Allowed

Hdfc Bank Ltd., v. Sh. Gagandeep Singh and Another

DRT19 Oct 2023OA/986/2022

Case brief

AI extract

What is this about?

HDFC Bank instituted an original application to recover a debt of Rs. 56,15,374. Addressing the applicants, the Tribunal adjusted the defendants' interest rates to 10% per annum from the date of filing, affirming the bank's liability to recover the total sum with costs and rightful enforcement options.

What did the court decide?

Order of recovery of Rs. 56,15,374 with costs and simple interest @10% p.a.; authorization for recovery via sale of assets and enforcement through due process of law.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.986/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2022 DATE OF DECISION: 19.10.2023 HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013 and branch office amongst other places one at Sri Muktsar Sahib, Punjab, through Sh. Parampreet Singh Kahlon, Assistant Manager holder of an attorney from the Applicant Bank ……..Applicant Versus 1. Sh. Gagandeep Singh S/o Sh. Pritpal Singh, R/o Village Jando Ke, Tehsil and District Muktsar Sahib-152026 (Borrower) 2. Sh. Amritpal Singh S/o Sh. Gurdial Singh, R/o Village Jando Ke, Tehsil and District Muktsar Sahib-152026 (Guarantor) ….……Defendants Advocates: Argued by Sh. J.S. Sehgal, 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.56,15,374.00 (Rupees Fifty Six Lacs Fifteen Thousand Three Hundred and Seventy Four only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Assistant Manager o f the 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 defendant no.1 had approached the applicant bank for the grant of CC Limit of Rs.70.00 Lacs vide Loan application dated 05.02.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Credit Facilities of Rs.50.00 Lacs i.e. CC Limit of Rs.40.00 Lacs and Term loan of Rs.10.00 Lacs vide Sanction Letters and Acceptance of Credit Facilities dated 10.02.2015, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 245K-01M situated at Village Jando Ke, Tehsil and District Sri Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 12.02.2015, which is Annexure A11 to this OA. Documents executed:- Agreement for term loan-cum-guarantee-cum- hypothecation, Agreement for overdraft/cash credit-cum-guaranteecum-hypothecation, D.P. Notes and Letters of continuity all dated 16.02.2015, which are Annexures A5 to A10 to this OA; Circulars issued by RBI dated 27.03.2020, 17.04.2020 and 23.05.2020, which are Annexures A12 to A14 to this OA; Notices and postal receipts dated 18.02.2022, which are Annexures A15 to A17 to this OA and Statements of accounts along with the certificate, which are Annexures A18 to A20 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.56,15,374.00, 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. 6. 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 12.09.2023.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Assistant Manager, HDFC Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A20 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. During COVID-19 and as per the guidelines of Reserve Bank of India, the interest portion of CC limit was converted into FITL account of Rs.2,37,834.00. 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.56,15,374.00 (Rupees Fifty Six Lacs Fifteen Thousand Three Hundred and Seventy Four 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. 10. 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 limit from 02.10.2021; @13.00%p.a. in Term loan from 15.02.2022; and @11.00%p.a. in FITL from 15.02.2022 with half yearly rests in all the loan accounts 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

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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.

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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.56,15,374.00 (Rupees Fifty Six Lacs Fifteen Thousand Three Hundred and Seventy Four 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 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.

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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

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Tribunal on 04.11.2023.

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Copy of this order be given dasti to the applicant bank and be

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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: 19.10.2023

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

Hdfc Bank Ltd., v. Sh. Gagandeep Singh and Another

Case brief

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Hdfc Bank Ltd., v. Sh. Gagandeep Singh and Another

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