HDFC BANK LTD vs MANOHARLAL & CO on 4 September 2025

1. 1. **Manoharlal & Co.**, Partnership Firm, 148, Cotton Street, Kolkata – 700007, West Bengal.

2. 2. **Usha Devi Goenka**, Partner of Manoharlal & Co., 19A, Alipur Road, 03^rd Floor, Rajkiran Apartment, Flat No.3B, Kolkata – 700027.

3. 3. **Vaibhav Goenka**, Partner of Manoharlal & Co., 19A, Alipur Road, 03^rd Floor, Rajkiran Apartment, Flat No.3B, Kolkata – 700027.

4. 4. **Biswanath Agarwal**, Partner of Manoharlal & Co., 19A, Alipur Road, 03^rd Floor, Rajkiran Apartment, Flat No.3B, Kolkata – 700027.

..... Defendants

Counsel for parties:

For the Applicant Bank : Ms. Mekhala Kanji For the Defendants : *Ex-Parte*

**FINAL ORDER / JUDGMENT**

Delivered on 04.09.2025

Applicant, HDFC Bank Ltd. instituted the present Application being the Original Application No.531 of 2018 filed in DRT-3, Kolkata on 29.06.2018 against four Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.1,26,93,073.50 (Rupees one crore twenty six lacs ninety three thousand seventy three and paise fifty) as on 10.02.2017 with interest thereon @ 13% per annum with monthly rests and *pendenti lite* and future interest from 11.02.2018 @ 13% per annum with monthly rests, till full realization. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide the Hon'ble Chairperson DRAT, Kolkata's direction vide

letter No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 26.10.2019 and the same has been renumbered as T.A./162 of 2020 vide Ld. Registrar's order dated 08.11.2019.

2. The brief facts of the case as set out by the Applicant Bank in its Original Application, as under:

(i) The defendant No.1 is a partnership firm and defendants No.2, 3 & 4 are the partners of the defendant No.1. The defendant No.1 for purchase of a Range Rover Vogue4 4TDV8 2013 applied before the applicant Bank for financial credit accommodation vide application dated 20.07.2015. Upon consideration of loan application, applicant Bank was pleased to grant / sanction the Used Car Premium Loan of Rs.1,76,18,058.00 (Rupees one crore seventy six lacs eighteen thousand fifty eight) to the defendant No.1 and disbursed the same on dated 25.08.2015. Copy of loan application dated 20.07.2015 is annexed and marked as Annexure 'A'.

(ii) In consideration of the aforesaid facility for purchase of Range Rover Vogue4 4TDV8 2013, the defendants executed and delivered the following loan documents on dated 25.08.2015 in favour of applicant Bank:

- (a) Agreement for Auto Loan;

- (b) Irrevocable Power of Attorney.

Copy of said documents are annexed and marked as Annexure 'B' & 'B-1'.

(iii) That the hypothecated asset, i.e. Range Rover Vogue4 4TDV8 2013 has been sold as per terms of agreement for Rs.55.00 lacs on 31.01.2017 and the said fact of sale was intimated to the borrower and the sale proceeds has already been adjusted with the claim of the bank and present claim of this application is after adjustment of the sale proceed.

3. The aforesaid sanctioned / financed loan amount duly disbursed on dated 25.08.2015 and the defendants availed and enjoyed the said loan facility. However, the defendants did not comply with the agreed terms and conditions of said facility. The defendants did not repay the outstanding Bank's dues and overdue interest of loan account. Despite several requests made by applicant Bank, the defendants did not pay any attention to regularize the Account; consequently, the account became irregular and was classified as NPA on 31.07.2016. Since the defendants / borrower(s) failed and neglected to liquidate the outstanding dues with the applicant Bank inspite of repeated requests and reminders, the applicant Bank compelled to issue Demand Notice dated 20.03.2018 upon the defendants through its Lawyer demanding to pay the outstanding loan amount, but the defendants did not comply the said Notice, copy of said demand notice dated 20.03.2018 and postal receipts are annexed and collectively marked as Annexure 'C'. Certified copies of Statement of Account(s) along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, Annexure 'D', have been filed to show and prove the dues, and future interest @ 13% per annum with monthly rests from 11.02.2017, till full realization of dues, has been prayed. Applicant Bank submitted that their claim in the original Application is within limitation.

4. The Notices / summons were sent to Defendants No.1 to 4 by the Tribunal. It is seen from S/R on Affidavit dated 16.10.2023 that service of Notices / summons upon the defendants No.2, 3 & 4 have been successfully delivered, i.e. service upon the defendants No.2 to 4 is complete, but the service of notice / summons upon the Defendant No.1 has not been effected by postal service and/or hand delivery, such has been recorded vide Ld. Registrar's order dated 17.10.2023. At the request of Ld. Advocate of the applicant Bank, Ld. Tribunal was directed to serve the summons upon the defendant No.1 by way of paper publication; and Ld. Advocate of the applicant Bank has brought on record the affidavit of service on publication dated 25.06.2024 along with relevant portion of paper cuttings in two newspapers, namely (i) 'The Times of India' in English and (ii) 'Bartaman' in Bengali, both dated 02.04.2024; hence, service upon the defendant No.1 is complete by way of publication, such has been recorded vide Ld. Registrar's order dated 25.06.2024. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded *ex-parte* vide order dated 04.09.2024. Applicant Bank has filed the written notes of argument on dated 04.08.2025 wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on 04.08.2025.

