HDFC BANK vs C G SANTHOSH on 18 September 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.29,90,469.52p together with interest at the rate of 10.75% p.a. 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 13.09.2019 for grant of a Personal Loan and considering the said request the applicant vide sanction dated 20.09.2019 granted a loan of Rs.26,40,000/- and the defendant executed Loan Agreement dated 20.09.2019 under Loan Account No.94226757 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 20.09.2019, undertaking to repay the loan amount with interest by way of Equated Monthly Instalments (EMIs) of Rs.57,071/- each commencing on 07.10.2019 and ending on 07.09.2024.

5. It is also the case that the defendant that the defendant failed to adhere to the terms of the loan agreement and defaulted in payment of the installments, resulting in the applicant issuing a legal notice dated 28.09.2019 demanding a sum of Rs.29,90,469.52p. The said notice returned with endorsement “Left” in respect of Sholinganallur address 0n 1.10.2021, “unclaimed” with respect to Perungudi address on 1.10.2021 and served at Chittoor, A.P. address on 05.10.2021.

6. Summons was taken out to the defendant and was served at one of the 3 addresses. Hence, service was deemed complete. As there was no representation for the defendant continuously and on 19.09.2022, they were set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 7 documents, which were marked as Ex. A-1 to A-7 on 03.04.2024. The Ld. Counsel for Applicant Bank made his submissions on 29.07.2026 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-7 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 defendant had agreed to abide by the terms and conditions of the loan agreement and thus liable to pay a sum of Rs.29,90,469.52p as on 23.09.2021 towards the above said loan account.

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.315 of 2022 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.29,90,469.52p 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) 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 18th day of September, 2026)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 13.09.2019 Loan Application Form A-1

2. 20.09.2019 Loan Agreement A-2

3. 28.09.2021 Legal notice A-3

4. 01.10.2021 Returned cover of the legal notice with respect to the address situated at No.66/B, 3rd Main Road, New Kumaran Nagar, Shollinganallur, Chennai – 600 119. A-4

5. 01.10.2021 Returned cover of the legal notice with respect to the address situated at Optimum Infosystem Private Limited, No.126, 4th Floor, Industrial Estate, Perungudi, Chennai – 600 096. A-5

6. 05.10.2021 Proof of service of legal notice with respect to the address situated at No.2-44, Patha Arcot, Patha Arcot Vijayapuram, Chittoor, Andhra Pradesh – 517 586 A-6

S. No. Date Description of Documents Exhibit Nos.

7. 23.09.2021 Statement of Accounts A-7

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DESCRIPTION OF PROPERTY

NIL

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