In an ex-parte proceeding, the Tribunal allowed the Original Application filed by HDFC Bank Limited for recovery of a loan amount of Rs. 35,84,287/- along with security. The court granted a Recovery Certificate and discretionary interest at 7% per annum.
Issuance of Recovery Certificate for Rs. 35,84,287/- with simple interest at 7% p.a. from 25.10.2022.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 1944 of 2022
DATE OF INSTITUTION: 25.10.2022
DATE OF DECISION: 9th DAY OF JULY, 2023
HDFC Bank Limited , 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 amongst the other places on at Kaithal Branch, District Kaithal, Haryana, through Sh. Jatinder Mishra, Assistant Manager (Agri Legal) HDFC Bank Limited, Regional Office, Chandigarh, being Power of Attorney holder of the applicant bank
.......Applicant Bank
Versus
......Defendants
Argued by: Sh. Jatinder Mishra, Deputy Manager for the applicant bank Defendants ex parte vide order dated 06.06.2023
FINAL ORDER
OA/1944/2022 HDFC BANK Vs ROMI SINGH AND OTHERS 2
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.35,84,287/- (Rupees Thirty Five Lacs Eighty Four Thousand Two Hundred and Eighty Seven Only) . The OA has been filed through Sh. Jatinder Mishra, Assistant Manager of the applicant bank, stated to be competent to institute the Original Application vide Power of Attorney dated 16.12.2020, Annexure-A1 (copy).
OA/1944/2022 HDFC BANK Vs ROMI SINGH AND OTHERS 3
The documents relating to the mortgage are as under:
It is further the case of the applicant bank that after adjusting debit and credit entries in loan accounts, a sum of Rs.35,84,287/(Rupees Thirty Five Lacs Eighty Four Thousand Two Hundred and Eighty Seven Only) is recoverable against defendants as per statements of accounts dated 06.07.2022, certified under Bankers’ Book Evidence Act, Annexures-A13 and A14 (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/1944/2022 HDFC BANK Vs ROMI SINGH AND OTHERS 4
OA/1944/2022 HDFC BANK Vs ROMI SINGH AND OTHERS 5
sanction letters dated 12.02.2016, Annexures-A3 and A4 (copy), rates of interest have been mentioned @12% per annum in cash credit facility and @15.50% per annum in term loan facility, respectively.
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 the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 2 being a female, while exercising the discretion vested in this Tribunal this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realization of the amount ordered vide this order. It is ordered accordingly. 12. In the result, the Original Application is allowed with cost declaring that the defendants are liable to pay to the applicant bank a sum Rs.35,84,287/- (Rupees Thirty Five Lacs Eighty Four Thousand
Two Hundred and Eighty Seven Only) with current and future simple interest @7% per annum w.e.f. 25.10.2022 , 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 defendants in execution proceedings, if not sold earlier under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant
OA/1944/2022 HDFC BANK Vs ROMI SINGH AND OTHERS 6
bank shall be at liberty to recover the same by attachment and sale of personal assets 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
3 issues framed by the court
Whether the applicant bank is entitled to a recovery certificate for the outstanding loan amount against the defaulting borrowers and guarantor.
Whether interest should be granted at the claimed rate or at a reduced discretionary rate considering pandemic impact and agricultural purpose.
Whether the liability of defendants is joint and several for the outstanding amount and secured assets.
1 provisions across 1 enactments
HDFC Bank Limited
Sh. Romi Singh
Smt. Mamta Devi
Sh. Pardeep Kumar
M.M. Dhonchak
As recorded by the court registry
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