Allowed

Hdfc Bank v. M/S Shri Freight and Logistics Pvt. Ltd.

DRT4 Dec 2025TA/582/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's Original Application for recovery of a loan. The court confirmed the bank's entitlement to recover Rs. 64.92 lakhs from the company and its directors/guarantors and ordered sale of hypothecated and personal assets.

What did the court decide?

Recovery of Rs. 64,91,844.05 plus interest @ 18% p.a.; liberty to sell hypothecated and personal assets of respondents 2-4; issues recovery certificate.

Hdfc Bank versus M/S Shri Freight and Logistics Pvt. Ltd. — Execution and Attachment | DRT (2025)

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T.A. No. 582 of 2023

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04.12.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of December, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 582 of 2023

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(Originally filed before DRT- II, Chennai as OA 45/2020 and thereafter transferred to this Tribunal and renumbered as TA No 582 of 2023)

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The HDFC Bank Ltd., Dept. for Special Operations, No. 96, Anna Salai, B-Wing, 7^th Floor, Prince Khushal Towers, Chennai – 600 002. Rep. by its Senior Manager ….Applicant

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-Vs-

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M/s. Shri Freight and Logistics P. Ltd., New No. 494, Old No. 386,

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MKN Road, Alandur,

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Chennai – 600 016

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Rep. by its Directors.

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Mr. Harikrishnan, S/o. Veeraraghavan,

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No. 5, 4^th Street, TNGO Colony,

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Nanganallur,

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Chennai – 600 061.

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Mr. Sethuraman,

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S/o. Narayana Krishnan,

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No. 9/4, 24^th Street, T.G. Nagar,

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Nanganallur,

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Chennai – 600 061.

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Mrs. Rekha,

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New No. 494, Old No. 386, MKN Road, Alandur,

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Chennai – 600 016.

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…. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. K. Rajasekaran

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Defendants 1 to 4 were set ex-parte on 21.07.2022

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T.A. No. 582 of 2023

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04.12.2025

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: - FINAL ORDER - :

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This Original Application is filed on 03.12.2019 by the Applicant Bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 4, jointly and severally for recovery of a total sum of Rs. 64,91,844.05p (Rupees Sixty Four Lakhs Ninety

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One Thousand Eight Hundred Forty Four and Five paise only) as follows:

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(i) A sum of Rs.53,63,514.56p due in respect of Cash credit Facility (Account No.50200000843329) repayable together with further interest @ 18% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.11,28,329.49p due in respect of Term Loan Facility (Account No.4544233) repayable together with further interest @ 18% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of movable property morefully detailed in the OA and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 45 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 45 of 2020 stood transferred to this Tribunal and renumbered as TA No. 582 of 2023.

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T.A. No. 582 of 2023

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04.12.2025

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the Applicant Bank that the first defendant, is a Private Limited Company, Represented by its Directors 2 to 4 Defendants having its Registered office at the above address and is engaged in the dealership business of automobiles at several places across the nation. Furthermore, the 2^nd to 4^th Defendants are the Directors of the First Defendant Company, and further 2^nd and 3^rd defendants stood as Guarantors against the Loan availed by the 1^st Defendant.

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It is submitted by the Applicant Bank that the 1^st Defendant through their Authorized representatives had approached the Applicant Bank on 02.03.2013 for Working Capital facility and Applicant Bank in their usual course of Business had sanctioned a Cash Credit in the form of OD FD (Higher LTV) towards Working Capital requirements of the First Defendant Company for sum of Rs. 10,00,000/- (Rupees Ten Lakhs only) repayable together with interest rate at 13.50% p.a. with additional interest at the rate 18% p.a. on default subject to the terms and conditions of the sanction. The First Defendant and their authorized representatives agreed to the said terms of sanction therein. Evidencing the availment of Loan facility Defendants executed the following documents in favour of

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T.A. No. 582 of 2023

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04.12.2025

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applicant bank on 12.04.2013:

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(i) Letter of Continuing Security executed by the first defendant

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(ii) Demand Promissory Note for a sum of Rs. 10 Lakhs

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(iii) Master Facility agreement executed by the first defendant

