Allowed

Hdfc Bank Limited v. M/S M J Industry and Others

DRT8 Apr 2026OA/209/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a recovery application by HDFC Bank against a proprietorship firm and guarantors. The court established the liability for a sum of Rs. 1.40 crore and ordered recovery with reduced interest at 8% per annum, permitting enforcement via hypothecated or personal assets.

What did the court decide?

Recovery of Rs. 1.40 crore with interest at 8% p.a. from filing date of OA till realization, via sale of hypothecated or personal assets.

Hdfc Bank Limited versus M/S M J Industry and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.209/2026

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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: 08.04.2026

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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, Punjab- 141008 through its duly Constituted Attorney, Sh. Madhur Sharma, working as Deputy Vice President, currently posted at HDFC Bank Ltd., B-2114570, 5^th Floor, Dholewal Chowk, GT Road, Adjoining Gulzar Motors, Ludhiana, Punjab- 141008

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……..Applicant

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Versus

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M/S M J Industry, a Proprietorship Firm, through its Proprietor Mr. Jagmal Singh, S/o Mr. Mahema Singh, having its Place of Business at 28, Jain Colony, Noorwala Road, Ludhiana, Punjab

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Mr. Jagmal Singh, S/o Mr. Mahema Singh, R/o House no. B- 33/134, Neta Ji Nagar, Salem Tabri, Ludhiana, Punjab- 141008. 2^nd Address: Village Talakaur, Yamunanagar, Haryana

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Mr. Gurdeep Singh, S/o Mr. Mahema Singh, R/o House no. B- 33/134 Neta Ji Nagar, Salem Tabri, Ludhiana, Punjab- 141008

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….……Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for applicant (Through VC) None for defendants (already ex-parte vide order dated 06.04.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 1,40,07,641.00 (Rupees

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2 OA/ 209/2026 HDFC BANK VS. M/S M J INDUSTRY AND OTHERS

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One Crore Forty Lacs Seven Thousand Six Hundred Forty One Only). The Original Application has been filed through Sh. Madhur Sharma, Deputy Vice President 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 defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 50.00 Lacs vide Loan Application Form dated 29.12.2021, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 applied for enhancement of CC Limit of Rs. 130.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of CC Limit of Rs. 130.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for renewal of CC Limit of Rs. 130.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for renewal of CC Limit of Rs. 130.00 Lacs.

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The applicant sanctioned the CC Limit of Rs. 50.00 Lacs vide Sanction Letter dated 08.01.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhanced CC Limit of Rs.130.00 Lacs vide Sanction Letter dated 23.06.2022, which is Annexure A8 to this OA. Thereafter, the applicant sanctioned the renewal of CC Limit of Rs.130.00 Lacs vide Sanction Letter dated 11.01.2023, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned the renewal of CC Limit of Rs. 130.00 Lacs vide Sanction Letter dated 19.03.2024, which is Annexure A15 to this OA. Thereafter, the applicant sanctioned the renewal of CC Limit of Rs.130.00 Lacs vide Sanction Letter dated 25.06.2024, which is Annexure A16 to this OA. Thereafter, the applicant sanctioned the renewal of CC Limit of Rs. 130.00 Lacs vide Sanction Letter dated

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3 OA/ 209/2026 HDFC BANK VS. M/S M J INDUSTRY AND OTHERS

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29.03.2025, which is Annexure A18 to this OA. Defendant no. 3 stood as guarantor.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their Stock in Trade and Book Debts and Receivables vide Deed of Hypothecation dated 08.01.2022, which is Annexure A5 to this OA.

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Documents executed: Master Facility Agreement, Power of Attorney and Letter of Continuing Guarantee, all dated 08.01.2022, which are Annexure A4, A6 and A7 to this OA; Supplementary Agreement, Supplementary Deed of Hypothecation, Power of Attorney, DP Note and Letter of Continuing Guarantee, all dated 23.06.2022, which are Annexure A9 to A13 to this OA; Addendums to Master Facility Agreement dated 25.06.2024 and 31.03.2025, which are Annexure A17 and A19 to this OA; Recall Notice dated 02.01.2026, which is Annexure A20 to this OA; Account Statement with interest calculation and certificate, which are Annexure A21 and A22 to this OA. 5. 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. 1,40,07,641.00 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. 6. 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 06.04.2026. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Deputy Vice President, HDFC Bank Limited, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone

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4 OA/ 209/2026 HDFC BANK VS. M/S M J INDUSTRY AND OTHERS

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unrebutted, the applicant had proved its case. From the perusal of all the Annexure A1 to A22 to this OA, it is proved that the defendants approached the 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. 1,40,07,641.00 (Rupees One Crore Forty Lacs Seven Thousand Six Hundred Forty One 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.

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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. from 02.01.2026 till its 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 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.1,40,07,641.00 (Rupees One Crore Forty Lacs Seven Thousand Six Hundred Forty One Only) jointly and severally with costs, current and future simple interest @08.00%p.a. in the loan account from the date

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5 OA/ 209/2026

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HDFC BANK VS. M/S M J INDUSTRY AND OTHERS

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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 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 28.04.2026. 15. Copy of this order be given Dasti to the applicant bank 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: 08.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. M/S M J Industry and Others

Case brief

What is this about?

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Hdfc Bank Limited v. M/S M J Industry and Others

Case brief

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What did the court decide?

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