Allowed

Hdfc Bank Limited v. Sh. Sukhjinder Singh

DRT26 Aug 2024OA/1587/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.1.19 crore levied against borrowers and guarantors as the account was classified as NPA after they failed to repay the loan facility.

What did the court decide?

Declaration that respondents are liable to pay Rs.1,19,61,536.00 jointly and severally with costs and future simple interest @8.00%p.a.; Authorization to realize amount via sale of mortgaged propertie

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1587/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.08.2022

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DATE OF DECISION: 26.08.2024

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HDFC Bank Ltd., a banking company carrying on the banking business under the Banking Regulation Act, 1949 incorporated under The Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400013 and branch Office amongst other places one at Rampur Jagir, Distt. Kapurthala, through Sh. Harminder Pal Singh, Manager holder of an attorney from the Applicant Bank.

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……..Applicant Versus

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Sh. Sukhjinder Singh S/o Sh. Bhalwinder Singh R/o H.No.25, Village Mokhe, Tehsil Sultanpur Lodhi, Distt. Kapurthala-144601

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Sh. Bhalwinder Singh S/o Sh. Najar Singh R/o H.No.25, Village Mokhe, Tehsil Sultanpur Lodhi, Distt. Kapurthala-144601

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Smt. Jasvir Kaur W/o Sh. Bhalwinder Singh R/o H.No.25, Village Mokhe, Tehsil Sultanpur Lodhi, Distt. Kapurthala-144601

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(Borrowers)

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Sh. Heera Singh S/o Sh. Joga Singh R/o H.No.4 and 59, Village Naseerewal, Tehsil Sultanpur Lodhi, Distt. Kapurthala -144626

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Sh. Najar Singh S/o Sh. Makhan Singh R/o H.No.28, Village Mokhe, Tehsil Sultanpur Lodhi, Distt. Kapurthala-144601 (Guarantors)

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….……Defendants

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Advocates: Argued by Sh. Sumeet Sehgal, Advocate proxy for Sh. J.S. Sehgal, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER

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1. 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.1,19,61,536.00 (Rupees One Crore Nineteen Lacs Sixty One

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Thousand Five Hundred Thirty Six Only). The Original Application has
been filed throughSh. Harminder Pal Singh, Managerof the applicant
bank, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which isAnnexure A1to this OA. 2. The brief facts of the OA are that the defendant Nos.1 to 3 had approached the applicant bank for grant of KCC Limit of Rs.85.00 Lacs vide Loan application 07.01.2016, which isAnnexure A2to this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.85.00 Lacs vide sanction letter dated 23.02.2016, which isAnnexures A3to this
OA and the terms and conditions were duly accepted by the
defendants.
4. Defendant No.2 and 3 had mortgaged their immovable property total land measuring 125K-11M detailed as under:- a) Land measuring 58K-11M situated in Village Mokha, Hadbast No.27 vide Jamabandi for the year 2013-14
b) Land measuring 27k-0M situated in Village Naseerewal,
Hadbast No.11 vide Jamabandi for the year 2012-13, Tehsil Sultanpur Lodhi, District Kapurthala and
c) Land measuring 40k-0M situated in Village Mohabalipur,
Hadbast No.7 vide Jamabandi for the year 2009-10, Tehsil Sultanpur Lodhi, District Kapurthala
vide Letter to Sub Registrar for creation of charge bearing vasika
no.778/SR/SPL and Declaration under Section 4(1) both dated
23.02.2016, which isAnnexures A7to this OA
Documents executed:- Agreement for overdraft/cash credit cum
guarantee cum hypothecation, Demand Promissory Note and Letter of
continuity all dated 23.02.2016, which areAnnexures A4 to A6to
this OA; Notice dated 04.08.2022 with Postal Receipts, which are
Annexures A8 to A13to this OA and Statement of account along with Certificate, which isAnnexures A14to this OA.
5. 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.1,19,61,536.00, which is recoverable and the defendants

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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 22.07.2024.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Manager, HDFC Bank Ltd. h as been filed.

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Heard ex parte arguments and 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 bank had proved its case. From the perusal of all the Annexures A1 to A14 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.1,19,61,536.00 (Rupees One Crore Nineteen Lacs Sixty One Thousand Five Hundred Thirty Six 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 @12.00%p.a. with half yearly rests from 02.04.2022 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 of the defendants, quantum of loan and prevalent market rates of

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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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,19,61,536.00 (Rupees One Crore Nineteen Lacs Sixty One Thousand Five Hundred Thirty Six 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.

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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

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Tribunal on 18.09.2024.

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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 .

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Dated: 26.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Sukhjinder Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Sukhjinder Singh

Case brief

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What did the court decide?

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