Allowed

Hdfc Bank Ltd. v. M/S Abhi Apparels and Another

DRT2 Mar 2026OA/115/2025

Case brief

AI extract

What is this about?

The DRT III, Chandigarh allowed an application filed by HDFC Bank against defendants for recovery of Rs.66,34,015.07. The court granted uniform simple interest at 8% p.a. instead of the claimed 18% and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.66,34,015.07 with interest @8% p.a.; Issue of Recovery Certificate; Directions to appear before Recovery Officer.

Hdfc Bank Ltd. versus M/S Abhi Apparels and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.115/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.01.2025

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DATE OF DECISION: 02.03.2026

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HDFC Bank Ltd, a banking company incorporated under Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 Maharashtra having one of its branch at Focal Point Ludhiana, Punjab, through its duly authorized signatory and Authorized Officer Sh. Madhur Sharma, working as Assistant Vice President currently posted at 5^th Floor, B-2114570, GT Road, Dholewal Chowk Adjoining Gulzar Motors, Ludhiana.

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……..Applicant

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Versus

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M/S Abhi Apparels, a sole proprietorship concern having its place of business at B-23-5514, New Shivaji Nagar, Ludhiana through its sole proprietor

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2^nd Address: B-23-3904, Shivaji Nagar, Street No. 10 Ludhiana, Punjab-141001

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3^rd Address: 5514 New Shivaji Nagar, Ludhiana, Pb-141001

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Sh. Arun Malhotra S/o Sh. Pawan Malhotra, Sole proprietor, M/s Abhi Apparels, r/o H. No. 6388 Gali No.6, Hargobind Nagar, Ludhiana141001.

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..….Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate for the applicant

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Defendants already ex-parte vide order dated 07.02.2026

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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.66,34,015.07 (Rupees Sixty Six Lacs Thirty Four Thousand Fifteen and Paise Seven only). The Original Application has been filed through Sh. Madhur Sharma, Manager o f the applicant, who is competent to institute the Original

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OA NO.155/2025 HDFC BANK VS. M/S ABHI APPARELS AND ANOTHER

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Application vide Board Resolution dated 22.11.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.1 through proprietor of defendant No.2 approached the applicant for grant of Cash Credit Limit of Rs.30.00 Lacs vide Loan application dated 27.04.2022 which is Annexure A2 to this OA. Thereafter, the defendant no.1 through proprietor of defendant No.2 approached the applicant for enhancement of the limit to Rs.60.00 Lacs. 3. The applicant sanctioned sanction the Cash Credit Limit of Rs.30.00 Lacs vide Sanction Letter dated 30.04.2022 which is Annexure A3 to this OA the terms and conditions were duly accepted by the defendants. Thereafter, the applicant enhanced the CC Limit of Rs.60.00 Lacs vide sanction letter dated 23.02.2023 which is Annexure A8 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the limit was renewed by the applicant vide renewal sanction letter dated 17.03.2023, which is Annexure A15 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated stocks and book debts vide deed of Hypothecation dated 30.04.2022, which is Annexure A5 to this OA. Supplementary deed of hypothecation dated 23.02.2023, which is Annexure A11 to this OA. Documents executed: Master facility agreement, Power of Attorney, Letter of Continuing Guarantee, all dated 30.04.2022 which are Annexures A4 , A6 and A7 to this OA; DP Note, Supplementary Agreement, Power of Attorney, Letter of continuing security, Supplementary letter of continuing guarantee all dated 23.02.2023 which are Annexures A9, A10, A12 to A14 to this OA; Recall notice dated 23.09.2024 which is Annexure A16 to this OA; Statement of account and interest calculation chart, which are Annexures A17 and A18 this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.66,34,015.07 which is recoverable and the defendants were

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OA NO.155/2025 HDFC BANK VS. M/S ABHI APPARELS AND ANOTHER

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served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated: 07.01.2026.

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In support of the OA, affidavit of Sh. Madhur Sharma, Assistant Vice Presiden t, HDFC Bank has been filed.

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Heard ex-parte arguments and perused record.

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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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.66,34,015.07 (Rupees Sixty Six Lacs Thirty Four Thousand Fifteen and Paise Seven only) the along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18%p.a. with monthly rests from 26.12.2024 till the realization.

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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 loan and prevalent market rates of interest which have gone drastically downhill in yester

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OA NO.155/2025 HDFC BANK VS. M/S ABHI APPARELS AND ANOTHER

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years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.66,34,015.07 (Rupees Sixty Six Lacs Thirty Four Thousand Fifteen and Paise Seven only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 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. 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 19.03.2026. 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: 02.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. M/S Abhi Apparels and Another

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Hdfc Bank Ltd. v. M/S Abhi Apparels and Another

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