Allowed

Hdfc Bank Ltd. v. Sh. Sukhmander Singh

DRT1 Dec 2023OA/839/2022

Case brief

AI extract

What is this about?

The DR Tribunal allowed the bank'Original Application for recovery of Rs.43.22 lakhs from borrowers and guarantors. The bank failed to prove its case, and the defendants proceeded ex-parte. The Tribunal directed payment of the principal amount with simple interest at 10% p.a. and allowed the issuance of a Recovery Certificate.

What did the court decide?

Declaratory judgment that defendants are liable to pay Rs.43.22 lakhs with costs and simple interest at 10% p.a.; Recovery Certificate issued; liberty to enforce via execution under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.839/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.05.2022

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DATE OF DECISION: 01.12.2023

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HDFC B	ank Ltd., having its Registered Office at Senapati Bapat Marg,
Lower	Parel (West), Mumbai-400013 and having its Branch Office at
Tahliwa	la Jattan, Sri Muktsar Sahib and also at HDFC Bank House, Plot
No.28, represe	Industrial Area, Phase-1, Chandigarh, though its authorized ntative, Sh. Parampreet Singh Kahlon. ……..Applicant Versus
1. Sh.	Sukhmander Singh S/o Sh. Labh Singh, R/o Near Gurdwara
Sah	ib, Village Tamkot, Near Dharmshala, Tehsil and District
Muk	tsar, Punjab (deceased) (Borrower)
Now	, represented through his legal heirs:-
i.	Sh. Avtar Singh S/o Sh. Sukhmander Singh, R/o Near Gurdwara Sahib, Village Tamkot, Near Dharmshala, Tehsil and District Muktsar, Punjab (Son)
ii.	Smt. Harwinder Kaur W/o Sh. Sukhmander Singh, R/o Near Gurdwara Sahib, Village Tamkot, Near Dharmshala, Tehsil and District Muktsar, Punjab (Wife)
2. Sh.	Avtar Singh S/o Sh. Sukhmander Singh, R/o Near Gurdwara
Sah	ib, Village Tamkot, Near Dharmshala, Tehsil and District
Muk	tsar, Punjab (Co-Borrower)
3. Sh. Tam	Maigha Singh S/o Sh. Mahinder Singh, R/o H.No.55, Village kot, Near Panchayat Ghar, Tehsil and District Muktsar, Punjab (Guarantor) ………Defendants

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Advocates: Argued by Sh. Karan Yuvraj, counsel proxy for Sh. Amit Rishi, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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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.43,22,554.09p (Rupees Forty Three Lacs Twenty Two Thousand
Five Hundred Fifty Four and Paisa Nine only). The Original Application
has been filed throughSh. Parampreet Singh Kahlon, Authorized
Representativeof the applicant bank, who is competent to institute the
Original Application vide Power of Attorney dated 16.12.2020, which is
Annexure A1to this OA.
2. The brief facts of the OA are that the defendants had
approached the applicant bank for the grant of CC Limit of Rs.43.39
Lacs and Term Loan of Rs.6.61 Lacs vide Loan Application dated
05.06.2015, which isAnnexure A2to this OA.
3. The applicant Bank sanctioned the CC Limit of Rs.34.20 Lacs
and Term Loan of Rs.6.80 Lacs vide Sanction Letters dated
25.07.2015, which isAnnexure A3 (colly)to this OA and the terms and conditions were duly accepted by the defendants.
4. Defendants No.1 (since deceased) and Defendant No.2 had
mortgaged their immovable properties i.e. total land measuring 136K-
00M situated atVillage Tamkot, H.B. No.39, Tehsil Sri Muktsar Sahib,
Punjab detailed as:
(i) land measuring 115K-09M in the name of defendant no.1 (since
deceased) and (ii) land measuring 20K-11M in the name of defendant no.2; vide Declaration u/s 4(1) dated 29.07.2015,which isAnnexure A6to
this OA.
Documents executed: - Agreement for Cash Credit and DPN along with letter continuity for D. P. note both dated 29.7.2015, which are

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Annexures A4 and A5 to this OA; Legal opinion along with letter of registration of Rapat of mortgage property before revenue record dated 29.07.2015, which is Annexure A7 (Colly) to this OA; Demand notice with postal receipts dated 21.01.2022, which is Annexure A8 to this OA and Statements of accounts along with certificate under Bankers Book of Evidence, which are Annexures A9 and A10 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.43,22,554.09p, 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 22.09.2023.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Authorized Representative, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A10 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.43,22,554.09p (Rupees Forty Three Lacs Twenty Two Thousand Five Hundred Fifty Four and Paisa Nine only) along with interest from the defendants,

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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 @12.00%p.a. with half yearly rests along with penal interest @16%p.a. in CC limit and @11.00%p.a. with half yearly rests along with penal interest @24.00% in Term Loan account 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 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 the both loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.43,22,554.09p (Rupees Forty Three Lacs Twenty Two Thousand Five Hundred Fifty Four and Paisa Nine only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the both 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.

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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 07.12.2023. 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.

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Dated: 01.12.2023

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

Hdfc Bank Ltd. v. Sh. Sukhmander Singh

Case brief

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Hdfc Bank Ltd. v. Sh. Sukhmander Singh

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