Allowed

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

DRT16 Oct 2023OA/1879/2022

Case brief

AI extract

What is this about?

DRT allowed HDFC Bank's application for recovery of Rs.26.20 lacs in default loan outstanding against deceased borrower. Tribunal granted uniform simple interest at 10% p.a. and authorized recovery through sale of mortgaged property or personal assets under SARFAESI Act.

What did the court decide?

Recovery of Rs.26,20,488 with costs and interest at 10% p.a.; Recovery Certificate issued; Authorised recovery via sale of mortgaged/personal assets.

Hdfc Bank Ltd., versus Sh. Gurpal Singh and Others — Execution and Attachment | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1879/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.10.2022

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DATE OF DECISION: 16.10.2023

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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, whereas branch office amongst the other places on at “Nabha Branch, District Patiala, Punjab” through Ms. Pooja Arora, Senior Manager (Agriculture Legal), HDFC Bank Ltd., Ludhiana, Punjab being Power of Attorney holder of applicant bank.

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……..Applicant Versus

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Sh. Gurpal Singh S/o Sh. Ragveer Singh, Since deceased through his Legal heirs/ Legal representatives detailed as under:

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(a) Smt. Sarabjit Kaur W/o Sh. Gurpal Singh, R/o 62, Village Sauja, Tehsil Nabha, District Patiala, Punjab-147201.

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(b) Sh. Satwant Singh S/o Sh. Gurpal Singh, R/o 62, Village Sauja, Tehsil Nabha, District Patiala, Punjab-147201.

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(d) Sh. Gurmail Singh S/o Sh. Gurpal Singh, R/o 62, Village Sauja, Tehsil Nabha, District Patiala, Punjab-147201.

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Sh. Sukhjit Singh S/o Sh. Niranjan Singh, R/o Village Sauja, Tehsil Nabha, District Patiala, Punjab-147201.

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………Defendants

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, 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.26,20,488.00 (Rupees Twenty Six Lacs Twenty Thousand Four Hundred and Eighty Eight only). The Original Application has been filed throug h Ms. Pooja Arora, Senior Manager (Agriculture Legal) o f the applicant bank, who is competent to institute the Original Application vide 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 Late Sh. Sh. Gurpal Singh had approached the applicant bank for the grant of Agricultural Cash Credit Limit -1 of Rs.25.65 Lacs and Agricultural Cash Credit Limit -2 of Rs.12.15 Lacs vide Loan Applications dated 15.09.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Agricultural Cash Credit Limit -1 of Rs.25.65 Lacs and Agricultural Cash Credit Limit -2 of Rs.12.15 Lacs vide Sanction letters dated 24.09.2015, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Gurpal Singh (borrower/mortgagor, since deceased) had mortgaged his immovable property i.e. total agricultural land measuring 36 Bigha 12 ½ Biswa situated at Village Sauja, Tehsil Nabha, District Patiala, Punjab vide Registered Mortgage Deed No.1225 dated 24.09.2015 along with its translation, which is Annexures A9 to this OA.

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Documents executed: - D.P. Note, Letter of Continuity, Agreement for Overdraft/ Cash Credit cum Guarantee cum Hypothecation, Agreement for Dropline Overdraft cum Guarantee cum Hypothecation dated 25.09.2015, which are Annexures A5 to A8 to this OA; Legal Notice with postal receipts dated 25.09.2022, which is Annexure A10 to this

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OA and Statement of account, which are Annexures A11 to A13 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was debit of Rs.26,20,488.00, 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 were proceeded ex-parte on 22.09.2023.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager (Agriculture Legal), HDFC Bank Ltd has been filed.

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Heard ex-parte arguments and perused record.

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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 A13 to this OA, it is proved that Late Sh. Gurpal Singh (borrower/mortgagor) approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. But after the death of the borrower, the defendants no.1(a) to 1(d), known legal heirs to the estate of deceased and defendant no.2, failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,20,488.00 (Rupees Twenty Six Lacs Twenty Thousand Four Hundred and Eighty Eight 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 pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.50%p.a. from dated 16.08.2022 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,20,488.00 (Rupees Twenty Six Lacs Twenty Thousand Four Hundred and Eighty Eight only) with costs, current and future simple interest @10.00%p.a. in the loan account 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 01.11.2023. 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

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also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 16.10.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

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

Case brief

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