Allowed

Hdfc Bank Limited, v. M/S Virk Jewellers and Others

DRT19 Dec 2023OA/135/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by HDFC Bank Limited for recovery of a defaulted loan of over Rs. 64 lakhs. Finding the defendants' case ex-parte and evidence unrebutted, the Tribunal directed repayment with simple interest at 10% p.a. instead of the claimed 18%.

What did the court decide?

Recovery Order entered for Rs. 64,87,650.23 plus costs and simple interest at 10% per annum from the date of filing.

Hdfc Bank Limited, versus M/S Virk Jewellers and Others — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.135/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.12.2021

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DATE OF DECISION: 19.12.2023

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HDFC Bank Limited, a Banking Co, incorporated under the Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having its Branches amongst other places at The Mall, Ludhiana, Punjab and Union Territory of Chandigarh through its duly Authorized Officer Sh. Narender Kumar Nanda, Recovery Manager, HDFC Bank House, Plot No. 28, Second Floor, Industrial Area, Phase-I, Chandigarh-160002.

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……..Applicant

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Versus

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Messrs. Virk Jewellers, through its Proprietor Sh. Jaswinder Singh, S/o Sh. Bachittar Singh, having its place of business at Near Dhir Cut Piece Store, Purani Mandi, Mullanpur-141101, Ludhiana, Punjab.

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Sh. Jaswinder Singh S/o Sh. Bachittar Singh, Proprietor Messrs. Virk Jewellers, Near Dhir Cut Piece Store, Purani Mandi, Mullanpur141101, Tehsil and District Ludhiana, Punjab.

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Second Address:

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House No. 4/30F, Kutia Wali Gali, Purani Mandi, Mullanpur-141101, Tehsil and District Ludhiana, Punjab.

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Sh. Bachittar Singh S/o Sh. Sardara Singh, House No. 4/30F, Kutia Wali Gali, Purani Mandi, Mullanpur-141101, Tehsil and District Ludhiana, Punjab.

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………Defendants

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Advocates:

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Argued by Sh. Vijay Sharma, Advocate for the applicant

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Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.64,87,650.23p (Rupees Sixty Four Lacs Eighty Seven Thousand Six Hundred Fifty and Paisa Twenty Three only). The Original Application has been filed through Sh. Sh. Narender Kumar Nanda, Recovery Manager of the applicant bank, who is competent to institute the Original Application vide Board Resolution dated 28.09.2018 which is Annexure A1 to this OA.

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The brief facts of the OA are that defendants had approached the applicant bank for the grant of Cash Credit Limit of Rs.50.00 Lacs vide Loan application dated 16.11.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the grant of Cash Credit Limit of Rs.50.00 Lacs vide Sanction Letter dated 18.11.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.3 had mortgaged his immovable property i.e. residential property measuring 0K 08M (240 square yards) comprised in khasra no. 1185, situated in village Mullanpur, Tehsil and District Ludhiana presently known as House No. 4/30-F, Old Mandi, Mullanpur- 141101, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale Deed bearing Wasika No. 311 dated 10.05.2006, which is Annexure A26(i) to this OA. Title Search Report dated 13.11.2015 and Valuation Report dated 23.12.2020 which are Annexure A26(ii) and A26 (iii) to this OA.

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Documents executed:- Demand Promissory Note, Letter of Continuing Security, Master Facility Agreement, Letter of Hypothecation, Power of Attorney for hypothecated book debts, all dated 18.11.2015, which are

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Annexures A4 to A8 to this OA; Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds dated 29.01.2016, which is Annexure A9 to this OA; Declaration-CumIndemnity dated 29.01.2016, which is Annexure A10 to this OA; Letter of Continuing Guarantee dated 18.11.2015, which is Annexure A11 to this OA; Undertaking Cum Indemnity, Letter to the HDFC Bank Ltd. for Acceptance of Fax and E-mail Instructions which are Annexure A12 and A13 to this OA; Declaration for Submission of Cheques, Takeover Authorization both dated 18.11.2015, which are Annexures A14 and A15 to this OA; Letter regarding Takeover of CC Limit Account dated 20.11.2015, which is Annexure A16 to this OA; Renewal Sanction Letters dated 14.12.2016, 18.11.2017, 11.06.2018, 07.05.2019 and 29.06.2020, which are Annexures A17 and A21 to A23 and A25 to this OA; Demand Promissory Note, Amendment Agreement both dated 14.12.2016, which are Annexures A18 to A19 to this OA; Letter for renewal of the Cash Credit Facility dated 06.11.2017 which is Annexure A20 to this OA; Letter for renewal of the Cash Credit Facility which is Annexure A24 to this OA; Loan Recall Letter dated 26.08.2021, which is Annexure A27 to this OA; Statement of Account and Interest Calculation Sheet which is Annexure A28 to this OA; Certificate under the Bankers’ Books Act and the Information Technology Act dated 10.12.2021, which is Annexure A29 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 64,87,650.23p which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 09.08.2023.

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In support of the OA, affidavit of Sh. Narender Kumar Nanda, Recovery Manager, HDFC Bank Limited of India filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A29 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 64,87,650.23p (Rupees Sixty Four Lacs Eighty Seven Thousand Six Hundred Fifty and Paisa Twenty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @18.00%p.a with monthly rests from 21.10.2021 till the realization.

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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

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just and appropriate to grant uniform simple interest @10.00%p.a. loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. 64,87,650.23p (Rupees Sixty Four Lacs Eighty Seven Thousand Six Hundred Fifty and Paisa Twenty Three only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in loan account 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/mortgaged properties 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 29.12.2023

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

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Pronounced by me in the open Tribunal. Dated: 19.12.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited, v. M/S Virk Jewellers and Others

Case brief

What is this about?

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Hdfc Bank Limited, v. M/S Virk Jewellers and Others

Case brief

What is this about?

What did the court decide?

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