The DRT allowed HDFC Bank's ex-parte application for recovery of loans of Rs. 23.68 lakhs from defendants. The Tribunal granted relief for total dues and modified the claimed interest rate to a uniform 10% per annum.
Recovery of Rs. 23,68,164.49 jointly and severally with simple interest @ 10% p.a., enforceable by sale of properties.
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.1520/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 11.08.2022
DATE OF DECISION: 15.12.2023
HDFC Bank Limited, incorporated under The Companies Act, 1956 and bank within the meaning of the Banking Regulation Act, 1949 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai- 400013 and its Regional Office at HDFC Bank Limited, Bank House, Plot No.28, Industrial Area, Phase-I, Chandigarh and having one of its branch office at Killonwali Branch, Tehsil Malout and District Muktsar (Punjab), through its Remedial Manager, Sh. Parampreet Singh Kahlon ……..Applicant Versus 1. Sh. Malkit Singh S/o Sh. Hansa Singh, R/o Village Hakuwala, Tehsil Malout, District Muktsar-151211 (Borrower) 2. Sh. Hansa Singh S/o Sh. Mahala Singh, R/o Village Hakuwala, Tehsil Malout, District Muktsar-151211 (Co-Borrower) 3. Sh. Desraj Singh S/o Sh. Sohan Singh R/o House No.213, Near Nek Singh Colony, Village Hakuwala, Tehsil Malout, District Muktsar151211 (Guarantor) ….……Defendants Advocates: Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. 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.23,68,164.49p (Rupees Twenty Three Lacs Sixty Eight Thousand
2
One Hundred Sixty Four and Forty Nine Paise only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Remedial Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.
3
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.
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
4
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 Rs.23,68,164.49p (Rupees Twenty Three Lacs Sixty Eight Thousand One Hundred Sixty Four and Forty Nine Paise only) jointly and severally, 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/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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.12.2023. 15. 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. Pronounced by me in the open Tribunal. Dated: 15.12.2023
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the Original Application filed under Section 19 of the RDBFI Act for recovery of dues was maintainable and entitled to recovery.
Whether the Tribunal has discretion to alter the rate of interest claimed by the bank from the ex-parte submissions.
1 provisions across 1 enactments
HDFC Bank Limited
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
