The Debt Recovery Tribunal allowed the applicant bank's recovery application against educational institutions for an outstanding loan of Rs.22,74,223.28/- plus interest.
Recovery of principal sum Rs.22,74,223.28/- with simple interest at 8% per annum from 23.05.2022 and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1811/2022
DATE OF INSTITUTION: 23.05.2022
DATE OF DECISION: 4th DAY OF JULY, 2023
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, Ms Samandeep Kaur Sekhon
…..Applicant Bank
Versus
…..Defendants
Argued by: Ms Aishwarya Chandan, Manager Legal (POA holder) for the applicant bank Defendants ex parte vide order dated 08.02.2023
FINAL ORDER
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.22,74,223.28/-
(Rupees Twenty Two Lacs Seventy Four Thousand Two Hundred Twenty Three and Twenty Eight Paisa only) . The OA has been filed through Ms Samandeep Kaur Sekhon, Authorised Representative of the
OA/1811/2022 HDFC BANK VS GOD BLESSING PUBLIC SCHOOL AND OTHERS 2
applicant bank, stated to be competent to institute the Original Application vide Resolution of Board of Directors dated 16.10.2021, Annexure-A1 (copy).
OA/1811/2022 HDFC BANK VS GOD BLESSING PUBLIC SCHOOL AND OTHERS 3
dated 06.05.2022, Annexure-A9 (copy) and original postal receipts, Annexures-A10 to A12 (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.22,74,223.28/- (Rupees Twenty Two Lacs Seventy Four Thousand Two Hundred Twenty Three and Twenty Eight Paisa only) , is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, Annexures-A13 to A15 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1811/2022 HDFC BANK VS GOD BLESSING PUBLIC SCHOOL AND OTHERS 4
A15 , 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.22,74,223.28/-
(Rupees Twenty Two Lacs Seventy Four Thousand Two Hundred Twenty Three and Twenty Eight Paisa only) from the defendants.
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, purpose of loan, i.e. purchase of vehicles, quantum of loan 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.
OA/1811/2022 HDFC BANK VS GOD BLESSING PUBLIC SCHOOL AND OTHERS 5
Thousand Two Hundred Twenty Three and Twenty Eight Paisa
only) with current and future simple interest @8% per annum , w.e.f. 23.05.2022 , 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 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.
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount including interest.
What rate of interest should be granted considering the pandemic situation.
1 provisions across 1 enactments
HDFC Bank Limited
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
