Allowed

Hdfc Bank Ltd., v. Sh. Jagjeet Singh and Others

DRT27 Dec 2023OA/1580/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 21,38,048.25 outstanding from borrowers. It granted uniform simple interest at 10% p.a. and authorized recovery via sale of mortgaged properties or attachment of personal assets if dues remained unsatisfied.

What did the court decide?

Recovery of Rs. 21,38,048.25 plus simple interest @10% p.a. from filing of OA; authority to recover via sale of mortgaged properties or attachment of personal assets.

Hdfc Bank Ltd., versus Sh. Jagjeet Singh and Others — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1580/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.09.2022

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DATE OF DECISION: 27.12.2023

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HDFC Bank Ltd., a banking company incorporated and registered under the Companies Act, 1956 having its registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai400013 inter alia having a branch office at Sadiq, District Faridkot, (Punjab) through Sh. Parampreet Singh Kahlon posted as Assistant Manager of Retail Agri at HDFC Bank Ltd., Bank House, Plot No.28, 2^nd Floor, Industrial Area Phase-1, Chandigarh who is constituted Attorney

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……..Applicant

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Versus

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Sh. Jagjeet Singh S/o Sh. Hardev Singh, R/o H. No.334, Village Shamkot, Dhani Malout Road, District Muktsar Sahib

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Sh. Hardev Singh S/o Sh. Shaminder Singh, R/o H. No.334, Village Shamkot, Dhani Malout Road, District Muktsar Sahib

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Sh. Sukhdev Singh S/o Sh. Resham Singh R/o Village Chak Maraj, Tehsil & District Ferozepur

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….……Defendants

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Advocates:

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Argued by Sh. Soarabh Modi, Advocate for the applicant 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.21,38,048.25p (Rupees Twenty One Lacs Thirty Eight Thousand Forty Eight and Twenty Five Paise only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Assistant Manager of

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the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Retail Agri. Cash Credit Limit-I of Rs.6.00 Lacs, Retail Agri. Cash Credit Limit-II of Rs.6.00 Lacs and Farm Development Loan-DOD of Rs.3.00 Lacs vide Loan applications dated 26.08.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Retail Agri. Cash Credit LimitI of Rs.5.00 Lacs, Retail Agri. Cash Credit Limit-II of Rs.4.00 Lacs and Farm Development Loan-DOD of Rs.2.90 Lacs vide Sanction Letters dated 13.09.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.2 had mortgaged his immovable properties i.e. total land measuring 30K-00M situated at Village Gurusar and Village Sham Kot, Tehsil Malout, District Sri Muktsar Sahib (Punjab) vide Declaration u/s 4(1) and Letter to registrar regarding registration of charge dated 26.09.2016, which is Annexure A4 to this OA.

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Documents executed:- Agreements for overdraft/cash credit cum Guarantee cum Hypothecation dated 28.09.2016 and 13.09.2016, which are Annexures A5 & A6 to this OA; Agreement for Dropline overdraft-cum-Hypothecation-cum-Guarantee and Demand Promissory Note and Letter of continuity both dated 28.09.2016, which are Annexures A7 & A8 to this OA; Statement of Account certified under Bankers Book of Evidence Act, 1891 (Colly) dated 23.05.2022 and 29.09.2022, which is Annexure A9 to this OA and Legal Notice dated 02.06.2022, which is Annexure A10 to this OA. 5. 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.21,38,048.25p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 13.11.2023.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Assistant Manager, HDFC Bank Ltd., h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A10 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,38,048.25p (Rupees Twenty One Lacs Thirty Eight Thousand Forty Eight and Twenty Five Paise 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 @11.00%p.a. in Retail Agri. Cash Credit Limit-I, @11.00%p.a. in Retail Agri. Cash Credit Limit-II and @12.30%p.a. in Farm Development Loan-DOD from 01.04.2022 till the realization. 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

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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 all 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.21,38,048.25p (Rupees Twenty One Lacs Thirty Eight Thousand Forty Eight and Twenty Five Paise only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in all 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.

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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 06.01.2024.

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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. Pronounced by me in the open Tribunal. Dated: 27.12.2023

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

Hdfc Bank Ltd., v. Sh. Jagjeet Singh and Others

Case brief

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Hdfc Bank Ltd., v. Sh. Jagjeet Singh and Others

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