Allowed

Hdfc Bank Ltd. v. M/S Ajay Oswal and Others

DRT12 Sept 2023OA/385/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by HDFC Bank to recover a debt of Rs. 1.3 crore from a borrower and guarantors. The claim was admitted ex-parte as respondents did not appear. The tribunal granted the recovery of principal, costs, and interest reduced from 18% to 10% p.a.

What did the court decide?

Recovery of Rs. 1.30 crores plus costs and simple interest at 10% p.a. declared; Recovery Certificate issued.

Hdfc Bank Ltd. versus M/S Ajay Oswal and Others — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.385/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.12.2021

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DATE OF DECISION: 12.09.2023

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HDFC Bank Ltd., a banking company, incorporated under Companies Act, 1956, and having its Registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having one of its branch at Ludhiana and Chandigarh, through its duly authorized signatory and Authorised officer, Sh. Sunil Kalra, working as Legal Manager currently posted at Plot No.28, Phase1, Industrial Area, Chandigarh-160002

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……..Applicant Versus

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M/s Ajay Oswal, a proprietorship firm, through its Sole Proprietor Sh. Ajay Kumar Jain S/o Sh. Ravinder Kaur Jain (Borrower) , having its Place of Business situated at 708, Gulchaman Gali, Sunehri Gurudwara, Ludhiana-141011

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Sh. Ajay Kumar Jain S/o Sh. Ravinder Kumar Jain, Resident of 708, Gulchaman Gali, Sunehri Gurudwara, Ludhiana, Punjab-141011 (Prop./Guarantor/Mortgagor)

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2^nd Address : Plot No.126, HB-77, Abadi, Kuldeep Nagar, Basti Jodhewal, Ludhiana, Punjab

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Smt. Deepa Jain W/o Sh. Ajay Kumar Jain, Resident of H.No.708, Gulchaman Gali, Sunehri Gurudwara, Ludhiana, Punjab-141011 (Guarantor/Mortgagor) 2^nd Address : Plot No.126, HB-77, Abadi, Kuldeep Nagar, Basti Jodhewal, Ludhiana, Punjab ….……Defendants

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Advocates: Argued by Sh. Harinder Kumar, 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.1,30,78,777.78p (Rupees One Crore Thirty Lacs Seventy Eight Thousand Seven Hundred Seventy Seven and Paisa Seventy Eight only). The Original Application has been filed through Sh. Sunil Kalra, Legal Manager of the applicant bank, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its proprietor defendant No.2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.90.00 Lacs; vide Loan application, which is Annexure A2 to this OA and also for a Working Capital Term Loan under GECL scheme of Rs.13.79 Lacs. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.90.00 Lacs and Working Capital Term Loan under GECL scheme of Rs.13.79 Lacs vide Sanction Letters dated 21.12.2019 and 08.06.2020, which are Annexures A3 and A12 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.2 had mortgaged his immovable property i.e. Equitable Mortgage of Plot No.126, bearing MC No.3102/8/1, measuring 154-8/9 Sq. Yards comprising in Khata No.642/656, 643/657, Khasra No.403, 402, Hadbast No.77, Abadi Taraf Jodhewal, Guru Nanak Nirankari Colony, Tehsil and District Ludhiana, Punjab vide Registered Sale deed No.10270 dated 05.12.2000 along with its translation, which is Annexure A11 to this OA. Documents executed:- Master facility agreement, Addendum, Deed of Hypothecation, Power of Attorney, Letter of Continuing Guarantee and

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Deed of Indemnity all dated 21.12.2019, which are Annexures A4 to A9 to this OA; Memorandum-mortgage by deposit of title deed dated 18.03.2020, which is Annexure A10 to this OA; Facility Agreement, Supplemental deed of hypothecation, Declaration cum Undertaking, Customer request and SI ECS Debit authorization form and Supplementary Letter of Continuing Guarantee all dated 08.06.2020, which are Annexures A13 to A17 to this OA; Memorandum recording past transaction of creation of mortgage by delivery of title deeds dated 06.06.2020, which is Annexure A18 to this OA; Statements of Accounts along with Calculation Chart certified under Banker’s Books Evidence Act, 1891, which are Annexures A19 and A21 to this OA; Memoranda of Interest, which is Annexure A20 to this OA; Recall notice dated 12.08.2021, which is Annexure A22 to this OA; Demand Notice dated 25.10.2021, which is Annexure A23 to this OA and Valuation Report dated 05.12.2019, which is Annexure A24 to this OA.

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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.1,30,78,777.78p, 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 29.08.2023. 7. In support of the OA, affidavit of Sh. Sunil Kalra, Legal Manager, HDFC Bank Ltd., has been filed. 8. 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 A24 to this OA, it is proved that the defendants

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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.1,30,78,777.78p (Rupees One Crore Thirty Lacs Seventy Eight Thousand Seven Hundred Seventy Seven and Paisa Seventy 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 accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @18.00%p.a. with monthly rests from 12.11.2021 in Cash Credit Limit and from 15.10.2021 in GECL/WCTL 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 loans 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 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.1,30,78,777.78p (Rupees One Crore Thirty Lacs Seventy Eight Thousand Seven Hundred Seventy Seven and Paisa Seventy Eight 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

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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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.09.2023.

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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.

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Dated: 12.09.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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Order dictated, signed and pronounced by me in the open Tribunal.

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Dated: 12.09.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. M/S Ajay Oswal and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. M/S Ajay Oswal and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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