HDFC BANK vs Deepak Krishna on 20 August 2025

1. Deepak Krishna, 677A (33/1101) Anizham, Kairali Nagar 102, Mulamkadakam, Thirumullavaram P.O., Kollam – 691 012.

2. Krishna Pillai T.C., 677A (33/1101) Anizham, Kairali Nagar 102, Mulamkadakam, Thirumullavaram P.O., Kollam – 691 012.

…Defendants This Original Application having been heard on 29.07.2025 in the presence of Advocate Smt.Saraswathy P. for the applicant bank and the defendants being exparte, 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.27,07,203.39 due under auto loan account together with future interest thereon @18% 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 the account of the defendants is being operated through Kollam Branch.

3. The 1st defendant as principal borrower and the 2nd defendant as co-applicant had applied for an auto premium loan for purchase of a BMW 320D car. As the defendants were found eligible for a loan of Rs.27.15 lakhs, which was sanctioned and the defendants availed the same on 31.05.2013 after executing necessary security documents. Thereafter, the defendants have applied for a top up loan of Rs.5,77,379/- which was also sanctioned and charge was created on the hypothecated vehicle. The defendants availed the facilities but committed default in repayment. The applicant issued a lawyer notice to the defendants on 30.08.2015 recalling the liability but they did not repay the dues.

In such premises, applicant bank was constrained to file the OA claiming the following reliefs:

(i) To recover the sum of Rs.27,07,203.39 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. But they neither appeared nor were they represented and hence the defendants were declared exparte on 20.04.2023. Proof Affidavit:

5. To establish the claim on behalf of the applicant bank, one Mr.Shyam Prasanth Hari Hara Menon, Manager (Legal) has filed proof affidavit and produced the loan documents marked as Exts.A1 to A10. The proof affidavit filed by AW1 and the documents produced in this case are not challenged by the defendants. The availing of the loans is well established from the documents placed by the applicant bank. A sum of Rs.27,07,203.39 i.e.,

Rs.21,12,537.73 in auto loan account and Rs.5,94,665.66 in top up loan account as on 28.09.2015, which is established from the account statements marked as Ext.A10.

6. Ext.A10 statements would show that the applicant bank has charged a sum of Rs.35,166/- and Rs.12,179/- by way of late payment penalty charges in the auto loan and top up loan accounts respectively. As per the guideline of RBI, no further interest shall be computed on such charges and hence the applicant bank is not entitled to get any pendente lite and post-decree interest on the aforesaid penalty charges of Rs.35,166/- and Rs.12,179/-, totaling to Rs.47,345/- debited in the loan accounts.

7. Further, it could be seen that the applicant has debited a sum of Rs.54,884.82 towards ‘prepayment charges @3.42% on outstanding principal’ in auto loan account and Rs.23,427.02 as ‘prepayment charges @5.7% on outstanding principal’ in top up loan account. The applicant bank has not made any averment in the OA that the defendants had pre-paid the loan before the scheduled due date. Per contra, it is the case of the applicant bank that the defendants flouted the terms of loan agreement and hence lawyer notice was issued to them on 30.05.2015 demanding pre-closure of the loan accounts but the defendants did not close the loan accounts and hence they filed the instant OA to recover the dues. In such backdrop, applicant bank is not entitled to recover the aforesaid sum of Rs.54,884.82 and Rs.23,427.02, totaling to Rs.78,311.84 debited towards prepayment charges.

8. The Tribunal vide order dated 12.10.2015 in IA No.2616/2015 had passed an order of interim attachment of the hypothecated vehicle viz., BMW 320D Model Engine No.74168351 with Chassis No.WBA3F37070NP08426, Reg.No.KL-02-AP5 and an Advocate Commissioner was appointed for taking lawful custody of the vehicle and to place it in the interim custody of the bank. But the learned counsel for the applicant bank submitted in the proceeding dated 20.11.2015 that the vehicle could not be traced out. Despite registered notice was issued to the defendants in the IA, they did not appear in this case.

9. Considering the amount advanced, interest applied and default committed, I am of the view that applicant bank is entitled to recover the sum of Rs.26,28,891.55 (i.e., after excluding the total prepayment charges of Rs.78,311.84 from the OA claim amount of Rs.27,07,203.39) together with pendente lite and post- decree interest @18% per annum on the sum of Rs.25,81,546.55 (i.e., after excluding the late payment penalty charges of

Rs.47,345/- from Rs.26,28,891.55), which is reasonable in the facts and circumstance of the case.

10. 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) an aggregate sum of Rs.26,28,891.55 (Rupees twenty six lakhs twenty eight thousand eight hundred and ninety one and Paise fifty five only) due under auto loan and top-up loan accounts from the defendants jointly and severally and by sale of the hypothecated vehicle, if available;

(ii) Pendente lite and post-decree interest @18% per annum on the sum of Rs.25,81,546.55 (Rupees twenty five lakhs eighty one thousand five hundred and forty six and Paise fifty five only) from 08.10.2015 till realization from the defendants jointly and severally and by sale of the hypothecated vehicle, if available; and

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

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

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

13. 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 20th day of August, 2025)

[SOVAN KUMAR DASH]

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

Witness for Defendant(s): Nil

Applicant’s Exhibits

Ext.No Date Particulars of documents

A1 22.05.2013 Loan application submitted by the 1st defendant to purchase a BMW 320 D Car. A2 22.05.2013 Loan application submitted by the 2nd defendant as co-obligant. A3 31.05.2013 Agreement for auto loan no.24569096 executed by the defendants. A4 31.05.2013 Demand Promissory note for Rs.27,15,000/- executed by the defendants in favour of the applicant bank. A5 18.08.2014 Loan application submitted by the 1st defendant for top up loan of Rs.5,77,379/-. A6 18.08.2014 Loan application submitted by the 2nd defendant as co-obligant. A7 22.08.2014 Supplemental agreement for vehicle loan cum hypothecation and guarantee executed by the defendants in respect to loan agreement no.29391711. A8 22.08.2014 Letter of acceptance issued by the 1st defendant. A9 22.08.2014 Demand Promissory note for Rs.27,15,000/- executed by the defendants in favour of the applicant bank.

A10 28.09.2015 Statements of accounts of the loan accounts No.24569096 and 29391711 as certified under the Bankers Book Evidence Act.

Defendants’ Exhibits – Nil

PRESIDING OFFICER

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

PRESENT: SRI.SOVAN KUMAR DASH PRESIDING OFFICER

Dated the 20th August, 2025

TA No.1560/2016 (OA No.448/2015)

Between

HDFC Bank Limited, Business Banking Division, Rep. by Manager (Legal) Shyam Prasanth H. …Applicant

And

Deepak Krishna, 677A (33/1101) Anizham, Kairali Nagar 102, Mulamkadakam, Thirumullavaram P.O., Kollam – 691 012 & another.

…Defendants

F I N A L O R D E R