Allowed

Hdfc Bank Ltd. v. M/S Chawla Textiles Traders and Others

DRT16 Jul 2026OA/326/2025

Case brief

AI extract

What is this about?

This DRT allowed HDFC Bank's Application and directed recovery of approximately 34.28 Lakhs along with future interest at 8% p.a. upon the borrowers' joint and several liability arising from a loan account classified as NPA.

What did the court decide?

Recovery of Rs. 34,28,139.92 jointly and severally with costs and future simple interest at 8% p.a. from the date of filing till realization.

Hdfc Bank Ltd. versus M/S Chawla Textiles Traders and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 326/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2025

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DATE OF DECISION: 16.07.2026

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HDFC Bank Limited, 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 HDFC Bank Ltd., Kidwai Nagar, Ludhiana, Punjab through its duly Authorized Signatory and Authorized Officer, Sh. Madhur Sharma working as Deputy Vice President, its Place of Sitting at 5^th Floor, B-21-14 570, G.T. Road, Dholewal Chowk, Adjoining Gulzar Market- 141008

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……..Applicant

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Versus

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M/S Chawla Textile Traders, a Proprietorship Firm of Sh. Vinod Kumar, S/o Sh. Nihal Chand Chawla having its Place of Business at Atam Market, Sangla Shivala Road, Ludhiana, Punjab- 141007

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Sh. Vinod Kumar, S/o Sh. Nihal Chand Chawla, Proprietor of M/S Chawla Textile Traders, its Place of Business at Atam Market, Sangla Shivala Road, Ludhiana, Punjab- 141007

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2^nd Address: R/o 1225, Street no. 10, Janakpur, Ludhiana, Punjab- 141003

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Smt. Poonam Chawla, W/o Sh. Vinod Kumar, R/o 287, Shaheed Bhagat Singh Nagar, Block E, Pakhowal Road, Ludhiana, Punjab141013

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2^nd Address: B-6-775 Old and B-9-694 New, Gulchaman Gali, Chaura Bazar, Ludhiana, Punjab- 141008

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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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2 OA NO. 326/2025 HDFC BANK LIMITED VS. M/S CHAWLA TEXTILE TRADERS AND OTHERS

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None for defendants (already ex-parte vide order dated 14.07.2026)

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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. 34,28,139.92 (Rupees Thirty Four Lacs Twenty Eight Thousand One Hundred Thirty Nine and Paise Ninety Two 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. 2. 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 dated 13.12.2018, 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. 30.00 Lacs. 3. The applicant sanctioned CC Limit of Rs. 50.00 Lacs vide Sanction of Credit Facilities dated 01.08.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 30.00 Lacs vide Renewal Sanction Letters dated 17.12.2020 and 31.12.2021, which is Annexure A13 and A14 to this OA. Defendant no. 3 stood as mortgagor. 4. Defendant no. 3 mortgaged her immovable property i.e. Land measuring 85.33 Sq. Yards situated at Property no. B-6-775 (Old) and B-9-694 (New), Inside Gulchaman Street, Ludhiana, Punjab- 141001 vide Sale Deed dated 13.12.2019 along with its translation and Memorandum regarding Equitable Mortgage dated 31.07.2020, which are Annexure A11 and A12 to this OA.

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3 OA NO. 326/2025 HDFC BANK LIMITED VS. M/S CHAWLA TEXTILE TRADERS AND OTHERS

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stock in trade and book debts and receivable vide Deed of Hypothecation dated 31.12.2018, which is Annexure A7 to this OA.

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Documents executed: Master Facility Agreement, Power of Attorney, Deed of Indemnity, Declaration and Letter of Continuing Guarantee, all dated 31.12.2018, which are Annexure A4 to A6, A8 and A10 to this OA; Letter of Acknowledgement, which is Annexure A9 to this OA; Valuation Report dated 25.12.2018, which is Annexure A15 to this OA; Statement of Account with calculation chart and memoranda of interest, which are Annexure A16 and A17 to this OA and Recall Notice dated 24.05.2023, which is Annexure A18 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 the loan account there was a debit of Rs. 34,28,139.92 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 14.07.2026. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Deputy Vice President, HDFC Bank Limited, 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 bank had proved its case.

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From the perusal of all the Annexure A1 to A18 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for availing of the loan facility which was

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4 OA NO. 326/2025 HDFC BANK LIMITED VS. M/S CHAWLA TEXTILE TRADERS AND OTHERS

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granted to them. Defendant no. 3 stood as mortgagor. 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. 34,28,139.92 (Rupees Thirty Four Lacs Twenty Eight Thousand One Hundred Thirty Nine and Paise Ninety Two 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 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 01.02.2025 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 hypothecated assets/mortgaged property, 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 @8.00% 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.34,28,139.92 (Rupees Thirty Four Lacs Twenty Eight Thousand One Hundred Thirty Nine and Paise Ninety Two Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in the loan

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5 OA NO. 326/2025 HDFC BANK LIMITED VS. M/S CHAWLA TEXTILE TRADERS AND OTHERS

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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 property of defendant no. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 31.07.2026.

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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: 16.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. M/S Chawla Textiles Traders and Others

Case brief

What is this about?

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Hdfc Bank Ltd. v. M/S Chawla Textiles Traders and Others

Case brief

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