Allowed

Hdfc Bank v. Janak Textiles

DRT20 Jan 2026OA/399/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by HDFC Bank Ltd. to recover ₹18,35,985.35 from Janak Textiles, ordering the payment of the principal, interest, and future interest with costs, and confirmed enforcement of hypothecated securities via a Recovery Certificate.

What did the court decide?

Ordered payment of ₹18,35,985.35 with future interest, enforcement of hypothecated properties, and issuance of Recovery Certificate.

Hdfc Bank versus Janak Textiles — Execution and Attachment | DRT (2026)

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ORIGINAL APPLICATION NO.399 OF 2022

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DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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ORIGINAL APPLICATION NO.399 OF 2022

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Date of Institution: 09.05.2018 Date of Decision: 20.01.2026

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TOTAL CLAIM AMOUNT :

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₹ 18,35,985.35/-

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HDFC Bank Ltd., Banking company incorporated and registered under the provisions of the Companies Act, 1956, having one of its office as Department for Special Operations, HDFC, Unit No.401 & 402, Peninsula Business Park, B Wing, 4^th Floor, Dawn Mills Compound, Garipat Rao Kadam Marg, Lower Parel (W), Mumbai-400 013

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And its Registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (W), Mumbai-400 013 through Mayur Pagare being Asst. Manager of HDFC Bank Ltd.

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… Applicant

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Versus

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Janak Textiles Through its Proprietor Mr. Rajnikant Jivrajbhai Haria Having address at S.No.29/3, Balaram Patil Compound, Narpoli, Bhiwandi-421 302

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Also at:

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Page 1 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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Mr. Rajnikant Jivrajbhai Hari Residing at 15 A, Block No. 201 Ashok Nagar, Kalyan Road, Bhiwandi-421 302.

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…Defendant

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APPEARANCES For the Applicant : Mr Samuel Abrahim - Advocate For Defendant : None

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J U D G M E N T

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(1) This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹18,35,985.35/- (Rupees Eighteen Lakhs Thirty-Five Thousand Nine Hundred Eighty-Five and paisa Thirty-Five Only) with future interest @ 12.75% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 09.05.2018 till payment/realization and to enforce the hypothecated securities.

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The details of the claim amount are as under: -

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Sr	Nature of	Principal	Interest	Balance	Penal	Total
No	Facility	O/s.			Interest	Amount
1	Cash	16,04,334.	1,53,146.7	17,57,481.	78,506.82	18,35,985
	Credit	74/-	9/-	53/-	/-	.35/-

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(2) It is undisputed fact in the matter that the

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Page 2 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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Defendant nos.1 was duly served with the summons vide order-sheet dated 05.04.2023. Despite service, the defendant did not enter his appearance and therefore, it was set ex-parte on 01.01.2024.

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(3) Defendant no.1 is the borrower who approached the Applicant Bank and sought financial assistance by way of Cash Credit Facility. Pursuant to the loan application dated 07.05.2013 made by defendant, the Applicant sanctioned the loan vide Sanction Letter dated 07.05.2013 in sum of ₹15,00,000/- (Rupees Fifteen Lakhs Only) payable with interest at the rate of 14 % per annum. On the request made by the defendant the said loan was renewed vide Sanction Letter dated 28.04.2014 with renewal fees @ 0.5% of facility amount. Lastly, it was renewed vide Sanction Letter dated 23.05.2016 for an amount of ₹15,00,000/- (Rupees Fifteen Lakhs Only) with interest @ 11.90% MCLR + 2.75%.

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The details of the Sanction amount are as under: -

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Sr No	Date of Sanction	Amount	ROI	Security
1	07.05.2013	₹15,00,000/-	14 % per annum	Stock and Bood Debts.
2	28.04.2014	₹15,00,000/-	14 % per annum	Stock and Bood Debts.
3	23.05.2016	₹15,00,000/-	11.90% MCLR +	Stock and Bood Debts.

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Page 3 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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		2.75%
Total	₹15,00,000/-	- -
Amount

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(4) On the dates given below, defendant signed and executed the loan and security documents as set out in paragraph nos.5(d) to 5(h) of the Original Application. Defendant hypothecated a) Stock-intrade, goods consisting in of raw of materials, process manufacturing finished goods, and other merchandise whatsoever being movable properties, now stored at or being stored or which may hereafter be brought into or stored at the premises, factories or warehouses or at any such place of the Borrower, any of the above which is or may be course of transit or awaiting transit by any mode of transport to the Borrower's factory or premises or at any other place whatsoever and whosesoever in the Borrower's possession occupation or at any other premises or place, and/or

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b) All the Debts, that is, all the book debts, outstanding, monies receivable, claims, bills, invoice documents, contracts, guarantees, and right which are now due and owing or which may at any time hereafter during the continuance of this security becomes due and owing to the Borrower in the curse of its business by any

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Page 4 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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person, firm, company or body by government corporate department or office or any municipal or local or public or semi-government body or authority or anybody corporate or undertaking or project whatever in the public sector to secure the loan.