5. Applicant Bank has filed the evidence-on-Affidavit, affirmed by Anirban Sur, authorized representative of Bank's Giller House office, Block – 'A', 8, N.S. Road, Kolkata – 700001 along with the copy of original documents executed by the defendants. Original documents have been produced by applicant Bank; the same have been verified with copies of the documents annexed with the O.A. and after verification the originals have been returned to Sri Arrhab Gangopadhyay, Legal Manager of Bank's Giller House office, 8, N.S. Road, Kolkata – 700001 on 20.03.2023; such has been recorded vide Ld. Registrar's Order dated 20.03.2023. The documents produced by applicant Bank are exhibited and marked as Exhibits 1 to 5.

I have heard the Ld. Advocate for the Applicant Bank and perused the records.

6. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, unrebuted and its veracity cannot be put to dispute. Applicant Bank has proved the averments made in the original Application. Applicant Bank has proved the sanction of Used Car Premium Loan of Rs.1,76,18,058/- vide loan Application dated 20.07.2015 and Agreement for Auto Loan dated 25.08.2015. Applicant Bank has proved the hypothecated movable assets, described in para 3A at page 8 to 10 of the original application.

7. On the point of limitation, the loan has been sanctioned vide loan application dated 20.07.2017, loan documents have been executed on 25,08,2015, and original Application has been filed on 29.06.2018. As such, the original Application appears to have been filed well within the period of limitation.

8. Applicant Bank stated that the outstanding balance in Loan Account (inclusive of accrued interests and other charges as calculated upto 10.02.2017) is **Rs.1,26,93,073.50** (Rupees one crore twenty six lacs ninety three thousand seventy three and paise fifty) as on 10.02.2017, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1 to 4 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization in full. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 13% per annum with monthly rests, while in the Agreement for Auto Loan dated 25.08.2015 the same rate of interest, i.e. @ 13% per annum, has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest which has been claimed by applicant Bank in original application, i.e. @ 13% per annum, with quarterly rests, from 11.02.2017, till full realization, is allowed.

9. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. Applicant Bank has proved its claim made in the O.A./T.A. The original application being T.A./162 of 2020 (arising out of O.A./ 531 of 2018) deserves to be allowed; hence allowed.

10. In view of the above, I pass the following order:-

ORDER

(i) T.A./162 of 2020 (arising out of O.A./ 531 of 2018), filed by applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 to 4. It is hereby ordered that the Defendants No.1 to 4 are hereby directed to pay, jointly and / or severally, the total debt amount of **Rs.1,26,93,073.50** (Rupees one crore twenty six lacs ninety three thousand seventy three and paise fifty) due and payable, inclusive of interest and other charges as calculated upto 10.02.2017; and interest for the period *pendente lite* and future @ 13% per annum, with quarterly rests, from 11.02.2017, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan account(s) or amount, if any, recovered by applicant Bank after filing of the Original Application, the same may be taken into account while arriving at the exact amount of dues/debt payable by the Defendants No.1 to 4. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) Defendants No.1 to 4 are debarred from transferring, alienating, encumbering or disposing of the hypothecated movable assets, described in para 3A at page 8 to 10 of the original application, as under –

"All That the hypothecation by way of first and paramount charge in favour of the applicant Bank in respect of a Range Rover Vogue4 4TDV8 2013, Registration No. DL6CM6050, Engine No. 39448DT, Chassis No.A370481 has been sold as per terms of agreement for Rs.55.00 lakhs which has already been adjusted with the claim of the bank and present claim of this application is after adjustment of the sale proceeds."

The Defendants are also debarred from transferring, alienating, encumbering or disposing of any other property(s) and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1 to 4.

(iv) Defendants No.1 to 4 are given a time of sixty-days from the date of this Final Order / Judgment for repayment of the above mentioned dues, so intimated to them. In case the Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured property(s), as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants both moveable and immoveable and also proceed against the Defendants No.2, 3 & 4 personally to recover the dues, in accordance with law.

(v) Let the Certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final Order / Judgment for issuance of the same against the Defendants No.1, 2, 3 & 4 in favour of applicant Bank under Section 19(22) of the Recovery of Debts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery Officer shall realize the amount as per the Recovery Certificate from Defendants No.1, 2, 3 & 4, in accordance with law.

(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) of the Act of 1993.

**Accordingly, the Original Application, being T.A./162 of 2020 (arising out of O.A./ 531 of 2018) is allowed and stands disposed of.**

File be consigned to Record room.

This order is dictated and corrected by the undersigned and pronounced on this the 04^th day of September, 2025.

Copy of the Final Order / Judgment be uploaded on the Tribunal's Website.

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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