Allowed

Hdfc Bank v. Mr. Subhash Chand

DRT10 Jun 2025OA/811/2023

Case brief

AI extract

What is this about?

In an ex-parte proceeding, the Debts Recovery Tribunal allowed the bank's application for recovery of an unpaid loan. The court reduced the interest rate from 18% to 12% annually, directed payment within 30 days, and ordered the issuance of a recovery certificate.

What did the court decide?

Direct payment of Rs. 25,85,284.29 with interest @12% p.a. within 30 days; recovery via sale of properties; issuance of recovery certificate.

Hdfc Bank versus Mr. Subhash Chand — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 811 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.811 of 2023

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HDFC Bank Ltd.

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

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Versus

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Mr. Subhash Chand House no.502, 1st Floor Paradise Apartment, Sector-18, Rohini, Delhi-110089

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Also at:

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E1-83, 3rd Floor, Sector-16, Rohini, Delhi-110089

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Also at: Government Sarvodaya Vidyalaya Lancer's Road, Timar Pur Delhi-110009

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Also at: Dhingar Patti, Sarsa, Sarsa (17) Defendant Kurukshetra-136128

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Present: Ms. Amita Kumar', Counsel for the applicant bank

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Date of Institution: 05.10.2023 Date of Pronouncement: 10.06.2025

O.A. No. 811 of 2023

FINAL ORDER

This original application has been filed by the applicant bank on 05.10.2023 through Ms. Swathi Vajjhala, 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.25,85,284.29 (Rupees Twenty Five Lacs Eighty Five Thousand Two Hundred Eighty Four and paisa Twenty Nine only) along with pendentelite and future interest @18% per annum with monthly rests from date of filing this application till its realization along with costs.

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The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned Credit Card and Personal Loan of Rs.24,50,000/- (Rupees Twenty Four Lacs Fifty Thousand only) @10.35% interest per annum to be repayable in 72 Equated Monthly Installment of Rs.45,822/-.

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In order to avail the loan facilities, the defendant submitted and executed Loan Application, Original Loan Agreement, Card Members' Agreement and MITC in favour of the applicant bank on 17.02.2023.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and regularize the account with the applicant bank. Ultimately, the applicant bank issued legal notice dated 16.08.2023 but returned undelivered on the last known address instead received Email and hence the applicant bank has approached this Tribunal for recovery of their dues.

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O.A. No. 811 of 2023

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 01.10.2024, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Ms. Swathi Vajjhala authorized representative of the applicant bank who has proved the documents as Board of Resolution Ex.AW-1/1, Credit Card Application Form and Loan Application Ex.AW-1/2(Colly), Original Loan Agreement, Card Members' Agreement and MITC Ex.AW-1/3(Colly), Legal Notice Ex.AW-1/4 (Colly), Delivery Reports Ex.AW-1/5 (Colly), Certificate under Section 65B of Indian Evidence Act Ex.AW-1/6 (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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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 rates of interest globally and domestically, I am of the opinion

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O.A. No. 811 of 2023

that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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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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10.^{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 defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.25,85,284.29 (Rupees Twenty Five Lacs Eighty Five Thousand Two hundred Eighty Four and paisa Twenty Nine only) together with pendentelite and future interest @12% per annum from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from sale of movable and immovable properties 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 08.08.2025.

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O.A. No. 811 of 2023

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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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5 d (GOVIND BAL BH S4ARMA) PRESIDING OFFICER DRT-I, DELHI

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