Allowed

Hdfc Bank Ltd. v. Sh. Rampal Singh

DRT18 Nov 2023OA/498/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal considered an application for recovery of a loan debt of Rs. 66,38,579.00. The defendants defaulted on loan facilities and did not appear. The court allowed the application, declared defendants jointly and severally liable, fixed simple interest at 10% p.a., and ordered issuance of a Recovery Certificate.

What did the court decide?

Order recovering Rs. 66,38,579.00 jointly and severally with simple interest at 10% p.a. from filing date; issue Recovery Certificate; proceed against mortgaged or personal assets.

Hdfc Bank Ltd. versus Sh. Rampal Singh — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.498/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.03.2022

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DATE OF DECISION: 18.11.2023

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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 “Moga Branch, District Moga (Punjab)” through Ms. Pooja Arora, Senior Manager (Agri. Legal), HDFC Bank Ltd., Ludhiana Branch, District Ludhiana (Punjab) being Power of Attorney holder of the applicant bank

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……..Applicant

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Versus

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Sh. Rampal Singh S/o Sh. Mukhtiar Singh, R/o H.No.238, Patti Sandhua Wala, @Churkit Tarewala, Tehsil and District Moga (Punjab)- 142001

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Sh. Kulwant Singh S/o Sh. Mukhtiar Singh, R/o H.No.238, Patti Sandhua Wala, @Churkit Tarewala, Tehsil and District Moga (Punjab)- 142001

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Sh. Hardeep Singh Sandhu S/o Sh. Pargat Singh, R/o H.No.238, Patti Sandhua Wala, @Churkit Tarewala, Tehsil and District Moga (Punjab)- 142001 (Borrowers)

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Sh. Harbans Singh S/o Sh. Ajaib Singh, R/o Patti Sandhua Wala, @Churkit Tarewala, Tehsil and District Moga (Punjab)- 142001 (Guarantor)

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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.66,38,579.00 (Rupees Sixty Six Lacs Thirty Eight Thousand Five Hundred Seventy Nine only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agri. Legal) of 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 the defendants no.1 to 3 had approached the applicant bank for the grant of credit facilities i.e. Cash Credit limit-I of Rs.25.00 Lacs, Cash Credit Limit-II of Rs.20.00 Lacs and Term Loan of Rs.15.00 Lacs vide Loan Application dated 18.01.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit-I of Rs.31.60 Lacs, Cash Credit Limit-II of Rs.19.95 Lacs and Term Loan of Rs.8.45 Lacs vide Sanction Letters dated 17.02.2017, which are Annexures A3, A4 and A-4A to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 to 3 had mortgaged their immovable properties i.e. agricultural land measuring 113 Kanals 04 Marlas situated at Village Patti Sandhua, Hadbast no.53/1, Tehsil and District Moga, Punjab vide Declaration u/s 4(1) dated 17.02.2017, which is Annexure A8 to this OA. Documents executed:- Agreements for Overdraft/ Cash Credit cum Guarantee cum Hypothecation and Agreement for Term Loan cum Guarantee cum Hypothecation all dated 17.02.2017, which are Annexures A5 to A7 to this OA; Legal notice with postal receipts dated 14.01.2022, which is Annexure A9 to this OA; Statements of accounts, which are Annexures A10 to A12 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 account there was a debit of Rs.66,38,579.00, which is recoverable and the defendants

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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 13.09.2023.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager ( Agri. 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 A12 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 loan 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.66,38,579.00 (Rupees Sixty Six Lacs Thirty Eight Thousand Five Hundred Seventy Nine 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 pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.00%p.a. in all the loan accounts from 11.01.2022 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

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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 all 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.66,38,579.00 (Rupees Sixty Six Lacs Thirty Eight Thousand Five Hundred Seventy Nine only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in all 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.11.2023. 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 also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the Open Tribunal. Dated: 18.11.2023

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

Hdfc Bank Ltd. v. Sh. Rampal Singh

Case brief

What is this about?

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Hdfc Bank Ltd. v. Sh. Rampal Singh

Case brief

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