Allowed

Hdfc Bank Ltd. v. Sh. Pargat Singh and Another

DRT19 Feb 2024OA/1739/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's OA for recovery of Rs.44 lakhs from borrowers who defaulted on loans. The court verified documentary evidence unhindered by defendant appearance and adjusted the claimed interest to a uniform 10% per annum, ordering issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendants ordered to repay Rs.44,10,284.00 with simple interest at 10% p.a. from filing date.

Hdfc Bank Ltd. versus Sh. Pargat Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1739/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.09.2022

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DATE OF DECISION: 19.02.2024

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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 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013, whereas branch office amongst other places at “Moga Branch, District Moga (Punjab)” through Ms. Pooja Arora, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd., Ludhiana Branch, District Ludhiana (Punjab) being Power of Attorney holder of the Applicant Bank

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……..Applicant

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Versus

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Sh. Pargat Singh S/o Sh. Sabeg Singh, R/o H.No.167, Village Dholewala, Tehsil and District Moga (Punjab)-142042

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Sh. Saraj Singh S/o Sh. Sabeg Singh, R/o H.No.167, Village Dholewala, Tehsil and District Moga (Punjab)-142042

(Borrowers)

………Defendants

Advocates:

Argued by Sh. Anup Prajapati, counsel proxy for Sh. Saurabh Bharadwaj, counsel 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.44,10,284.00 (Rupees Forty Four Lacs Ten Thousand Two Hundred and Eighty Four only). The Original Application has been filed through

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Ms. Pooja Arora, Senior Manager (Agri. 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.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Cash Credit Limit of Rs.10.00 Lacs and Term Loan of Rs.9.25 Lacs vide Loan Application dated 21.10.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.9.30 Lacs and Term Loan of Rs.9.23 Lacs vide Sanction Letters dated 25.10.2014, which are Annexures A3 and A4 to this OA; and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 41 Kanal 00 Marla situated at Village Dholewala, H.B. No.237, Tehsil Dharamkot, District Moga, Punjab vide Declaration u/s 4(1) dated 27.10.2014, which is Annexure A11 to this OA.

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Documents executed: - D.P. notes, Letters of continuity and Agreements for loan-cum-guarantee-cum-hypothecation all dated 28.10.2014, which are Annexures A5 to A10 to this OA; Legal notice dated 01.08.2022 and postal receipts, which is Annexure A12 to this OA and Statements of accounts, which are Annexures A13 and A14 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.44,10,284.00, 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 24.01.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager (Agri. Legal), HDFC Bank Limited has been filed. 8. 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 A14 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 loans 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.44,10,284.00 (Rupees Forty Four Lacs Ten Thousand Two Hundred and 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 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. along with @2%p.a. penal interest, in both, from 30.07.2022 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%p.a. in

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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.44,10,284.00 (Rupees Forty Four Lacs Ten Thousand Two Hundred and Eighty Four 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 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 05.03.2024. 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: 19.02.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. Sh. Pargat Singh and Another

Case brief

What is this about?

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Hdfc Bank Ltd. v. Sh. Pargat Singh and Another

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