Allowed

Hdfc Bank Ltd., v. Sh. Manpreet Singh and Others

DRT3 Oct 2023OA/975/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 33,58,158.90 from the borrowers and guarantor. The court deemed it just to grant uniform simple interest at 10%p.a. instead of the claimed rate, and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.33,58,158.90 with simple interest at 10%p.a.; Issuance of Recovery Certificate.

Hdfc Bank Ltd., versus Sh. Manpreet Singh and Others — Cheque Dishonour | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.975/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.06.2022

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DATE OF DECISION: 03.10.2023

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HDFC Bank Ltd., incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and its Regional Office at HDFC Bank Ltd., 5^th Floor, B-21-14570, GT Road, Dholewal Chowk, Ludhiana and having one of its Branch Office at Patran, District Patiala (Punjab) through its authorized signatory, Mrs. Pooja Arora

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……..Applicant Versus 1. Sh. Manpreet Singh S/o Sh. Balwinder Singh, R/o VPO Sadharanpur, Tehsil Patran, District Patiala (Borrower) 2. Sh. Balwinder Singh S/o Sh. Gurbachan Singh, R/o VPO Sadharanpur, Tehsil Patran, District Patiala (Co-Borrower) 3. Sh. Jagdeep Singh, S/o Sh. Jaswinder Singh, R/o VPO Sadharanpur, Tehsil Patran, District Patiala (Guarantor) ….……Defendants Advocates: Argued by Sh. Amanjot Singh Sidhu, counsel proxy for Sh. Ankur Jindal, 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.33,58,158.90p (Rupees Thirty Three Lacs Fifty Eight Thousand One Hundred Fifty Eight and Paisa Ninety only). The Original Application has been filed through Mrs. Pooja Arora, Remedial Manager o f the

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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 had approached the applicant bank for the grant of Cash Credit Limit of Rs.23.00 Lacs and Term Loan facility of Rs.13.00 Lacs vide Loan application dated 11.01.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.23.00 Lacs and Term Loan facility of Rs.13.00 Lacs vide Sanction Letter dated 17.01.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable properties i.e. total land measuring 96K-00M situated at Village Sadharanpur, Tehsil Patran, District Patiala, Punjab vide Mortgage Deed no.3361 dated 17.01.2014 and Confirmation of mutation by counsel dated 18.01.2014, which are Annexures A7 and A8 to this OA. Documents executed:- Agreement for cash credit facility, D.P. Note and Letter of continuity all dated 17.01.2014, which are Annexures A4 to A6 to this OA; Statements of accounts, which are Annexures A9 and A10 to this OA; RBI notification regarding COVID-19 moratorium dated 27.03.2020, which is Annexure A11 to this OA; Certificate of computer application and data dated 04.03.2022, which is Annexure A12 to this OA; Legal notice to final demand dated 28.03.2022, which is Annexure A13 to this OA and Postal receipts dated 30.03.2022, which are Annexures A14 to A16 to this OA. 5. 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.33,58,158.90p, 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 13.09.2023.

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In support of the OA, affidavit of Mrs. Pooja Arora, Remedial Manager, HDFC Bank Limited h as 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 A16 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.33,58,158.90p (Thirty Three Lacs Fifty Eight Thousand One Hundred Fifty Eight and Paisa Ninety 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 CC with half yearly rests from 22.02.2022 and @12.00%p.a. in Term Loan from 04.03.2022 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 interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in both 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.33,58,158.90p (Thirty Three Lacs Fifty Eight Thousand One Hundred Fifty Eight and Paisa Ninety only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in both 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 property 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 09.10.2023. 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.

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Pronounced by me in the Open Tribunal. Dated: 03.10.2023

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

Hdfc Bank Ltd., v. Sh. Manpreet Singh and Others

Case brief

What is this about?

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Hdfc Bank Ltd., v. Sh. Manpreet Singh and Others

Case brief

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