Allowed

Hdfc Bank Limited v. Sh. Bhupinder Singh and Others

DRT1 Mar 2024OA/1346/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs.20,33,947 from three defendants. The court declared the defendants jointly and severally liable and ordered recovery through execution proceedings and issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.20,33,947 with simple interest @10% p.a. ordered. Recovery Certificate issued for enforcement via sale of properties.

Hdfc Bank Limited versus Sh. Bhupinder Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1346/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.07.2022

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DATE OF DECISION: 01.03.2024

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HDFC Bank Limited, 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 and branch office amongst other places one at Samana, District Patiala, Punjab; through Mrs. Pooja Arora, Manager holder of an attorney from the applicant bank

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……..Applicant

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Versus

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Sh. Bhupinder Singh S/o Sh. Sukhwinder Singh, R/o Village Kuka, PO Gajju Majra, Tehsil and District Patiala-147101 (Borrower)

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Sh. Sukhwinder Singh S/o Sh. Kesar Singh R/o Village Kuka, PO Gajju Majra, Tehsil and District Patiala-147101 (Borrower)

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Sh. Satnam Singh S/o Sh. Gurbakash Singh R/o Village Kuka, PO Gajju Majra, Tehsil and District Patiala-147101 (Guarantor)

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.……Defendants

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Advocates:

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Argued by Sh. Sumeet Sehgal, 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.20,33,947.00 (Rupees Twenty Lacs Thirty Three Thousand Nine Hundred and Forty Seven Only). The Original Application has been filed through Mrs. Pooja Arora, Manager of t he applicant bank, who is

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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 and 2 had approached the applicant bank for the grant of CC Limit of Rs.18.00 Lacs and Term Loan of Rs.6.00 Lacs vide Loan application dated 06.08.2015, which is Annexure A2 to this OA. Defendant No.3 stood as a guarantor for repayment of the loan amount. 3. The applicant Bank sanctioned the CC Limit of Rs.14.00 Lacs and Term Loan of Rs.6.00 Lacs vide Sanction Letters dated 26.08.2015 along with acceptance of credit facilities, which are Annexures A3 and A4 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant No.2 had mortgaged his immovable property i.e. land measuring 36 Kanal situated in the revenue estate of Village Kuka, Tehsil and District Patiala, Punjab vide Declaration dated 28.08.2015 under Section 4(1) of the Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A9 to this OA. Documents executed: - Agreement for Term Loan-cum-Guarantee- cum-Hypothecation, Agreement for overdraft/cash credit-cumguarantee-cum-hypothecation, Demand promissory note and Letter of continuity all dated 26.08.2015, which are Annexures A5 to A8 to this OA; Legal notice dated 25.03.2022 along with postal receipts, which are Annexures A10 to A13 to this OA and Statements of accounts along with Certificate of Bankers Books Evidence Act, which are Annexures A14 and A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.20,33,947.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 08.02.2024. 7. In support of the OA, affidavit of Mrs. Pooja Arora, Manager, HDFC Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 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.20,33,947.00 (Rupees Twenty Lacs Thirty Three Thousand Nine Hundred and Forty Seven 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.

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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 @11.75%p.a. in C.C. Limit and @13.00%p.a. in Term loan with half yearly rests from 02.10.2021 till the realization. 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 loans 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 @10.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amounts 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.20,33,947.00 (Rupees Twenty Lacs Thirty Three Thousand Nine Hundred and Forty Seven Only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of 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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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 14.03.2024.

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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.

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Pronounced by me in the Open Tribunal Dated: 01.03.2024

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

Hdfc Bank Limited v. Sh. Bhupinder Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Bhupinder Singh and Others

Case brief

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