Allowed

Hdfc Bank Limited v. Kiranjit Singh and Others

DRT8 Aug 2024OA/1620/2022

Case brief

AI extract

What is this about?

HDFC Bank filed an Original Application under Section 19 RDBFI Act to recover outstanding dues of Rs. 22.19 Lakrs from borrowers who failed to repay KCC and Term Loans. The Tribunal, finding no prima facie objection and noting the mortgaged security, allowed the application. It modified the interest claim to 8% p.a. and directed the issue of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Debtors liable to pay Rs. 22.19 Lakhs + costs + future simple interest @8% p.a.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1620/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:08.08.2022

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DATE OF DECISION: 08.08.2024

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H.D.F.C. Bank Ltd. a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 and is having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400013, whereas branch amongst other places at “Muktsar Branch, District Shri Muktsar Sahib (Punjab)” through Parampreet Singh Khalon, Assistant Manager (Agri. Legal), H.D.F.C Bank Ltd., Regional Office, Chandigarh (U.T.) being power of attorney holder of the applicant-bank.

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……..Applicant Versus

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Sh. Kiranjit Singh S/o Sh. Ram Singh, R/o H.No.634, Mania Wala Road, Village Sukhna Ablu, Tehsil Gidderbaha, District Muktsar (Punjab)-152026.

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Sh. Sarabjit Singh S/o Sh. Ram Singh, R/o H.No.634, Mania Wala Road, Village Sukhna Ablu, Tehsil Gidderbaha, District Muktsar (Punjab)-152026.

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Sh. Ram Singh S/o Sh. Bachan Singh R/o H.No.634, Mania Wala Road, Village Sukhna Ablu, Tehsil Gidderbaha, District Muktsar (Punjab)-152026.

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(Borrowers)

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bharawaj, Advocate for the applicant Defendant 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.22,19,164.00 (Rupees Twenty Two Lacs Nineteen Thousand One

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Hundred Sixty Four only). The Original Application has been filed through Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal) of 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.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.13.65 Lacs and Term Loan of Rs.4.00 Lacs vide Loan application dated 07.10.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the grant of KCC Limit of Rs.13.65 Lacs and Term Loan of Rs.4.00 Lacs vide Sanction Letters dated 14.10.2013, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant Nos.1 and 2 had mortgaged their immovable property i.e. land measuring 42K-14M situated at Village Sukhna Ablu, H.B. No.76, Tehsil Gidderbaha, District Shri Muktsar Sahib (Punjab) vide Registered Mortgaged Deed bearing vasika no.1577 dated 17.02.2014, along with its English Translation, which is Annexures A11 to this OA.

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Documents executed:- Demand Promissory Notes, Letters of Continuity, Agreement of Term Loan cum Guarantee cum Hypothecation and Agreement for over draft/Cash Credit cum Guarantee cum Hypothecation all dated 20.02.2014, which are Annexure A5, A6, A7, A8, A9 & A10 to this OA; Letter of Acknowledgement of Debts dated 01.12.2016, Which is Annexure A12 to this OA; Legal Notice dated 01.07.2022 with Postal Receipts, which is Annexure A13 to this OA and Statements of both Accounts with certificate, which are Annexures A14 & A15 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 both the loan accounts there was a debit of Rs.22,19,164.00 which is recoverable and the defendants were served recall notices but they did not repay the

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outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and they were proceeded ex-parte on 31.05.2024. 7. In support of the OA, affidavit of Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal), HDFC Bank Ltd. h as been filed. 8. 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 A15 to this OA, it is proved that the defendants 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 that applicant bank is entitled to recover a sum of Rs.22,19,164.00 (Rupees Twenty Two Lacs Nineteen Thousand One Hundred Sixty Four only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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. plus penal interest @2% p.a. from 23.05.2022 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 of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%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.22,19,164.00 (Rupees Twenty Two Lacs Nineteen Thousand One Hundred Sixty Four 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 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 31.08.2024. 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: 08.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Kiranjit Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Kiranjit Singh and Others

Case brief

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