Debts Recovery Tribunal allowed the bank's application for recovery of an outstanding overdraft and term loan. The Tribunal granted uniform simple interest at 10% p.a. and directed recovery through sale of secured and personal assets.
Recovery of Rs. 52,22,747.98 with costs and simple interest at 10% p.a. from filing of OA till realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1074/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.04.2022
DATE OF DECISION: 31.08.2023
HDFC Bank Ltd., a banking company, incorporated under Companies Act, 1956 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having one of its branch at Dhuri and Chandigarh, through its duly authorized signatory and Authorized officer Sh. Sunil Kalra, working as Legal Manager currently posted at Plot No.28, PhaseI, Industrial Area, Chandigarh-160002
……..Applicant
Versus
Advocates:
Argued by Sh. Harinder Kumar, counsel for the applicant Defendants are ex-parte
2
FINAL ORDER
3
situated at Village Rawan, Tehsil Bhulath, District Kapurthala, Punjab vide Sale Deed bearing No.3828 dated 04.08.2003 along with its translation, which is Annexure A12 to this OA.
Documents executed:- D.P. note, Master facility agreement, Letter continuing agreement, Takeover letter, Declaration cum indemnity, Deed of indemnity, Declaration and Letter of continuing guarantee all dated 09.06.2014, which are Annexures A4 to A7, A9, A10, A11 and A13 to this OA; Memorandum recording of deposit of title deed dated 28.07.2014, which is Annexure A8 to this OA; Amendment agreement dated 09.12.2016, which is Annexure A17 to this OA; Addendum agreement dated 30.06.2020, which is Annexure A25 to this OA; Facility cum hypothecation agreement, Declaration cum undertaking and Undertaking all dated 18.11.2020, which are Annexures A27 to A29 to this OA; Statements of accounts with calculation chart certified under Banker Books Evidence Act, 1891, which are Annexures A31 and A33 to this OA; Memorandum of interest, which is Annexure A32 to this OA; Recall notice dated 05.04.2022, which is Annexure A34 to this OA and Valuation report dated 06.06.2014, which is Annexure A35 to this OA.
4
The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of
5
Rs.52,22,747.98p (Rupees Fifty Two Lacs Twenty Two Thousand Seven Hundred Forty Seven and Paisa Ninety Eight only) with costs, current and future simple interest @10.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.
Dated: 31.08.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
Order dictated, signed and pronounced by me in the open Tribunal.
Dated: 31.08.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount along with interest from the defaulting borrowers.
Whether the Tribunal should modify the claimed interest rate to a uniform simple interest rate upon application being ex-parte.
1 provisions across 1 enactments
HDFC Bank Ltd.
M/s Sanjeev Trading Company
Sh. Kimti Lal
Smt. Sushma Rani
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