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(iv) Letter of continuing Guarantee executed by the first defendant

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(v) Memorandum relating to Charge over fixed deposits/cash

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The Applicant submits that the revised sanction was accorded on 02.04.2014 for Rs. 5 Lakhs as Cash Credit facility to the Defendants by the Applicant and evidencing the same, executed the following documents on 03.04.2014 in favour of applicant bank:

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(i) Undertaking cum Indemnity executed by the First Defendant;

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(ii) Letter of Continuing Guarantee executed by 2^nd and 3^rd Defendants

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(iii) Letter of Power of Attorney executed by the First Defendant

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The Applicant submits that the revised sanction was accorded on 25.02.2015 for Rs. 5 Lakhs as Cash Credit to the Defendants. Thereafter, an Amendment Agreement and Demand Promissory Note for a sum of Rs. 5 Lakhs executed on 22.04.2016 by the First Defendant. The First Defendant further executed Supplementary Agreement and Demand Promissory Note for Rs. 5,00,000/- and 2^nd and 3^rd Defendants executed Letter of Continuing Guarantee and Letter of Continuing Security by the First Defendant for revised credit limits to the extent of a sum of Rs.

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T.A. No. 582 of 2023

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04.12.2025

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5,00,000/- on dated 28.03.2017. The Defendants evidencing the loan availed had also secured the same by executing the Letter of Hypothecation dated 28.03.2017 thereby hypothecating their book of debts, stock in trade, and movable assets of the borrower company as more-fully described in the schedule therein as well as the Power of Attorney for book debts. The sanction was revised to 55 Lakhs in the form of Cash Credit and further Term Loan a sum of Rs. 39.5 Lakhs to the Defendant and a Term Loan Agreement and other loan security documents were executed by the Defendants in favour of the Applicant Bank. The Existing facilities were renewed on 28.09.2019 vide the Applicant's sanction letter. The Defendants executed following documents in view of the renewal of the sanctioned loan:

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(i) Demand Promissory Note dated 22.04.2016

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(ii) Amendment Agreement for a sum of Rs. 5 Lakhs executed on by the first defendant dated 22.04.2016

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(iii) The first defendant executed Supplementary Agreement dated 28.03.2017

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(iv) Demand Promissory Note for the sum of Rs. 94,50,000/dated 28.03.2017 (v) Letter of Continuing Security Rs. 94,50,000/dated 28.03.2017

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(vi) The 2^nd and 3^rd defendants executed Letter of Continuing Guarantee in favour of the Applicant Bank dated 28.03.2017

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(vii) Supplementary Letter of Hypothecation executed by the

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T.A. No. 582 of 2023

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04.12.2025

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defendants dated 28.03.2017

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(viii) Power of Attorney dated 28.03.2017

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It is submitted by the Applicant that subsequent to availing of loan, the Defendants have become chronic defaulters in repayment of the above limits availed. The Defendants along with its partners failed and neglected to be regular in operating the accounts and in repayment of dues as a result of which the arrears mounted in the loan account. In spite of repeated demands made by the Applicant, the Defendants have not taken any steps to pay the dues. This has resulted in the account being declared as a Non Performing Asset (NPA) on 08.03.2019 in accordance with RBI guidelines.

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The 1^st Defendant being the principal Borrower of their respective loans availed by them, 2nd to 3rd Defendants being Directors as well as the Personal Guarantors with respect to the loan availed by the First Defendant, and 4^th Defendant being the Director of the Company, for the above loan availed and all of them jointly and severely liable and responsible to the Applicant Bank. The Defendants have willfully, malafidely and intentionally neglected to pay the amount outstanding in the books of the Applicant Bank. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the defendants 1 to 4 through Registered Post with Acknowledgment Due, which returned

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T.A. No. 582 of 2023

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04.12.2025

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unserved with postal endorsement as ‘No such Company in this address’ in respect of D-1 and ‘No such address’ in respect of D-4, while summons to D-2 and D-3 are duly served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 21.07.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, the defendants 1 to 4 were placed ex-parte on 21.07.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. S. Surender, Manager of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex. A-1 to A-25 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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13. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the defendants

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1 to 4, jointly and severally for recovery of a total sum of Rs.

