Allowed

Hdfc Bank Ltd. v. M/S Sanjeev Traders and Others

DRT23 Mar 2026OA/1115/2024

Case brief

AI extract

What is this about?

HDFC Bank Limited approached the Debt Recovery Tribunal for recovery of Rs.30,97,870.28 from Sanjeev Traders and others for default on ODAP and GECL loans. The Tribunal allowed the application, directing payment of the principal sum plus 8% p.a. interest.

What did the court decide?

Recovery of Rs.30,97,870.28 with 8% p.a. interest; issue of Recovery Certificate; liberty to execute against mortgaged and personal assets.

Hdfc Bank Ltd. versus M/S Sanjeev Traders and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1115/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.03.2024

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DATE OF DECISION: 23.03.2026

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HDFC Bank Limited is a company incorporated under Companies Act 1956 and carrying banking business under Banking Regulation Act 1949, having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, and interalia having branch at Plot No 1-15, Sector101, Alpha IT City, SAS Nagar Mohali, through its authorized representative Mr. Rajendra Prasad.

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……..Applicant Versus

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Sanjeev Traders through its Prop. Sanjeev Kumar, Shop No. 342/10, Sadar Bazar, Near Shiv Mandir, Samana (Punjab) 147101

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Sh. Sanjeev Kumar S/o Sh. Pawan Kumar, R/O H.No. 248, Ward No-15, Patiala, Samana (Punjab) - 147101

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Sh. Ricky Kumar, R/O H.No. 248, Ward No-15, Patiala, Samana (Punjab) - 147101

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Sh. Sandeep Kumar, R/O H.No. 248, Ward No-15, Patiala, Samana(Punjab)–147101

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………. Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant None for Defendants.

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.30,97,870.28 (Rupees Thirty Lacs Ninety seven thousand Eight hundred Seventy And Paise Twenty eight only). The Original Application has been filed through Mr. Rajendra Prasad, authorized representative of the applicant, who is competent to

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2 OA/1115/2024 HDFC BANK LTD. VS M/S SANJEEV TRADERS AND OTHERS

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institute the Original Application vide Board resolution dated 15.04.2023, which is Annexure A1 to this OA . 2. The brief facts of the OA are that the Defendant No. 1 through its proprietor, who is Defendant No. 2, approached the applicant for the grant of ODAP Facility of Rs.26.00 Lacs, vide loan application letter dated 28.01.2013, which is Annexure A2 to this OA. Defendant 3 & 4 stood as Guarantors. Thereafter, Defendant No. 1 through its proprietor, who is Defendant No. 2, approached the applicant for the enhancement of ODAP Facility of Rs.26.00 Lacs to Rs.30.00 Lacs. Thereafter, the defendants applied for renewal of the credit facility on 02.02.2015, 20.01.2016, 18.01.2017 and applied to reduce the said facility of Rs.30.00 Lacs to Rs. 27.25 lacs. Thereafter, the defendants applied for renewal of the credit facility on 13.02.2019 & 13.07.2020. Thereafter, the Defendant No. 1 through its proprietor, who is Defendant No. 2, approached the applicant for the grant of GECL loan of Rs.5.50 Lacs. Thereafter, the defendants applied for renewal of the credit facility on 22.02.2021, 23.02.2022 & 27.09.2023. 3. The applicant sanctioned the ODAP Facility of Rs.26.00 Lacs, vide Sanction Letter dated 28.01.2013, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of ODAP Facility of Rs.26.00 Lacs to Rs.30.00 Lacs, vide Sanction Letter dated 07.06.2014, which is Annexure A12 to this OA. Thereafter, the Applicant sanctioned the renewal of the credit facility on 02.02.2015, 20.01.2016, 18.01.2017 and reduced the said facility of Rs. 30.00 Lacs to Rs. 27.25 Lacs vide sanction letter dated 14.02.2018, which is Annexure A18 to this OA. Thereafter, the Applicant sanctioned the renewal of the Credit facility of Rs. 27.25 Lacs vide sanction letter dated 13.02.2019 & 13.07.2020, which are Annexure A19, A20 to this OA. Thereafter, Applicant sanctioned the GECL loan of Rs 5.50 lacs vide sanction letter dated 30.09.2020, which is Annexure A24 to this OA. Thereafter, the Applicant sanctioned the renewal of

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3 OA/1115/2024

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HDFC BANK LTD. VS M/S SANJEEV TRADERS AND OTHERS

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Credit facility of Rs. 27.25 Lacs vide sanction letter dated 22.02.2021, 23.02.2022 & 27.09.2023, which are Annexures A21, A22 & A23 to this OA.

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Defendant no.1 mortgaged his immovable properties i.e. commercial property situated at Shop No. 342/10, Sadar Bazar, Samana (Haryana), which is Annexure A11 to this OA. The memorandum of extension of mortgage by delivery of title deed dated 07.06.2014, which is Annexure A17 to this OA. Documents executed: Master Facility Agreement, Letter of Continuing Guarantee, Deed of Indemnity, Declaration cum Indemnity, Undertaking cum Indemnity, Letter of Continuing Security , D.P. Note, all dated 29.01.2013, which are Annexures A4 to A10 to this OA; Supplementary Agreement, Supplementary letter of continuing Guarantee , Declaration cum Indemnity , Letter of Continuing Security, Memorandum Recording all dated 07.06.2014, which are Annexures A13 to A17 to this OA; Facility cum Hypothecation Agreement, Declaration cum Undertaking, Undertaking all dated 03.10.2020, which are Annexures A25 TO A27 to this OA; Legal notice dated 23.08.2024 along with postal receipts, which are Annexures A28 to A32 to this OA; Statement of Account with certificate, which are Annexures A33 & A34 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.30,97,870.28, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal. Sh. Satish Jaswal, Advocate proxy for Sh. K.H.S. Bath, Advocate appeared on behalf of defendants on 04.01.2025 and filed memo of appearance. Sh. K.H.S. Bath, Advocate filed his Power of Attorney on behalf of defendants on 18.02.2025. Complete set of paper

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4 OA/1115/2024 HDFC BANK LTD. VS M/S SANJEEV TRADERS AND OTHERS

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book was supplied on 04.11.2025 but no WS was filed. Therefore, opportunity to file WS by defendants was closed and defense was struck off vide order dated 10.02.2026. 7. In support of the OA, affidavit of Mr. Rajendra Prasad, authorized representative, HDFC Bank Ltd, has been filed. 8. Heard arguments and perused record. No one appeared on behalf of defendants for arguments. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A34 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities, which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,97,870.28.00 (Rupees Thirty Lacs Ninety seven thousand Eight hundred Seventy And Paise Twenty eight only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.83% p.a. in ODAP facility & interest @8.25%p.a. in GECL till the realization. The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest

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5 OA/1115/2024

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HDFC BANK LTD. VS M/S SANJEEV TRADERS AND OTHERS

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@08.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,97,870.28 (Rupees Thirty Lacs Ninety Seven thousand Eight hundred Seventy And Paise Twenty eight only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of mortgaged property/hypothecated assets of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.04.2026 15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 23.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Ltd. v. M/S Sanjeev Traders and Others

Case brief

What is this about?

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Hdfc Bank Ltd. v. M/S Sanjeev Traders and Others

Case brief

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