The Debt Recovery Tribunal allowed the bank's application for a recovery certificate of Rs. 23,11,903.87, adjusting interest at 9% p.a. from the filing date and declaring liability joint and several.
Recovery Certificate issued for Rs.23,11,903.87 plus 9% p.a. interest from filing date; liberty to recover from mortgaged or personal assets.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.735/2022
DATE OF INSTITUTION: 05.03.2022
DATE OF DECISION: 23rd DAY OF JUNE, 2023
HDFC Bank Limited, having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and also at Plot No. 28, HDFC Bank House, Industrial Area, Phase 1, Chandigarh, through its Authorised Representative, Ms Samandeep Kaur Sekhon
…..Applicant Bank
Versus
…..Defendants
Argued by: Ms Khushpreet Bains, Legal Manager for the applicant bank Defendants ex parte vide order dated 23.05.2023 FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.23,11,903.87/- (Rupees Twenty Three lacs Eleven Thousand Nine Hundred Three and Eighty Seven Paisa only) . The OA has been filed through Ms Samandeep Kaur Sekhon, Authorised Representative of the applicant bank, stated to be competent to
OA/735/2022 HDFC BANK VS SH. NAYAB SINGH AND OTHERS 2
institute the Original Application vide Resolution of Board of Directors dated 16.10.2021, Annexure-1 (copy).
OA/735/2022 HDFC BANK VS SH. NAYAB SINGH AND OTHERS 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.23,11,903.87/- (Rupees Twenty Three lacs Eleven Thousand Nine Hundred Three and Eighty Seven Paisa only) is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, Annexures-A10 to A12 (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/735/2022 HDFC BANK VS SH. NAYAB SINGH AND OTHERS 4 above in favour 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.23,11,903.87/- (Rupees Twenty Three lacs Eleven Thousand Nine Hundred Three and Eighty Seven Paisa 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, purpose of loan, i.e. commercial vehicle, 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 final order. It is ordered accordingly.
OA/735/2022 HDFC BANK VS SH. NAYAB SINGH AND OTHERS 5
with current and future simple interest @9% per annum , w.e.f. 05.03.2022 , till the date 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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to a recovery certificate for the outstanding loan amount against the defendants.
1 provisions across 1 enactments
HDFC Bank Limited
Sh. Nayab Singh
Sh. Rohtash Kundu
M.M. DHONCHAK
As recorded by the court registry
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