Allowed

Hdfc Bank Limited v. Karandeep Singh and Another

DRT9 Jul 2024OA/1493/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of a defaulted term loan against two defendants who were proceeded ex-parte. The court fixed interest at 8% p.a. and directed recourse to hypothecated properties under the SARFAESI Act if dues remain outstanding.

What did the court decide?

Recovery of Rs.33,29,885.67 with simple interest at 8% p.a.; issuance of recovery certificate; recovery from mortgaged properties or personal assets.

Hdfc Bank Limited versus Karandeep Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1493/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2022

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DATE OF DECISION: 09.07.2024

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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 Malout Branch, Tehsil & District Mukstar (Punjab), through its authorized signatory Sh. Parampreet Singh Kahlon

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VERSUS

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Sh. Karandeep Singh S/o Sh. Vijay Singh, R/o H. No.316, Village Rampura, Tehsil- Abohar, District- Fazilka-152116

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…. (Defendant no.1)

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Sh. Amandeep Singh S/o Sh. Vijay Singh, R/o H. No.316, Village Rampura, Tehsil- Abohar, District- Fazilka-152116

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…. (Defendant no.2)

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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.33,29,885.67 (Rupees Thirty Three Lacs Twenty Nine Thousand Eight Hundred Eighty Five And Paise Sixty Seven Only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Remedial Manager of the applicant bank, who is competent to institute

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the Original Application vide General 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 defendants had approached the applicant bank for grant of credit facilities i.e. KCC Limit of Rs.10.00 Lacs and Term Loan of Rs.2.75 Lacs vide Loan application dated 04.07.2014, which is Annexure A2 to this OA.

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Later on, Defendants requested the applicant bank to convert the KCC Limit into two Term Loan Accounts of Rs.5,64,488.00 and Rs.9,86,693.11 respectively.

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The applicant Bank sanctioned the KCC Limit of Rs.9.80 Lacs and Term Loan of Rs.2.75 Lacs vide Sanction Letters both dated 08.07.2014, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Later on, on request of defendants applicant bank converted the KCC Limit into two Term Loan Accounts of Rs.5,64,488.00 and Rs.9,86,693.11 respectively.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 23K-00M situated at Village Rampura, TehsilAbohar, District- Fazilka vide Registered Mortgaged Deed bearing vasika No.261 dated 2 1.07.2014 along with its Translation and affidavit dated 22.07.2014 , which is Annexure A5 to this OA. Documents executed:- Confirmation of Lien certificate, Agreement for overdraft/cash credit cum guarantee cum hypothecation, D .P. Notes, Letters of Continuity and Agreement for Term Loan cum guarantee cum Hypothecation, all dated 26.07.2014 which are Annexures A6 to A12 to this OA; Statements of accounts of term loans and KCC Limit with certificate of Computer application, which are Annexures A13 to A17 to this OA; Legal notice of final demand dated 01.06.2022 postal receipts, which is Annexures A18 to A20 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.33,29,885.67 which is recoverable and the defendants were

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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 30.04.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Remedial Manager, HDFC Bank Limited h as been filed. 8. 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 A20 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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.33,29,885.67 (Rupees Thirty Three Lacs Twenty Nine Thousand Eight Hundred Eighty Five and Paise Sixty 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 [email protected]%p.a. with half yearly rests from 24.05.2022 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,29,885.67 (Rupees Thirty Three Lacs Twenty Nine Thousand Eight Hundred Eighty Five and Paise Sixty Seven 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.07.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 09.07.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Karandeep Singh and Another

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Hdfc Bank Limited v. Karandeep Singh and Another

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