Allowed

Hdfc Bank Limited v. Kulwant Kaur and Others

DRT22 Aug 2024OA/1012/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by HDFC Bank against borrowers and guarantors for recovery of a loan amount of Rs. 34,81,465 unnoticed rebate. The court recognized the bank's entitlement to recover dues jointly and severally, adjusted the interest rate to 8% p.a., and issued a recovery certificate.

What did the court decide?

Recovery certificate issued; respondents ordered to pay Rs. 34,81,465 with costs and simple interest @ 8% p.a. from filing till realization.

Hdfc Bank Limited versus Kulwant Kaur and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1012/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.05.2022

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DATE OF DECISION: 22.08.2024

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H.D.F.C. 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 office amongst other places at “Devigarh Branch, District Patiala, (Punjab)” through Smt. Pooja Arora, Senior Manager (Agriculture Legal), H.D.F.C Bank Ltd., Ludhiana branch, District Ludhiana (Punjab) being Power of Attorney holder of the applicantbank.

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……..Applicant

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Versus

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Smt. Kulwant Kaur W/o Sh. Nishan Singh, R/o H. No. 183, Village Mial, Hadbast No. 85, tehsil Samana, District Patiala (Punjab)147101

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Sh. Nishan Singh S/o Sh. Jagir Singh, R/o H. No. 183, Village Mial, Hadbast No. 85, tehsil Samana, District Patiala (Punjab)-147101

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Borrower/Defendant

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Sh. Joga Singh S/o Sh. Jangir Singh, R/o Village Miyal Khurd, Tehsil Samana, District Patiala, (Punjab)-147101

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Guarantor/Defendant ….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bharadwaj, Advocate 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

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under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.34,81,465.00 (Rupees Thirty Four Lacs Eighty One Thousand Four

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Hundred and Sixty Five only). The Original Application has been filed through Smt. Pooja Arora, Senior Manager (Agriculture Legal) 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 defendants no.1 & 2 had approached the applicant bank for the grant of Cash Credit Limit(KCC) of Rs.27.00 Lacs and Term Loan of Rs. 7.00 Lacs vide Loan application dated 02.08.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit(KCC) of Rs.26.00 Lacs and Term Loan of Rs.7.00 Lacs vide Sanction Letters dated 14.08.2013, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No. 2 had mortgaged his immovable properties i.e. total land measuring 64K-00M situated at Village Mayal, Tehsil Samana, District Patiala (Punjab) vide Registered Mortgaged Deed bearing v asika No.1296 dated 2 2.08.2013 and Letter to Sub Registrar along with their Translations, which are Annexures A9 & A10 to this OA.

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Documents executed:- Demand Promissory Note, Letter of Continuity, Agreement for Term Loan cum Guarantee cum Hypothecation, Agreement for Over Draft/Cash Credit Cum Guarantee cum Hypothecation all dated 23.08.2013, which are Annexures A5 to A8 to this OA; Legal Notice dated 14.03.2022 along with postal Receipts, which is Annexure A10 to this OA and Accounts Statements along with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System, which is Annexure A11 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 both the loan accounts there was a debit of Rs.34,81,465.00, which is recoverable and the defendants were served recall notices but they did not repay the

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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. Sh. Jaskaran Singh, Advocate appeared on behalf of the defendant nos.1 and 2 and filed his Power of Attorney on 09.01.2024. Since no one appeared on behalf of defendants, they were proceeded ex-parte on 16.07.2024.

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In support of the OA, affidavit of Smt. Pooja Arora, Senior Manager (Agriculture Legal), H.D.F.C. bank Ltd. 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 A11 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 loan 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.34,81,465.00 (Rupees Thirty Four Lacs Eighty One Thousand Four Hundred and Sixty Five only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the both 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 @11.00%p.a. plus penal interest @2%p.a. from 25.02.2020 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

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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 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.34,81,465.00 (Rupees Thirty Four Lacs Eighty One Thousand Four Hundred and Sixty Five only) jointly and severally, with costs, current and future simple interest @8.00%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/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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.09.2024.

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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.

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Pronounced by me in the open Tribunal . Dated: 22.08.2024

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

Hdfc Bank Limited v. Kulwant Kaur and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Kulwant Kaur and Others

Case brief

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