HDFC BANK vs PRASHANT SARIN AND ORS on 18 April 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 24.11.2021 before DRT-III Delhi & then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a *Sd/-*

sum of Rs.59,33,659.30 (Rupees Fifty Nine Lacs Thirty Three Thousand Six Hundred Fifty Nine & paisa Thirty only) as on 05.10.2021 along with pendentelite and future interest @contractual rate of interest from 05.10.2021 till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendant no.1 & 2 being directors of defendant no.3, the applicant bank sanctioned Loan against Property of Rs.90,60,686/- (Rupees Ninety lacs Sixty Thousand Six Hundred Eighty Six only) @Base Rate + 1.25% i.e. 11.25% interest per annum for the purpose of balance transfer / taking over of facility from ICICI Bank Ltd. subject to facility agreement dated 10.03.2015, repayable over remaining tenure of facility of ICICI Bank Ltd. or 120 EMIs, whichever is lower against mortgage of property. The applicant bank shall charge interest @2% over existing rate of interest on account of default in payment of interest/installment. The defendant no.3 stood as guarantor for the credit facility sanctioned by applicant bank.

3. In order to avail the credit facility, the defendant no.1 as authorized signatory vide Board Resolution dated 09.03.2015 executed Sanction Letter, Term Loan and Letter of Credit Agreement Demand Promissory Note, Letter of Continuing Security, Irrevocable Power of Attorney, Disbursement Request Letter, Takeover Authorization, Letter of Debit Authority, Letter of Outstanding Balance, Declaration for Submission of Cheques, Undertakings, Letter of General Lien & Set Off and Deed of Indemnity dated 09.03.2015 and 10.03.2015 towards of the applicant bank. The defendant no.3 executed letter of Sd- guarantee and defendant no.1 and 2 being principal borrower owning liability joint and several.

4. That in order to secure the credit facility, the defendant no.1 created first and exclusive charge on stocks in trade, finished goods and other merchandise in favour of applicant bank. Further, defendant no.2 created equitable mortgage of property bearing no.N-17A, SF, Jain Mandir Gali, Green Park Extension, New Delhi by submitting title documents of property along with Memorandum of Deposit of Title Deed and search report in favour of applicant bank.

5. It has been submitted by the applicant bank that after availing the loan facility, the defendants have failed to adhere to the financial discipline and committed defaults in the service of credit facility and account become irregular. The applicant bank issued reminder and demand letter to the defendants to make payments and comply the terms and conditions of sanction but defendants failed to regularize the account. Ultimately, the applicant bank classified the account as NPA on 31.07.2021 as per RBI guidelines and issued recall notice on 18.10.2021 but defendants failed to act upon for regularization or adjustment of the account, hence, the applicant bank approached this tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. Vide order dated 01.12.2022 of Hon'ble DRAT, written statement of defendants was allowed subject to cost of Rs.20,000/- to be paid to the counsel for respondent bank but not complied by the defendants. As per order dated 22.05.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and Sd/- even evidence and affidavit of assets have not been filed by the defendants.

7. The applicant bank has also filed

- i) OA No.99/2020 for Rs.86,80,938.02 before DRT-III Delhi for recovery of HCIF Loan;

- ii) OA No.521/2020 for Rs.25,54,71,159.40 along with Vinod Kumar Sharma;

- iii) OA No.150/2021 for Rs.43,43,706.14 against defendant no.1 & 3.

- iv) SA bearing Diary No.1404/2021 before Ld. DRT-II Chandigarh

8. In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Sh.Abhijeet Raj, authorized representative of the applicant bank, who has submitted the documents such as Board Resolution, Original Board Resolution, Request Letter, Application of HCIF, Sanction Letter, Term Loan and Letter of Credit Agreement, Demand Promissory Note, Letter of Continuing Security, Irrevocable Power of Attorney, Disbursement Request Letter, Takeover Authorization, Letter of Debit Authority, Letter of Outstanding Balance, Declaration for Submission of Cheques, Undertakings, Letter of General Lien & Set Off and Deed of Indemnity, Title Documents of property, Memorandum of Deposit of Title Deed and Search Report, Original copy of Letter of Continuing Guarantee, Termination Letter, Certified Statement of Account and Foreclosure Report marked as Ex.AW-1/1 to Ex.AW-1/23.

9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the *sd-*

applicant bank is based on the documents and the same have been duly approved.

10. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

11. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.59,33,659.30 (Rupees Fifty Nine Lacs Thirty Three Thousand Six Hundred Fifty Nine & paisa Thirty only) as on 05.10.2021 together with pendentelite and future interest @13.25% per annum with monthly rests from 05.10.2021 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and current assets etc. and mortgaged property bearing no. N-17A, SF, Jain Mandir Gali, Green Park Extension, New Delhi. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 17.06.2026.

Sd/-

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*Sd-* *18/04/2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 18.04.2026