Allowed

Hdfc Bank Limited v. M/S N. K. Industries and Others

DRT27 Jul 2026OA/202/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed HDFC Bank's original application for recovery of Rs. 50,37,254 against borrowers and guarantors. While permitting claims and interest, the Tribunal sua sponte reduced the claimed rate of interest from 18% to 8% per annum.

What did the court decide?

Recovery Certificate issued for principal amount of Rs. 50,37,254 with simple interest at 8% p.a. from the date of filing till realization.

Hdfc Bank Limited versus M/S N. K. Industries and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 202/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2026

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DATE OF DECISION: 27.07.2026

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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 having one of its Branch at Goryana, Jalandhar, Punjab through its duly Authorized Signatory and Authorized Officer, Sh. Madhur Sharma, who is presently working as Deputy Vice President with the applicant posted at 5^th Floor, B-21-14 570, G.T. Road, Dholewal Chowk, Adjoining Gulzar Market, Ludhiana, Punjab- 141008

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……..Applicant

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Versus

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M/S N.K. Industries, a Proprietorship Firm through its Proprietor, Sh. Karan Singh Mankotia, S/o Sh. Dhanwantar Singh having its Place of Business at 149, Radha Colony, Mundian Khurd, Chandigarh Road, Ludhiana, Punjab- 141123

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Sh. Karan Singh Mankotia, S/o Sh. Dhanwantar Singh having its Place of Business at 149, Radha Colony, Mundian Khurd, Chandigarh Road, Ludhiana, Punjab- 141123

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2^nd Address: R/o House no. 253, Radha Colony, Mundian Khurd, Chandigarh Road, Ludhiana, Punjab- 141123

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Smt. Rekha Mankotia, W/o Sh. Karan Singh Mankotia, R/o House no. 253, Radha Colony, Mundian Khurd, Chandigarh Road, Ludhiana, Punjab- 141123

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Harinder Kumar, Advocate for applicant

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None for defendants (already ex-parte vide order dated 23.07.2026)

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2 OA/202/2026 HDFC BANK VS. M/S N.K. INDUSTRIES 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. 50,37,254.00 (Rupees Fifty Lacs Thirty Seven Thousand Two Hundred Fifty Four Only). The Original Application has been filed through Sh. Madhur Sharma, Deputy Vice President of the applicant, who is competent to institute the Original Application vide Board Resolution dated 22.11.2023, 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 availing CC Limit of Rs. 20.00 Lacs vide Loan Application dated 02.12.2015, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of CC Limit of Rs. 20.00 Lacs on multiple occasions.

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The applicant sanctioned CC Limit of Rs. 20.00 Lacs vide Sanction Letter dated 05.12.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 20.00 Lacs vide Sanction Letters dated 05.12.2016, 20.12.2017, 12.12.2018 and 20.12.2019, which are Annexure A14 and A17 to A19 to this OA. Defendant nos. 2 and 3 stood as guarantors.

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Defendant nos. 2 and 3 mortgaged their immovable property i.e. Plot measuring 100 Sq. Yards situated at Mundiyan Khurd, Hadbast no. 240, Tehsil and District Ludhiana, Punjab vide Sale Deed bearing vasika no. 2356 dated 14.05.2003 along with its translation, which are Annexure A13 and A13T to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stock in trade and all the book debts vide Deed of Hypothecation dated 05.12.2015, which is Annexure A5 to this OA. Documents executed: Master Facility Agreement, Letter of Continuing Security, Power of Attorney, DP Note, Deed of Indemnity

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3 OA/202/2026 HDFC BANK VS. M/S N.K. INDUSTRIES AND OTHERS

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and Letter of Continuing Guarantee, all dated 05.12.2015, which are Annexure A4 and A6 to A10 to this OA; Memorandum regarding Equitable Mortgage and Declaration cum Undertaking, both dated 30.12.2015, which are Annexure A11 and A12 to this OA; Amendment Agreement and DP Note, both dated 05.12.2016, which are Annexure A15 and A16 to this OA; Addendum dated 20.12.2019, which is Annexure A20 to this OA; Statement of Account with calculation chart and certificate, which is Annexure A21 to this OA and Recall Notice dated 12.12.2025, which is Annexure A22 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. 50,37,254.00, 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 summons to appear before this Tribunal and after service upon defendants, Sh. Sushant Sharma, Advocate appeared on 04.06.2026 and filed Memo of Appearance and he was directed to file his Power of Attorney but since then neither anyone appeared on behalf of defendants nor any Power of Attorney was filed. Hence, they were proceeded ex-parte vide order dated 23.07.2026. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Vice President, HDFC Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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. From the perusal of all the Annexure A1 to A22 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility which was granted

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4 OA/202/2026 HDFC BANK VS. M/S N.K. INDUSTRIES AND OTHERS

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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 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. 50,37,254.00 (Rupees Fifty Lacs Thirty Seven Thousand Two Hundred Fifty 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.

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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 @18.00%p.a. with monthly rests from 02.11.2025 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 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 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.50,37,254.00 (Rupees Fifty Lacs Thirty Seven Thousand Two Hundred Fifty Four 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 defendant nos. 1 and 2 and mortgaged

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OA/202/2026 HDFC BANK VS. M/S N.K. INDUSTRIES AND OTHERS

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property of defendant nos. 2 and 3 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.08.2026.

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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: 27.07.2026

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

Hdfc Bank Limited v. M/S N. K. Industries and Others

Case brief

What is this about?

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Hdfc Bank Limited v. M/S N. K. Industries and Others

Case brief

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What did the court decide?

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