Allowed

Hdfc Bank Limited v. Sh. Tarsem Singh and Another

DRT21 Mar 2024OA/1462/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's ex-parte application for recovery of Rs.41.20 Lakhs along with costs and reduced simple interest to 10% p.a. from the filing date, ordering the issue of a Recovery Certificate against the borrowers and guarantor.

What did the court decide?

Declare defendants liable to pay Rs.41,20,229.15p with costs and 10% p.a. interest; issue Recovery Certificate; allow recovery from mortgaged/personal assets.

Hdfc Bank Limited versus Sh. Tarsem Singh and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1462/2022

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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: 21.03.2024

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and its Regional Office at HDFC Bank Ltd., Bank House, Plot No.28, Industrial Area, Phase-1, Chandigarh and having one of its branch office at Jagraon, Tehsil Jagraon & District Ludhiana (Punjab), through its Authorised Signatory, Ms. Pooja Arora

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……..Applicant

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Versus

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Sh. Tarsem Singh S/o Sh. Nirmal Singh, R/o Village Gurusar Kaunke (Galib Kalan), Tehsil Jagraon, District Ludhiana-142036

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……..(Defendant No.1-Borrower)

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As well as Legal Heir of Borrower, Sh. Nirmal Singh (since deceased) S/o Sh. Bhajan Singh R/o Village Gurusar Kaunke (Galib Kalan), Tehsil Jagraon, District Ludhiana-142036

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Sh. Baljinder Singh S/o Sh. Nasib Singh, R/o Village Gurusar Kaunke (Galib Kalan), Tehsil Jagraon, District Ludhiana-142036

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……..(Defendant No.2-Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.41,20,229.15p (Rupees Forty One Lacs Twenty Thousand Two Hundred Twenty Nine and Fifteen Paise only). The Original Application has been filed through Ms. Pooja Arora, Remedial Manager of the applicant bank, 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 no.1 along with his father Sh. Nirmal Singh (since deceased) and defendant no.2 had approached the applicant bank for the grant of Cash Credit Facility of Rs.33.00 Lacs and Term Loan of Rs.7.00 Lacs vide Loan application dated 28.02.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Facility of Rs.27.90 Lacs and Term Loan of Rs.7.20 Lacs vide Sanction Letters dated 16.03.2015, which are Annexures A3 & A4 to this OA; and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 and Sh. Nirmal Singh (since deceased) had mortgaged their immovable properties i.e. total land measuring 62K14¾M situated at Village Kaunka 2 & Kaunka 4, Hadbast no.136 and Village Patti Sham Singh, Hadbast no.137, Tehsil Jagraon, District Ludhiana, Punjab vide Declaration u/s 4(1) of PAD Act dated 25.03.2015 and Confirmation of Mutation dated 15.04.2015, which are Annexures A5 and A6 to this OA. Documents executed:- Agreement of Cash Credit Limit, Demand Promissory Note, Letter of Continuity of D.P. Note, Agreement of Term Loan all dated 16.04.2015, which are Annexures A7 to A12 to this OA; RBI Notification Regarding Covid-19 Moratorium dated 27.03.2020, which is Annexure A13 to this OA; Statement of Account

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of Cash Credit Facility, Statement of Account of Term Loan and Statement of Account of Term Loan (Covid) all dated 23.02.2022, which are Annexures A14 to A16 to this OA; Certificate of Computer Data dated 22.02.2022, which is Annexure A17 to this OA; Legal Notice of Final Demand (First Notice) dated 28.03.2022, which is Annexure A18 to this OA; Postal Receipt Sending Notice to Defendant No.1, Postal Receipt Sending Notice to Defendant No.2, Postal Receipt Sending Notice to Defendant No.3, AD Receipt, Notice to Nirmal Singh and Envelope containing notice of Nirmal Singh received back with report (undated) of his death all dated 30.03.2022, which are Annexures A19 to A23 to this OA; Legal Notice of Final Demand to LRs of Nirmal Singh (since deceased) dated 13.06.2022, which is Annexure A24 to this OA and Postal Receipt Sending Notice to LRs of Nirmal Singh (since deceased) dated 14.06.2022, which is Annexure A25 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.41,20,229.15p, which is recoverable and the 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 12.03.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Remedial Manager, HDFC Bank Ltd., h as been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A25 to this OA, it is proved that the defendants

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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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.41,20,229.15p (Rupees Forty One Lacs Twenty Thousand Two Hundred Twenty Nine and Fifteen Paise 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 @11.50%p.a. in Cash Credit Facility from 23.02.2022 and @13.00%p.a. in Term Loan from 05.03.2022; 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 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 @10.00%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.41,20,229.15p (Rupees Forty One Lacs Twenty Thousand Two Hundred Twenty Nine and Fifteen Paise 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

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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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.04.2024.

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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: 21.03.2024

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

Hdfc Bank Limited v. Sh. Tarsem Singh and Another

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Tarsem Singh and Another

Case brief

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