Allowed

Hdfc Bank v. Shakti Plas Industries

DRT22 Jan 2026OA/322/2023

Case brief

AI extract

What is this about?

In an original application filed by HDFC Bank Ltd. for recovery of dues from defaulting borrowers and guarantors, the Debt Recovery Tribunal allowed the claim, considering the case unrebutted. The Tribunal awarded interest at 12% per annum instead of the claimed 18%

What did the court decide?

Direction to defendants jointly or severally to pay Rs. 2,97,90,213.70 along with interest @ 12% p.a. from 21.03.2023 with monthly rests and costs within 30 days.

Hdfc Bank versus Shakti Plas Industries — Company and Corporate | DRT (2026)

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O.A. No. 322 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No.322 of 2023

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HDFC Bank Ltd.

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Department for Special Operations 5th Floor, Ansal Classique Tower

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J Block, Rajouri Garden New Delhi-110027 Applicant

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Versus

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1.^{M/s Shakti Plas Industries} Plot no.1, Phase-1, Badli Industrial Area New Delhi-110042

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2.^{Mr. Rajender Kumar Malhotra} s/o Sh. Ram Dass Malhotra

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R/o SD-214, Tower Apartment Pitampura, New Delhi-110088

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3.^{Mrs. Kiran Malhotra w/o Rajendra Kumar Malhotra} R/o SD-214, Tower Apartment Pitampura, New Delhi-110088

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4.^{Mrs. Neha Malhotra w/o Ankush Malhotra}

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(Guarantor) R/o SD-214, Tower Apartment Pitampura, New Delhi-110088

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5.^{Mrs. Kanika Malhotra w/o Rohit Malhotra} R/o SD-214, Tower Apartment Defendants Pitampura, New Delhi-110088

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Present: Shri Ronnie S Brara, Counsel for the applicant bank

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Date of Reserve: 24.12.2025

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Date of Pronouncement: 22.01.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 22.032023 through Sh. Anirudh Bhargav, authorized

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54'

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O.A. No. 322 of 2023

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representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.2,97,90,213.70 (Rupees. Two Crores Ninety Seven Lacs Ninety Thousand Two Hundred Thirteen and paisa Seventy only) along with pendentelite and future interest @18% per annum from 21.03.2023 till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 being proprietorship concern of defendant no.2 vide loan application dated 29.12.2016, the applicant bank sanctioned Cash Credit facility for a sum of Rs.3,00,00,000/^- (Rupees Three Crores only) on 30.03.2017 which was renewed from time to time lastly on 29.05.2021 for Rs.2,39,00,000/^- @8.65% interest per annum against hypothecation of stock in trade, raw material and goods etc. as well as mortgage of property owned by defendant no.2 and 3. Further, the applicant bank sanctioned GECL facility of Rs.47.97 lacs on 03.08.2020 @8.25% interest per annum to be repayable in 48 EMIs by extending second ranking charge over existing primary and collateral securities. The defendant no.2 to 5 stood as guarantors for the loan facilities sectioned in favour of the defendant no.1 by the applicant bank.

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That in order to avail the loan facilities, the defendant 3. no.1 through its proprietor being defendant no.2 submitted loan application and executed Master Facility Agreement, Deed of Hypothecation, Power of Attorney, Net-worth Certificates, Addendum Agreement, Deed of Indemnity with the applicant bank on 31.03.2017 & 04.08.2020. The defendant no.2 to 5 executed Letter of Continuing Guarantee in favour of applicant bank on 31.03.2017 and on renewal/ modification of limits.

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O.A. No. 322 of 2023

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In order to secure the loan facilities, the defendant no.1 hypothecated all the stocks, raw material, finished goods and book debts towards applicant bank on 31.03.2017 and thereafter on renewal of limits. The defendant no.2 & 3 created equitable mortgage of property i.e. Industrial property being Khasra no.177 KHA (Old Khasra no.1395/1) Mauza Chharba, Pargana Panchwadoon, Tehsil Vikas Nagar, District Dehradun, Uttarakhand-248197 with the applicant bank on 31.03.2017 by executing Memorandum recording Past Transaction of Creation of Mortgage by Delivery of Title Deeds.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 30.09.2022 as per RBI guidelines and issued recall notice dated 21.03.2023 but defendants failed to regularize the account. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 09.06.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Anirudh Bhargav, authorized representative of the applicant bank, who has proved the documents such as Board Resolution, Application Forms, Sanction Letter, Master Facility Agreement, Deed of

O.A. No. 322 of 2023

Hypothecation, Power of Attorney, Net worth Certificates, Letter of Continuing Guarantee, Memorandum Recording Past Transaction of Creation of Mortgage by Delivery of Title deeds, Deed of indemnity, Letters, Renewal Letters, Facility Agreement, Addendum Agreement, Request Letters, Loan Recall cum Guarantee Invocation Notice, Specimen Foreclosure Sheet, Certificate under Banker's Book of Evidence Act, Title Deeds and Valuation Report marked as Ex.AW-1/1 to Ex.AW1/28.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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10.^{As per the provision of Section 19(20) of the Recovery of} Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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O.A. No. 322 of 2023

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.2,97,90,213.70 (Rupees Two Crores Ninety Seven Lacs Ninety Thousand Two Hundred Thirteen and paisa Seventy only) together with pendentelite and future interest @12% per annum with monthly rests from 21.03.2023 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, goods, book debts etc. and mortgaged property i.e. Industrial property being Khasra no.177 KHA (Old Khasra no.1395/1), Maua Chharba, Pargana Panchwadoon, Tehsil Vikas Nagar, District Dehradun, Uttarakhand. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II)^{The recovery certificate be issued forthwith and be sent} to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III)^{Parties are directed to appear before the Recovery} Officer, DRT I, Delhi on 23.03.2026.

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(IV)^{Copies of final order as well as Recovery Certificate be} sent to all concerned free of cost.

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Sc Zo (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 21.01.2026

Hdfc Bank v. Shakti Plas Industries

Case brief

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Hdfc Bank v. Shakti Plas Industries

Case brief

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