Allowed

Hdfc Bank v. Messrs Kaironwal Traders and Others

DRT14 Oct 2024OA/1291/2022

Case brief

AI extract

What is this about?

HDFC Bank Limited applied for recovery of outstanding dues from M/s Kaironwal Traders and partners under Section 19 of the RDBFI Act, 1993. The Tribunal noted the default in repayment, accepted the case ex-parte, and allowed the application declaring respondents liable to repay the principal amount plus simple interest at 8% p.a., granting authority to recover via sale of mortgaged properties or a

What did the court decide?

Recovery of Rs.45,99,316.04p with simple interest at 8% p.a. via sale of mortgaged properties or attachment of personal assets, and issuance of Recovery Certificate.

Hdfc Bank versus Messrs Kaironwal Traders and Others — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1291/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 23.06.2022

¶4

DATE OF DECISION: 14.10.2024

¶5

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 Parel (West), Mumbai400013 and amongst others having one of its branch office, at railway, near Bajwa Press, 2/433 near Canara Bank, Jandiala Road, Tarn Taran (Punjab) being represented through its Authorized Signatory Sh. Sunil Kalra, Legal Manager, Department for Special Operations, HDFC Bank Ltd., Plot No. 28, Industrial Area, Phase-1, Chandigarh.

¶6

……..Applicant

¶7

Versus

¶8

M/s Kaironwal Traders, a partnership firm, being represented through its partners Sh. Harjinder Singh S/o Sh. Mukhtar Singh and Sh. Ranjit Singh S/o Sh. Sakattar Singh, having its place of business at Shop No. 124, New Grain Market, Tarn Taran, Punjab- 143401

¶9

Sh. Harjinder Singh S/o Sh. Mukhtar Singh, partner M/s Kaironwal Traders, having its business address at place of business at Shop No. 124, New Grain Market, Tarn Taran, Punjab-143401

¶10

Residence Address :- House No. 326, Gali Jagtar Singh wali, Mohalla Guru Ka Khuh, Ward No. 16, Tarn Taran, Punjab-143401

¶11

Sh. Ranjit Singh S/o Sh. Sakattar Singh, partner M/s Kaironwal Traders having its business address at place of business at shop no. 124, new grain market, Tarn Taran Punjab -143401

¶12

Second Address : House No. 14, Village Kaironwal, District Tarn Taran, Punjab-143401.

¶13

¶14

Sh. Balwinder Singh S/o Sh. Mukhtar Singh, R/o House No. 326, Gali Jagtar Singh wali, Mohalla Guru Ka Khuh, Ward No. 16, Tarn Taran, Punjab-143401

¶15

………Defendants

¶16

Advocates:

¶17

Present Ms. Ashmita Goel, Advocate proxy for Sh. Satish Kumar Arora, Advocate for the applicant Defendants are ex-parte

¶18

FINAL ORDER

¶19

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.45,99,316.04p (Rupees Forty Five Lacs Ninety Nine Thousand Three Hundred Sixteen and Paisa Four only). The Original Application has been filed through Sh. Sunil Kalra, Legal Manager of the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its partners i.e. defendant nos.2 and 3 had approached the applicant for the grant of ODAP Limit of Rs.24.00 Lacs vide Loan Application dated 17.10.2017, which is Annexure A3 to this OA and Further for its enhancement to Rs.40.00 Lacs vide Request Letter Dated 09.05.2018. Thereafter defendants once again approached the applicant to the renewal of the existing limit of Rs.40.00 Lacs. 3. The applicant sanctioned the Cash Credit Limit of Rs.24.00 Lacs vide Sanction letter dated 10.01.2018, which is Annexure A4 to this OA and further sanctioned the its enhancement to Rs.40.00 Lacs vide Sanction Letter dated 25.07.2018, which is Annexure A12 to this OA; Thereafter applicant sanctioned the renewal of the existing limit of Rs.40.00 Lacs vide Renewal Sanction Letters dated 21.02.2019 and 12.12.2019, which are Annexures A20 & A21 to this OA and the terms and conditions were duly accepted by the defendants.

¶20

¶21

Defendants No.3 & 4 had mortgaged their immovable properties i.e. a) all that part and parcel of built up Residential House measuring 10 Marla 85 Sq. feet as per sale deed and 9.38 Malra as per valuation report situated at village Muradpur, Tehsil and District Tarn Taran, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no. 2523 dated 26.11.2015 along with its English Translations, which are Annexures A11A and A11B to this OA owned by defendant No.3and b) All that part and Parcel of Shop No. 15 owned by defendant No.4 situated at Tarn Taran (Punjab) vide Equitable Mortgage od Sale Deed bearing vasika No.4687 dated 26.12.2013 and Vasika No.3124 dated 16.02.2018 along with their Translations and Memorandum recording past transactions of creation of mortgage by delivery of title deeds dated 27.07.2018, which is Annexure A19 to this OA. Documents executed:- Partnership Deed dated 19.10.2016, which is Annexure A1 to this OA; Letters of Authority by Partners, Demand Promissory Note, Master facility agreement, Deed of Indemnity, Letter of Continuing Guarantee and Amendment Agreement all dated 29.01.2018, which are Annexures A5 to A10 to this OA; Memorandum recording past transactions of creation of mortgage by delivery of title deeds dated 08.02.2018, which is Annexure A11 to this OA; Demand Promissory Note, Letter of Continuing Security Master facility Agreement, Supplementary Agreement, Supplementary Letter of Continuing Guarantee, Declaration cum Indemnity and all dated 27.07.2018, which are Annexures A13 to A18 to this OA; Addendum Agreement dated 12.12.2019, which is Annexure A22 to this OA; Loan Recall Notices dated 31.07.2021 with Postal Receipts, which is Annexure A23 to this OA; Notice u/s 13(2) of SARFAESI Act dated 23.09.2021, which is Annexure A24 to this OA and Statements of accounts duly certified under banker books evidence act Overdraft account and Summary Calculation of suit amount, which are Annexures A25 to A27 to this OA and Valuation report of Property dated 24.05.2021, which is Annexure A28 to this OA.

¶22

¶23

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.45,99,316.04p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶24

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 07.10.2024.

¶25

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

¶26

Learned proxy counsel present has not advanced any arguments. Perused record.

¶27

In view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A28 to this OA, it is proved that the defendants approached applicant 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 applicant. The 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 is entitled to recover a sum of Rs.45,99,316.04p (Rupees Forty Five Lacs Ninety Nine Thousand Three Hundred Sixteen and Paisa Four 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.

¶28

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%p.a. with compounded monthly rests from 17.06.2022 till the realization.

¶29

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the

¶30

¶31

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.

¶32

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,99,316.04p (Rupees Forty Five Lacs Ninety Nine Thousand Three Hundred Sixteen and Paisa Four 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 the amount. Accordingly, the applicant 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 applicant 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.

¶33

Any other application pending stands disposed of.

¶34

Issue Recovery Certificate accordingly.

¶35

Parties to appear before Learned Recovery Officer of this

¶36

Tribunal on 24.10.2024.

¶37

Copy of this order be given dasti to the applicant 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.

¶38

Pronounced by me in the open Tribunal .

¶39

Dated: 14.10.2024

¶40

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

Hdfc Bank v. Messrs Kaironwal Traders and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Messrs Kaironwal Traders and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Ltd. versus Lakhvir Singh Thind and Others

Punjab National Bank versus Paramjit Singh and Another

Canara Bank versus Balwinder Singh and Another

Punjab National Bank versus Gurcharan Singh

Punjab National Bank versus Charankaur and Another

Icici Bank Limited versus Sukhjit Singh and Another