Allowed

Hdfc Bank Limited v. Sh. Amandeep Singh and Others

DRT27 Mar 2024OA/1563/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 57,91,968.39 p. The court modified the claimed interest rates to a uniform 10% p.a. simple interest and issued a recovery certificate from the sale of mortgaged properties.

What did the court decide?

Recovery of Rs. 57,91,968.39 p with uniform 10% p.a. simple interest; issue of Recovery Certificate for enforcement via sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1563/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.08.2022

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DATE OF DECISION: 27.03.2024

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HDFC Bank Limited, a Banking Company incorporated and registered under The Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai 400013 (hereinafter referred to as “the Bank”) and one of its Branch Office situated at Giddarbaha, DAV School, Near Hussanar Gate, Muktsar, Punjab through its Authorized Representative, Sh. Parampreet Singh Kahlon, Manager Legal, presently posted at Plot No.28, Phase-1, Industrial Area, Chandigarh – 160002

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…….Applicant

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Versus

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Sh. Amandeep Singh S/o Sh. Mohkam Singh R/o Village Gurusar, Giddarbaha, Sri Muktsar Sahib, Punjab-152101 (Borrower)

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Sh. Mohkam Singh S/o Sh. Jagir Singh R/o Village Gurusar, Giddarbaha, Sri Muktsar Sahib, Punjab-152101 (Co- Borrower)

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(Since Deceased Through its Legal Heirs)

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(a) Sh. Amandeep Singh S/o Sh. Mohkam Singh R/o Village Gurusar, Giddarbaha, Sri Muktsar Sahib, Punjab-152101

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(b) Smt. Sukhwinder Kaur W/o Sh. Mohkam Singh R/o Village Gurusar, Giddarbaha, Sri Muktsar Sahib, Punjab-152101

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Sh. Palvinder Pal S/o Sh. Madan Gopal R/o H. No.370, Village Gurusar Giddarbaha, Sri Muktsar Sahib, Punjab, 152101 (Guarantor)

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………Defendants

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Advocates: Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Tarunjit Singh, 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.57,91,968.39p (Rupees Fifty Seven Lacs Ninety One Thousand Nine Hundred Sixty Eight and Thirty Nine Paisa only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Manager Legal o f 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. 2. The brief facts of the OA are that the defendants (including deceased) had approached the applicant bank for Cash Credit Limit of Rs.20.63 Lacs and Term Loan of Rs.6.20 Lacs vide Loan application dated 07.07.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.20.60 Lacs and Term Loan of Rs.6.20 Lacs under KGC scheme vide Sanction Letters dated 27.11.2014, which is Annexure A3 (Colly) to this OA. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 56 Kanal 16 Marlas situated at Village Gurusar, Hadbast no.22, Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab vide Declaration U/s 4(1) dated 04.12.2014, which is Annexure A8 to this OA. Documents executed: - Agreements for Over Draft/ Cash Credit cum Guarantee cum Hypothecation and Term Loan cum Guarantee cum Hypothecation both dated 27.11.2014, which are Annexures A4 and A5 to this OA, Demand Promissory notes with letter dated 27.11.2014, which are Annexures A6 and A7 to this OA, Title Search Report and

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Non Encumbrance Certificate dated 04.12.2014 , which are Annexures A9 and A10 to this OA; Certificate of Lien dated 10.12.2014, which is Annexure A11 to this OA; Demand Notices along with Postal Receipts dated 09.06.2022 and 25.07.2022, which are Annexures A12 and A13 to this OA; Statements of accounts of both CC and Term Loan dated 06.06.2022 and 07.06.2022, which are Annexures A14 and A15 to this OA along with the Certificate under Bankers Book of Evidence, which is Annexure A16 to this OA.

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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.57,91,968.39p, 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 the defendants and they were proceeded ex-parte on 21.02.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Manager Legal, HDFC Bank Limited has 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 A16 to this OA, it is proved that the defendants (including deceased) 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

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that applicant bank is entitled to recover a sum of Rs.57,91,968.39p (Rupees Fifty Seven Lacs Ninety One Thousand Nine Hundred Sixty Eight and Thirty Nine Paisa only) along with interest from the present 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 lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.00%p.a. plus @16.00%p.a. penal interest in CC Limit from 02.04.2022; and @13.00%p.a. plus @24.00%p.a. penal interest in Term Loan (KGC) from 08.06.2022; 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.57,91,968.39p (Rupees Fifty Seven Lacs Ninety One Thousand Nine Hundred Sixty Eight and Thirty Nine Paisa 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 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

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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 03.04.2024.

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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. Pronounced by me in the Open Tribunal.

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Dated: 27.03.2024

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

Hdfc Bank Limited v. Sh. Amandeep Singh and Others

Case brief

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Hdfc Bank Limited v. Sh. Amandeep Singh and Others

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