HDFC Bank Limited vs Mr. Mohammed Ismail on 24 August 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.31,14,948.36p/- together with interest at the rate of 10.99% p.a. with monthly rests 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 availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant approached the applicant bank for grant of personal loan by submitting loan application dated 16.04.2018 and considering the said request the applicant sanctioned a loan of Rs.34,67,918/- repayable in 60 equated monthly installments of Rs.75,384/- each commencing from 4.6.2018 till 04.05.2023. The defendant executed loan agreement dated 24.04.2018 and other documents on the same date.

4. It is also the case of the applicant that the defendants defaulted in repayment and failed to regularize the loan account despite repeated demands and hence the loan account was classified as NPA and the applicant bank issued legal notice dated 10.02.2020 requiring the applicant to clear the outstanding dues, but in vain. Hence the present OA is filed for recovery of its dues.

5. Summons was taken out to the defendant is served with notice by way of substituted service. As the defendant is continuously absent and as there was no representation for the defendant on 06.09.2023, the sole defendant was 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 02.04.2024. The Ld. Counsel for Applicant Bank made his submissions on 25.06.2026 and thereafter the matter stood till this date for passing final orders.

6. 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.

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

8. 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.

9. 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.

10. In view of the fact that the loan facility availed by the defendant is a personal loan 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.

11. 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.529 of 2023 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.31,14,948.36p/- with further interest @9% 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.

(c) It is made clear that 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.

12. 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 24th day of August, 2026)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 16.04.2018 Loan Application of the defendant A-1

2. 24.04.2018 Loan Agreement A-2

3. 10.02.2020 Legal Notice A-3

4. 17.02.2020 Proof of service of the legal notice with respect to address at 24/67, Asharkhana Street, Alandur, St. Thomas Mount, Chennai – 600 016 A-4

5. 20.02.2020 Proof of service of the legal notice with respect to addressat Abode Services Pvt. Ltd., No.7/11, Defense Officers Colony, Guindy, Chennai – 600032 A-5

6. 06.02.2020 Statement of Accounts along with certificates under Bankers’ Book Evidence Act. A-6

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DESCRIPTION OF PROPERTY

NIL

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