In an ex-parte original application under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the Tribunal allowed the bank's claim for recovery of a vehicle loan default of over Rs. 21 lakh, reducing the rate to 8%.
Recovery certificate issued for Rs. 21,12,608.80 plus 8% simple interest.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1589/2023
DATE OF INSTITUTION: 04.11.2023
DATE OF DECISION: 03rd DAY OF FEBRUARY, 2024
HDFC Bank Limited , having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, also at Plot No. 1-15, Sector 101, Alpha IT City, S.A.S Nagar, Mohali, through its Authorised Representative, Ms Khushpreet Bains
…..Applicant
Versus
....Defendants
Argued by: Ms Dipti Toni proxy counsel for Sh. Gagandeep Toni counsel for the applicant bank Defendants ex parte vide order dated 01.02.2024
FINAL ORDER
Present Original Application was instituted by the applicant
bank under Section 19(1) of the Recovery of Debts due to Banks
OA/1589/2023 HDFC BANK VS SHREE RAM COMPANY AND ANOTHER 2
and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.21,12,600.80/(Rupees Twenty One Lakh Twelve Thousand Six Hundred and Eighty Paisa Only) . It has been filed through Ms Khushpreet Bains, Authorised Representative of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 09.01.2023, Annexure-A1 (copy).
OA/1589/2023 HDFC BANK VS SHREE RAM COMPANY AND ANOTHER 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.21,12,600.80/(Rupees Twenty One Lakh Twelve Thousand Six Hundred and Eighty Paisa Only) , is recoverable against the defendants as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A4 (copy).
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1589/2023 HDFC BANK VS SHREE RAM COMPANY AND ANOTHER 4
failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,12,600.80/- (Rupees Twenty One Lakh Twelve Thousand Six Hundred and Eighty Paisa Only) from the defendants.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. purchase of
vehicle (Make AL 4220 BS VI) , quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1589/2023 HDFC BANK VS SHREE RAM COMPANY AND ANOTHER 5
future simple interest @8% per annum w.e.f. 04.11.2023 , till the date of realisation of the amount. If the dues of the bank remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of hypothecated/personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak)
HDFC Bank Limited
Shree Ram and Company
Sh. Mukesh Kumar
Sh. Shivam Mathur
M.M. Dhonchak
Debts Recovery Tribunal, Chandigarh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
