The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.50,66,982/- owed by agricultural growers and their guarantors. The court ordered uniform simple interest at 7% p.a. and authorized issuance of a Recovery Certificate.
Recovery of Rs.50,66,982/- with simple interest at 7% p.a. w.e.f. 14.11.2022 and issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 2103/2022
DATE OF INSTITUTION: 14.11.2022
DATE OF DECISION: 21st DAY OF DECEMBER, 2023
HDFC Bank Limited , a Banking Company, carrying on the Banking business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956, having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013 and Branches amongst other places one at Pehowa, Haryana, through Sh. Jatinder Mishra, Assistant Manager and Holder of an Attorney from the Applicant Bank
…..Applicant
Versus
....Defendants
Argued by: Sh. Sumeet Sehgal proxy counsel for Sh. J.S. Sehgal, Advocate for the applicant bank Defendants ex parte vide order dated 29.08.2023
OA/2103/2022 HDFC BANK VS RAJENDER SINGH AND OTHERS 2
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.50,66,982/(Rupees Fifty Lac Sixty Six Thousand Nine Hundred and Eighty Two Only) . It has been filed through Sh. Jatinder Mishra, Assistant Manager and holder of an Attorney of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 16.12.2020, Annexure-A1 (copy).
OA/2103/2022 HDFC BANK VS RAJENDER SINGH AND OTHERS 3
dated 16.03.2017 for overdraft/cash credit-cum-guarantee-cum hypothecation, Annexure-A6 (copy).
The documents relating to the mortgage are as under:
ii. Copy of ‘Rapat’ dated 16.03.2017, Annexure-A8 (copy).
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of
Rs.50,66,982/- (Rupees Fifty Lac Sixty Six Thousand Nine
Hundred and Eighty Two Only) , is recoverable against the defendants as per statements of accounts, duly certified under
OA/2103/2022 HDFC BANK VS RAJENDER SINGH AND OTHERS 4
Bankers’ Books Evidence Act, 1891, Annexures-A15 and A16 (colly) (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/2103/2022 HDFC BANK VS RAJENDER SINGH AND OTHERS 5
Lac Sixty Six Thousand Nine Hundred and Eighty Two 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, 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. 4 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 realisation of the amount ordered vide this order. It is ordered accordingly.
OA/2103/2022 HDFC BANK VS RAJENDER SINGH AND OTHERS 6
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, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount of Rs.50,66,982/- along with interest from the respondents.
Whether the rate of interest should be fixed at a uniform simple rate considering the nature of the mortgaged agricultural property and economic conditions.
1 provisions across 1 enactments
HDFC Bank Limited
Sh. Rajender Singh
Sh. Mukesh
Sh. Virender Kumar
Smt. Munesh Devi
Sh. Balkar Singh
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
