Allowed

Hdfc Bank v. Nk Enterprises and Anr.

DRT22 Sept 2023OA/1041/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for issuance of a recovery certificate. The defendants were declared liable to pay the outstanding principal sum with simple interest at 8% per annum from the date of filing, and ordered to face execution proceedings.

What did the court decide?

Issued a Recovery Certificate ordering repayment of Rs. 22,88,517.53 with 8% simple interest p.a. from 05.03.2022.

Hdfc Bank versus Nk Enterprises and Anr. — Execution and Attachment | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

¶2

ORIGINAL APPLICATION NO.1041/2022

¶3

DATE OF INSTITUTION: 05.03.2022

¶4

DATE OF DECISION: 22^nd DAY OF SEPTEMBER, 2023

¶5

HDFC Bank Limited, a Banking Company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013, whereas Branches amongst the other places one at Plot No. 28, HDFC Bank House, Industrial Area, Phase-I, Chandigarh, through its authorised representative, Ms Smandeep Kaur Sekhon

¶6

…..Applicant Bank

¶7

Versus

¶8

NK Enterprises, through its Proprietor, Sh. Naveen, Village and Post Office Khungai, NR Main Road, Khunga, District Jhajjar124104 (Haryana)

¶9

Sh. Naveen s/o Sh. Ram Kishan Village and Post Office Khungai, Near Main Road, Khunga, District Jhajjar-124104 (Haryana)

¶10

Sh. Ram Parkash s/o Sh. Jaya Ram Village and Post Office Khungai, Near Main Road, Khunga, District Jhajjar-124104 (Haryana)

¶11

…..Defendants

¶12

Argued by: Sh. Kabir Chopra, Manager Legal for the applicant bank Defendant Nos. 1 and 2 ex parte vide order dated 13.07.2023 Defendant No. 3 ex parte vide order dated 03.11.2022

¶13

FINAL ORDER

¶14

Present Original Application was instituted by the applicant

¶15

bank under Section 19(1) of the Recovery of Debts Due to Banks

¶16

OA/1041 of 2022 HDFC BANK VS N.K. ENTERPRISES AND OTHERS 2

¶17

and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.22,88,517.53/- (Rupees Twenty Two Lac Eighty Eight Thousand Five Hundred Seventeen and Fifty Three Paisa Only) . The OA has been filed through Ms Smandeep Kaur Sekhon, Authorised Representative of the applicant bank, stated to be competent to institute the Original Application vide Resolution of Board dated 16.10.2021, Annexure-A1 (copy).

¶18

The brief facts of the case of the applicant as per the Original Application are that the defendants had approached the applicant bank for grant of loan/credit facility of Rs. 25,43,030/- and term loan of Rs. 3,90,000/- under Emergency Credit Line Guarantee Scheme vide commercial loan application Form dated 14.11.2018, Annexures-A2 and A3 (copy).

¶19

The applicant bank sanctioned the aforesaid facilities to the defendants vide sanction letter dated 20.10.2020, Annexures-A5 (copy) as per terms and conditions which were duly accepted by the defendants.

¶20

In order to secure the aforementioned credit facilities, the defendants executed various loan and security documents, i.e. facility-cum-hypothecation agreement dated 22.10.2020, Annexure-A6 (copy) and declaration-cum-undertaking dated 20.10.2020 regarding terms and conditions, Annexure-A7 (copy) and agreement dated 27.11.2018 for loan and guarantee, Annexure-A4 (copy)

¶21

It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to

¶22

OA/1041 of 2022 HDFC BANK VS N.K. ENTERPRISES AND OTHERS 3

¶23

maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA. The applicant bank recalled entire outstanding amount vide legal notice dated 22.02.2022, Annexure-A8 (copy), but to no avail.

¶24

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.22,88,517.53/- (Rupees Twenty Two Lac Eighty Eight Thousand Five Hundred Seventeen and Fifty Three Paise Only), is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, 1891, Annexures-A9 and A10 (copy).

¶25

Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

¶26

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants despite service, thus, the defendant Nos. 1 and 2 were proceeded against ex parte vide order dated 13.07.2023 and defendant No. 3 was proceeded against ex parte vide order dated 03.11.2022.

¶27

In support of contents of the OA, affidavit of evidence of Ms Smandeep Kaur Sekhon, Authorised Representative of the applicant bank was filed.

¶28

This Tribunal has heard ex-parte arguments advanced by Sh. Kabir Chopra, Manager Legal and gone through the record carefully.

¶29

OA/1041 of 2022 HDFC BANK VS N.K. ENTERPRISES AND OTHERS 4

¶30

It was argued by Sh. Kabir Chopra, Manager Legal that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A10, it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were granted to them after they had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,88,517.53/-

¶31

(Rupees Twenty Two Lac Eighty Eight Thousand Five Hundred Seventeen and Fifty Three Paise Only) from the defendants.

¶32

In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @8.25% per annum in relief clause. In sanction letter dated 20.10.2020, Annexures-A5 (copy), the rate of interest has been mentioned @8.25% per annum.

¶33

This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. purchase of vehicle, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing

¶34

OA/1041 of 2022 HDFC BANK VS N.K. ENTERPRISES AND OTHERS 5

¶35

of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.

¶36

In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.22,88,517.53/- (Rupees Twenty Two Lac Eighty Eight Thousand Five Hundred Seventeen and Fifty Three Paise Only) with current and future simple interest @8% per annum , w.e.f. 05.03.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated properties of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

¶37

Issue Recovery Certificate accordingly.

¶38

Parties to appear before Recovery Officer concerned on 26.10.2023

¶39

Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be also uploaded on the official website of this Tribunal.

¶40

Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Hdfc Bank v. Nk Enterprises and Anr.

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Nk Enterprises and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Messers Hoque Supary Chips Unit

Ms Manglam Automobiles versus Uco Bank

State Bank of India versus Mr Shivavtar Pritvipal Kaythal

M/S Rajindera Auto Services versus Indusind Bank Limited

Punjab National Bank versus Sh. Labh Singh

Yes Bank versus Hafijul Purkait and Anr.