Allowed

Hdfc Bank Limited v. M/S Shiv Om Knit Fabs and Others

DRT28 Jul 2026OA/912/2026

Case brief

AI extract

What is this about?

, the Debt Recovery Tribunal allowed the bank's Original Application. The respondents were declared liable to repay Rs.75.01 lacs with simple interest @ 8.00% p.a. from the application date until realization, and the court issued a Recovery Certificate.

What did the court decide?

The respondents were declared liable to pay Rs.75.01,423.10 jointly and severally with simple interest at 8.00% per annum. A Recovery Certificate was issued.

Hdfc Bank Limited versus M/S Shiv Om Knit Fabs and Others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.912/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2026

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DATE OF DECISION: 28.07.2026

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013. Also at Regional Office at Plot No. I-15, Sector 101, ALPHA IT City, SAS Nagar (Mohali) through its Authorized Representative Sh. Deepak Sharda, also at HDFC Bank Limited, Dholewal, Ludhiana (Punjab).

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……..Applicant

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Versus

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M/s Shiv Om Knit Fabs through its Partners Sh. Arun Kalia and Sh. Dharam Pal Kalia, C/o # 2219/2D, Mahavir Colony, Kakka Tajpur Road, Near Central Jail, Ludhiana (Punjab) – 141010.

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Sh. Arun Kalia S/o Sh. Dharam Pal Kalia, Partner of M/s Shiv Om Knit Fabs, R/o H. No. 3173, Gurdev Nagar, Ludhiana (Punjab) – 141001.

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Sh. Dharam Pal Kalia S/o Sh. Madan Lal Kalia, Partner of M/s Shiv Om Knit Fabs, R/o H. No. 3173, Gurdev Nagar, Ludhiana (Punjab) – 141001.

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……. .Defendants

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Advocates:

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Argued by Ms. Pinki, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 24.07.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.75,01,423.10 (Rupees Seventy Five Lacs One Thousand Four Hundred Twenty Three and Paise Ten Only). The Original Application has been filed through Sh.

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2 OA NO.912/2026 HDFC BANK LTD. VS M/S SHIV OM KNIT FABS AND OTHERS

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Deepak Sharda, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 21.08.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its partner defendant nos. 2 a pproached the applicant for grant of Cash Credit Limit of Rs.70,00,000.00 vide Application Form Working Capital Facilities – MSE’s dated 28.08.2023, which is Annexure A3 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.70,00,000.00 vide Sanction of Credit Facilities dated 31.08.2023, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants . Defendant no. 3 stood as guarantor. 4. Defendant no. 1 through its partner defendant no. 2 hypothecated its stocks and book debts vide Master Facility Agreement dated 05.09.2023, which is Annexure A5 to this OA.

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Documents executed: Supplementary Partnership Deed dated 01.06.2023, which is Annexure A2 to this OA; Letter of Continuing Guarantee dated 05.09.2023, which is Annexure A6 to this OA; Legal Notice dated 02.06.2026, along with postal receipts, which are Annexures A7 to A10 to this OA; Statement of Account along with and certificate, which is Annexure A11 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.75,01,423.10, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 24.07.2026. 7. In support of the OA, affidavit of Sh. Deepak Sharda, Authorized Representative, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA NO.912/2026 HDFC BANK LTD. VS M/S SHIV OM KNIT FABS AND OTHERS

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It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant no. 1 through its partner defendant no. 2 approached applicant for availing of loan facility which was granted to them, defendant no. 3 stood as guarantor and for that they 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, 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.75,01,423.10 (Rupees Seventy Five Lacs One Thousand Four Hundred Twenty Three and Paise Ten 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 @9.40%p.a. 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, 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 sum of Rs.75,01,423.10 (Rupees Seventy Five Lacs One Thousand Four Hundred Twenty Three

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4 OA NO.912/2026 HDFC BANK LTD. VS M/S SHIV OM KNIT FABS AND OTHERS

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and Paise Ten Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan 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 stocks and book debts of defendant no. 1 i n 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 12.08.2026.

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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: 28.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Shiv Om Knit Fabs and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Shiv Om Knit Fabs and Others

Case brief

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What did the court decide?

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