Allowed

Hdfc Bank Limited., v. sh. Varinderjit Singh and Another

DRT10 Sept 2024OA/108/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by HDFC Bank Ltd. for recovery of Rs. 22,89,849 against the borrowers and guarantor. The Tribunal directed the payment of principal along with interest at 8% per annum and authorized recovery from hypothecated properties.

What did the court decide?

Recovery Certificate issued for Rs. 22,89,849 with interest at 8% p.a. recoverable from mortgaged properties.

Hdfc Bank Limited., versus sh. Varinderjit Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.108/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.12.2023

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DATE OF DECISION: 10.09.2024 HDFC Bank Ltd., a banking company, Carrying on banking business under Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400013, whereas its branch at “Sardulgarh, District Mansa (Punjab)” through Ms. Pooja Arora, Senior Manager(Legal), H.D.F.C Bank Ltd., Ludhiana Branch, District Ludhiana (Punjab) being Authorized Officer of the applicant Bank.

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……..Applicant Versus 1. Sh. Varinderjit Singh S/o Sh. Balwinder Singh, R/o Village Gadrana @ Gudrana, Tehsil Kalanwali, District Sirsa (Haryana) (Borrower) 2. Sh. Jagtar Singh S/o Sh. Balbir Singh, R/o H.No.122, Village Subewala Khera, Tehsil & District Sirsa (Haryana)

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(Guarantor) ….……Defendants

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Advocates: 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,89,849.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Eight Hundred & Forty Nine Only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager of the applicant bank, who is

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competent to institute the Original Application vide Board Resolution dated 28.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.17.55 Lacs and Term Loan Limit of Rs.5.75 Lacs vide Loan Application to this OA. Defendant no.2 stood as guarantor. 3. The applicant Bank sanctioned the KCC Limit of Rs.17.55 Lacs and Term Loan Limit of Rs.5.75 Lacs vide Sanction Letters dated 28.02.2012, which is Annexure A2 to A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgage his immovable properties i.e. total land measuring 49 Kanal 0 Marla situated at Village Gadrana @ Gudrana, Tehsil & District Sirsa (Haryana) vide Registered Mortgage Deed bearing Vasika No.5878 dated 29.02.2012 and Mutation Certificate dated 01.03.2012, which are Annexures A10 and A11 to this OA.

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Documents executed:-D.P. Notes, Letters of Continuity, Agreement of Term Loan cum Guarantee Cum Hypothecation, Agreement for Overdraft /Cash Credit Cum Guarantee Cum Hypothecation all dated 28.02.2012, which are Annexures A4 to A9 to this OA; Letter of Acknowledgment of Debts both dated 28.10.2020, which are Annexures A12 to this OA; Legal Notice dated 30.08.2023 with Postal Receipts, which is Annexure A13 to this OA and Statements of Accounts, which are Annexures A14 to A15 to this OA. 5. 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.22,89,849.00, 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 31.07.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager, HDFC Bank h as been filed.

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Heard arguments and perused record.

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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 Annexure A1 to A15 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.22,89,849.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Eight Hundred & Fourty Nine Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all 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 @2.00%p.a. rests from 29.08.2023 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 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

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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.22,89,849.00 (Rupees Twenty Two Lacs Eighty Nine Thousand Eight Hundred & Fourty Nine 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.10.2024. 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: 10.09.2024.

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

Hdfc Bank Limited., v. sh. Varinderjit Singh and Another

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Hdfc Bank Limited., v. sh. Varinderjit Singh and Another

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