Allowed

Hdfc Bank Ltd., v. Sh. Ram Partap and Another

DRT7 Oct 2023OA/1838/2022

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed an original application filed by HDFC Bank Ltd. against borrowers for recovery of Rs. 39,88,442. The court granted uniform simple interest at 10%p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Issued Recovery Certificate; directed defendants to pay Rs. 39,88,442.00 with 10%p.a. simple interest; authorized sale of mortgaged properties or attachment of personal assets.

Hdfc Bank Ltd., versus Sh. Ram Partap and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1838/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.10.2022

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DATE OF DECISION: 07.10.2023

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HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013 and branch office amongst other places one at Sardulgarh, District Mansa, through Mrs. Pooja Arora, Manager holder of an attorney from the Applicant Bank

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……..Applicant

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Versus

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Sh. Ram Partap S/o Sh. Prithvi Singh, R/o H.No.70, Village Rajrhan, Tehsil Sardulgarh, District Mansa-151507

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Sh. Devi Lal S/o Sh. Prithvi Singh, R/o H.No.70, Village Rajrhan, Tehsil Sardulgarh, District Mansa-151507

(Borrowers)

……Defendants

Advocates:

Argued by Sh. J.S. Sehgal, counsel 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.39,88,442.00 (Rupees Thirty Nine Lacs Eighty Eight Thousand Four Hundred and Forty Two only). The Original Application has been filed through Mrs. Pooja Arora, Manager of the applicant bank, who is

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competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which are Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Credit facilities in the sum of Rs.19.95 Lacs i.e. CC Limit of Rs.15.45 Lacs and Term Loan of Rs.4.50 Lacs vide Loan Application dated 03.04.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the CC Limit of Rs.15.45 Lacs and Term Loan of Rs.4.50 Lacs vide Sanction Letter and Acceptance of credit facilities dated 29.04.2015, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged his immovable properties i.e. total land measuring 56K-00M situated at Village Rajrana, Hadbast no.202, Tehsil Sardulgarh, District Mansa, Punjab vide Declaration u/s 4(1) at serial no.102 dated 24.04.2015 and Mutation/Rapat Certificate dated 25.04.2015, which are Annexures A11 and A12 to this OA. Documents executed:- Agreement for term loan-cum-guarantee-cum- hypothecation, Agreement for overdraft/cash credit-cum-guaranteecum-hypothecation, D.P. Note and Letters of continuity all dated 27.04.2015, which are Annexures A5 to A10 to this OA; Notice and postal receipts dated 30.07.2022, which are Annexures A13 to A15 to this OA and Statement of accounts along with the certificate, which are Annexures A16 and A17 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.39,88,442.00, which is recoverable and the defendants 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.

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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 15.09.2023.

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In support of the OA, affidavit of Mrs. Pooja Arora, Manager, HDFC Bank Ltd. has been filed.

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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 A17 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 loans 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.39,88,442.00 (Rupees Thirty Nine Lacs Eighty Eight Thousand Four Hundred and Forty Two only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.00%p.a. in CC Limit with half yearly rests from 02.04.2022 and @12.00%p.a. in Term Loan account with half yearly rests from 31.07.2022 till the realization.

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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 of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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.39,88,442.00 (Rupees Thirty Nine Lacs Eighty Eight Thousand Four Hundred and Forty Two 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 16.10.2023. 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: 07.10.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd., v. Sh. Ram Partap and Another

Case brief

What is this about?

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Hdfc Bank Ltd., v. Sh. Ram Partap and Another

Case brief

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What did the court decide?

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