Allowed

Hdfc Bank Limited v. Sukhdev Singh and Others

DRT3 Sept 2024OA/165/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application under Section 19 of the RDBFI Act, 1993. The Tribunal directed the defendants to pay a total sum of Rs. 33,36,329.84p with simple interest at 8% p.a. Recovery proceedings via sale of properties are permitted.

What did the court decide?

Sum of Rs. 33,36,329.84p with simple interest at 8% p.a. declared recoverable; Recovery Certificate issued.

Hdfc Bank Limited versus Sukhdev Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.165/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.01.2024

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DATE OF DECISION: 03.09.2024

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HDFC Bank Limited, having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 having its branch office at Taran Taran, Punjab. Also At: Plot No. I-15, Sector 101, Alpha IT City, Mohali through its Authorized Representative Sh. Dinesh Kumar.

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……..Applicant

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Versus

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Sh. Sukhdev Singh S/o Sh. Gian Singh, R/o Kaka Kandiala Kadgill, Tarn Taran-143401. (Borrower)

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Sh. Sukhchain Singh S/o Sh. Gian Singh, R/o Kaka Kandiala Kadgill, Tarn Taran-143401. (Co-Borrower)

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Sh. Lakhwinder Singh S/o Sh. Manjor Singh, R/o Kaka Kaka Kandiala Baba Sewa Dass, Tarn Taran-143401. (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Amit Rishi, 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.33,36,329.84p (Rupees Thirty Three Lacs Thirty Six Thousand Three Hundred Twenty Nine and Paisa Eighty Four only). The Original Application has been filed through Sh. Dinesh Kumar, Authorized Representative o f the applicant bank, who is competent to institute the Original Application vide Board of Resolution dated 28.07.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Credit Facilities for Agriculture purpose i.e. CC Limit of Rs.15.50 Lacs, OD of Rs.6.30 Lacs

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and Term Loan of Rs.15.00 Lacs vide Loan application dated 04.02.2019, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Credit Facilities i.e. CC Limit of Rs.24.60 Lacs, OD of Rs.4.20 Lacs and Term Loan of Rs.1.80 Lacs under KCC & KGC vide Sanction Letter dated 28.02.2019, which is Annexure A3 (colly.) to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 & 2 had mortgaged their immovable properties i.e. total land measuring 28K-0M detailed as:-

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a) Land measuring 14K-0M owned by defendant No.1 and b) Land measuring 14K-0M owned by defendant No.2 situated at Village Kaka Kandiala, Hadbast No. 63, Tehsil and District Tarn Taran (Punjab) vide Declaration u/s 4 (1) of the Punjab Agriculture Credit Operations and Miscellaneous Provisions (Banks) act, 1978 dated 2 8.02.2019 along with its Translations, which is Annexure A7 to this OA.

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Documents executed:- Agreements for Overdraft/Cash Credit cum Guarantee cum Hypothecation, Agreements for Term Loan/Cash Credit cum Guarantee cum Hypothecation all dated 28.02.2019, which are Annexures A4 to A6 to this OA; Title Search Report dated 27.02.2019, which is Annexure A8 to this OA; Demand Notice dated 03.11.2023 along with postal Receipts, which is Annexure A9 to this OA and Statements of accounts (CC Limit), (OD Limit) and (Term Loan ) along with Certificate under Bankers Book of Evidence, which are Annexures A10 to A12 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 all loan accounts there was a debit of Rs.33,36,329.84p, 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 defendants and they were proceeded ex-parte on 03.08.2024.

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In support of the OA, affidavit of Sh. Dinesh Kumar, Authorized Representative, HDFC Bank Limited h as been filed. 8. Heard arguments and perused record.

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It was argued by learned 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 A12 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.33,36,329.84p (Rupees Thirty Three Lacs Thirty Six Thousand Three Hundred Twenty Nine and Paisa Eighty Four 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 detailed as

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a. claimed interest @13.00%p.a. plus penal interest @16.00%p.a. in CC Limit with half yearly rests from 01.11.2023 till the realization. b. claimed interest @14.60%p.a. plus penal interest @16.00%p.a. in OD Limit with half yearly rests from 31.10.2023 till the realization c. claimed interest @14.60%p.a. plus penal interest @24.00%p.a. in Term Loan with half yearly rests from 01.11.2023 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

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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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,36,329.84p (Rupees Thirty Three Lacs Thirty Six Thousand Three Hundred Twenty Nine and Paisa Eighty Four 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. 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 26.09.2024. 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: 03.09.2024

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

Hdfc Bank Limited v. Sukhdev Singh and Others

Case brief

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Hdfc Bank Limited v. Sukhdev Singh and Others

Case brief

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