HDFC BANK vs NVENTO FOODS TECHNOLOGIES PVT.LTD., on 21 May 2026

J U D G M E N T

This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹19,43,502.40/- (Rupees Nineteen Lakhs Forty Three Thousand Five Hundred Two and paisa Forty Only) with future interest @ 13.80% per annum plus 4.20% penal interest on a simple basis with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 11.08.2015 till payment/realization and to enforce the hypothecated securities.

The details of the claim amount are as under: - Sr No Nature of Facility Amount due and payable as on 15.07.2015

Cash Credit ₹19,43,502.40/- with further interest @ 13.80% per annum + 4.20% penal interest on a Simple basis with monthly rests and/or applicable from time to time.

Total Amount ₹19,43,502.40/-

It is undisputed fact in the matter that the Defendant nos.1 to 6 were duly served with the summons vide order-sheet dated 26.04.2017. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 20.06.2017.

Defendant no.1 is a Private Limited Company through its Directors i.e. Defendant Nos.2 to 6 are the borrowers who approached the Applicant Bank and sought financial assistance by way of Cash Credit Renewal Facility. Pursuant to the request letter for the facility dated 16.08.2011 made by defendants, the Applicant renewed the loan vide Sanction Letter dated 16.08.2011 to a sum of ₹20,00,000/- (Rupees Twenty Lakhs Only) payable with interest at the rate of 14% per annum for working capital purposes and covered under CGTMSE Scheme with guarantors namely Mr Ratish Shethe, Mr Manish Khanna, Mr Mohammed Shafi and Mr Mohammed Ajaz. Further, vide Request Letter and undertaking for credit facility dated 10.07.2012, the Applicant thereby accepted the request and granted an amount of ₹20,00,000/- (Rupees Twenty Lakhs Only) payable with interest at the rate of 13.80% per annum. Lastly, the said loan facility was again modified by issuing a renewed Sanction Letter dated 15.09.2013 for the same amount and interest rate and wherein, new guarantors were included namely Mr Ratish Shete, Mr Manoj Thakkar, Mr Khader Nazim Shaikh, Mr Rajendra Murlidhar Chavan and Ms Meira Ratish Shethe.

The details of the Sanctioned amounts are as under: - S r N o D a t e o f S a n c t i o n N a t u r e o f F a c i l i t y A m o u n t s a n c t i o n e d R O I P r i m a r y S e c u r i t y C o l l a t e r a l S e c u r i t y G u a r a n t o r s

1 6 . 0 8 . 2 0 1 1 C a s h C r e d i t ( R e n e w a l ) ₹ 2 0 , 0 0 , 0 0 0 / - 1 4% ( B R + 4% ) H y p o t h e c a t i o n o f S t o c k a n d B o o k D e b t s . C o v e r e d u n d e r C G TM S E S c h e m e . M r R a t i s h S h e t h e , M r M a n i s h K h a n n a , M r M o h a m m e d S h a f i a n d M r M o h a m m e d A j a z .

1 0 . 0 7 . 2 0 1 2 C a s h C r e d i t ( R e n e w a l ) ₹ 2 0 , 0 0 , 0 0 0 / - 1 3 . 8 0% ( B R + 4% ) H y p o t h e c a t i o n o f S t o c k a n d B o o k D e b t s . C o v e r e d u n d e r C G TM S E S c h e m e . S a m e a s p e r i n i t i a l t e r m s .

1 5 . 0 9 . 2 0 1 3 C a s h C r e d i t ( R e n e w a l ) ₹ 2 0 , 0 0 , 0 0 0 / - 1 3 . 8 0% ( B R + 4% ) H y p o t h e c a t i o n o f S t o c k a n d B o o k D e b t s c o v e r e d u n d e r C G TM S E S c h e m e . C o v e r e d u n d e r C G TM S E S c h e m e . M r R a t i s h S h e t e , M r M a n o j Th a k k a r , M r K h a d e r N a z i m S h a i k h , M r R a j e n d r a M u r l i d h a r C h a v a n a n d M s M e i r a R a t i s h S h e t h e .

