Allowed

Hdfc Bank Ltd. v. Sh. Kabal Singh

DRT29 May 2024OA/1022/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 34.91 lakhs outstanding against the borrower. The court reduced the claimed interest rate and decreed uniform simple interest at 8% p.a. Orders for recovery via asset sale and issuance of recovery certificate were passed.

What did the court decide?

Recovery of Rs. 34,91,574.00 along with simple interest at 8% p.a. from the date of filing; liberty to enforce via sale of assets under SARFAESI Act; issuance of Recovery Certificate.

Hdfc Bank Ltd. versus Sh. Kabal Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1022/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.06.2022

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DATE OF DECISION: 29.05.2024

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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 and branch office amongst other places one at Sri Muktsar Sahib, Punjab through Sh. Paramjeet Singh Kahlon, Assistant Manager holder of an Attorney from the applicant bank

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……..Applicant Versus Sh. Kabal Singh S/o Sh. Harchand Singh, R/o Village Pind Buda Gujjar, Tehsil and District Muktsar Sahib-152026 (Borrower)

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………Defendant

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Advocates:

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Argued by Sh. Sumeet Sehgal, counsel for the applicant Defendant is 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 defendant for recovery of Rs.34,91,574.00 (Rupees Thirty Four Lacs Ninety One Thousand Five Hundred and Seventy Four only). The Original Application has been filed through Sh. Paramjeet Singh Kahlon, Assistant Manager 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 the defendant had approached the applicant bank for the grant of KCC Limit of Rs.19.95 Lacs vide Application Form dated 15.07.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned KCC Limit of Rs.19.95 Lacs vide Sanction Letter dated 21.07.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 41 Kanal 00 Marla situated at Village Burra Gujar, Tehsil and District Sri Muktsar Sahib, Punjab vide Register Mortgage Deed bearing Vasika No.2046 dated 24.07.2014 along with its translation, which are Annexures A7 and A8 to this OA and Sanction of Mutation bearing mutation no.689 dated 25.7.2014, which is Annexure A9 to this OA. Documents executed:- Agreement for Overdraft/Cash Credit-cum- guarantee-cum-hypothecation and D.P. note all dated 07.08.2014, which are Annexures A4 and A5 to this OA; Letter of continuity, which is Annexure A6 to this OA; Legal Notice dated 18.02.2022 along with postal receipt, which are Annexures A10 and A11 to this OA and Statement of Account along with Certificate, which is Annexure A12 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.34,91,574.00, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of the defendant and he was proceeded ex-parte on 28.03.2024. 7. In support of the OA, affidavit of Sh. Paramjeet Singh Kahlon, Assistant Manager, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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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 A12 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.34,91,574.00 (Rupees Thirty Four Lacs Ninety One Thousand Five Hundred and Seventy Four only) along with interest from the defendant, 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. with half yearly rests from 02.10.2021 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 defendant, 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 the loan account 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 defendant is liable to pay to the applicant a total sum of Rs.34,91,574.00 (Rupees Thirty Four Lacs Ninety One Thousand Five Hundred and Seventy Four only) with costs, current and future simple

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interest @8.00%p.a. in the loan account 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 defendant 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 defendant. 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 13.06.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 29.05.2024

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

Hdfc Bank Ltd. v. Sh. Kabal Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. Sh. Kabal Singh

Case brief

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What did the court decide?

What the court decided

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