Allowed

Hdfc Bank Ltd. v. M/S. K K Eywear

DRT16 Jun 2025OA/604/2022

Case brief

AI extract

What is this about?

In this DRT-II Original Application, the Bank sought recovery of a business loan defaulted by defendants. The Tribunal held defendants jointly and severally liable based on contract terms and evidence, rejecting claims of unauthorized interest rates.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 39,10,152.86 with interest; applicant entitled to costs and to proceed against properties.

Hdfc Bank Ltd. versus M/S. K K Eywear — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDERABAD DATED THIS THE SIXTEENTH DAY OF JUNE, 2025 PRESENT: SH. RAMESHVIILI-OIHE, B.Com, L.LB. (Hons.), M.A. PRESIDING OFFICER

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ORIGINAL APPLICATION NO. 604 OF 2022

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HDFC Bank Ltd. 1-10-60/3, 3'd Ftoor Suryodaya Complex Secunderabad Mandal Begumpet Hyderabad- 500016. Rep by its Manager-Legal.

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.......Applicant.

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Versus

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M/s. K.K. Eywear Rep by its^partner Mr. K. Ravi prakash l_-7 -396/397, Jain Estate, Secunderabad Hyderabad-500003.

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Also at: K K Eywear, H.No.20_96/5 Dayanand Nagar Near Behind Indu Ratna Towers Malkajgiri, Hyderabad-5 OOO47.

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Mr. Ravi^prakash S/o Chandramouli Aged about 39 years Occ: Partnerof - K K Eywear t-7 -396/397, Jain Estate, Secunderabad Hydera bad - 500003.

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..... Defendants.

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Counsel for the Applicant Counsel for Defendants

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Mr. M. Srinivas Reddy.

Mr. C. Sreedhar. 0w"

oA.604l2O2Z

:: ORDER::

T. The Applicant^{Bank filed the present OA u/s 19 of The Recovery} of Debts^{& BankruptcyAct' 1993 for recovery of a sum of} Rs.39,10,152'B6Ps^{fromdefendantsjointly and severallywith} future^{interest@ 18o/o p.a' from the date of Application till the} date of^realisation'

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The averments^{of applicant bank as per the OA' briefly' are that} it sanctioned^{a business loan to the defendants'The loan was to} be repayable^{in 36 monthly instalments with 15'50o/ointerest'} The defendants^{executed necessary loan documents including} loan agreement^{dated OB'01'2020'Defendantswereextended} moratoriumduringCovid.lgPandemic,besidesGuaranteed Emergency^{Credit Line amounting to Rs'4'89'003/-under} Covid.19^{distressscheme to be repayablein 48 EMIs with} 8.25o/ointerest.Thereafter,theloanWaSrestructuredatthe request of^{the defendantsstretchingthe EMIS from 36 to 67} months. Despite^{availing restructurefacility' GECL and Covid'19} moratorium,^{defendantscommitteddefault in making the} payment of^{loan amounts'Accordingly' the loan accountwas} classified^{as NPA on 06'10'2020' followedby recall notice dated} 04,oT.2022.Asnopaymentcameforward,thepresentoAis filed for^{recovery of outstandingduesfrom the defendants'}

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Defendants^{filed written statement'The avermentsof} the written statement,^{in brief, are the defendantsbusiness} WAS totally damaged^{due to Covid'19Pandemic'Hence the} loa n account could^{not be maintainedproperly' Applicant} bank RBI

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charged higher^{rate of interest in contravention of} guidelines. Applicant bank^{is not entitled to,' charge} penal rwp

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oA.6U/2022

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interest or to capitalise the same. Applicant obtained the sig natures on blank loan documents and the same are now used to file the present case.

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The Applicant Bank examined Sumaya Shaik, Manager-Legal as AW-1 and marked 10 documents through her as Ex. A.1 to Ex. 4.10.

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The defendants examined Ravi prakash, 2nd Defendant as DW.1 and marked no documents.

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Both side counsels reported no oral arguments. perused the written arguments filed by both parties and the material placed on reco rd.

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The point that arises for consideration is:_

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Whether the Applicant Bank is entiiled for the OA claim against the Defendants 1 and 2 jointty and severally?

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B. Availment of roan facirity and defaurt thereafter has not been in dispute, According to defendant, the interest charged by the applicant bank is contrary to the contract and the directives of the Reserve Bank of India. The appricant bank is not entiued to claim the said rate of interest and the penal interest. The defendant submits that the appricant bank has capitarized the penal interest, and such charging of interest and penal interest is against the law. However, the defendants have failed to produce any proof of charging of higher rate or excessive rate of interest either contrary to the agreed terms or that of RBI guidelines. The rate of interest, penal interest, capitalisation of

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4/ff0'*

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oA.60412022

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interest are^{governedby the terms and conditions of the} contract^{enteredinto betweenthe borrowers and the creditor} bank.Differentratesofinterestarechargedbydifferentbanks depending upon^{their respective liquidity position of each bank} at the^{given time' Moreover,this Tribunal cannotinterfere in} the rate of^{interest charged before filing the OA' In sucha} situation, the^{contention of defendants in this aspect is baseless} and cannot be^{interdictedby this Tribunal' Under such} circumstances,^{the Evidence Affidavit of AW'1 coupled with the} recitals in Exs.^{A.1 to A.10 marked on behalf of the Applicant} Bank, clinches^{the claim of the Applicant Bank against the} Defendants.Hence,IholdthatDefendantsland2arejointly and severally^{liable to pay the OA claim to the Applicant Bank} with future interest^{and costs.}

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In the result,^{the present Original Application No'604/2022is} allowed as^under:-

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i) the defendants^{are jointly and severally} liable to^pay to the^{applicantbank atotal} sum of Rs.39,10,152.86Ps^{along with} interest @8.25olo^{p.a. simple from the date of} application till^{the date of realization;}

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ii) the applicant bank^{is also entitled to proceed} against the^{person and properties} .^of defendants for^{realization of its dues; and}

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iii ) the applicant bank^{is entitledfor the costs.}

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The Applicant Bank is directed to file Cost^{Memo within2 weeks} from the date of receipt of this order. N-*

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oA.604/2022

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Issue Recovery Certificate accordingly.

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Communicate a copy of this order to the parties concerned and upload in Web Site.

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l?'f,l*O^{to the steno, signed and pronouncedby me in the open court on this} the

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16th day of June, 2025)

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PRESIDING OFFICER

Hdfc Bank Ltd. v. M/S. K K Eywear

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. M/S. K K Eywear

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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