A m o u n t S a n c t i o n e d - ₹ 2 0 , 0 0 , 0 0 0 / - - - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 4 to 8 of the Transferred Original Application. Defendants hypothecated by way of first charge on all the Stocks and Book Debts both present and future at any place whatsoever and wheresoever at company's premises or at any other premises or place to secure the loan.

The details of the documents executed by the Defendants vide Sanction Letter dated 16.08.2011 are as under: -

(a) Request Letter for renewal of the credit facility dated 16.08.2011 by defendant; (b) Accepted Sanction Letter dated 16.08.2011;

(c) Addendum dated 23.08.2011;

(d) Demand Promissory Note dated 23.08.2011; (e) Letter of Continuity security dated 23.08.2011.

The details of the documents executed by the Defendants vide Sanction Letter dated 10.07.2012 are as under: -

(a) Request Letter and Undertaking for Credit facility dated 10.07.2012; (b) Accepted Sanction Letter dated 10.07.2012.

The details of the documents executed by the Defendants vide Sanction Letter dated 15.09.2013 are as under: -

(a) Accepted Sanction /Renewal Letter dated 15.09.2013.

After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 29.10.2014 as per RBI Guidelines.

Therefore, on 25.05.2014, the applicant called upon defendants u/s.13(2) of the SARFAESI Act, 2002 to liquidate the outstanding in the sum of ₹18,57,189/- (Rupees Eighteen Lakhs Fifty-Seven Thousand One Hundred Eighty-Nine Only) with further interest from 01.04.2015 at contractual rate and incidental expenses, cost within 60 days from receipt of this notice. Despite notice, defendant nos.1 to 6 failed and neglected to pay.

As on 15.07.2015, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹19,43,502.40/- (Rupees Nineteen Lakhs Forty-Three Thousand Five Hundred Two and paisa Forty Only) with future interest @ 13.80% per annum plus 4.20% penal interest on a simple basis with monthly rest. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Transferred Original Application which was presented on 11.08.2015.

The applicant has filed affidavit (exhibit-12) in lieu of examination in chief of Mr Damodar Shenoy, Asst. Vice President and the constituted

Attorney of the HDFC Bank and list of documents (exhibit-13) thereby adducing in evidence the documents at Exhibit-A to Exhibit-M, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Transferred Original Application was filed for the recovery of ₹19,43,502.40/- (Rupees Nineteen Lakhs Forty- Three Thousand Five Hundred Two and paisa Forty Only) with future interest @ 13.80% per annum plus 4.20% penal interest on a simple basis with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 11.08.2015 till payment/realisation.

The Applicant has filed Affidavit on behalf of Applicant HDFC Bank dated 17.01.2024 (Exhibit-

26) wherein it is stated that the Applicant has waived the penal interest of 4.20% per annum.

It can be construed from the given documents that the Guarantee Agreement had not been signed, no documents were submitted/executed by the guarantors, no documents were executed by the borrower except Sanction letter and no NPA certificate is filed by the Applicant.

The Tribunal has scrutinised and examined the allegations contained in the Transferred Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the Transferred Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

In view of the observations made hereinabove, Transferred Original Application filed by the applicant deserves to be allowed.

Hence, the following order:

ORDER

(A) The Transferred Original Application No.1051 of 2016 in Original Application No.183 of 2016 is allowed with costs. (B) Defendant nos.1 to 6 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹19,43,502.40/- (Rupees Nineteen Lakhs Forty-Three Thousand Five Hundred Two and paisa Forty Only) with future simple interest @ 12% per annum thereon from the date of presentation of the Transferred Original Application i.e. 11.08.2015 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrowers after filing of this T.O.A. No.1051 of 2016.

(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Hypothecation by way of first charge on all the Stocks and Book Debts both present and future at any place whatsoever and wheresoever at company's premises or at any other premises or place. (D) Defendant nos.1 to 6 are entitled to redeem the hypothecated properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and recover dues as per law. (E) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme. (F) Issue Recovery Certificate. (G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai