Allowed

Hdfc Bank Limited v. M/S Friends Trading Company and Others

DRT4 Jun 2026OA/172/2024

Case brief

AI extract

What is this about?

Dr. Mridulesh Kumar Singh allowed the Original Application filed by HDFC Bank Limited against M/S Friends Trading Company and others for recovery of a loan. The Tribunal granted recovery of the principal amount with simple interest at 8% per annum.

What did the court decide?

The defendants are liable to pay Rs. 34,48,968.33 jointly and severally with costs and simple interest at 8% p.a. from the filing date until realization.

Hdfc Bank Limited versus M/S Friends Trading Company and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.172/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.01.2024

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DATE OF DECISION: 04.06.2026

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HDFC Bank Limited, a Banking Company incorporated and registered under the Companies Act, 1956 having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai, Maharashtra- 400013 and one of its Branch Office amongst others at Village Panj Garain Kalan, District Faridkot, Punjab being represented through its duly Authorized Official, Sh. Narender Kumar Nanda, Senior Manager, Department for Special Operations, HDFC Bank Limited Regional Office, 3^rd Floor, Plot no. I-15, Alpha IT City, Sector 101, Mohali, Punjab

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……..Applicant

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Versus

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M/S Friends Trading Company, a Partner Firm of Sh. Kulwant Rai and Sh. Balwinder Singh, having place of Business near Gramin Bank, VPO Sekha Kalan, Tehsil Baga Purana, District Moga, Punjab- 151207

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Sh. Kulwant Rai, S/o Sh. Ram Pal, R/o House no. 533, Village Smalsar, District Moga, Punjab- 142049

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Sh. Balwinder Singh, S/o Sh. Jangir Singh, R/o House no. 535, Part 2, Village Sekha Kalan, Tehsil Bagha Purana, District Moga, Punjab- 142049

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…….Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Sh. Satish Kumar Arora, Advocate for applicant

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None for defendants (already ex-parte vide order dated 02.06.2026)

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2 OA NO. 172/2024 HDFC BANK LIMITED VS. M/S FRIENDS TRADING COMPANY AND OTHERS

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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. 34,48,968.33 (Rupees Thirty Four Lacs Forty Eight Thousand Nine Hundred Sixty Eight and Paise Thirty Three Only). The Original Application has been filed through Sh. Narender Kumar Nanda, Senior Manager o f the applicant who is competent to institute the Original Application vide Board Resolution dated 28.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Partner defendant no. 2 approached the applicant for grant of ODAP Limit of Rs. 40.00 Lacs vide Request Letter dated 05.05.2016, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Partner defendant no. 2 approached the applicant for renewal of ODAP Limit of Rs. 40.00 Lacs. Thereafter, defendant no. 1 through its Partner defendant no. 2 approached the applicant for grant of GECL Limit of Rs. 5.90 Lacs. Thereafter, defendant no. 1 through its Partner defendant no. 2 again approached the applicant for renewal of ODAP Limit of Rs. 40.00 Lacs and GECL Limit of Rs. 5.90 Lacs.

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The applicant sanctioned ODAP Limit of Rs. 40.00 Lacs vide Sanction Letter dated 05.05.2016, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of ODAP Limit of Rs.40.00 Lacs vide Sanction Letters dated 28.06.2016, 19.06.2018, 17.06.2019 and 09.06.2020, which are Annexure A13 to A16 to this OA. Thereafter, the applicant sanctioned GECL Limit of Rs. 5.90 Lacs vide Sanction Letter dated 07.07.2020, which is Annexure A19 to this OA. Thereafter, the applicant sanctioned renewal of ODAP Limit of Rs. 40.00 Lacs and GECL Limit of Rs. 5.90 Lacs vide Sanction Letters dated 25.05.2021 and 21.06.2022, which are Annexure A23 and A24 to this OA. Defendant nos. 2 and 3 stood as guarantors.

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3 OA NO. 172/2024 HDFC BANK LIMITED VS. M/S FRIENDS TRADING COMPANY AND OTHERS

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Defendant no. 2 mortgaged his immovable property i.e. Land measuring 05 Sarsai situated at Village Nihal Sing Wala, Hadbast no. 157, District Moga, Punjab vide Memorandums regarding creation of Mortgage dated 05.05.2016 and 09.07.20202, Transfer Deed bearing vasika no. 570 dated 13.06.2013 and Valuation Report dated 27.11.2013, which are Annexure A8, A9, A22 and A29 to this OA. Documents executed: Partnership Deed dated 18.03.2106, which is Annexure A3 to this OA; Master Facility Agreement, Amendment Agreement, Letter of Continuing Guarantee, Declaration cum Indemnity, Deed of Indemnity and Declaration, all dated 05.05.2016, which are Annexure A5 to A7 and A10 to A12 to this OA; Amendment Agreement dated 28.06.2017, which is Annexure A17 to this OA; Addendum dated 22.05.2020, which is Annexure A18 to this OA; Facility cum Hypothecation Agreement and Declaration cum Undertaking, both dated 09.07.2020, which are Annexure A20 and A21 to this OA; Legal Recall Notice dated 16.11.2023 along with postal receipts, which is Annexure A25 to this OA and Statements of Accounts with interest calculation, which are Annexure A26 to A28 to this OA.

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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. 34,48,968.33, which is recoverable and the defendants were 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 02.06.2026. 7. In support of the OA, affidavit of Sh. Narender Kumar Nanda, Senior Manager, HDFC Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record.

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4 OA NO. 172/2024 HDFC BANK LIMITED VS. M/S FRIENDS TRADING COMPANY AND OTHERS

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A29 to this OA, it is proved that defendant no. 1 through its Partner defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant nos. 2 and 3 stood as guarantors. Defendants 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, 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. 34,48,968.33 (Rupees Thirty Four Lacs Forty Eight Thousand Nine Hundred Sixty Eight and Paise Thirty Three 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18%p.a. from 10.01.2024 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 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 simple interest @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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5 OA NO. 172/2024 HDFC BANK LIMITED VS. M/S FRIENDS TRADING COMPANY AND OTHERS

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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.34,48,968.33 (Rupees Thirty Four Lacs Forty Eight Thousand Nine Hundred Sixty Eight and Paise Thirty Three 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 of defendant no. 2 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 25.06.2026. 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: 04.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Friends Trading Company and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Friends Trading Company and Others

Case brief

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What did the court decide?

What the court decided

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