Allowed

Hdfc Bank v. M/S New Aneja Brothers

DRT3 Jul 2023OA/1803/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 44,92,231.38 with interest. The court granted uniform simple interest at 8% per annum instead of the claimed rate, considering pandemic impact and property nature. Recovery certificate was issued and the case remanded to the Recovery Officer.

What did the court decide?

Recovery of Rs. 44,92,231.38 with simple interest @8% p.a. from 14.09.2022; issuance of Recovery Certificate; proceedings remanded to Recovery Officer.

Hdfc Bank versus M/S New Aneja Brothers — Banking and Recovery | DRT (2023)

¶1

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

¶2

ORIGINAL APPLICATION NO.1803/2022

¶3

DATE OF INSTITUTION: 14.09.2022

¶4

DATE OF DECISION: 3^rd DAY OF JULY, 2023

¶5

HDFC Bank Limited, having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, also at: Plot No. 28, HDFC Bank, Industrial Area, Phase 1, Chandigarh, through its authorised representative, Samandeep Kaur Sekhon

¶6

…..Applicant Bank

¶7

Versus

¶8

M/s New Aneja Brothers through its Proprietor, Sh. Satish Kumar Aneja, Jaurasi Road, Samalkha, District Panipat-132101

¶9

Sh. Satish Kumar Aneja S/o Sh. Inder Lal R/o Ward No.5, Gandhi Colony, Samalkha, Near Geeta School, District Panipat

¶10

Ms Kiran Rani R/o Ward No.5, Gandhi Colony, Samalkha, Near Geeta School, District Panipat

¶11

Sh. Nitin Aneja S/o Sh. Satish Kumar Aneja R/o Ward No.5, Gandhi Colony, Vikash Nagar, Samalkha, Near Geeta School, District Panipat

¶12

…..Defendants

¶13

Argued by: Ms Aishwarya Chandan, Manager Legal (POA holder) for the applicant bank Defendants ex parte vide order dated 08.02.2023

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant

¶16

bank under Section 19(1) of the Recovery of Debts Due to Banks

¶17

and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.44,92,231.38/(Rupees Forty Four Lacs Ninety Two

¶18

OA/1803/2022 HDFC BANK VS NEW ANEJA BROTHERS AND OTHERS 2

¶19

Thousand Two Hundred Thirty One and Thirty Eight Paisa only) . The OA has been filed through Ms Samandeep Kaur Sekhon, Authorised Representative of the applicant bank, stated to be competent to institute the Original Application vide Resolution of Board of Directors dated 16.10.2021, Annexure-A1 (copy).

¶20

The brief facts of the case of the applicant as per the Original Application are that the defendants had approached the applicant bank for grant of credit facilities of Rs. 3,25,000/- and Rs. 35,00,000/- and a term loan under Emergency Credit Line Guarantee Scheme vide loan applications dated 05.05.2018, and online application form dated 25.07.2017, Annexures- A2 to A4 and A11 (copy). The defendant No.1 also applied for financial assistant in the shape of credit card facility.

¶21

The applicant bank sanctioned the above said loan facilities to the defendants vide sanction letters dated 19.02.2020 and 08.06.2020, Annexures-A5 and A12 (copy) as per terms and conditions which were duly accepted by the defendants. 4. In order to secure the aforementioned credit facilities, the defendants executed various loan and securities documents, i.e. supplementary loan agreement dated 28.02.2020, Annexure-A6 (copy), agreement for loan and guarantee dated 05.05.2018, Annexure-A7 (copy), irrevocable power of attorney dated 05.05.2018, Annexure-A8 (copy), most important terms and conditions, Annexure-A10 (copy), supplemental deed of hypothecation dated 10.06.2020, Annexure-A13 (copy), facility agreement dated 10.06.2020, Annexure-A14 (copy), supplementary letter of continuing guarantee dated 10.06.2020,

¶22

OA/1803/2022 HDFC BANK VS NEW ANEJA BROTHERS AND OTHERS 3

¶23

Annexure-A15 (copy) and declaration-cum-undertaking dated 10.06.2020 regarding terms and conditions, Annexure-A16 (copy). 5. The aforesaid loan facilities were further secured by creation of equitable mortgage by defendant No.1 in respect of agricultural land measuring Khewat No. 409, Khatoni No. 485, Killa No. 37/9(8-0) situated in the revenue estate of Samalkha, Near Geeta School, District Panipat. Registered title deed dated 23.02.2005 is Annexure-A9 (copy).

¶24

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 as NPA on 05.06.2022. The applicant bank recalled entire outstanding amount vide legal notice dated 18.08.2022, Annexure-A17 (copy), and original postal receipts, Annexures-A18 to A21 (copy) , but to no avail.

¶25

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.44,92,231.38/(Rupees Forty Four Lacs Ninety Two Thousand Two Hundred Thirty One and Thirty Eight Paisa only) , is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, Annexures-A22 to A25 (copy).

¶26

Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

¶27

OA/1803/2022 HDFC BANK VS NEW ANEJA BROTHERS AND OTHERS 4

¶28

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 08.02.2023 .

¶29

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

¶30

This Tribunal has heard ex-parte arguments advanced by Ms Aishwarya Chandan, Manager Legal of the applicant bank and gone through the record carefully.

¶31

It was argued by Ms Aishwarya Chandan, Manager Legal 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 A25 , 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.44,92,231.38/- (Rupees Forty Four Lacs Ninety Two Thousand Two Hundred Thirty One and Thirty Eight Paisa only) from the defendants.

¶32

In so far as pendente lite and future interest is concerned, the applicant bank has claimed in relief clause rate of interest @9.65% per

¶33

OA/1803/2022 HDFC BANK VS NEW ANEJA BROTHERS AND OTHERS 5

¶34

annum for all the facilities. In sanction letters dated 19.02.2020 and 08.06.2020, Annexures-A5 and A12 (copy), the rate of interest has been mentioned @9.8% per annum and @8.25% per annum respectively.

¶35

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 mortgaged property, purpose of loan, i.e. purchase of commercial vehicle, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No.3 being a lady, 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.

¶36

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.44,92,231.38/- (Rupees Forty Four Lacs Ninety Two Thousand Two Hundred Thirty One and Thirty Eight Paisa only) with current and future simple interest @8% per annum , w.e.f. 14.09.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. 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

¶37

OA/1803/2022 HDFC BANK VS NEW ANEJA BROTHERS AND OTHERS 6

¶38

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.

¶39

Issue Recovery Certificate accordingly.

¶40

Parties to appear before Recovery Officer concerned on 04.09.2023

¶41

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.

¶42

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

Hdfc Bank v. M/S New Aneja Brothers

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. M/S New Aneja Brothers

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus M/s Baba Mini Rice Mill and Others

Punjab National Bank versus M/s Satnam Mini Rice Mill

Canara Bank versus M/s Sambhawa Agro Farms and Other

Bank of Baroda versus Sumeet Kumar and others

Bank of Baroda versus M/s Shree Batuknath Udyog and Others

Canara Bank versus Ravinder Kumar