Allowed

Hdfc Bank Limited v. M/s Aalam Enterprises and Others

DRT11 Jun 2026OA/211/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by HDFC Bank Ltd. for recovery of Rs. 27,60,028.37 from the borrower and its guarantors. Relief was granted against the borrower and one guarantor but denied against a guarantor whose signatures were absent from the records. Interest was fixed at 8% p.a.

What did the court decide?

Recovery of Rs. 27,60,028.37 and simple interest at 8% p.a. from the borrower and primary guarantor; no relief against the third guarantor due to lack of signature.

Hdfc Bank Limited versus M/s Aalam Enterprises and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.211/2026

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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: 11.06.2026

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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 400013, Maharashtra having one of its Branch at Sunder Nagar Ludhiana, Punjab, through its duly Authorized Signatory and Authorized Officer Sh. Madhur Sharma, working as Deputy Vice President currently posted at 5^th Floor, B-2114570, G.T Road, Dholewal Chowk Adjoining, Gulzar Motors Ludhiana, Punjab.

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……..Applicant

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Versus

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M/s Aalam Enterprises, a sole Proprietorship concern having its place of business at, Plot No. 7224, New Shakti Nagar, Street No. 17, Basti Jodwewal, Ludhiana, Punjab – 141007.

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Sh. Rohid Aalam S/o Sh. Mohd Kalim, sole proprietor, M/s Aalam Enterprises, R/o House No. 7024, Street No. 4, Near Dada Motors, New Shakti Nagar, Basti Jodwewal, Ludhiana – 141007.

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Sh. Mohd. Kalim, R/o House No. 7024, Street No. 4, Near Dada

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Motors, New Shakti Nagar, Basti Jodwewal Ludhiana – 141007.

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……..Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 09.06.2026).

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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.27,60,028.37 (Rupees Twenty Seven Lacs Sixty Thousand Twenty Eight and Paise Thirty Seven Only). The Original Application has been filed through Sh. Madhur Sharma, Authorized Signatory of the applicant bank, who is

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2 OA NO.211/2026 HDFC BANK LTD. VS M/S AALAM ENTERPRISES AND OTHERS

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competent to institute the Original Application vide Board Resolution dated 22.11.2023, which is Annexure A1 to this OA. 2. 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.25,00,000.00 vide Application Form Working Capital Facilities – MSE’s dated 23.11.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.20,00,000.00 and Overdraft Facility of Rs.5,00,000.00 against Fixed Deposit vide Sanction of Credit Facilities dated 28.11.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant no.1 through its proprietor defendant no. 2. Defendant nos. 2 & 3 stood as guarantors.

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However, there are no signatures of defendant no. 3 in either the Sanction Letter or the Letter of Continuing Guarantee (Joint & Several). 4. Defendant no.1 through its proprietor defendant no. 2 hypothecated its Stocks, Book debts and receivable vide Deed of Hypothecation dated 28.11.2023, which is Annexure A5 to this OA. Documents executed : Master Facility Agreement, Power of Attorney, Memorandum relating to charge over fixed deposits/cash deposits, Letter of Continuing Guarantee (Joint & Several), all dated 28.11.2023, which are Annexures A4, A6 to A8 to this OA; Legal Notice dated 14.01.2026, along postal receipts, which is Annexure A9 to this OA; Statement of account and interest certificate along with certificate, which are Annexures A10 & A11 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.27,60,028.37, which is recoverable and the defendants was 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.

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3 OA NO.211/2026 HDFC BANK LTD. VS M/S AALAM ENTERPRISES AND OTHERS

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The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 09.06.2026. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Authorized Signatory, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 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, 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.27,60,028.37 (Rupees Twenty Seven Lacs Sixty Thousand Twenty Eight and Paise Thirty Seven Only), along with interest from the defendant nos. 1 & 2, jointly and severally, from the date of filing of the present Original Application till realization of the amount. Since the applicant has not placed on record any document bearing signatures of defendant no. 3 as guarantor, therefore no relief can be granted to the applicant against defendant no. 3. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%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

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4 OA NO.211/2026 HDFC BANK LTD. VS M/S AALAM ENTERPRISES AND OTHERS

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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 @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 defendant nos. 1 & 2 are liable to pay to the applicant a total sum of Rs.27,60,028.37 (Rupees Twenty Seven Lacs Sixty Thousand Twenty Eight and Paise Thirty Seven Only), along with interest, 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 Stocks, Book debts and receivable of the 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 defendant nos. 1 & 2. 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. 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: 11.06.2026

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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 Aalam Enterprises and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/s Aalam Enterprises and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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