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The details of the documents executed by the Defendant are as under: -

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(a) Request Letter dated 07.05.2013;

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(b) Sanction Letter dated 07.05.2013;

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(d) Letter of Hypothecation dated 10.05.2013;

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(e) Demand Promissory Note dated 10.05.2013;

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(f) Letter of Continuity dated 10.05.2013;

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(g) Undertaking cum Indemnity dated 10.05.2013;

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(h) Letters dated 10.04.2014 and 28.04.2014; (i) Sanction Letter dated 28.04.2014 (Renewed);

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(j) Letter dated 14.03.2016;

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(k) Sanction Letter dated 23.05.2016 (Renewed).

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(5) After availing the loan, defendant did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the

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Page 5 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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borrowers were declared as Non-Performing Assets (N.P.A.) on 29.07.2017 as per RBI Guidelines. Therefore, on 13.04.2018, the applicant, through its advocate, called upon defendant to liquidate the outstanding in the sum of ₹18,06,978.74/(Rupees Eighteen Lakhs Six Thousand Nine Hundred Seventy-Eight and paisa Seventy-Four Only) as on 31.03.2018 together with further interest, additional interest and other charges at contractual rates upon the footing of simple interest. Despite notice, defendant no.1 failed and neglected to pay.

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(6) As on 31.03.2018, there was owing, due and payable by defendant to the applicant the aggregate sum of ₹18,35,985.35/- (Rupees Eighteen Lakhs Thirty-Five Thousand Nine Hundred Eighty-Five and paisa Thirty-Five Only) with future interest @ 12.75% per annum with monthly rest thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

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(7) Since, defendant failed and neglected to make the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 09.05.2018.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Ashwin Indulkar,

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Page 6 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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Authorised Officer of the Applicant and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-10, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed for the recovery of ₹18,35,985.35/- (Rupees Eighteen Lakhs Thirty-Five Thousand Nine Hundred Eighty-Five and paisa Thirty-Five Only) with future interest @ 12.75% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 09.05.2018 till payment/realisation.

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(10) The Tribunal has scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

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(11) Upon careful scrutiny and the examination of the Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

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(12) In view of the observations made hereinabove, Original Application filed by the applicant deserves to be allowed.

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(13) Hence, the following order:

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Page 7 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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ORDER

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(A) The Original Application No.399 of 2022 is allowed with costs.

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(B) Defendant no.1 is ordered and directed to pay to the applicant, the aggregate sum of ₹18,35,985.35/- (Rupees Eighteen Lakhs ThirtyFive Thousand Nine Hundred Eighty-Five and paisa Thirty-Five Only) with future simple interest @ 12% per annum thereon from the date of presentation of the Original Application i.e. 09.05.2018 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, a) Stock-in-trade, goods consisting in of raw of materials, process manufacturing finished goods, and other merchandise whatsoever being movable properties, now stored at or being stored or which may hereafter be brought into or stored at the premises, factories or warehouses or at any such place of the Borrower, any of the above which is or may be course of transit or awaiting transit by any mode of transport to the Borrower's factory or premises or at any other place whatsoever and whosesoever in the Borrower's possession occupation or at any other premises or place, and/or

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b) All the Debts, that is, all the book debts,

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Page 8 of 9

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ORIGINAL APPLICATION NO.399 OF 2022

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outstanding, monies receivable, claims, bills, invoice documents, contracts, guarantees, and right which are now due and owing or which may at any time hereafter during the continuance of this security becomes due and owing to the Borrower in the curse of its business by any person, firm, company or body by government corporate department or office or any municipal or local or public or semi-government body or authority or anybody corporate or undertaking or project whatever in the public sector.

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(D) Defendant no.1 is entitled to redeem the hypothecated properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and recover dues as per law.

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(E) Issue Recovery Certificate.

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(F) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

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Sd/-

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(Harish Kumar Kaushik)

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Presiding Officer, DRT-2, Mumbai

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Page 9 of 9

Hdfc Bank v. Janak Textiles

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Janak Textiles

Case brief

What is this about?

What did the court decide?

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