Allowed

Hdfc Bank v. Ms Rapid Logistics [Borrower]

DRT6 Oct 2023OA/607/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by HDFC Bank Limited for recovery of Rs. 98,50,092.34/- from borrowers and a guarantor. The tribunal issued a Recovery Certificate and prescribed simple interest at 9% p.a. instead of the claimed rate.

What did the court decide?

Recovery of Rs. 98,50,092.34/- with 9% simple interest p.a. from date of filing. Recovery Certificate issued. Parties to appear before Recovery Officer on 02.11.2023.

Hdfc Bank versus Ms Rapid Logistics [Borrower] — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO. 607/2023

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DATE OF INSTITUTION: 31.03.2023

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DATE OF DECISION: 06^th DAY OF OCTOBER, 2023

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HDFC Bank Limited , having its registered office at: Senapati Bapat Marg, Lower Parel -(West), Mumbai-400013

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Also At:

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Plot No 1-15, Sector 101, Alpha IT City, SAS Nagar, Mohali, through its Authorised Representative, Sh. Kabir Chopra

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…..Applicant Bank

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Versus

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M/s Rapid Logistics (borrower) through its Propritor, Sh. Rajbir Singh, Tower No.4, 1104, Vipul Garden, Sector-1, Dharuhera, Rewari- 123106

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Sh. Rajbir Singh (co-borrower) r/o Village Kalri, PO Kalri, District Churu, Rajasthan-331301

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Sh. Krishan Kumar (guarantor) s/o Sh. Rajendra Kumar, Flat No.1104, Tower No.4, Sector-1, Vipul Garden, Dharuhera, District Rewari- 123106

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....Defendants

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Argued by: Ms Aishwarya Chandan, Manager Legal for the applicant bank Defendants ex parte vide order dated 23.06.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant

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bank under Section 19(1) of the Recovery of Debts Due to Banks

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OA/607/2023 HDFC BANK VS M/S RAPID LOGISTICS AND OTHERS 2

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and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.98,50,092.34/- (Rupees Ninety Eight Lac Fifty Thousand

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Ninety Two and Thirty Four Paisa Only) . It has been filed through Sh. Kabir Chopra, Authorised Representative of the applicant bank stated to be competent to institute the Original Application vide Board of Resolution dated 16.10.2021, AnnexureA1 (copy).

¶21

The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of four vehicle loans of Rs. 25,00,000/- and for vehicle loans of Rs. 2,60,000/-, vide application Form dated 11.12.2021, Annexure-A2 (copy).

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The applicant bank sanctioned abovementioned loan facilities to the defendants as per terms and conditions which were duly accepted by the defendants. 4. In order to secure the aforementioned credit facilities, the defendants executed loan and guarantee agreement dated 03.01.2022, Annexure-A3 (copy).

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA. The applicant bank recalled entire outstanding amount vide legal notice dated 25.01.2023, Annexure-A12 (copy) and original postal receipts, Annexures-A13 to A15 (copy), but to no avail.

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OA/607/2023 HDFC BANK VS M/S RAPID LOGISTICS AND OTHERS 3

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.98,50,092.34/- (Rupees Ninety Eight Lac Fifty Thousand

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Ninety Two and Thirty Four Paisa Only) is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexures-A4 to A11 (copy).

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Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notices of the Original Application were duly served upon

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the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex parte vide order dated 23.06.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Kabir Chopra, Manager Legal of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Aishwarya Chandan, Manager Legal of the applicant bank and gone through the record carefully.

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It was argued by Ms Aishwarya Chandan, Manager Legal of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A15 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour

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OA/607/2023 HDFC BANK VS M/S RAPID LOGISTICS AND OTHERS 4

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of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.98,50,092.34/- (Rupees Ninety Eight Lac Fifty Thousand Ninety Two and Thirty Four Paisa Only) from the defendants.

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In so far as pendent lite and future interest is concerned, the applicant bank has claimed rate of interest @9.26% per annum. In loan and guarantee agreement dated 03.01.2022, Annexure-A3 (copy), the rate of interest has been mentioned @9.26% per annum.

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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, purpose of loan, i.e. purchase of commercial vehicles, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.98,50,092.34/- (Rupees Ninety Eight Lac Fifty

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OA/607/2023 HDFC BANK VS M/S RAPID LOGISTICS AND OTHERS 5

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Thousand Ninety Two and Thirty Four Paisa Only) with current and future simple interest @9% per annum w.e.f. 31.03.2023, till the date of realisation of the amount. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 02.11.2023.

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be also uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Hdfc Bank v. Ms Rapid Logistics [Borrower]

Case brief

What is this about?

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Hdfc Bank v. Ms Rapid Logistics [Borrower]

Case brief

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