Allowed

Hdfc Bank v. Sh. Ram Gopal

DRT7 Jun 2023OA/1289/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 25,62,285/- due from a deceased borrower and his legal heirs. The court granted uniform simple interest at 5% per annum and clarified that heirs' liability is limited to the inherited estate.

What did the court decide?

Recovery of Rs. 25,62,285/- with simple interest @5% per annum from 25.07.2022; recovery through sale of mortgaged property and attachment of personal assets subject to heirs' liability limited to est

Hdfc Bank versus Sh. Ram Gopal — Execution and Attachment | DRT (2023)

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

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ORIGINAL APPLICATION NO.1289/2022

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DATE OF INSTITUTION: 25.07.2022

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DATE OF DECISION: 7^th DAY OF JUNE, 2023

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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 and Branch amongst other places one at Ratia, through Sh. Jatinder Mishra, Assistant Manager holder of attorney from the Applicant Bank

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…..Applicant Bank

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Versus

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Sh. Ram Gopal S/o Sh. Ram Kishan R/o House No. 185/192, Village Sukhmanpur (142), Tehsil Ratia, District Fatehabad125051 (Since deceased represented by LR's)

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1A) Smt. Neelam Rani W/o Sh. Ram Gopal R/o Village

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Sukhmanpur (142), Tehsil Ratia, District Fatehabad-125051

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1B) Smt. Amriti Devi alias Emerati Devi W/o Sh. Ram Kishan R/o

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Village Sukhmanpur (142), Tehsil Ratia, District Fatehabad

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1C) Sh. Anand Kumar S/o Sh. Ram Gopal R/o Village

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Sukhmanpur (142), Tehsil Ratia, District Fatehabad-125051

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1D) Smt. Poonam D/o Sh. Ram Gopal now W/o Sh. Virender R/o Village Khairati-Khera, Tehsil and District, Fatehabad-125050

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1E) Smt. Kiran D/o Sh. Ram Gopal now W/o Sh. Suresh R/o

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Village Khairati-Khera Tehsil and District, Fatehabad-125050

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1F) Smt. Jyoti D/o Sh. Ram Gopal now W/o Sh. Dushyant R/o

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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Village Sidhani, Tehsil Jakhal, District Fatehabad- 125133

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Sh. Surjit S/o Sh. Hajura Ram R/o Village Sukhmanpur (142), Tehsil Ratia, District Fatehabad-125051

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…..Defendants

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Argued by: Sh. Jatinder Mishra, Assistant Manager (Legal) for the Applicant bank Defendants ex parte vide order dated 24.03.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.25,62,285/- (Rupees Twenty Five lacs Sixty Two Thousand Two Hundred and Eighty Five Only) . It has been filed through Sh. Jatinder Mishra, Assistant Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 16.12.2020, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that defendant No. 1 had approached the applicant bank for grant of KCC facility of Rs. 15.50 lacs and further approached for enhancement to Rs. 19.50 lacs vide loan applications dated 18.11.2015 and 24.12.2019, Annexures-A2 and A9 (copy). Defendant No. 2 stood as a guarantor for repayment of the loan.

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The applicant bank sanctioned KCC facility of Rs.15 lacs and

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enhanced it to Rs. 19.50 lacs to the defendants vide sanction letters dated 30.12.2015 and 31.12.2019, Annexures-A3 and A10

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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(copy) as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed various loan and security documents, i.e. agreement for overdraft/cash credit-cum-guarantee-cumhypothecation dated 06.01.2016 and 01.01.2020, Annexures-A4 and A11 (copy), demand promissory note dated 06.01.2016, Annexure-A5 (copy), letter dated 06.01.2016 of continuity of demand promissory note, Annexure-A6 (copy) and addendum-cumundertaking dated 01.01.2020 regarding terms and conditions, Annexure-A12 (copy).

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The aforesaid loan was further secured by creation of registered mortgage by defendant No. 1 in respect of agricultural land measuring 80 Kanals situated in the revenue estate of Sukhmanpur, Tehsil Ratia, District Fatehabad, Haryana, fully detailed in para No. 5(vi) of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered mortgage deed dated 04.01.2016, AnnexureA7 (copy).

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ii. Request letter dated 05.01.2016 to the Sub-Registrar, Ratia, for entry/mutation of mortgaged property, Annexure-A8 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared NPA on 01.10.2021. The applicant bank recalled entire outstanding amount vide legal

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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notice dated 02.07.2022, Annexure-A13 (copy) along with original postal receipts, Annexures-A14 to A20 .

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.25,62,285/- (Rupees Twenty Five lacs Sixty Two Thousand Two Hundred and Eighty Five Only) is recoverable against the defendants as per statement of account dated 05.04.2022, Annexure-A21 (copy) certified under Bankers’ Books Evidence Act. Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex-parte vide order dated 24.03.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Jatinder Mishra, Assistant Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Sh. Jatinder Mishra, Assistant Manager of the applicant bank and gone through the record carefully.

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It was argued by Sh. Jatinder Mishra, Assistant Manager of the applicant bank 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 A21 , it is clear that the defendants had

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants 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. Sh. Ram Gopal had died, leaving behind defendant Nos. 1(a), 1(b), 1(c), 1(d), 1(e) and 1(f) as his legal heirs who have been impleaded as defendants statedly being beneficiaries of the property and estate of the deceased. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.25,62,285/- (Rupees Twenty Five lacs Sixty Two

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Thousand Two Hundred and Eighty Five Only) from the defendants.

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In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @12% per annum with half yearly rests. In sanction letter dated 30.12.2015, Annexure-A3 (copy), rate of interest has been mentioned @12% per annum with half yearly rests.

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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, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, death of the borrower and defendant Nos. 1(a), 1(b), 1(d), 1(e) and 1(f) being

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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ladies while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @5% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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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.25,62,285/- (Rupees Twenty Five lacs Sixty Two Thousand Two Hundred and Eighty Five Only) with current and future simple interest @5% per annum w.e.f. 25.07.2022 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property 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, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law. However, it is clarified that there should not be any ambiguity that the liability of the defendants by virtue of their being the legal heirs of the deceased borrower shall remain confined only to estate of the deceased borrower if it is inherited by them and not beyond that or otherwise. The recovery proceedings shall proceed only after the Recovery Officer is fully satisfied on the aspect of the estate being inherited by the Legal Representatives/Heirs and the liability being incurred accordingly .

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OA/1289/2022 HDFC BANK Vs RAM GOPAL AND OTHERS

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 07.08.2023 .

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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.

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

Hdfc Bank v. Sh. Ram Gopal

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Sh. Ram Gopal

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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