Allowed

H.D.F.C. Bank Limited v. Sh. Mahil Singh and Others

DRT20 Feb 2024OA/175/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by HDFC Bank Ltd. for recovery of Rs. 29,96,920/- along with interest. The Tribunal decreed uniform simple interest at 10% p.a. upon noting the fall in market rates and granted authorization for recovery via asset sale.

What did the court decide?

Recovery of Rs. 29,96,920/- plus simple interest at 10% p.a. from the date of filing; authorization to recover through sale of mortgaged properties.

H.D.F.C. Bank Limited versus Sh. Mahil Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.175/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.01.2023

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DATE OF DECISION: 20.02.2024

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H.D.F.C. Bank Limited, 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 at “Patti Branch District Tarn Taran (Punjab)”, through Sh. Harminder Pal Singh, Senior Manager (Agricultural Legal), HDFC Bank Ltd, Regional Office, Chandigarh (U.T.) being Power of Attorney Holder of Applicant Bank

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……..Applicant

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Versus

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Sh. Mahil Singh S/o Sh. Atma Singh since deceased through his legal heirs/legal representatives detailed as under:

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(A) Smt. Parmeet Kaur W/o Sh. Mahil Singh R/o House No. 37, Village Barwala, Tehsil Patti, District Tarn Taran (Punjab)143416

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(B) Smt. Sawarn Kaur W/o Sh. Atma Singh R/o House No. 37, Village Barwala, Tehsil Patti, District Tarn Taran (Punjab)- 143416

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Sh. Gurbir S/o Sh. Atma Singh R/o House No. 37, Village Barwala, Tehsil Patti, District Tarn Taran (Punjab)-143416

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(Borrowers)

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Sh. Harjinder Singh S/o Sh. Ranjit Singh R/o House No. 186, Village Barwala, Tehsil Patti, District Tarn Taran (Punjab)-143416 (Guarantor)

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….……Defendants

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Advocates: Argued by Sh. Saurabh Bhardwaj, 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.29,96,920/- (Rupees Twenty Nine Lacs Ninety Six Thousand Nine Hundred and Twenty Only). The Original Application has been filed through Sh. Harminder Pal Singh, Senior Manager (Agricultural 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 defendant No.1(since deceased) and defendant No.2 had approached the applicant bank for the grant of CC Limit of Rs.13.50 Lacs and Term Loan of Rs. 2.00 Lacs vide Loan application form dated 04.06.2011, which is Annexure A2 to this OA. Defendant No. 3 stood as a guarantor for repayment of the loan amount.

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The applicant Bank sanctioned the CC Limit of Rs.13.50 Lacs and Term Loan of Rs. 2.00 Lacs vide Sanction Letters dated 13.06.2011, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 (since deceased through its LRs) and Defendant No. 2 had mortgaged their immovable properties, i.e. total land measuring 72 Kanals-00 Marla situated at Village Barwala, Tehsil Patti, District Tarn Taran, Punjab vide Registered Mortgage deed dated 24.06.2011 bearing vasika no. 13068 along with its translation, which is Annexure A11 to this OA. Documents executed: - Demand Promissory Notes, Letters of Continuity for Demand Promissory notes, Agreement for Term Loan-

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cum-Guarantee-cum-Hypothecation and Agreement for Overdraft/Cash Credit-cum-Guarantee-cum-Hypothecation all dated 28.06.2011, which are Annexures A5 to A10 to this OA; Legal Notice dated 10.01.2023 along with its original postal receipts, which is Annexure A12 to this OA and Statements of Accounts with certificate, which are Annexures A13 and A14 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.29,96,920/-, 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. 7. In support of the OA, affidavit of Sh. Harminder Pal Singh, Senior Manager (Agriculture Legal), HDFC Bank Limited h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A14 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 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.29,96,920/- (Rupees Twenty Nine Lacs Ninety Six Thousand Nine Hundred and Twenty Only) along with interest from the

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present 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 @10.50%p.a. plus @2%p.a. penal interest in loan accounts with half yearly rests from 26.12.2022 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 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.

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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.29,96,920/- (Rupees Twenty Nine Lacs Ninety Six Thousand Nine Hundred and Twenty Only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in 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.

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5 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.03.2024. 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: 20.02.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

H.D.F.C. Bank Limited v. Sh. Mahil Singh and Others

Case brief

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H.D.F.C. Bank Limited v. Sh. Mahil Singh and Others

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