Allowed

Hdfc Bank v. M/S. Yeluri Polymers

DRT9 Feb 2026OA/504/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal adjudicated an application for recovery of dues against borrowers and guarantors. Despite a defense disputing loan validity and interest rates, the court held the evidence unchallenged due to lack of cross-examination or documentary support, granting relief in favor of the bank.

What did the court decide?

Defendants to pay Rs. 97,96,238.01 plus interest; claim secured by hypothecation assets; bank entitled to proceed against persons and properties for realization; costs awarded.

Hdfc Bank versus M/S. Yeluri Polymers — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II^{AT HYDERABAD} DATED THIS THE 9TH DAY OF FEBRUARY,2026 PRESENT: SH. RAMESHWAR KOTHE, B.Com, L.LB.^{(Hons.), M.A.} PRESIDING OFFICER A ,,Fv oRTGTNAL APPLICATION NO. 504 OF 2qla

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Between:

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HDFC Bank Department For Special Operations H. No. 6-3-246 & 6-3-244/A, 4th Floor, Desk No. 0796, Roxana Palladium, Road No.1, Banjara Hills, Hyderabad-5000j4 Rep. by its Senior Manager.

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.......Applicant.

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And

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M/s. Yeluri Polymers Rep by its Partners Yeluri Surya Prakasa Rao and Mr. Yeluri Pasupathi Nadh Plot No. B-29, Phase-2 Technocarts Industrial Estate Balanagar, Hyderabad Telangana State - 500 037.

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Mr. Yeluri Surya Prakasa Rao S/o Yeluri Narasimhaiah, Villa No.139, Orchids Indu Fortune Fields Near Malaysian Township, Kukatpally, Hyderabad, Telangana 500072.

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Mr. Yeluri Pasupathi Nadh S/o Yeluri Surya Prakasa Rao Plot No. 40, Bharani Layout Near Nyaya Vihar, Jubilee Hills ..... Defendants.

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Hyderabad, Telangana - 500 033.

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: M/s. M.V. Kini. Counsel for the Applicant Defendantsl&2 :Exparte. Counsel for the Defendant No.3 :^{Mr. B. Sanjay Kumar.} ,lr,q<.r\ ,/ .^z /, -_,_r.\p {o'

oA.501t2024

:: ORDER::

The Applicant Bank filed the present OA u/s 19 of The Recovery of Debts & Bankruptcy Act, 1993 for recovery of a sum of Rs.97,96,238.01ps from the defendants joinUy and severally with future interest @18o/o per annum from the date of Application till the date of realisation arong with costs and sale of OA schedule assets.

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The averments of the OA, in brief, are;

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Defendant No.1 availed a cash credit facility of Rs.90 lakh vide sanction letter dated 07.05.2022. Defendants 2 and 3 are the partners of the defendant No.1 and guarantors to the roan availed by defendant No.1. Defendants executed necessary loan documents viz., initial sanction letter, master facility agreement, deed of hypothecation, retter of continuing guarantee etc. The credit facility was last renewed on 06.07.2023. The loan account became highly irregular and defendants committed default in repayment, leading to declaration of account as NpA on 05.01.2023. The irregularities and defaults would constitute wilful default on the part of the defendants. Despite loan recall-cum_guarantee invocation notice dated 29.08.2024, defendants failed to repay the dues. Hence, the present OA.

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Defendants 1 and 2 were called absent and no representation and hence were set exparte vide docket order dated 09.04.202s.

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Defendant No.3 filed written and the averments therein, in brief, are;

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oA.s0.l/202.1

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-l

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The claim amount is imaginary. OA is barred by limitation. The dates mentioned in Para 4 of the OA are false and created for the purpose of brining the claim within limitation. Defendants were making the payments regularly till February 2024 and lhe applicant classified the loan account as NPA in viglation of RBI guidelines. Applicant is an I4SME Unit and is covered under CGTMSE guarantee scheme. The hypothecation of stock and book debts is denied. Defendant No.1 has not agreed to the rate of interest mentloned in the OA. Defendant No.1 never agreed to pay liquidated damages, fee, remuneration, costsi charges, expenses and other monies. Defendant has not executed any documents other than loan application, sanction letter and renewal sanction letter. The loan recall notice dated 29.Oa.2024 has not been received by the defendants. As^per RBI^guidelines dated 01.01.2019, defendants are entitled to the benefits of lvlSME scheme and the account of defendant No.1 is "standard account". Applicant bank cannot evade the benefits of the schemes notified by Government and/or RBL The Hon'ble Supreme Court in M/s. Anglo Afghan Agencies AIR 1968 SC 718 held non extension of benefits of schemes notified by Government/statutory authorities amounts to^promissory estoppels. With these averments, defendant No.3^prayed for dismissal of OA.

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In order to^prove its claim, applicant bank examined Srikanth Sukhavasi, Senior Manager, as AW-1 and marked 19 documents through him as Ex. A.1to Ex. A.19.

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In support of his defence, Yeluri^{PasupathiNadh,defendant} No.3, examined himself as DW.1 and mirked^no documents. /7lYtnrr, ^L\

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/ /./^/,,'7- _.). ),.

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{

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OA.50{/202;l

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Heard learned counsel appearing for the applicant. Contesting defendant's right of arguments forfeited vide docket order dated 19.01.2025. Perused the material placed on record.

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B. While reiterating the averments in the OA, learned counsel appearing for the applicant bank prayed for allowing the OA claim in the interest of justice.

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The point that arises for consideration is:-

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Whether the Applicant Bank is entiiled for the OA claim against the Defendants and against the OA schedule assefs2

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The grievance of the contesting defendant relate to NpA classification, execution of documents, interest/additional and benefits of MSMEs. Having contended so, the defendant has not placed any material on record by way of adducing evidence in support of his contentions except making bald assertions nor did he confront AW.1 by way of cross examination to disprove the exhibits A.1 to A.19 relied on by the applicant bank. Further, the contesting defendant has not placed correspondence if any, exchanged with the applicant for extension of benefits under MSME Scheme at any point of time before bringing out the same in the written statement. Under these circumstances, the evidence affidavit of AW.1 and the recitals in exhibits A.1 to A.19 remain unchallenged and unrebutted. Hence, I hold that the defendants are jointly and severally liable to pay the OA claim along with interest.

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In the result, the present Original Application No.504/2024 is altowed as under: /)D;,..$, (?'oq*'

;.1

oA.504t2024

i) defendants are jointly and severally are liable to pay to the Applicant Bank a sum of Rs.97,96,238.01Ps along with interest @10.5olo^per annum simple from the date of application till the date of realization;

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ii) the OA claim is secured by way of hypothecation of assets described in the schedule annexed to the OA and the applicant bank is entitled to proceed against the same;

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iii ) the applicant bank is entitled to proceed against the person and properties of the defendants for realization of its dues; and

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iv) the applicant bank is entitled for the costs.

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The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

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t2. Issue Recovery Certificate accordingly.

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Communicate a copy of this order to the parties concerned and upload in official Web Site.

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(Dictated to the steno, signed and pronounced by me in the open court on this the 9th day of Februa ry, 2026.)

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[-rro* ESHWAR KOTHE) PRESIDING OFFICER

Hdfc Bank v. M/S. Yeluri Polymers

Case brief

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Hdfc Bank v. M/S. Yeluri Polymers

Case brief

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