Allowed

Hdfc Bank Limited v. Jaspal Singh and Others

DRT7 Oct 2024OA/1532/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by HDFC Bank Limited against three defendants for recovery of Rs.22,83,605.37. The court declared defendants jointly and severally liable and granted uniform simple interest at 8.00% p.a. pursuant to its discretionary power.

What did the court decide?

Recovery of Rs.22,83,605.37 plus costs and simple interest at 8.00% p.a. from the date of filing till realization.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1532/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.08.2022

¶5

DATE OF DECISION: 07.10.2024

¶6

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 Patel (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 officer at Muktsar, Tehsil Malout & District Muktsar (Punjab), through its authorized signatory Paramreet Singh Kahlon

¶7

……..Applicant

¶8

Versus

¶9

Sh. Jaspal Singh S/o Sh. Jagraj Singh, R/o Village Tarkhanwala, Tehsil Malout, District Muktsar-152112

¶10

Sh. Shaminder Singh Sivia S/o Sh. Jalaur Singh, R/o Village Nandgarh, Tehsil & District Muktsar-152026

¶11

Sh. Karanpal Singh S/o Sh. Jaspal Singh, R/o Village Tarkhanwala Near School, Tehsil Malout, District Muktsar-152112

¶12

Advocates:

¶13

Argued by Sh. Manav Singal, Advocate proxy for Sh. Ankur Jindal, Advocate for Applicant None for Defendants

¶14

FINAL ORDER

¶15

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 Rs.22,83,605.37p (Rupees Twenty Two Lakh Eighty Three Thousand Six Hundred Five and Paise Thirty Seven Only). The Original Application has been filed through Sh. Paramreet Singh Kahlon, Authorized Signatory o f the Applicant, who is competent to institute

¶16

¶17

the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

¶18

The brief facts of the OA are that the Defendant No.1 had approached the applicant for the grant of CC Limit of Rs.18.00 Lacs and DOD Limit of Rs.7.35 Lacs vide Loan Applications dated 20.02.2018, which is Annexure A2 to this OA.

¶19

The applicant sanctioned the CC Limit of Rs.13.25 Lacs and DOD Limit of Rs.3.00 Lacs vide Sanction Letters dated 20.04.2018, which are Annexures A3 & A4 to this OA. Later applicant has restructured the CC Limit by converting the overdue interest into Two Term Loan of Rs. 81,808.00 and Rs. 18,316.00 and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. 64K-00M situated at Village Bhagwanpura Tarkhanwala, Tehsil Malout, District Muktsar vide Declaration under Section 4(1) bearing vasika no.38 dated 23.04.2018, which is Annexure A5 to this OA and Confirmation of Mutation Letter dated 27.06.2018, which is Annexure A6 to this OA Documents executed:-; Agreement for CC Facility and Agreement cum Hypothecation both dated 25.04.2018, which are Annexure A7 and A8 to this OA; RBI notification Regarding Covid Moratorium dated 27.03.2020, which is Annexure A9 to this OA; Statements of Accounts along with Certificate of Computer Application & Data, which are Annexure A10 to A14 to this OA; Legal Notice of Final Demand dated 29.03.2022 with Postal receipts, which are Annexures A15 to A18 to this OA.

¶20

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.22,83,605.37p 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.

¶21

¶22

The defendants were served notices to appear before this Tribunal. Sh. Amarjeet Singh Sidhu, Advocate appeared on behalf of defendants and filed his Power of Attorney on 03.10.2023 but did not filed WS. Therefore, right to file WS was closed and defense was struck of on 26.09.2024.

¶23

In support of the OA, affidavit of Sh. Paramreet Singh Kahlon, Authorized Signatory, HDFC Bank Limited h as been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants. Perused record. 9. 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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 loans 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.22,83,605.37p (Rupees Twenty Two Lakh Eighty Three Thousand Six Hundred Five and Paise Thirty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50%p.a. with effect from 1.10.2021 in CC Limits and from 20.03.2022 in Term Loans 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

¶24

¶25

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 accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶26

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,83,605.37 (Rupees Twenty Two Lakh Eighty Three Thousand Six Hundred Five and Paise Thirty Seven 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.

¶27

Any other application pending stands disposed of.

¶28

Issue Recovery Certificate accordingly.

¶29

Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2024.

¶30

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.

¶31

Pronounced by me in the open Tribunal.

¶32

Dated: 07.10.2024

¶33

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

Hdfc Bank Limited v. Jaspal Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Jaspal Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Limited versus Mehal Singh and Others

Hdfc Bank Limited versus Messrs Samundri Trading Co. and Others

Hdfc Bank Limited versus Parminder Singh and Others

Punjab National Bank versus Bawa Singh

Punjab National Bank versus Darshan Kumar and Others

Punjab National Bank versus Harpal Singh