Allowed

Hdfc Bank Limited v. M/S Himanshu Fabrics and Others

DRT5 Aug 2026OA/926/2024

Case brief

AI extract

What is this about?

The Tribunal disposed of an original application for recovery of a loan of Rs. 35,49,686.40. The applicant proved executions of loan documents and failure to repay by defendants through ex-parte hearing. The Tribunal allowed the application, fixed interest at 8% p.a., and directed issuance of recovery certificate.

What did the court decide?

Recovery certificate issued; defendants liable for Rs. 35,49,686.40 plus simple interest @8% p.a. from date of filing OA.

Hdfc Bank Limited versus M/S Himanshu Fabrics and Others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 926/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.09.2022

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DATE OF DECISION: 05.08.2026

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HDFC Bank Limited, a Banking Company duly incorporated and registered under the Companies Act, 1956 having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai, Maharashtra- 400013 (hereinafter referred to as “the Bank”) and amongst other Branches having one of its Branch Office at Millerganj, Ludhiana, Punjab through its duly Constituted Attorney, Sh. Sunil Kalra, Manager Legal, HDFC Bank, Plot no. 28, 1^st Floor, Industrial Area, Phase I, Chandigarh

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……..Applicant

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Versus

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M/S Himanshu Fabrics, a Proprietorship Firm through its Proprietor, Smt. Archana Singh, W/o Sh. Abhay Kumar having its Place of Business at Property bearing Plot no. 170, Trasport Nagar, Ludhiana, Punjab

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Smt. Archana Singh, W/o Sh. Abhay Kumar Singh, R/o B621/4, Rajan Street Bazaar, near Bhatia Bakery, Kharatiyan, New Maliganj Chownk, Ludhiana, Punjab

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Sh. Abhay Kumar Singh, S/o Sh. Sachchidanand, R/o B621/4, Rajan Street Bazaar, near Bhatia Bakery, Kharatiyan, New Maliganj Chownk, Ludhiana, Punjab

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M/S Aman Transport Co., a Proprietorship Firm through its Proprietor Sh. Abhay Kumar, S/o Sh. Sachchidanand Singh having its Place of Business at Property bearing Plot no. 30, Trasport Nagar, Ludhiana, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Harinder Kumar, Advocate for applicant (through VC)

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2 OA NO. 926/2024

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HDFC BANK LIMITED VS. M/S HIMANSHU FABRICS AND OTHERS

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None for defendants (already ex-parte vide order dated 03.08.2026)

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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. 35,49,686.40 (Rupees Thirty Five Lacs Forty Nine Thousand Six Hundred Eighty Six and Paise Forty Only). The Original Application has been filed through Sh. Sunil Kalra, Manager Legal of the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A1 to this OA.

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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. 25.00 Lacs vide Loan Application dated 16.04.2019, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs. 25.00 Lacs vide Sanction Letter dated 08.05.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant nos. 3 and 4 stood as guarantors.

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Defendant no. 3 mortgaged his immovable property i.e. House measuring 100 Sq. Yards situated at House no. B-4-621, Rajan Street, Near Kharadiya Bazar, Tehsil and District Ludhiana, Punjab vide Mortgage Register Copies, both dated 10.05.2019 and Sale Deed bearing vasika no. 17033 dated 05.02.2010 along with its translation, which are Annexure A8 to A10 to this OA.

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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 08.05.2019, which is Annexure A5 to this OA.

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Documents executed: Master Facility Agreement, Deed of Indemnity

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and Letter of Continuing Guarantee, all dated 08.05.2019, which are

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3 OA NO. 926/2024 HDFC BANK LIMITED VS. M/S HIMANSHU FABRICS AND OTHERS

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Annexure A4, A6 and A11 to this OA; Power of Attorney dated 24.05.2019, which is Annexure A7 to this OA; Recall dated 12.08.2021, which is Annexure A12 to this OA and Statement of Account with memoranda of interest, which are Annexure A13 and A14 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. 35,49,686.40 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.

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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 03.08.2026.

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In support of the OA, affidavit of Sh. Sunil Kalra, Manager Legal, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel (through VC) 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 Annexure A1 to A14 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 granted to them. Defendant nos. 3 and 4 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, 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. 35,49,686.40 (Rupees Thirty Five Lacs Forty Nine Thousand Six Hundred Eighty Six and Paise Forty Only)

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4 OA NO. 926/2024

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HDFC BANK LIMITED VS. M/S HIMANSHU FABRICS AND OTHERS

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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 w.e.f. 01.08.2022 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.

¶40

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.35,49,686.40 (Rupees Thirty Five Lacs Forty Nine Thousand Six Hundred Eighty Six and Paise Forty 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 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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5 OA NO. 926/2024

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HDFC BANK LIMITED VS. M/S HIMANSHU FABRICS AND OTHERS

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 20.08.2026.

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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: 05.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Himanshu Fabrics and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Himanshu Fabrics and Others

Case brief

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What did the court decide?

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