Allowed

Hdfc Bank v. Mr Chandan Kumar

DRT11 Dec 2025OA/963/2024

Case brief

AI extract

What is this about?

The DRT Lucknow decided an ex-parte application filed by HDFC Bank for recovery of dues. The court found the bank proved execution of loan documents and made the defendants jointly and severally liable to pay the outstanding amount with interest, permitting sale of assets upon default.

What did the court decide?

Direct payment of dues within two months; entitlement to sell hypothecated and personal assets; issuance of recovery certificate.

Hdfc Bank versus Mr Chandan Kumar — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Office action
Date of order or I Order with signature of court
proceeding taken with
date
O.A. No.963/2024
11.12.2025 The Judgment is signed and
pronounced on separate sheets. Separately
attached in 06 sheets
Order be uploaded on the Tribunal’s
website.
(Dictated)
(
(Pravas Kumaru,.rgh)
Presiding Officer
(Mugish)

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IN THE DEBTS REC'OVERY TIUBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer

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Case No. Original Application No.963 of 2024

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Dated: 11.12.2025

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HDFC Bank Limited having Branch at 2-d Floor, Experio Building, Vibhuti I<hand, Gomti Nagar, Lucknow – 226010, U.P.

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....'... .Applicant-bank

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Versus

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Mr. Chandan Kumar S/o Shatrohan LaI, Address: Village – Newaj Khera, Post Amethi, Amethi, Lucknow, - 227125, Uttar Pradesh.

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Mr. Suraj Kumar S/o Shatrohan LaI, Address: Village Newaj Khera, Dhaurahra Post Amethi, ......Defendants Amethi, Lucknow – 227125, Uttar Pradesh.

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Ld. Counsel for Applicant-bank: Shri Ritesh Goel, Advocate Ld. Counsel for the Defendants: None.

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JUDGEMENT

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This Original Application has been filed by the Applicant-bank under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.22,22,389.91/- (Rupees Twenty Two Lacs, Twenty Two Thousand, Three Hundred Eighty Nine and Paisa Ninety One Only) together with pendent-lite and future interest, costs and other reliefs etc

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The brief facts of case are that the defendants approached the Applicant-bank for grant of credit facility through the application for the purchase of Commercial Equipment. The Applicant-bank considered the

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O.A. No.963 of 2024

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request of the defendants and sanctioned Commercial Equipment of Rs.25,42,304.00 vide its sanction letter dated 24.11.2022 on certain terms and conditions (Exhibit No. A-) to this Original Application.

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To secure aforesaid credit facility, defendants had executed and signed various security documents in favour of the Applicant-bank. The defendant signed and executed Guarantee Agreement 24.11.2022 (Annexure No.A-3) to this Original Application.

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To avail the aforesaid credit facility, the Applicant-bank had opened loan accounts in the name of defendant No.1 in order to maintain the credit facilities.

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After availing the aforesaid credit facility, the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, consequently, the loan account of the defendant no. 1/firm was classified as NPA on 03.06.2024 by the bank as per RBI guidelines, thereafter the Applicant-bank issued Recall Notice dated 05.08.2024 to the defendants (Annexure No.A-4/5), but, the defendants stated no-response and they failed to repay the same and the loan accounts of the defendants are still un-liquidated, hence, this Original Application has been instituted.

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.22,22,389.91/- (Rupees Twenty Two Lacs, Twenty Two Thousand, Three Hundred Eighty Nine and Paisa Ninety One Only) including interest upto 26.07.2024, were lying due for payment, for which the defendants are jointly and severally liable to repay the same, which they did not pay despite repeated requests and demand.

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\ //

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3 O.A. No.963 of 2024

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The Applicant-bank filed the Statement of loan Accounts. (Annexure No.A-6) to this Original Application.

