Allowed

Hdfc Bank Limited v. M/S Shree Balaji Enterprises and Another

DRT29 Aug 2026OA/1471/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RBI Act 1993 filed by HDFC Bank for recovery of a loan. The court directed the defendants to pay the principal amount along with simple interest at 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 25,97,362.44 jointly and severally with costs and simple interest at 8% p.a. from date of filing.

Hdfc Bank Limited versus M/S Shree Balaji… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1471/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.10.2025

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DATE OF DECISION: 29.08.2026

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013. Also at Plot No. I-15, Sector 101, ALPHA IT City, SAS Nagar (Mohali) through its Authorized Representative Sh. Rajendra Prasad.

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……..Applicant

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Versus

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M/s Shree Balaji Enterprises through its proprietor Sh. Laxmi Pandey, C/o Industrial Area 'B', 442, Miller Ganj, Ludhiana, Punjab – 141003.

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Sh. Laxmi Pandey S/o Sh. Ram Kishor Pandey, R/o House No. 2032-191-4, Gali No. 4, Lohara Colony, Ludhiana (Punjab) – 141003.

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……. .Defendants

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Advocates:

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Argued by Ms. Pinki, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 25.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.25,97,362.44 (Rupees Twenty Five Lacs Ninety Seven Thousand Three Hundred Sixty Two and Paise Forty Four Only). The Original Application has been filed throug h Sh. Rajendra Prasad, Authorized Representative of the applicant, who is competent to institute the Original Application vide Board Resolution, dated 21.08.2025, which is Annexure A1 to this OA.

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2 OA NO.1471/2025 HDFC BANK LTD. VS M/S SHREE BALAJI ENTERPRISES AND ANOTHER

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Cash Credit Limit of Rs.60,00,000.00 vide Application Form Working Capital Facilities, dated 02.05.2023, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for renewal of Cash Credit Limit of Rs.25,00,000.00.

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The applicant sanctioned the Cash Credit Limit of Rs.25,00,000.00 vide Sanction Letter, dated 29.04.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant no. 2 stood as guarantor.

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Thereafter, the applicant renewed the Cash Credit Limit of Rs.25,00,000.00 vide Sanction Letter, dated 27.05.2024, which is Annexure A6A to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant no. 2 stood as guarantor.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts, vide Deed of Hypothecation, dated 02.05.2023, which is Annexure A6 to this OA.

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Documents executed: Master Facility Agreement, Letter of Continuing Guarantee, both dated 02.05.2023, which are Annexures A4 & A5 to this OA; Addendum to the Master Facility Agreement, dated 31.05.2024, which is Annexure A6B to this OA; Legal Notice, dated 11.09.2025, along with postal receipts, which are Annexures A7 to A9 to this OA; Statement of Account along with certificate, which is Annexure A10 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.25,97,362.44, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.1471/2025 HDFC BANK LTD. VS M/S SHREE BALAJI ENTERPRISES AND ANOTHER

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 25.08.2026. 7. In support of the OA, affidavit of Sh. Rajendra Prasad, Authorized Representative, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant 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 A10 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 approached applicant for availing of loan facility which was granted to them, defendant no. 2 stood as guarantor 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,97,362.44 (Rupees Twenty Five Lacs Ninety Seven Thousand Three Hundred Sixty Two and Paise Forty Four Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.50%p.a. 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 hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.1471/2025 HDFC BANK LTD. VS M/S SHREE BALAJI ENTERPRISES AND ANOTHER

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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 simple interest @8.00%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.25,97,362.44 (Rupees Twenty Five Lacs Ninety Seven Thousand Three Hundred Sixty Two and Paise Forty Four Only), jointly and severally, with costs, current and future simple interest @8.00%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 stocks and book debts of defendant no. 1 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 14.09.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 29.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Shree Balaji Enterprises and Another

Case brief

What is this about?

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Hdfc Bank Limited v. M/S Shree Balaji Enterprises and Another

Case brief

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