Allowed

Hdfc Bank Limited v. M/s Pritam Singh Jasbir Singh

DRT23 Jul 2024OA/1116/2023

Case brief

AI extract

What is this about?

In an ex-parte original application under Section 19 of the RDBFI Act, the Tribunal decreed the bank's claim for loan recovery. While accepting the claim, the Tribunal exercised its discretion to reduce the future interest rate from the claimed 18% to 8% p.a., directing the recovery of costs and interests.

What did the court decide?

Recovery decree for Rs.27,29,126.62 with costs and future simple interest @8.00%p.a.; Recovery Certificate issued for enforcement.

Hdfc Bank Limited versus M/s Pritam Singh Jasbir Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1116/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.09.2023

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DATE OF DECISION: 23.07.2024

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HDFC Bank Limited, a Banking Company incorporated and registered under the Companies Act 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai400013 and one of its Branch Office, amongst others, at New Grain Market Khanna (Punjab) being represented through its duly authorized Officer Sh. Sunil Kalra, Legal Manager, Department for Special Operations, HDFC Bank Ltd., Regional Office, 3^rd Floor, Plot No. I-15, Alpha IT city, Sector-101, Mohali (Punjab)

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……..Applicant

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Versus

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M/s Pritam Singh Jasbir Singh, a Proprietorship Firm being represented by Sh. Kesar Singh S/o Sh. Surjan Singh, and having place of business at Shop No. 63, New Grain Market, Khanna District Ludhiana (Punjab)-141401 (Borrower Firm)

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Sh. Kesar Singh S/o Sh. Surjan Singh, R/o House No. 24, Ward No. 6, Model Town Patran District Patiala (Punjab)-147105

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(Proprietor, Mortgagor and Guarantor)

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2^nd Address :- Village Salana Dulla Singh Wala, Tehsil Amloh, District Fatehgarh Sahib (Punjab)-147301

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Sh. Gian Singh S/o Sh. Surjan Singh, R/o H. No. 24, Ward No. 6, Model Town Patran, District Patiala (Punjab)-147105

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2^nd Address :- Village Salana Dulla Singh Wala, Tehsil Amloh, District Fatehgarh Sahib (Punjab)-147301 (Mortgagor and Guarantor)

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………Defendants

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Advocates:

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Argued by Sh. Satish Kumar Arora, counsel 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.27,29,126.62p (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred Twenty Six and Sixty Two Paise only). The Original Application has been filed through Sh. Sunil Kalra, Legal Manager of the applicant bank, who is 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 through its proprietor i.e. defendant no.2 had approached the applicant bank for the grant of Overdraft Limit against Property (ODAP) of Rs.20.00 Lacs and further approached the applicant bank time to time for its renewals vide Request Letters dated 12.12.2013, 29.08.2014, 05.09.2014, 05.08.2015, 31.08.2015, 20.08.2016, 30.08.2016 and 15.07.2020. Thereafter also requested the applicant bank for Credit Facility of WCTL-GECL -1 of Rs. 3.25 Lacs and WCTL-GECL -2 of Rs.3.25 Lacs. The defendant No.1 through its proprietor i.e. defendant no.2 had once again approached the applicant bank for renewal of Credit Facilities of Rs.26.50 Lacs (Comprised ODAP Rs.20.00 Lacs, WCTL-GECL -1 of Rs.3.25 Lacs and WCTL-GECL-2 of Rs.3.25 Lacs).

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The applicant Bank sanctioned the Overdraft Limit against Property (ODAP) of Rs.20.00 Lacs vide Initial Sanction Letter dated 05.12.2012, which is Annexure A2 to this OA and sanctioned time to time the renewal of OD Limit vide Renewal Sanction Letters Dated 22.01.2014, 05.09.2014, 31.08.2015, 30.08.2016, 11.12.2017 and 04.08.2020 which are Annexures A10 to A15 to this OA. Thereafter sanctioned the Credit facility of WCTL-GECL -1 of Rs.3.25 Lacs and WCTL-GECL-2 of Rs.3.25 Lacs vide sanction letter dated 15.01.2021, which is Annexure A18 to this OA. The applicant bank also sanctioned the renewal of Credit Facilities of Rs.26.50 Lacs (Comprised ODAP

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Rs.20.00 Lacs and WCTL-GECL -1 of Rs. 3.25 Lacs and WCTL-GECL -2 of Rs.3.25 Lacs) vide Sanction Letter dated 24.08.2021, which is Annexure A24 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos.2 and 3 had mortgage their immovable properties i.e. All that part and Parcel of Built Up Shop on land measuring 0K-01M situated at Amloh Road, Khanna Kalan, Tehsil Khanna, District Ludhiana vide equitable mortgage of Title Deed bearing vasika no. 2984 dated 07.11.1994 along with its Translation, Non Encumbrance Certificate dated 10.10.2012 and affidavit and Memorandum recording mortgage creation dated 11.10.2012 and 21.01.2021 which are Annexures A8, A9 & A23 to this OA.

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Documents executed:- Master Facility Agreement, letter of Continuing Security, Demand Promissory Note, Letter of Continuing Guarantee all

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dated 10.12.2012, which are Annexures A3, A4 & A6 to this OA; Declaration cum Indemnity, Deed of Indemnity both dated 11.10.2012, which are Annexures A5 & A7 to this OA; Amendment Agreement dated 30.08.2016, which is Annexure A16 to this OA; Addendum Agreement dated 09.09.2020, which is Annexure A17 to this OA; Facility Agreement, Declaration cum undertaking, Supplementary Letter of continuing guarantee, Supplemental Deed of Hypothecation all dated 21.01.2021, which are Annexures A19 to A22 to this OA; Legal Recall cum Guarantee invocation Notices dated 18.05.2023 with Postal Receipts, which is Annexure A25 to this OA and Statements of ODAP Account and WCTL-GECL and foreclosure letter duly certified under banker book evidence act, Calculation of recoverable/Memoranda dues in ODAP Account, Summary of Suit amount and the Valuation report of Mortgage Property, which are Annexures A26 to A29 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.27,29,126.62p, which is recoverable and the

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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 03.05.2024.

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In support of the OA, affidavit of Sh. Sunil Kalra, Legal Manager, HDFC Bank Limited has been filed.

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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 A29 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, both the 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.27,29,126.62p (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred Twenty Six and Sixty Two 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.

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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 @18.00%p.a. from 12.09.2023 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

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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.27,29,126.62p (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred Twenty Six and Sixty Two 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. 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 13.08.2024. 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: 23.07.2024

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

Hdfc Bank Limited v. M/s Pritam Singh Jasbir Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/s Pritam Singh Jasbir Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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