Debts Recovery Tribunal allowed an original application filed by HDFC Bank against borrowers and guarantors for recovery of dues. The court fixed interest at 8.00% p.a. and ordered recovery from hypothecated assets or personal property.
Recovery of Rs. 58,54,499.87 and 8% simple interest; order for issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL- III, CHANDIGARH
ORIGINAL APPLICATION NO.384/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 19.03.2025
DATE OF DECISION: 09.06.2026
HDFC Bank Limited, a Banking Company incorporated and registered under the Companies Act, 1956 having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai400013 and one of its Branch Office, amongst others at Rishi Nagar, Hmbran Road, Ludhiana, Punjab being represented through its duly Authorized Official, Sh. Madhur Sharma, Assistant Vice President, Department for Special Operations, HDFC Bank Ltd., 5th Floor, B-2114570, G T Road, Dholewal Chowk, Adjoining Gulzar Motors, Ludhiana, Punjab- 141008
Versus
…Defendants
Advocates:
Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Satish Kumar Arora, Advocate for applicant None for defendants
FINAL ORDER
2 OA/384/2025 HDFC BANK LIMITED VS. M/S ARORA APPARELS AND OTHERS
competent to institute the Original Application vide Board Resolution dated 28.07.2023, which is Annexure A1 to this OA.
3 OA/384/2025
HDFC BANK LIMITED VS. M/S ARORA APPARELS AND OTHERS
Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stock-in-trade and book debts etc. vide Deed of Hypothecation dated 31.10.2012 and Supplementary Letters of Hypothecation dated 24.04.2013 and 24.08.2013 and Valuation dated 23.10.2012, which are Annexure A7, A18, A24 and A46 to this OA. Documents executed: DP Note, Master Facility Agreement, Power of Attorney, Letter of continuing Guarantee, Undertaking cum Indemnity and Deed of Indemnity, all dated 31.10.2012, which are Annexure A4 to A6 and A8 to A10 to this OA; Declaration cum Indemnity dated 07.11.2012, which is Annexure A14 to this OA; DP Note, Supplementary Agreement, Supplementary Letter of continuing Guarantee, Declaration cum Indemnity and Deed of Indemnity, all dated 24.04.2013, which are Annexure A16, A17, A19, A20 and A22 to this OA; Power of Attorney, Supplementary Letter of continuing Guarantee, DP Note, Deed of Indemnity and Declaration cum Indemnity, all dated 24.08.2013, which are Annexure A25 to A26A, A28 and A29 to this OA; Amendment Agreement dated 14.12.2016, which is Annexure A41 to this OA; Addendum dated 11.12.2019, which is Annexure A42 to this OA; Legal Recall Notice dated 23.01.2025, which is Annexure A43 to this OA; Statement of Account with summary of recoverable dues, which are Annexure A44 and A45 to this OA.
4 OA/384/2025 HDFC BANK LIMITED VS. M/S ARORA APPARELS AND OTHERS
defendants was closed and defence was struck off vide order dated
07.05.2026.
From the perusal of all the Annexures A1 to A46 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility, which was granted to them. Defendant nos. 2 and 3 stood as guarantors. 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, the 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. 58,54,499.87 (Rupees Fifty Eight Lacs Fifty Four Thousand Four Hundred Ninety Nine and Paise Eighty Seven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.11%p.a. plus @7.890% p.a. penal interest in CC Limit Account w.e.f. 08.03.2025 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/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
5
OA/384/2025
HDFC BANK LIMITED VS. M/S ARORA APPARELS AND OTHERS
realization of the amount ordered vide this final order. It is ordered accordingly.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal .
Dated: 09.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the debtor defendants are liable to repay the outstanding dues of Rs. 58,54,499.87 along with interest.
Whether interest rate should be adjusted from the claimed rate to 8.00% p.a. based on tribunal discretion.
1 provisions across 1 enactments
HDFC Bank Limited
M/s Arora Apparels
Sh. Ramnek Singh Arora
Smt. Sharanjit Kaur
Mridulesh Kumar Singh
As recorded by the court registry
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