Allowed

Hdfc Bank v. Shiv Shakti Polymers

DRT29 Dec 2025OA/612/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the original application filed by HDFC Bank Limited for recovery of Rs. 69,24,686 owed by M/s Shiv Shakti Polymers and its proprietor and guarantors, directing payment within 30 days and issuance of a recovery certificate.

What did the court decide?

Defendants directed to pay Rs. 69,24,686 plus interest at 12% per annum within 30 days; recovery certificate issued to Recovery Officer.

Hdfc Bank versus Shiv Shakti Polymers — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 612 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 612 of 2023

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HDFC Bank Limited

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Plot No. 31, Najafgarh Road Industrial Area, Tower "A", 1st Floor, Shivaji Marg, Moti Nagar, New Delhi - 110015

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Applicant

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Versus

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M/s Shiv Shakti Polymers

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(Proprietorship concern of Mr. Vijay Arora) Entire Ground Floor,

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Part of Built up Property No.81, Pocket -E, Sector -1, DSIIDC Industrial Area, Bawana, New Delhi — 110039

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Mr. Vijay Arora 142, G-Block, Opp. Om Sweets Hari Nagar, Janakpuri B-1, Rajouri Garden, West Delhi — 110058

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Ms. Anita Arora

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142, G-Block, Opp. Om Sweets Hari Nagar, Janakpuri B-1, Rajouri Garden, West Delhi — 110058

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Defendants

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Present: Ms. Shreya Pathak, Counsel for the applicant bank

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Date of Reserve: 16.12.2025

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Date of Pronouncement: 29.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 23.05.2023 through Sh.Sagar Juneja, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.69,24,686/- (Rupees

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O.A. No. 612 of 2023

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Sixty Nine Lacs Twenty Four Thousand Six Hundred Eighty Six only) as on 26.04.2023 along with pendentelite and future interest @18% per annum from the date of filing of this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendants vide loan application dated 22.02.2021, the applicant bank sanctioned Cash Credit of Rs.75,00,000/(Rupees Seventy Five Lacs only) on 30.03.2021 for working capital against hypothecation of stock in trade and book debts. The defendant no.2 & 3 stood as guarantors for the credit facility sanctioned in favour of defendant no.1 by the applicant bank.

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In order to avail the loan facility, the defendants submitted loan application and executed Master Facility Agreement, Addendum, Letter of Guarantee, Power of Attorney and Deed of Hypothecation with the applicant bank on 03.04.2021.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and committed default in payment of principal debt and interest with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 02.12.2022 as per RBI guidelines due to non-adherence of financial discipline by the defendants and issued legal notice dated 29.04.2023. The defendants failed to clear the outstanding overdue in the account, hence the applicant bank has approached this tribunal for recovery of its dues.

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Notices of this O.A. were issued to the defendants and despite of proper service despite publication in newspapers,

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O.A. No. 612 of 2023

the defendants have chosen to absent from the proceedings. As per orders dated 18.07.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and not filed their evidence.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Sagar Juneja, authorized representative of the applicant bank who has proved the documents as Board Resolutions, Loan Application Form with Registration Certificate, Sanction Letter, Original Master Facility Agreement, Addendum Agreement, Networth Certificate of Defendant, Deed of Hypothecation, Legal Notice along with original Postal Receipts, Delivery Reports, Statement of Account Certified under Banker's Books Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/9 (Colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in 5c

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O.A. No. 612 of 2023

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rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.69,24,686/- (Rupees Sixty Nine Lacs Twenty Four Thousand Six Hundred Eighty Six only) as on 26.04.2023 together with pendentelite and future interest @12% per annum from 27.04.2023 till the date of its realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks. In case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 27.02.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 29.12.2025

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