Allowed

Hdfc Bank Limited v. Jaswinder Singh and Others

DRT19 Oct 2024OA/1333/2022

Case brief

AI extract

What is this about?

The tribunal allowed an original application under Section 19 RDBFI Act, 1993. It declared the respondents liable to pay Rs.1.32 Crore plus costs and current/future interest at 8.00%p.a. The applicant was granted permission to recover the amount via sale of mortgaged properties under SARFAESI Act or attachment of assets. A Recovery Certificate was issued.

What did the court decide?

Recovery of Rs.1,32,47,740 plus costs and interest at 8% per annum; order for sale of mortgaged properties and attachment of assets; issuance of Recovery Certificate.

Hdfc Bank Limited versus Jaswinder Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1333/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2022

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DATE OF DECISION: 19.10.2024

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HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013, whereas branch amongst other places at “Malout Branch, District Shri Muktsar Sahib (Punjab)” through Sh. Parampreet Singh Kahlon, Assistant Manager (Agri. Legal), HDFC Bank Ltd., Regional Office, Chandigarh (U.T.) being Power of Attorney holder of the applicant

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……..Applicant

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Versus

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Sh. Jaswinder Singh S/o Sh. Amarjit Singh R/o H.No.359, Village Jhorarh, Tehsil Malout, District Muktsar (Punjab)-152107.

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Sh. Charnjeet Singh S/o Sh. Gursahib Singh R/o H.No.359, Village Jhorarh, Tehsil Malout, District Muktsar (Punjab)-152107.

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Sh. Amarjit Singh S/o Sh. Mithu Singh R/o H.No.359, Village Jhorarh, Tehsil Malout, District Muktsar (Punjab)-152107.

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Sh. Rupinder Singh S/o Sh. Amarjit Singh R/o H.No.359, Village Jhorarh, Tehsil Malout, District Muktsar (Punjab)-152107.

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Sh. Surinder Singh S/o Sh. Bachittar Singh, R/o H.No.210, Village Jhorarh, Tehsil Malout, District Muktsar (Punjab)-152107.

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….……Defendants

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Advocates:

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Argued by Sh. Gulshan Mehta, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.1,32,47,740.00 (Rupees One Crore Thirty Two Lacs Forty Seven Thousand Seven Hundred and Forty only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Assistant Manager (Agri. Legal) of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 & 4 had approached the applicant for the grant of Cash Credit Limit of Rs.65.00 Lacs and Term Loan of Rs.25.00 Lacs vide Loan application dated 07.04.2014, which is Annexures A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.65.00 Lacs and Term Loan of Rs.25.00 Lacs vide Sanction Letters dated 17.04.2014, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 to 4 had mortgaged their immovable properties i.e. total land measuring 245K-06M situated at Village Jhorad, Tehsil Malout, District Shri Muktsar Sahib (Punjab) vide Registered Mortgage Deed bearing Vasika No.599 dated 0 9.05.2014 and Rapat Report bearing Vasika No.423 dated 14.05.2014 along with its Translations , which are Annexures A10 & A11 to this OA. Documents executed:- D.P. Notes, Letters of Continuity, Agreement for Term Loan and Agreement for Cash Credit all dated 17.05.2014, which are Annexures A5 to A9 to this OA; Legal Notice dated 31.05.2021 along with postal Receipts, which is Annexure A12 to this OA and Statement of CC Account and Statement of Term Loan Account along with Certificate which are Annexures A13 & A14 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.1,32,47,740.00, 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.

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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 14.10.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Assistant Manager (Agri. Legal), HDFC Bank Ltd. h as been filed. 8. 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 had proved its case. From the perusal of all the Annexures A1 to A14 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,32,47,740.00 (Rupees One Crore Thirty Two Lacs Forty Seven Thousand Seven Hundred and Forty only along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. plus penal interest @2.00%p.a. from 10.02.2022 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 just and appropriate to grant uniform simple interest @8.00%p.a. in

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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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,32,47,740.00 (Rupees One Crore Thirty Two Lacs Forty Seven Thousand Seven Hundred and Forty 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 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 19.10.2024

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

Hdfc Bank Limited v. Jaswinder Singh and Others

Case brief

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Hdfc Bank Limited v. Jaswinder Singh and Others

Case brief

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