Allowed

Hdfc Bank v. T and P Aggregates Associates Amd Others

DRT23 Jun 2023OA/1535/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by HDFC Bank Limited for recovery of dues against borrowers. The court declared the debt and granted uniform simple interest at 8% per annum from the date of filing the application.

What did the court decide?

Recovery of Rs.23,65,180.86 with simple interest at 8% per annum from 16.08.2022; issuance of Recovery Certificate.

Hdfc Bank versus T and P Aggregates Associates Amd Others — Banking and Recovery | DRT (2023)

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

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ORIGINAL APPLICATION NO.1535/2022

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DATE OF INSTITUTION: 16.08.2022

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DATE OF DECISION: 23^rd DAY OF JUNE, 2023

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and also at HDFC Bank House, Plot No.28, Industrial Area, Phase-I, Chandigarh, through its Authorised Representative, Ms Samandeep Kaur Sekhon

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…..Applicant Bank

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Versus

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T and P Aggregates Associates through its Partner, Sh. Pushpender Jain R/o Village Biwan, Ferozepur-Jhirka, Mewat, Haryana-122104 (Borrower)

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Sh. Pushpender Jain R/o P.No.52, Parivahan Nagar, Alwar-301001 (Co-Borrower)

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…..Defendants

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Argued by: Ms Khushpreet Bains, Legal Manager for the applicant bank Defendants ex parte vide order dated 24.01.2023

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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.23,65,180.86 (Rupees Twenty Three lacs Sixty Five Thousand One Hundred Eighty and Eighty Six Paisa only) . The OA has been filed through Ms Samandeep Kaur, 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).

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OA/1535/2022 HDFC BANK LIMITED VS T AND P AGGREGATES AND ANOTHER 2

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The brief facts of the case of the applicant as per the Original Application are that defendants had approached the applicant bank for grant of vehicle loans of Rs.8,95,587/- and Rs.47,23,213/- vide loan application Forms dated 17.09.2019, Annexures-A2 and A3 (copy).

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The applicant bank sanctioned the above said loan facilities to the defendants as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facilities, the defendants executed agreements for loan and guarantee dated 10.11.2019, Annexures-A4 and A5 (copy).

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan accounts became irregular and those were declared NPA on 11.05.2022. The applicant bank recalled entire outstanding amount vide legal notice dated 19.07.2022, Annexure-A8 (copy) along with its original postal receipts dated 20.07.2022, Annexures-A9 and A10 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.23,65,180.86 (Rupees Twenty Three lacs Sixty Five Thousand One Hundred Eighty and Eighty Six Paisa only) is recoverable against the defendants as per statements of accounts, Annexures-A6 and A7 (copy), certified under Bankers’ Books Evidence Act.

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OA/1535/2022 HDFC BANK LIMITED VS T AND P AGGREGATES AND ANOTHER 3

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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 despite service, thus, the defendants were proceeded against ex parte vide order dated 24.01.2023.

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In support of contents of the OA, affidavit of evidence of Ms Samandeep Kaur Sekhon, Manager Legal of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Khushpreet Bains, Legal Manager and gone through the record carefully.

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It was argued by Ms Khushpreet Bains, Legal Manager 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.23,65,180.86 (Rupees Twenty Three lacs Sixty Five

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OA/1535/2022 HDFC BANK LIMITED VS T AND P AGGREGATES AND ANOTHER 4

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Thousand One Hundred Eighty and Eighty Six Paisa only) from the defendants.

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In so far as pendente lite and future interest is concerned, the applicant bank has claimed in relief clause, interest @9.44% per annum. In agreements for loan and guarantee dated 10.11.2019, Annexures-A4 and A5 (copy), the rate of interest has been mentioned @10.50% and @9.45% per annum respectively.

¶29

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 hypothecated properties, purpose of loan, i.e. vehicle, area of place of abode of the defendants 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 of the OA till realisation of the amount ordered vide this final 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.23,65,180.86 (Rupees Twenty Three lacs Sixty Five Thousand One Hundred Eighty and Eighty Six Paisa only) with current and future simple interest @8% per annum , w.e.f. 16.08.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the

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OA/1535/2022 HDFC BANK LIMITED VS T AND P AGGREGATES AND ANOTHER 5

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applicant bank shall be at liberty to recover aforesaid amount from the sale of 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 21.08.2023

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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. T and P Aggregates Associates Amd Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. T and P Aggregates Associates Amd Others

Case brief

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What did the court decide?

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