Allowed

Hdfc Bank Limited v. M/S Maan Fashions and Another

DRT10 Apr 2026OA/199/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of an outstanding loan account against the defendant firm and proprietor. The court ordered repayment of the principal sum with simple interest and issued a recovery certificate.

What did the court decide?

Recovery of Rs.21,97,243.84 with simple interest at 8% p.a. and issuance of Recovery Certificate.

Hdfc Bank Limited versus M/S Maan Fashions and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.199/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.01.2026

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DATE OF DECISION: 10.04.2026

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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, Maharashtra–400013 and one of its Branch at Sunder Nagar Chowk, Ludhiana-141003 through its Authorized Signatory/Legal Manager, Sh. Deepak Sharda, who is duly Authorized vide Board Resolution dated 21.08.2025 and presently posted at HDFC Bank Ltd., HDFC Bank House, 3^rd Floor, Plot No. 1-15, Alpha IT City, Sector 101, Mohali (Punjab).

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……..Applicant

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Versus

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M/s Maan Fashions, through its proprietor Sh. Mohammed Monazir S/o Sh. Abdul Mannan, at Street No.3, Jagirpur Road, Bhoda Colony, Kakka, Basti Jodhewal, Ludhiana (East), Punjab-141007.

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Sh. Mohammed Monazir S/o Sh. Abdul Mannan, R/o Street No.3, Jagirpur Road, Bhoda Colony, Kakka, Basti Jodhewal, Ludhiana (East), Punjab-141007

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……..Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant ( through VC ) None for Defendants (Already ex-parte vide order dated 07.04.2026)

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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.21,97,243.84 (Rupees Twenty One Lacs Ninety Seven Thousand Two Hundred Forty Three and Paise Eighty Four Only). The Original Application has been filed

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2 OA/199/2026 HDFC BANK LTD. VS M/S MAAN FASHIONS AND ANOTHER

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through Sh. Deepak Sharda, Legal Manager o f 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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The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for the grant of Cash Credit Limit of Rs.20.00 Lacs. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for renewal of Cash Credit limit of Rs.20.00 Lacs.

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The applicant sanctioned Cash Credit Limit of Rs.20.00 Lacs vide Sanction Letter dated 27.06.2023, which is Annexure A2 to this OA. Thereafter, the applicant was renewed Cash Credit limit of Rs.20.00 Lacs vide Sanction Letter dated 29.06.2024 which is Annexure A6 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts vide Deed of Hypothecation, which is Annexure A4 to this OA.

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Documents executed: Master Facility Agreement, Power of Attorney, both dated 27.06.2023, which are Annexures A3 & A5 to this OA; Addendum to the Master Facility Agreement and Loan Agreement dated 29.06.2024, 30.06.2025 which are Annexure A7 & A8 to this OA; Recall Notice dated 15.01.2026 along with postal receipts, which is

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Annexure A9 ; Statement of Account, Calculation Chart with Certificate under Banker Books Evidence Act, 1891, which are Annexures A10 and A11 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 loan account there was a debit of Rs.21,97,243.84, 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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3 OA/199/2026 HDFC BANK LTD. VS M/S MAAN FASHIONS AND ANOTHER

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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 07.04.2026. 7. In support of the OA, affidavit of Sh. Deepak Sharda, Legal Manager, HDFC Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing 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 A11 to this OA, it is proved that the defendant no.1 through its proprietor defendant no.2 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, 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.21,97,243.84 (Rupees Twenty One Lacs Ninety Seven Thousand Two Hundred Forty Three and Paise Eighty 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 account. 10. 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 01.01.2026 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 hypothecated assets, undertaking of the defendants, quantum of loan 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

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OA/199/2026 HDFC BANK LTD. VS M/S MAAN FASHIONS AND ANOTHER

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just and appropriate to grant simple interest @8.00%p.a. 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 a total sum of Rs.21,97,243.84 (Rupees Twenty One Lacs Ninety Seven Thousand Two Hundred Forty Three and Paise Eighty 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 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 30.04.2026. 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.

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Pronounced by me in the open Tribunal Dated: 10.04.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Maan Fashions and Another

Case brief

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Hdfc Bank Limited v. M/S Maan Fashions and Another

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