Allowed

Hdfc Bank Limited v. Paramjeet Singh and Others

DRT2 Aug 2024OA/1010/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by HDFC Bank Ltd. against borrowers and a guarantor for an outstanding sum of Rs. 44,97,791.00. The Court reduced the claimed interest rate and granted uniform simple interest at 8.00% p.a. It directed issuance of a Recovery Certificate and authorized enforcement through sale of mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 44,97,791.00 with costs and simple interest @8.00% p.a. from date of filing. Issued Recovery Certificate.

Hdfc Bank Limited versus Paramjeet Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1010/2020 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.06.2022

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DATE OF DECISION: 02.08.2024

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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, whereas branch at “Malout Branch, District Muktsar (Punjab)” through Sh. Parampreet Singh Kahlon, Manager (Agri. Legal), HDFC Bank Ltd., Regional Office, Chandigarh (U.T.) being Power of Attorney holder of the applicant bank

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……..Applicant Versus

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Sh. Paramjeet Singh S/o Sh. Thana Singh, R/o Village Kuraiwala, Tehsil Gidderbaha, District Muktsar, Punjab-152112 2. Smt. Jaspal Kaur @ Harpal Kaur Wd/o Sh. Thana Singh, R/o Village Kuraiwala, Tehsil Gidderbaha, District Muktsar, Punjab-152112 (Borrowers) 3. Sh. Karambir Singh S/o Sh. Kulwinder Singh, R/o H.No.1, Street No.1, Ward No.4, Pink City, Malout, District Muktsar, Punjab152112 (Guarantor) ….……Defendants Advocates: Argued by Sh. Saurabh Bharadwaj, Advocate for the applicant (through VC) 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.44,97,791.00 (Rupees Forty Four Lacs Ninety Seven Thousand Seven Hundred and Ninety One only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Manager Agri. Legal

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of 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 defendant Nos.1 and 2 had approached the applicant bank for the grant of KCC Limit of Rs.30.25 Lacs and Term Loan of Rs.3.00 Lacs vide Loan Application dated 08.01.2015, which is Annexure A2 to this OA. Thereafter, defendant No.1 requested the applicant bank to convert the overdue interest amount of crop loan into Agri Term Loan of Rs.2,02,312/-. 3. The applicant Bank sanctioned the KCC Limit of Rs.30.00 Lacs and Term Loan of Rs.3.00 Lacs vide Sanction Letters dated 28.01.2015, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. Later, on request of defendants, applicant bank converted the overdue interest amount of crop loan into a Agri Term Loan of Rs.2,02,312/-. 4. Defendant Nos.1 and 2 had mortgaged their immovable property i.e. total land measuring 112 Kanal 00 Marla situated at Village Kuraiwala, Hadbast No.23, Tehsil Gidderbaha, District Shri Muktsar Sahib, Punjab vide Letter to Joint Sub Registrar for creation of charge bearing vasika no.1018 and Declaration u/s 4(1) both dated 20.02.2015, which is Annexure A10 to this OA. Documents executed:- D.P. notes, Letter of continuity, Agreement for term loan-cum-guarantee-cum-hypothecation and Agreement for overdraft/cash credit-cum-guarantee-cum-hypothecation all dated 21.02.2015, which are Annexures A5 and A9 to this OA; Legal notice dated 25.04.2022 along with postal receipts, which is Annexure A11 to this OA and Statements of accounts along with Certificate, which are Annexures A12 to A14 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

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a debit of Rs.44,97,791.00, 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.

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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 28.05.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Manager (Agri. Legal), HDFC Bank Ltd. h as been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A14 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.44,97,791.00 (Rupees Forty Four Lacs Ninety Seven Thousand Seven Hundred and Ninety One 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 penal interest @2%p.a. from 20.03.2022 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

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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 @8.00%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.44,97,791.00 (Rupees Forty Four Lacs Ninety Seven Thousand Seven Hundred and Ninety One only) jointly and severally, with costs, current and future simple interest @8.00%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.08.2024.

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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: 02.08.2024

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

Hdfc Bank Limited v. Paramjeet Singh and Others

Case brief

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Hdfc Bank Limited v. Paramjeet Singh and Others

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