Allowed

Hdfc Bank Ltd. v. Sh. Jagjeet Singh and Others

DRT9 Oct 2023OA/615/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by HDFC Bank Ltd. for recovery of a loan sum of Rs.23,17,848.87p from three defendants. The Tribunal granted uniform interest at 10% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs.23,17,848.87p with 10% p.a. interest; Order to issue Recovery Certificate; Liberty to recover via asset sale.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.615/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.04.2022

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DATE OF DECISION: 09.10.2023 HDFC Bank Ltd., having its Registered Office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and having its Branch Office at Chola Sahib, Tarn Taran, Punjab and also at HDFC Bank House, Plot No.28, Industrial Area, Phase-I, Chandigarh through its Authorized Representative, Sh. Harminder Pal Singh ……..Applicant Versus 1. Sh. Jagjeet Singh S/o Sh. Sukhwinder Singh, R/o Kambo Dhaiwala, Chola Sahib, Tarn Taran, Punjab-143408 (Borrower) 2. Sh. Jora Singh S/o Sh. Sukhwinder Singh, R/o Kambo Dhaiwala, Chola Sahib, Tarn Taran, Punjab-143408 (Co-Borrower) 3. Sh. Sukhwinder Singh S/o Sh. Heera Singh, R/o House Chola Sahib, Tarn Taran, Punjab-144306 (Co-Borrower) ……Defendants Advocates: Argued by Sh. Tarunjit Singh, counsel for the applicant Defendants are ex-parte FINAL ORDER 1. 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.23,17,848.87p (Rupees Twenty Three Lacs Seventeen Thousand Eight Hundred Forty Eight and Paisa Eighty Seven only). The Original Application has been filed through Sh. Harminder Pal Singh, Authorized Representative of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which are Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of CC Limit of Rs.13.00 Lacs, Overdraft Limit of Rs.4.70 Lacs and Term Loan of Rs.1.80 Lacs vide Loan Application dated 03.01.2019, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.12.44 Lacs, Overdraft Limit of Rs.3.95 Lacs and Term Loan of Rs.1.69 Lacs vide Sanction Letters dated 24.01.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.3 had mortgaged his immovable properties i.e. total land measuring 56K-00M situated at Village Kambo Dhai Wala, Tehsil and District Tarn Taran, Punjab vide Declaration u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks), Act, 1978 dated 08.02.2019, which is Annexure A10 to this OA. Documents executed:- Agreements for cash credit, overdraft and term loan and D.P. Note with letter; all dated 12.02.2019, which are Annexures A4 to A9 to this OA; Registration of bank charge, which is Annexure A11 to this OA; Title search report dated 21.01.2019, which is Annexure A12 to this OA; Affidavit of non-encumbrance and Affidavit both dated 21.02.2019, which are Annexures A13 and A14 to this OA; Demand notice along with postal receipts dated 14.02.2022, which is Annexure A15 to this OA; Statements of accounts, which are Annexures A16 to A18 to this OA and Certificate under Bankers’ Book of Evidence Act, which is Annexure A19 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.23,17,848.87p, 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 15.09.2023.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Authorized Representative, HDFC Bank Ltd. has been filed. 8. 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 A19 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 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.23,17,848.87p (Rupees Twenty Three Lacs Seventeen Thousand Eight Hundred Forty Eight and Paisa Eighty Seven 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.

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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 @11.50%p.a. along with @16.00%p.a. penal interest with half yearly rests in both CC Limit and Overdraft Limit from 02.10.2021 and @12.00%p.a. along with @24.00%p.a. penal interest with half yearly rests in Term Loan account from 19.01.2022 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.23,17,848.87p (Rupees Twenty Three Lacs Seventeen Thousand Eight Hundred Forty Eight and Paisa Eighty Seven 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.10.2023. 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. Pronounced by me in the Open Tribunal. Dated: 09.10.2023

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

Hdfc Bank Ltd. v. Sh. Jagjeet Singh and Others

Case brief

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Hdfc Bank Ltd. v. Sh. Jagjeet Singh and Others

Case brief

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