA; Addendum Agreement dated 13.03.2020, which is Annexure A27 to this OA; Facility cum hypothecation Agreement, Customer Request and SI/ECS debit authorization Form, Memorandum regarding creation of Mortgage and Supplementary letter for continuing Guarantee dated 20.06.2020, which are Annexures A29 to A32 to this OA; Customer Request and

¶23

4 OA NO.567/2022 HDFC BANK LIMITED VS M/S ESS KAY IMPEX AND OTHERS

¶24

SI/ECS debit authorization Form dated 03.11.2020, which is Annexure A34 to this OA; Loan Recall Notice dated 06.10.2021 with postal receipts and Notice U/s 13(2) of SARFAESI Act dated 26.10.2021, which is Annexure A35 to this OA and Statements of Accounts with certificate, which are Annexures A36 to A41 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.1,59,90,532.00, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 29.04.2025. 7. In support of the OA, affidavit of Sh. Sunil Kalra, Legal Manager, HDFC Bank Limited has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A41 to this OA, it is proved that the defendants approached applicant 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,59,90,532.00 (Rupees One Crore Fifty Nine Lacs Ninety Thousand

¶25

5 OA NO.567/2022 HDFC BANK LIMITED VS M/S ESS KAY IMPEX AND OTHERS

¶26

Five Hundred Thirty Two only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

¶27

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. in respect of CC Limit and GECL Term Loan and Interest @24.00%p.a. in FITL from 28.01.2022 till the realization.

¶28

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 @8.00%p.a. in all 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,59,90,532.00 (Rupees One Crore Fifty Nine Lacs Ninety Thousand Five Hundred Thirty Two only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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.

¶29

6 OA NO.567/2022

¶30

HDFC BANK LIMITED VS M/S ESS KAY IMPEX AND OTHERS

¶31

Any other application pending stands disposed of .

¶32

Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 27.05.2025.

¶34

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.

¶35

Pronounced by me in the open Tribunal .

¶36

Dated: 08.05.2025

¶37

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

Hdfc Bank Limited v. M/s Ess Kay Impex

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/s Ess Kay Impex

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus Sh. Kashmira Singh

Hdfc Bank Limited versus M/sVinod and Company

Punjab National Bank versus Smt. Gurdeep Kaur and Others

Punjab National Bank versus M/s Supreme Import Export Limited

Punjab National Bank versus M/S Shree Balaji Embroidery and Another

Union Bank of India versus Sh. Jagdish Singh and Others