HDFC BANK vs M/S SSRC Transsolution Pvt Ltd on 15 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 05.09.2019 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants 1 to 3, jointly and severally for recovery of a total sum of Rs.20,78,225.74p (Rupees Twenty Lakhs Seventy Eight Thousand Two Hundred and Twenty Five and Seventy Four Paise only) due in respect of Cash Credit Facility (A/c No.50200016504971) repayable together with further interest @ 18% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned hypothecated assets and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 982 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.982 of 2019 stood transferred to this Tribunal and renumbered as TA No. 1872 of 2023. Brief Facts of the case:

3. 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.

4. It is the case of the applicant bank that the 1st defendant represented by 2nd and 3rd defendants, being the Directors of the Company are engaged in the business of providing transport services to their customers, approached the applicant bank for credit facility towards Working Capital and Term Loan requirements on 07.10.2015. The applicant bank after perusing all the documents in due course of business and vide initial Sanction Letter dated 27.11.2015 sanctioned Cash Credit facility of Rs.10,00,000/- with interest rate of 11.25% p.a. and in default an interest at the rate of 18% p.a. with monthly rest would be charged inter-alia the 1st defendant agreed and accepted the terms and conditions of sanction.

5. It is submitted that the defendants have accepted the terms and conditions of sanction and availed the limit. Evidencing the availment and for due repayment of the same, the defendants executed the following documents on 27.11.2015:

a) Demand Promissory Note for Rs.10,00,000/- executed by the first defendant

b) Letter of continuing security executed by the first defendant

c) Master facility agreement

d) Letter of hypothecation

e) Power of attorney

f) Letter of continuing guarantee

g) Letter of undertaking cum indemnity

6. The applicant submits that at the request of the defendants the applicant vide Renewal Sanction Letter dated 19.09.2016 enhanced the loan amount to Rs.17 lakhs and the limits were further renewed on 20.03.2018 for Rs.17 lakhs.

7. The applicant submits that subsequent to availing of loan, the operation and conduct of the Cash Credit account by the 1st defendant had become highly irregular and defaults were committed in the repayment obligations. The operations and turnover in the account was not commensurate with the limits sanctioned and availed. Inspite of follow up and requests, the defendants did not take any initiative to regularize their borrowed account. Despite repeated reminders, the defendants failed to repay the outstanding amount due and payable by them. Hence the account was classified as Non Performing Asset (NPA) on 28.09.2018 in accordance with the guidelines of Reserve Bank of India.

8. It is submitted that the defendants had committed continuous default and breached the agreement executed by them as the turnover in the account was not commensurate with the limits granted. The defendants have wilfully, malafidely and intentionally neglected to pay the amount outstanding in the books of the applicant bank. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants. The 1st defendant borrower is a Private Limited Company represented by the 2nd and 3rd defendants, who are the Guarantors. The 2nd and 3rd defendants also has liability that of 1st defendant and they are also jointly and severally liable to pay the outstanding dues to the applicant bank.

9. After the filing of the OA, summons was sent to the Defendants 1 to

3 through Registered Post with Acknowledgment Due, which were returned with postal endorsement as ‘Left’ in respect of D-1 to D-3. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 08.12.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 08.12.2021. Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Sh. S. Surender, Manager 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-19.

11. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 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.

12. The defendants were set ex-parte on 08.12.2021, 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.

13. 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 :

14. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a sum of Rs.20,78,225.74p (Rupees Twenty Lakhs Seventy Eight Thousand Two Hundred and Twenty Five and Seventy Four Paise only) due in respect of Cash Credit Facility (A/c No.50200016504971) repayable together with further interest @ 18% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated assets morefully detailed in the OA schedule.

(c) OA Schedule shall be appended to this final order.

(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants 2 and 3 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 2 and 3 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants 2 and 3.

(e) 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 Defendants to the applicant bank.

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

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

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 15th day of September, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. S.Surender, Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 07.10.2015 Application form for credit facilities A-1

2. 27.11.2015 Initial sanction letter A-2

3. 27.11.2015 DPN for Rs.10 lakhs executed by 1st defendant A-3

4. 27.11.2015 Letter of continuing security executed by the first defendant A-4

5. 27.11.2015 Master facility agreement A-5

6. 27.11.2015 Letter of hypothecation A-6

7. 27.11.2015 Power of attorney A-7

8. 27.11.2015 Letter of continuing guarantee A-8

9. 27.11.2015 Letter of undertaking sum indemnity A-9

10. 19.09.2016 Renewal cum enhancement letter A-10

11. 19.09.2016 DPN for Rs.17 lakhs executed by 1st defendant A-11

12. 19.09.2016 Letter of continuing security executed by first defendant A-12

13. 19.09.2016 Supplementary letter of continuing guarantee A-13

14. 19.09.2016 Supplementary letter of hypothecation A-14

15. 19.09.2016 Supplementary agreement A-15

16. 19.09.2016 Amendment agreement A-16

17. 19.09.2016 Power of attorney A-17

18. 20.03.2015 Renewal sanction letter A-18

19. 31.12.2015- 30.04.2022 Account statement with BBE certificate A-19

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

:-SCHEDULE-: Hypothecation of entire current assets inclusive of stock of machineries, computers lying in No.126, Old No.76, Poonamalee High Road, Chennai- 600777, its vehicles, plant, machinery, raw materials, finished goods and receivables etc of the borrower as morefully described in the schedule of hypothecation executed.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI