A Debt Recovery Tribunal allowed a bank's original application filed under Section 19(1) RDB Act for recovery of Rs. 44,47,449 plus interest against defaulting borrowers and guarantors, reducing claimed interest rates.
Recovery of Rs. 44,47,449 with simple interest at 6% per annum from 19.10.2023 till realization via sale of mortgaged property or personal assets.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1447/2023
DATE OF INSTITUTION: 19.10.2023
DATE OF DECISION: 22nd DAY OF JANUARY, 2024
HDFC BANK Limited , having its registered office at Senapati Bapat Marg, Lower Parel-(West), Mumbai-400013, having its Branch at Tosham, Haryana, also at HDFC Bank House, Plot No. I-15, Sector101, Alpha IT City, Mohali, through its Authorised Representative, Sh. Jatinder Mishra
…..Applicant
Versus
....Defendants
Argued by: Sh. Amit Rishi counsel for the applicant bank Defendants ex parte vide order dated 06.01.2024
FINAL ORDER
OA/1447/2023 HDFC BANK VS SH. BIJENDER KUMAR AND OTHERS 2
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendants for recovery of Rs.44,47,449/(Rupees Forty Four Lakh Forty Seven Thousand Four Hundred and Forty Nine Only) . It has been filed through Sh. Jatinder Mishra, Authorised Representative of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 16.12.2020, Annexure-A1 (copy).
OA/1447/2023 HDFC BANK VS SH. BIJENDER KUMAR AND OTHERS 3
the revenue estate of Dadam, Teshil Tohsam, District Bhiwani, Haryana, fully detailed in para No. 5.8 of the Original Application.
Documents related to mortgage are as under:
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.44,47,449/(Rupees Forty Four Lakh Forty Seven
Thousand Four Hundred and Forty Nine Only) , is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexures-A10, A11 and A12 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1447/2023 HDFC BANK VS SH. BIJENDER KUMAR AND OTHERS 4
OA/1447/2023 HDFC BANK VS SH. BIJENDER KUMAR AND OTHERS 5
annum for Cash Credit Facility-I and @13% per annum plus penal interest @24% per annum for Term Loan. In sanction letters dated 01.08.2019, Annexures-A3 (colly) (copy), the rate of interest has been mentioned @11% per annum in Cash Credit Facility @11.50% per annum for Cash Credit Facility-I and @13% per annum in Term Loan.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural , present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant Nos. 3 and 4 being females, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @6% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1447/2023 HDFC BANK VS SH. BIJENDER KUMAR AND OTHERS 6
mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank proved its case for recovery of the outstanding loan amount against the defendants.
What rate of interest on the recoverable sum should be granted given the pandemic conditions and agricultural nature of the loan.
1 provisions across 1 enactments
HDFC BANK Limited
Sh. Bijender Kumar
Sh. Raj Kumar
Smt. Raj Pati
Smt. Phulpati
Sh. Amit
M.M. DHONCHAK
As recorded by the court registry
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