The DRT allowed the bank's Original Application for recovery of a vehicle loan default. The court decreed a sum of Rs. 32.74 lakhs with interest principles, invoking its prerogative of mercy to standardize the interest rate at 8% p.a.
Recovery Certificate issued; Defendants directed to pay Rs. 32,74,307.91 with costs and simple interest @8% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1048/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.09.2022
DATE OF DECISION: 18.07.2024
HDFC Bank Ltd., having its Registered Office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and having its Branch Office at Dholewal, Ludhiana, Punjab. Also at HDFC Bank House, Plot No.1-15, Sector-101, Alpha IT City, Mohali through its Authorized Representative Sh. Rajender Prasad ……..Applicant Versus 1. Sh. Lekh Raj S/o Sh. Bugga Ram, R/o H.No.475, Street No.1, 33 Feet Road, Guru Nanak Nagar, Mundian Kalan, Ludhiana, Punjab141015 (Borrower) 2. Sh. Balwinder Kumar S/o Sh. Bugga Ram, R/o H.No.475, Street No.1, 33 Feet Road, Guru Nanak Nagar, Mundian Kalan, Ludhiana, Punjab-141015 (Guarantor) 2nd Address :- Sh. Balwindeer Kumar S/o Sh. Bugga Ram, Village Kanewal, PO Bhawanipur, Binewal, Hoshiarpur, Punjab-144523
………Defendants
Advocates:
Argued by Sh. Amit Rishi, counsel for the applicant (through VC) Defendants are ex-parte
FINAL ORDER
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Original Application vide Copy of Board Resolution dated 16.10.2021, which is Annexure A1 to this OA.
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gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A6 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. Defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.32,74,307.91p (Rupees Thirty Two Lacs Seventy Four Thousand Three Hundred Seven and Ninety One Paisa 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.29%p.a. along with penal interest @2%p.a. from 24.05.2023 till the realization.
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 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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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 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 06.08.2024. 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. Pronounced by me in the Open Tribunal. Dated: 18.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the Tribunal is competent to recover dues from the defendants upon failure to repay the loan.
2 provisions across 2 enactments
HDFC Bank Ltd.
Sh. Lekh Raj
Sh. Balwinder Kumar
Mridulesh Kumar Singh
As recorded by the court registry
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