HDFC BANK LIMITED vs M/S SOUTH DELHI MOTORCYCLES on 13 August 2026

FINAL ORDER

This original application has been filed by the applicant bank, on 20.08.2019 through Mr. Neeraj Mahajan, Asst. Vice President and Authorized Officer of the applicant bank, under Section 19 ofthe RDB Act, 1993 against the defendants for recovery of a sum of Rs.4,46,49,903.20 together with cost, charges and pendentellite and future interest @24o/o p.a. from date of filing of this O.A. till the realization in iull.

2. The brief facts of the case are that at the request of defendant no.1 through its proprietor the defendant no.2, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin $/VIF) of Rs.20 Lacs and Inventory

16.07.20L2, vide sanction $t Oat"O 30.03.2012. The c.\ \

TANO.536of2024 2 aforesaid qredit facilities were secured by way of personal guarantee of defendant no.2 and a flxed deposit collateral of Rs.5 Lacs. The defendants executed all necessary loaning documents on 28.03.2012. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.20 Lacs for 45 days and Inventory Funding (n rIF) of Rs.10 Lacs - Adhoc valid till 30.11.20t2 for 45 days, vide sanction letter dated 30.08.2012. The aforesaid credit facilities were secured by way of collateral of fixed deposit amounting to Ps.5 Lacs and personal guarantee of defendant no.2. Again, at the request of defendants, the applicant bank sanctioned a credit facility i.e., Inventory Fundin flI/IF) of Rs.50 Lacs, vide sanction letter dated 05.01.20i3. The aforesaid credit facilities were secured by way of collateral of fixed deposit amounting to Rs.5 Lacs and personal guarantee of defendant no.2 The defendants executed all necessary loaning documents on 09.01.2013. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.50 Lacs for 45 days and Inventory Funding (TWIF) of Rs.20 Lacs - Adhoc valid till 15.02.2015 for 45 days and Merchant Establishment Overdraft of Rs.10 Lacs for 365 days, vide sanction letter dated 14.tt.2014. Again, at the request of defendants, the appllcant bank sanctioned a credit facilities i.e., Itlventory Fundin (TWIF) of Rs.100 Lacs for 45 days and Merchant Establishment Overdraft of Rs.10 Lacs for 365 days, vide sanction letter dated 13.03.2015' The. defendants elecuted all necessary loaning documents on 14.03.2015. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.100 Lacs for {d TA NO. 536 of 2024

45 days and Inventory Funding (TWIF) of Rs.50 Lacs - Adhoc valid till 15.09.2015 for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 365 days, vide sanction letter dated 26.06.2015. The defendants executed all necessary loaning documents on 27.06.20L5. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.100 Lacs for 45 days and Inventory

30.12.2015 for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 365 days, vide sanction letter dated 21.09.2015. The aforesaid credit facilities were secured by way of collateral of fixed deposit amounting to Rs.5 Lacs and personal guarantee of defendant no.2' Again, at the request of defendants, the applicant bank sanctioned a credit faciiities i.e., Inventory Fundin (T\MF) of Rs.250 Lacs for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 365 days, vide sanction letter dated 12.01.2016. The defendants executed all necessary loaning documents on 12.01'2016. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.250 Lacs for 45 days and Inventory Funding (TWIF) of Rs.20 LacE - Adhoc valid till 15.07'2016 for 45 days and Merchant Establishment Overdraft of Rs'O.00 for 365

defendants executed all necessary loaning documents on 15.03.2016. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (TWIF) of Rs.250 Lacs for 45 days and Inventory Funding (TWIF) of Rs.120 Lacs - Adhoc valid till 15.07.2016 for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 365__{9rs, vide sanction letter ,.\

TANO.536of2024 4 dated 10.06.2016. The defendants executed all necessary loaning documents on 10.06.2016. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., Inventory Fundin (T\MF) of Rs.250 Lacs for 45 days and Inventory Funding (TWIF) of Rs.120 Lacs - Adhoc valid till 15.07.2016 for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 365

aforesaid credit facilities were secured by way of collateral of fixed deposit amounting of Rs.5 Lakhs. Again, at the. request of defendants, the applicant bank sanctioned a credit facilities i.e., for Kailash Colony Dealer- Inventory Fundin (TWIF) of Rs.250 Lacs for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 12 months and Term Loan (TL)- Tenure of Rs.91'96 Lacs and for Okhla Dealership - Inventory Fundin (TWIF)- Tenure of Rs.150 Lacs for 45 days, vide sanction letter dated 06.05.2017. The aforesaid facilities were secured by way of mortgaged property valued at Rs.1.65 Crores and personal guarantee of the defendant no.2 and collateral of fixed deposit amounting to 5 Lacs and were also primarily secured by hypothecation by way of first and exclusive charge in all present and future stocks and book debts. The defendants executed all necessary loaning documents on 06.05.2017. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., for Kailash Colony Dealer- Inventory Fundin (TMF) of Rs.250 Lacs for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 12 months and Term Loan of Rs. 91.96 Lacs for 72 months and for Okhla Dealership - Inventory Fundin (TMF)- Tenure of Rs'150 Lacs for 45 days , vide sanction letter dated 16.05.2017. The aforesaid facilities were secured by way of I

