HDFC Bank Limited vs Mr. S. Ramesh on 21 July 2026

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant seeking issuance of a Recovery Certificate for recovery of a sum of Rs.46,84,156/- together with interest at the rate of 12.80% p.a. with monthly rests plus 24% penal interest from the date of the application till the date of realisation along with costs of the application.

2. The subject matter of the case is the Personal Loan facility availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant approached the applicant by the Loan Application dated 22.11.2018 to avail a Personal Loan facility. Accordingly, a loan of Rs.50,23,916/- was sanctioned and the defendant executed Loan Agreement dated 05.12.2018 under Loan Account No.63175415 agreeing to abide by its terms and conditions.

4. It is the case of the applicant that the defendant accepted the terms and conditions of the Personal Loan facility and executed the necessary loan documents on 05.12.2018, undertaking to repay the loan amount with interest by way of Equated Monthly Instalments (EMIs) of Rs.1,34,281/- each and commencing on 06.01.2019 and ending on 06.12.2022.

5. It is also the case that the defendant committed default in repayment of the loan. Consequently, the loan account was classified as NPA with effect from 06.12.2019. Inspite of several requests, the defendant failed to settle the outstanding dues and hence the present OA for recovery of the outstanding dues from the defendant.

6. Summons was taken out to the defendant are served. As there was no representation for the defendant continuously and on 15.02.2022, they were set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 6 documents, which were marked as Ex. A-1 to A-6 on 21.03.2024, however, Exhibits A-1, A-5 and A-6 were marked subject to proof and relevancy and A-7 is marked along with A-4 as A-4. The Ld. Counsel for Applicant Bank made his submissions on 20.05.2026 and thereafter the matter stood till this date for passing final orders.

7. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendant?

(b) What order as to cost of the proceedings need be passed? These issues are considered together.

8. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

9. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-6 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendant. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendant. It is clear from the statement of accounts that penal interest is not capitalized.

10. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

11. In view of the fact that the loan facility availed by the defendant is a Personal Loan facility for its business and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates and prayer for grant of penal interest is rejected.

12. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

(a) TA No.49 of 2023 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.46,84,156/- with further interest @12% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendant after deducting all the amounts received / realized by them during the pendency of OA and also by selling the other assets of the defendant.

(c) The defendant is personally liable for all such amounts due as ordered above.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

13. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 21th day of July, 2026)

EXHIBITS MARKED BY APPLICANT BANK S. No. Date Description of Documents Exhibit Nos.

1. 15.04.2023 Board Resolution A-1

2. 22.11.2018 Loan application form executed by the defendant A-2

3. 05.12.2018 Loan agreement executed by the defendant A-3

4. 11.11.2019 Statement of accounts along with certificates under Bankers’ Book Evidence Act A-4

5. 11.11.2019 Foreclosure letter A-5

6. 21.11.2019 Legal notice issued by the applicant A-6

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DESCRIPTION OF PROPERTY

NIL

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