DRT-III Chandigarh allowed a debt recovery application by HDFC Bank Ltd. against borrowers and guarantor for Rs. 57,77,757.12 plus interest at 8% p.a., highlighting prerogative of mercy while disposing of pending ancillary applications.
Recovery of Rs.57,77,757.12 plus costs and interest @8% p.a. jointly and severally from respondents.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1068/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
| DATE OF INSTITUTION: 14.06.2022 DATE OF DECISION: 22.05.2024 |
|---|
| HDFC Bank Limited, incorporated under the Companies Act, 1956 and |
| bank within the meaning of the Banking Regulation Act, 1949 and |
| having its Registered Office at HDFC Bank House, Senapati Bapat |
| Marg, Lower Parel (West), Mumbai-400013 and Regional Office at |
| HDFC Bank Ltd., 5thFloor, B-21-14570, GT Road, Dholewal Chowk, Ludhiana and having one of its branch office at Patran, District Patiala |
| (Punjab) through its authorized signatory Mrs. Pooja Arora. ……..Applicant Versus |
| 1. Sh. Harinder Singh S/o Sh. Sultan Singh, R/o Village: Gafurpura Alias Moulviwala, Tehsil Patran, District Patiala |
| 2. Sh. Sultan Singh S/o Sh. Maan Singh R/o Village: Gafurpura Alias Moulviwala, Tehsil Patran, District Patiala Borrowers |
| 3. Sh. Sukhdev Singh S/o Sh. Jeet Singh R/o Village: Gafurpura Alias Moulviwala, Tehsil Patran, District Patiala Guarantor ….……Defendants |
| Advocates: Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, 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.57,77,757.12 (Rupees Fifty Seven Lacs Seventy Seven Thousand Seven Hundred Fifty Seven and Paisa Twelve only). The Original |
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Application has been filed through Mrs. Pooja Arora, authorized signatory 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.
Documents executed:- Agreement for Cash Credit facility, Agreement for Term Loan cum guarantee cum Hypothecation, Demand Promissory Note, all dated 07.04.2014, which are Annexures A5 to A7 to this OA; Letter of Continuity for Demand Promissory Note, which is Annexure A8 to this OA; Statement of Account, which is Annexure A10 to this OA; 2nd Agreement of Cash Credit Facility after
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enhancement, 2nd Agreement of Term Loan facility after enhancement and Demand Promissory Note, all dated 09.02.2016, which are Annexures A14 to A16 to this OA; Letter of Continuity of DP Note, which is Annexure A17 to this OA; Statement of Term Loan account along with Certificate of Computer Data, which are Annexures A18 & A19 to this OA; Legal Notice of final Demand dated 28.03.2022 along with Postal Receipt Sending Notices to defendant no. 1, 2 & 3, which are Annexures A20 to A23 to this OA.
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Seven Thousand Seven Hundred Fifty Seven and Paisa Twelve only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.
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 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.57,77,757.12p (Rupees Fifty Seven Lacs Seventy Seven Thousand Seven Hundred Fifty Seven and Paisa Twelve only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of both the amounts. 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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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the Original Application under Section 19 of the RDBFI Act, 1993 is maintainable for recovery of dues from borrowers and guarantor.
Whether the interest rate of 8% per annum is appropriate considering market rates and mortgaged property.
Whether Recovery Certificate should be issued in case of ex-parte hearing.
2 provisions across 2 enactments
HDFC Bank Limited
Harinder Singh
Sultan Singh
Sukhdev Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