TANO.536of2024 5 mortgaged property valued at Rs.1.65 Crores and personal guarantee of the defendant no.2 and collateral of fixed deposit amounting to 5 Lacs and were also primarily secured by hypothecation by way of first and exclusive charge in all present and future stocks and book debts. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i.e., for Kailash Colony Dealer- Inventory Fundin (TWIF) of Rs.250 Lacs for 45 days and Merchant Establishment Overdraft of Rs.0.00 for 12 months and Term Loan (TL)- Tenure of Rs. 91.96 Lacs for 72 months and for Okhla Dealership - Inventory Fundin (TWIFF Tenure of Rs.150 Lacs for 45 days, vide sanction lefter dated L3.07.20t7. The aforesaid facilities were secured by way of mortgaged property valued at Rs.1.65 Crores and personalguarantee ofthe defendant no.2 and collateral of flxed deposit amounting to 5 Lacs and were also primarily secured by hypothecation by way of first and exclusive charge in all present and future stocks and book debts. The defendant executed all necessary loaning documents on 12.07.20L7 and 03.08.2017. Again, at the request of defendants, the applicant bank sanctioned a credit facilities i'e., for Kailash Colony Dealer- Inventory Fundin (TWIF) of Rs.250 Lacs for 60 days and Merchant Establishment Overdraft of Rs.0.00 for 12 months and Term Loan (TL)- Tenure of Rs. 91.95 Lacs for 72 months and for Okhla Dealership - Inventory Fundin O[/IF)- of Rs.250 Lacs for 60 days, vide sanction letter dated 13.06.2018. The aforesaid facilities were secured by way of mortgaged propefi valued at Rs.1.65 Crores and personal guarantee of the defendant no.2 and collateral of fixed deposit amounting to 5 Lacs and were also primarily secured by hypothecation by way of first and exclusive sA

TA NO. 536 of 2024

charge in all present and future stocks and book debts. The defendant executed all necessary loaning documents on 15.06.2018.

3. It is further submitted that the defendants enjoyed and utilized the Loan facilities, but failed to maintain the financial discipline and failed to repay the due amounts. The applicant bank requested the defendants to regularize the loan account by visits and letters, but there was no response from the defendants. Hence, the account was classified as NPA dated 18.06.2019. The applicant bank served a recall notice dated 08.08.2029 to the defendants but failed to recover the same Thus, the present O.A.fI.A. is preferred by the applicant bank to recover its dues.

4. On notice by this Tribunal, defendants put appearance through counsel but failed to file written statement. Thereafter, the defendants failed to put appearance in the matter, despite issuance of default notice. Accordingly, the defendants were proceeded against exparte on 04.05.2026.

5. The applicant bank has filed evidence by way of affidavit of Sh. Neeraj Mahajan, Assistant Vice President of the applicant bank as Annexure A-1 to Annexure A-77, which have gone unchallenged and un-rebutted. Hence, the case of the applicant stands fully established against the defendants with respect to nonpayment of outstanding amount. al TANO. 536 of 2024

6. After perusing the records, this Tribunal is of the view that the applicant bank has proved its case beyond reasonable doubts. The evidence and documents filed by the applicant bank not rebutted by the defendants by not placing any evidence and there is no question of disbelieving the evidence and documents filed by the applicant bank based upon the written/printed documents. In the light of the above discussions, the present T.A. deseryes to be allowed.

ORDER

1) I hereby allow this T.A. of the applicant bank and direct the defendant nos.l and 2 to pay jointly and severally to the applicant bank within 30 days from today, a sum of Rs.4,46,49,903.20 along with cost, expenses and interest @12.50% from the date of filing of this O.A. which has become T.A till the date of realization.

2) In case of failure to deposit the above amount within the stipulated period, the same shall be recovered from the sale of hypothecated assets and the sale of hypothecated property bearing No. I-52, First Floor, without roof rights, Kirti Nagar, area 2106 sq. Q New Delhi-110015. In case of shoft fall, the same shall be recovered from the sale of personal movable and immovable assets of the defendant nos.1 and 2.

3) Recovery Certificate be issued forthwith and be sent to Recovery Officer, Debts Recovery Tribunal-Il, Delhi.

4) The registry of this Tribunal is hereby directed to issue free copy of the order ani- send the same to both the pafties. 9!"

TANO.536of2024

5) Parties are directed to appear before the Ld. Recovery Officer, DRT-II, Delhi on 13.10.2026. Pending IAs, if any, stand disposed of. File be consigned to records. sI Date : 13.08.2026 r- \rl"l (susHrl KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi This judgement has been signed, dated and pronounced in open coutt. Date : 13.08.2026 sl (susHrl KUMAR nnifrbdl PRESIDING OFFICER DRT-II, Delhi