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T.A. No. 582 of 2023

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04.12.2025

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64,91,844.05p (Rupees Sixty Four Lakhs Ninety One

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Thousand Eight Hundred Forty Four and Five paise only) as follows:

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(i) A sum of Rs.53,63,514.56p due in respect of Cash

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credit Facility (Account No.50200000843329) repayable together with further interest @ 18% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.11,28,329.49p due in respect of Term Loan Facility (Account No.4544233) repayable together with further interest @ 18% p.a. with monthly rests from the date of Application till the date of realization in fullcosts of this application;

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the hypothecated assets morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants 2 to 4 (both movable and immovable) to recover the balance dues as required under law for which the defendants 2 to 4 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 to 4.

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T.A. No. 582 of 2023

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04.12.2025

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days

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from the date of receipt of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 04^th day of December, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Surender, Manager representing the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	02.03.2013	^{Application Form for Credit Facilities} with the Applicant Bank by the first	A-1

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T.A. No. 582 of 2023

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		defendants
2.	12.04.2013	Initial Sanction Letter	A-2
3.	12.04.2013	^{DPN for Rs. 10 Lakhs executed by the} first defendant	A-3
4.	12.04.2013	Letter of Continuing Security executed by the first defendant in favour of the applicant bank	A-4
5.	12.04.2013	^{Master Facility Agreement executed by} the First Defendant	A-5
		Letter of Continuing Guarantee
6.	12.04.2013	executed by the first defendant in favour of the applicant bank	A-6
7.	12.04.2013	Memorandum relating to Charge over fixed deposits / cash executed by the first defendant in favour of the applicant bank	A-7
		Revised sanction was accorded on
8.	02.04.2014	02.04.2014 for Rs. 5 Lakhs as Cash Credit Facility to the defendants by the applicant	A-8
9.	03.04.2014	^{Undertaking cum Indemnity executed} by the first defendant	A-9
10.	03.04.2014	^Letter of Continuing Guarantee executed by 2^ndand 3^rddefendants	A-10
11.	03.04.2014	^{Letter of Power of Attorney executed by} the first defendant	A-11
12.	25.02.2015	Renewal Sanction Letter	A-12
13.	22.04.2016	Renewal Sanction Letter	A-13
14.	22.04.2016	Demand Promissory Note	A-14
		Amendment Agreement for a sum of Rs.
15.	22.04.2016	5 Lakhs executed on by the first defendant	A-15
16.	28.03.2017	^{Renewal cum Enhancement Sanction} Letter	A-16
		The first defendant executed
17.	28.03.2017	Supplementary Agreement for the sum of Rs. 94,50,000/-	A-17
18.	28.03.2017	^{Term Loan Agreement for the sum of} Rs. 94,50,000/-	A-18
19.	28.03.2017	^{Demand Promissory Note for the sum of} Rs. 94,50,000/-	A-19
20.	28.03.2017	^Letter of Continuing Security Rs. 94,50,000/-	A-20
		The 2^ndand 3^rddefendants executed
21.	28.03.2017	Letter of Continuing Guarantee in favour of the applicant bank	A-21
22.	28.03.2017	Supplementary Letter of Hypothecation	A-22

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		executed by the defendants
23.	28.03.2017	Power of Attorney	A-23
24.	28.09.2018	Renewal Sanction Letter	A-24
25.	--	Statement of Account along with RBE Certificates	A-25

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Witness Examined for the Defendants

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: -Nil-

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List of Documents Exhibited for the Defendants : -Nil –

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:SCHEDULE:

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Books of debts, fixed deposit and cash of Borrower Company, stock in trade as stated in the Memorandum relating to Charge over Fixed Deposits / Cash dated 12.04.2013 and Letter of Hypothecation dated 28.03.2017.

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Sd/- (S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Hdfc Bank v. M/S Shri Freight and Logistics Pvt. Ltd.

Case brief

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Hdfc Bank v. M/S Shri Freight and Logistics Pvt. Ltd.

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