HDFC BANK vs PLANTERS HOME RECIPES P LTD on 25 June 2025

1. Planters Home Recipes (P) Ltd.,

Pala, Kottayam,

Rep. by its Managing Director P.C.Davis.

2. P.C.Davis,

Pala, Kottayam.

…Defendants

This Original Application having been heard on 17.06.2025 in the presence of Advocate Smt.Saraswathy P. for the applicant bank, 1st defendant being exparte and the 2nd defendant being absent, and stood over to this day for consideration, the Tribunal delivered the following:

F I N A L O R D E R

This Original Application has been filed under S.19(1) of the Recovery of Debts and Bankruptcy Act, 1993 for recovery of a sum of Rs.13,99,211.80 due under auto loan account together with future interest thereon @21% per annum with monthly rests from the defendants jointly and severally. Facts of the case:

2. The applicant is a Banking Company constituted under the Companies Act having its registered office at Mumbai and one of its branches at Kochi.

3. The 1st defendant is a private limited company and the 2nd defendant is its managing director. As per the resolution passed by the Board of Directors of the 1st defendant company, the defendants submitted a loan application for an auto loan of Rs.15 lakhs for purchase of Toyota Altis car. On scrutiny, the defendants were found eligible for Rs.14,09,283/- which was sanctioned and disbursed on 04.07.2012 pursuant to execution of loan agreement. Due to default in repayment of the loan, the applicant issued a lawyer notice to the defendants on 20.02.2014 calling upon them to repay the entire outstanding amount, but they did not care to repay the dues. Hence the applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover the sum of Rs.13,99,211.80 together with pendente lite and post decree interest thereon from the defendants jointly and severally;

(ii) To recover the costs, charges and expenses from the defendants;

(iii) To issue Recovery Certificate to the Recovery Officer with a direction to recover the amount and pay it to the applicant bank.

4. The defendants were duly served with summons. The 1st defendant neither appeared nor was it represented and hence it was declared exparte on 07.01.2019. Though the 2nd defendant entered appearance and sought adjournment for filing written statement, he did not file any written statement despite time granted and remained absent from the proceeding. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Shyam Prasanth H., Manager (Legal) has filed proof affidavit and produced the loan documents marked as Exts.A1 to A7. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loan is well established from the documents placed by the applicant bank. A sum of Rs.13,99,211.80 is outstanding in the loan account as on 26.02.2014, which is established from the account statement marked as Ext.A7.

6. Further, it could be seen from Ext.A7 statement that the applicant bank has charged a sum of Rs.18,379/- by way of penal interest/late payment penalty charges in the auto loan account. It is well settled that penal interest cannot be capitalized and no interest can be charged on penal interest and hence the applicant bank is not entitled to get any pendente lite and post-decree interest on the aforesaid penal interest of Rs.18,379/- charged in the loan account.

7. Considering the amount advanced, interest applied, repayments effected and default committed, I am of the view that the applicant bank is entitled to get pendente lite and post decree interest @12% per annum on the sum of Rs.13,80,832.80 (i.e., after excluding the penal interest of Rs.18,379/- from the OA claim amount of Rs.13,99,211.80), which is reasonable in the facts and circumstances of the case.

8. The applicant bank, therefore, is entitled to get a final order on the following lines: In the result, the applicant bank is given a final order allowing it to recover:

(i) the sum of Rs.13,99,211.80 (Rupees thirteen lakhs ninety nine thousand two hundred and eleven and Paise eighty only) due under the auto loan account from the defendants jointly and severally;

(ii) Pendente lite and post-decree interest @12% per annum on the sum of Rs.13,80,832.80 (Rupees thirteen lakhs eighty thousand eight hundred and thirty two and Paise eighty only) from 13.03.2014 till realization from the defendants jointly and severally; and

(iii) also costs and expenses borne by it for realization of the loan from the defendants.

9. The applicant bank shall file memo of costs within ten days from the date of this final order.

10. Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

11. Communicate copy of this order to both parties as provided in R.16 r/w R.2(c) of the Debts Recovery Tribunal (Procedure) Rules, 1993. (Dictated to my PA, corrected and pronounced by me in the open Tribunal on this the 25th day of June, 2025)

[SOVAN KUMAR DASH]

A P P E N D I X Witness for Applicant: AW1: Sri.Shyam Prasanth H., Manager (Legal) of the applicant bank.

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 30.06.2012 Board Resolution of the 1st defendant for authorizing the 2nd defendant to borrow and execute the agreement on behalf of the 1st defendant. A2 27.06.2012 Loan application form for an auto loan submitted by the 1st defendant to the applicant bank. A3 27.06.2012 Loan application form for an auto loan submitted by the 2nd defendant to the applicant bank. A4 04.07.2012 Agreement for auto loan executed by the defendants in favour of the applicant bank. A5 04.07.2012 Demand Promissory note for Rs.14,09,283/- executed by the defendants in favour of the applicant bank. A6 .. Office copy of the lawyer’s notice issued to the defendants. A7 26.02.2014 Statement of account of the loan account no.21796087 from 04.07.2012 till 26.02.2014 as certified under the Bankers Book Evidence Act.

Defendants’ Exhibits – Nil

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 25th June, 2025

TA No.43/2018 (OA No.193/2014)

Between

HDFC Bank Ltd., Business Banking Division, Cochin Branch. …Applicant

And

Planters Home Recipes (P) Ltd.,

Pala, Kottayam, Rep. by its Managing Director P.C. Davis & another. …Defendants

F I N A L O R D E R