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The cause of action for filing the present application arose firstly on 24.11.2022 when the aforesaid credit facility were sanctioned by the Applicant-bank and the same were availed by the defendants and necessary documents were executed by the defendants. The cause of action further arose on when recall Notice dated 05.08.2024 was sent to the defendants, recalling the entire outstanding dues and they failed to pay the same.

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The summons were served upon the defendants through registered post, but the defendants did not appear before the Tribunal to contest their case, hence the matter proceeded ex- parte against the defendants.

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From the perusal of the record, it is evident that the defendants were provided with fair opportunities to contest the claim of the bank. As the defendants opted not to contest the case, so only point of consideration before this Tribunal is as to whether bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it.

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In support of the case Shri Saurabh Singh, Legal Manager of the Applicant-bank has filed an affidavit.

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On a careful scrutiny of the evidence on affidavit and Exhibits marked as Annexure No.A-1 to Annexure No.A-6, it is proved that defendants had availed the credit facilities from the Applicant-bank by executing loan and security documents detailed as above in favour of the Applicant-bank. A perusal of the application, evidence and documents relied

O.A. No.963 of 2024

upon clearly show that defendant had utilized the above loan facilities as granted to them. The Applicant-bank had maintained the Books of account in the ordinary course of banking business showing disbursal of the loan amount. The Bank had also charged interest from time to time and the entries are relevant u/s 4 of the Banker Books of Evidence Act. It is alSQ proved that the Applicant-bank’s claim is within limitation against defendants, therefore, the defendants are jointly and severally liable to pay the dues.

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Accordingly, the defendants are directed to pay the balance dues to the Applicant-bank within a period of 2 months from the date of judgement failing which the Applicant-bank will be entitled to sell the hypothecated assets and personal assets/ properties of the defendants.

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The Applicant-bank has claimed [email protected]% per annum with monthly rest w.e.f. 26.07.2024 till the date of realization and costs. On the basis of foregoing discussion, cause for interest of justice will be served if pendent- lite and future interest is granted @10% per annum with monthly rest reducing balance from the date of filing of the O.A. till the date of realization with costs.

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1 find that the bank has proved the execution of loan documents and creation ofhypothecation in its favour. In the result, the Original Application succeeds as ex-parte against the defendants with costs. The bank has

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proved the loan execution of loan documents in favour of the bank and availment of credit facility. The liability of the defendant No.1 & 2 are joint

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5 O.A. No.963 of 2024

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and several and hypothecated asset as well as the personal properties are to be sold.

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It is, therefore , ordered

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(i) That the Original Application No.963 of 2024 of the Applicant bank for issuance of Recovery Certificate to the tune of Rs.22,22,389.91/(Rupees Twenty Two Lacs, Twenty Two Thousand, Three Hundred Eighty Nine and Paisa Ninety One Only) along with the interest @10% per annum with monthly rest from the date of filing of the Original Application i.e. 06.09.2024 till the loan is fully liquidated and costs succeeds ex-parte against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgement, failing which the Applicant-bank will be entitled to recover the same from the secured assets, personal movables and immovable assets of the defendants.

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(iii) The Applicant–bank is entitled to recover aforesaid amount by sale of hypothecated assets (if not sold earlier under the provision of the S.A.R.F.A.E.S.I. Act 2002). The amount, if any already recovered by sale of any hypothecated assets or otherwise shall be recoverable, if the dues of the Applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable assets of the defendant jointly and severally.

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(iv) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing

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O.A. No.963 of 2024

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with their properties/estates without first paying the claim of the

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Applicant-bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 by fixing 11.02.2025. before R.O., DRT, Lucknow.

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(vi) The Applicant-bank is directed to file a memo of cost for preparing Recovery Certificate u/s 19(22) of the Recovery of Debts & Bankruptcy Act, 1993 .

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Judgment is pronounced in the open court.

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Dated: 11.12.2025

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(Pravas Kumar _ Presiding Officer

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(MK)

Hdfc Bank v. Mr Chandan Kumar

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Mr Chandan Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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