Allowed

Hdfc Bank v. M/S Krb Retails and Another

DRT27 Aug 2026OA/219/2024

Case brief

AI extract

What is this about?

In an ex-parte recovery application, the DRT dismissed defendants' absence by default. The Tribunal adjudicated the debt and ordered the payment of principal amounts plus uniform interest at 7.25% p.a. from filing date, permitting recovery via sale of hypothecated vehicles under the SARFAESI Act.

What did the court decide?

Defendant no. 2 to pay Rs.14,81,556.58; Defendants jointly and severally to pay Rs.13,03,875.44 with costs and simple interest at 7.25% p.a. Recovery via sale of hypothecated vehicles allowed.

Hdfc Bank versus M/S Krb Retails and Another — Insolvency and Bankruptcy | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.219/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 16.02.2024

¶5

DATE OF DECISION: 27.08.2026

¶6

HDFC Bank is a body incorporated under the name and title as HDFC Bank Ltd. under the provisions of the Companies Act 1956 and is having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai - 400013 and one of its branches at Retail Loan Service Centre HDFC Bank Ltd., 3^rd Floor, B-21-14570, GT Road, Dholewal Chowk, Adjoining Gulzar Motors, Ludhiana, through its Principal Officer and Constituted Attorney Sh. Rajendra Prasad, Legal Manager, posted at HDFC Bank, Plot No I-15, Sector 101 Alpha, IT City, Mohali, District S.A.S. Nagar, Punjab.

¶7

……..Applicant

¶8

Versus

¶9

M/s. KRB Retails, B-IV, 2035/1, Chaura Bazaar, Ludhiana, through its Proprietor Sh. Rahul Arora.

¶10

Sh. Rahul Arora S/o Sh. Prem Nath Arora, R/o 51-B, Tagore Nagar, Civil Lines, Ludhiana, Punjab.

¶11

…….. Defendants

¶12

Advocates:

¶13

Argued by Sh. K.P.S. Dhillon, Advocate for the applicant (through VC)

¶14

None for defendants (Already ex-parte vide order dated 21.05.2026).

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.27,85,432.02 (Rupees Twenty Seven Lacs Eighty Five Thousand Four Hundred Thirty Two and Paise Two Only). The Original Application has been filed through Sh. Rajendra Prasad, Legal Manager of the applicant, who is competent to

¶17

2 OA NO.219/2024 HDFC BANK LTD. VS M/S KRB RETAILS AND ANOTHER

¶18

institute the Original Application vide Board Resolution dated 22.05.2023, which is Annexure P/A to this OA.

¶19

The brief facts of the OA are that the defendant no. 2 approached the applicant for grant of Term Loan Facility for purchase of Car of Rs.16,99,900.00 vide Auto / Two Wheeler Loan Application Form, dated 02.04.2022, which is Annexure A1 to this OA.

¶20

Thereafter, the defendant no. 1 through its proprietor defendant no.2 a pproached the applicant for grant of Term Loan Facility against hypothecation of used Car of Rs.17,00,000.00 vide Auto / Two Wheeler Loan Application Form, dated 07.04.2022, which is Annexure A3 to this OA.

¶21

The applicant sanctioned the Term Loan Facility I for purchase of Car of Rs.16,99,900.00 and the terms and conditions were duly accepted by the defendant no. 2 vide Loan cum Hypothecation Agreement dated 11.04.2022, which is Annexure A2 to this OA. Thereafter, t he applicant sanctioned the Term Loan Facility II against hypothecation of used Car of Rs.15,00,000.00 and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2 vide Loan cum Hypothecation Agreement dated 20.04.2022, which is Annexure A4 to this OA. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its movable asset i.e., Mahindra XUV 700 bearing Registration No. PB10HT5769, Chassis No. MA1NE2YH8N6C13841, Engine No. YHN4B44399 vide Virtual Registration Certificate filed on 24.08.2024 in compliance of order dated 25.05.2026. Defendant no. 2 hypothecated his movable asset i.e., Kia Caren D1.5 Luxury Plus D6 bearing Registration No. PB10HU0507, Chassis No. MZBEGC813MN011547, Engine No. D4FANM531772 vide Virtual Registration Certificate filed on 24.08.2024 in compliance of order dated 25.05.2026

¶22

3 OA NO.219/2024 HDFC BANK LTD. VS M/S KRB RETAILS AND ANOTHER

¶23

Documents executed: Statement of Accounts along with certificate and fore closure letters, which are Annexures A5 to A7 to this OA; Legal Notice dated 16.10.2023, along with postal receipts, which is Annexure A8 to this OA.

¶24

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.27,85,432.02, 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.

¶25

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 21.05.2026. 7. In support of the OA, affidavit of Sh. Rajendra Prasad, 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 A8 to this OA, it is proved that the defendant no. 2 a pproached applicant for availing of Term Loan Facility I, which was granted to him and the defendant no. 1 through its proprietor defendant no. 2 a pproached applicant for availing of Term Loan Facility II, which was granted to them.

¶26

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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.14,81,556.58 (Rupees Fourteen Lacs Eighty One Thousand Five Hundred Fifty Six and Paise Fifty Eight Only), along with interest from the defendant no. 2 and Rs.13,03,875.44 (Rupees Thirteen Lacs

¶27

4 OA NO.219/2024 HDFC BANK LTD. VS M/S KRB RETAILS AND ANOTHER

¶28

Three Thousand Eight Hundred Seventy Five and Paise Forty 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.

¶29

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.25%p.a. with monthly rests in Term Loan Facility I and interest @10.25%p.a. with monthly rests in Term Loan Facility II, with penal interest @2% from 09.10.2023 in both the loan accounts till the realization.

¶30

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 vehicles, 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 uniform simple interest @7.25%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.

¶31

In the result, the application is allowed declaring that the defendant no. 2 is liable to pay to the applicant sum of Rs.14,81,556.58 (Rupees Fourteen Lacs Eighty One Thousand Five Hundred Fifty Six and Paise Fifty Eight Only) and the defendants are liable to pay to the applicant sum of Rs.13,03,875.44 (Rupees Thirteen Lacs Three Thousand Eight Hundred Seventy Five and Paise Forty Four Only), jointly and severally, with costs, current and future simple interest @7.25%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 hypothecated vehicles of defendants i n execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the

¶32

5 OA NO.219/2024 HDFC BANK LTD. VS M/S KRB RETAILS AND ANOTHER

¶33

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.

¶34

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 11.09.2026. 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.

¶35

Pronounced by me in the open Tribunal . Dated: 27.08.2026

¶36

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

Hdfc Bank v. M/S Krb Retails and Another

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. M/S Krb Retails and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Sh. Ajmer Singh

Satkar Carrier and Movers versus Axis Bank and Others

Hdfc Bank Limited versus Sh. Partap Singh through His Legal Heirs and Others

Canara Bank versus M/s Nirmal Sagar Enterprises and others

Bank of India versus Sh. Manjot Singh and Another

Kotak Mahindra Bank Limited versus M/S Gs Trading Company and Others