Allowed

Hdfc Bank Limited v. M/S Lakshmi Traders and Others

DRT1 Aug 2024OA/1751/2022

Case brief

AI extract

What is this about?

This DRAT disposed of an over-instituted Original Application filed by HDFC Bank for recovery of dues from M/s Lakshmi Traders and partners. The Tribunal confirmed the defendants' liability, granted a recovery certificate, reduced the interest rate to 8%, and ordered enforcement against mortgaged assets.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.89,06,221.70p plus 8% interest; Bank permitted to sell hypothecated properties or attach personal assets.

Hdfc Bank Limited versus M/S Lakshmi Traders and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1751/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.09.2022

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DATE OF DECISION: 01.08.2024

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HDFC Bank Ltd., a banking company incorporated and registered under the Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai400013 (hereinafter referred to as “the Bank”) and one of its Branch Office at Pakhowal Road, Ludhiana-141001 (Punjab) through its duly constituted Attorney Sh. Sunil Kalra, Manager Legal, presently posted at Plot No.28, Phase-I, Industrial Area, Chandigarh-160002

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……..Applicant

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Versus

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M/s Lakshmi Traders, a partnership concern through its Partners Sh. Ajay Gupta and Sh. Sukhwinder Singh having its Registered Office at 594/4, Mandi Kesarganj, Ludhiana (Punjab)

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Sh. Ajay Gupta S/o Sh. Ashok Gupta, Partner M/s Lakshmi Traders, having its Registered Office at 594/4, Mandi Kesarganj, Ludhiana (Punjab)

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2^nd Address:- R/o 34-35, Rajouri Garden, Barewal, Ludhiana-Punjab

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Sh. Sukhwinder Singh S/o Sh. Joginder Singh, Partner M/s Lakshmi Traders, having its place of business at 594/4, Mandi Kesarganj, Ludhiana (Punjab)

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2^nd Address:- R/o VPO Kailey, Tehsil Raikot, Ludhiana (Punjab)

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Smt. Asha Gupta W/o Sh. Ashok Gupta, R/o 34-35, Rajouri Garden, Barewal, Ludhiana-Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. C.S. Pasricha, 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

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Institutions Act, 1993, against the defendants for recovery of Rs.89,06,221.70p (Rupees Eighty Nine Lacs Six Thousand Two Hundred Twenty One and Seventy Paisa only). The Original Application has been filed through Sh. Sunil Kalra, Manager Legal o f the applicant bank, who is competent to institute the Original Application vide Board Resolution dated 16.07.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through it’s the than proprietor i.e. defendant No.2 had approached the applicant bank for grant of CC Limit of Rs.10.00 Lacs and further for its enhancement to Rs.25.00 Lacs and thereafter for its enhancement to Rs.40.00 Lacs vide Request Letter dated 21.12.2012, which is Annexure A19 to this OA and thereafter for its several renewals vide Request Letters dated 24.12.2014, which are Annexures A30 and A33 to this OA.

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Thereafter, defendant No.1 through its present partners i.e. defendant Nos.2 and 3 had approached the applicant bank for enhancement of CC Limit to Rs.65.00 Lacs vide Request Letter, which is Annexure A35 to this OA and thereafter for its several renewals vide Request Letters and Request Letter dated 24.06.2020, which are Annexures A47, A52, A54 and A57 to this OA

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The applicant Bank sanctioned the renewal of CC Limit of Rs.10.00 Lacs vide Sanction Letter dated 09.11.2009, which is Annexure A2 to this OA and further enhanced it to Rs.25.00 Lacs vide Sanction Letter dated 23.07.2012, which is Annexure A8 to this OA and thereafter enhanced it to Rs.40.00 Lacs vide Sanction Letter dated 21.12.2012, which is Annexure A20 to this OA, thereafter renewed it vide Sanction Letters dated 20.07.2013, 14.08.2014 and 06.01.2015, which are Annexures A31, A32 and A34 to this OA and further enhanced it to Rs.65.00 Lacs vide Sanction Letter dated 19.10.2015, which is Annexure A36 to this OA; thereafter, renewed it several times vide Sanction Letters dated 01.08.2016, 28.04.2017, 14.06.2018, 24.06.2020 and 05.08.2020, which are Annexures A48,

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A53, A55, A56 and A58 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.4 had mortgaged her immovable properties detailed as:- Industrial property measuring 3 Kanal 12 Marla situated at Village Badowal, Hadbast No.294, Ludhiana, Punjab vide equitable mortgage of Sale Deed bearing Vasika Nos.1529 dated 16.12.2004 along with its transition and Memorandum recording past transaction of creation of mortgage by delivery of title deeds, all dated 23.07.2012, which are Annexures A15, A15-T and A16 to this OA Documents executed:- D.P. note, Letter of continuity, Agreement for overdraft, Undertaking-cum-indemnity agreement and Letter of continuing guarantee all dated 18.11.2009, which are Annexures A3 to A7 to this OA; D.P. note, Letter of continuing security, Supplementary agreement, Power of attorney, Supplementary letter of hypothecation, Letter of continuing guarantee, Declaration-cumindemnity and Deed of indemnity all dated 23.07.2012, which are Annexures A9 to A14, A17 and A18 to this OA; D.P. note, Letter of continuing security, Supplementary agreement, Power of attorney, Supplementary letter of hypothecation, Supplementary Letter of continuing guarantee, Memorandum recording past transaction of creation of mortgage by delivery of title deeds, Declaration-cumindemnity and Deed of indemnity all dated 21.12.2012, which are Annexures A21 to A29 to this OA; D.P. Note, Letter of continuing security, Master facility agreement, Power of attorney, Letter of hypothecation, Letter of authority by partnership firm for banking facilities, Letter of continuing guarantee, Memorandum recording past transaction of creation of mortgage by delivery of title deeds, Declaration-cum-indemnity and Deed of indemnity all dated 19.10.2015, which are Annexures A37 to A46 to this OA; D.P. note and Amendment agreement both dated 09.08.2016, which is Annexure A49 and A50 to this OA; Undertaking-cum-indemnity dated 08.04.2016, which is Annexure A51 to this OA; Amendment

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agreement dated 05.08.2020, which are Annexures A59 to this OA; Notice dated 28.09.2021 with postal receipts, which is Annexure A60 to this OA; Notice u/s 13(2) of SARFAESI Act dated 25.10.2021, which is Annexure A61 to this OA and Statement of account along with Memorandum of statement of account with certificate, which are Annexures A62 and A63 to this OA.

¶29

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.89,06,221.70p, 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.

¶30

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 09.07.2024.

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In support of the OA, affidavit of Sh. Sunil Kalra, Manager 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 A63 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.89,06,221.70p (Rupees Eighty Nine Lacs Six Thousand Two Hundred Twenty One and Seventy Paisa only) along with interest from the defendants, jointly

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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 @18.00%p.a. from 24.02.2022 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 @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.89,06,221.70p (Rupees Eighty Nine Lacs Six Thousand Two Hundred Twenty One and Seventy Paisa 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.08.2024.

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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: 01.08.2024

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

Hdfc Bank Limited v. M/S Lakshmi Traders and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Lakshmi Traders and Others

Case brief

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What did the court decide?

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