HDFC BANK vs FILTERMAX SYSTEM PRIVATE LIMITED on 31 August 2026

: - FINAL ORDER - :

1. This Original Application is filed on 03.03.2023 by the Applicant Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants for recovery of a total sum of Rs.1,11,68,662.25p (Rupees One Crore Eleven Lakhs Sixty Eight Thousand Six Hundred Sixty Two and Twenty Five Paise Only) due in respect of Cash Credit Facility under CGTMSE Scheme (Account No.50200022312851) repayable together with further interest @ 13.4% p.a. with monthly rests and penal interest @2% p.a. from the date of filing the OA, till date of realization in full and for costs of this application. Brief Facts of the case:

2. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

3. It is the case of the Applicant Bank that the 1st Defendant Represented by its Director has approached the applicant bank for Cash Credit facility under CGTMSE Scheme by submitting Loan Application on 25.10.2016.

4. It is submitted that based on the documents furnished by the 1st Defendant, the Applicant Bank had sanctioned the said facility on 07.11.2016 for an amount of Rs.1,00,00,000/- vide Loan Account

No:50200022312851, which was repayable in 12 months or on demand. The Applicant bank submits that the above said Loan amount of Rs.1,00,00,000/- was disbursed in the manner as follows:

1. Rs.50,00,000/- towards Cash Credit Facility

2. Rs.50,00,000/- towards Bank Guarantee

5. The Applicant Bank submits that the Defendants have executed necessary Loan documents on 07.11.2016 for an amount Rs.1,00,00,000/- and agreed to pay the same along with interest at the rate of 8.90% per annum in respect of Cash Credit Facility.

6. The Applicant submits that the 1st Defendant Represented by its Director had executed the following Documents on 07.11.2016 for an amount of Rs.1,00,00,000/- in favour of applicant bank:

(i) Demand Promissory Note

(ii) Master Facility Agreement

(iii) Amendment Agreement

(iv) Deed of Hypothecation

7. The Applicant submits that the Defendants 2 to 4 have stood as Guarantors for the due repayment of the above loan and have signed as Guarantors in the Letter of Continuing Guarantee on 07.11.2016 in their Individual Capacity for an amount of Rs.1,00,00,000/-.

8. It is further submitted by the applicant bank that based on the request of the Defendants, the above said facility was renewed/reduced on 27.11.2017 for an amount of Rs.75,00,000/- in the manner follows:

(i) Rs.50,00,000/- towards Cash Credit Facility

(ii) Rs.25,00,000/- towards Bank Guarantee.

9. The Applicant Bank further submits that based on the request of the Defendants, the above said facility was again renewed/reduced on 30.11.2018 for amount of Rs.59,35,000/- in the manner follows:

(i) Rs.50,00,000/- towards Cash Credit Facility

(ii) Rs.9,35,000/- towards Bank Guarantee.

10. The Applicant Bank submits that subsequent to availing of loan, the defendants have neither repaid the loan amount, except for a few repayments, which was not sufficient for maintaining the Loan account. Consequently, hence the loan accounts became irregular and the Loan Account has been declared as Non-Performing Asset (NPA) on 05.03.2019.

11. It is submitted by the applicant bank that when matters stood thus, the Applicant issued Legal Notice dated 19.01.2023 to the defendants demanding the outstanding amount. The notice sent to the 1st Defendant has been returned with an endorsement ‘Left’ and the notice sent to the Defendants 2 to 4 returned with endorsement ‘unclaimed’. In spite of the said notice, the Defendants have deliberately failed to repay the loan amount. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

12. After the filing of the OA, summons were sent to the Defendants 1 to 4 through Registered Post with Acknowledgment Due. Summons sent to the 1st defendant returned with postal endorsement as ‘left’, while summons sent to the defendants 2 to 4 were duly served. Defendants 1 to 3 entered appearance through counsel Mr. Solomon Praveen and received copy of OA on 11.06.2024. However, despite availing three adjournments, defendants 1 to 3 did not choose to file written statement. When OA was taken up on 19.08.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 4 were placed ex-parte on 19.08.2024.

Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Mr. B. Monesh, Authorised Signatory of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-13.

14. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

15. The defendants were set ex-parte on 19.08.2024, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

16. With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

17. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants, a total sum of Rs.1,11,68,662.25p (Rupees One Crore Eleven Lakhs Sixty Eight Thousand Six Hundred Sixty Two and Twenty Five Paise Only) due in respect of Cash Credit Facility under CGTMSE Scheme (Account No.50200022312851) repayable together with further interest @ 13.4% p.a. with monthly rests and penal interest @2% p.a. from the date of filing the OA, till date of realization in full along with costs.

(b) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

(c) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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

18. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 31st day of August, 2026) ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: Mr. B. Monesh, Authorised Signatory of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Description of Documents Exhibit No.

1. Proof Affidavit. A-1

2. Index to the List Documents. A-2

3. Loan Application dated 25.10.2016. A-3

4. Sanction Letter dated 07.11.2016. A-4

5. Demand Promissory Note executed by the 1st defendant dated 07.11.2016. A-5

6. Master Facility Agreement executed by the 1st defendant dated 07.11.2016. A-6

7. Amendment Agreement executed by the 1st defendant dated 07.11.2016. A-7

8. Deed of Hypothecation executed by the 1st defendant dated 07.11.2016. A-8

9. Letter of continuing Guarantee Executed by the 2nd, 3rd and 4th defendants dated 07.11.2016. A-9

10. Renewal Sanction Letter dated 27.11.2017. A-10

11. Renewal Sanction Letter dated 30.11.2018. A-11

12. Legal Notice along with the return covers dated 19.01.2023. A-12

13. Statement of accounts. A-13

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:- SCHEDULE -:

-Nil-

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI