Allowed

Hdfc Bank Limited v. Johit Arora

DRT9 Sept 2024OA/1803/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a business loan defaulting to Rs. 26,23,157.18. The court modified the claimed interest rate to 8% per annum simple interest from the date of filing.

What did the court decide?

Declared defendant liable to pay Rs. 26,23,157.18 with interest at 8% per annum; issued Recovery Certificate and directed enforcement through personal assets.

Hdfc Bank Limited versus Johit Arora — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1803/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.08.2022

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DATE OF DECISION: 09.09.2024

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HDFC Bank is a body incorporated under the name and title as HDFC Bank Ltd. under the provisions of the Companies Act 1956 and is having its registered office at Senapati Bapat Marg, Lower Parel(West), Mumbai-400013 and one of its branches at Retail Loan Service Centre HDFC Bank Ltd., Third Floor, B-21-14570 GT Road, Dholewal Chowk, Adjoining Gulzar Motors, Ludhiana-141003 and one of its Local Controlling Office at Plot No. 28, HDFC Bank House, Industrial Area, Phase-1, Chandigarh, through its Principal Officer and Sh. Rajendra Prasad, Legal Manager, posted at HDFC Bank, Industrial Area, Phase1, Chandigarh.

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……..Applicant

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Versus Sh. Johit Arora S/o Sh. Ramesh Kumar, R/o H. NO. 2038/D, Street NO. 40, Preet Nagar, Shimlapuri, Ludhiana-141003

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2^nd Address:- Shri Balaji Metal, 1902/7, Gurmukh Singh Road, Shop No. 3, Jujhar Nagar, New Street No. 3, New Shimlapuri, Ludhiana.

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….……Defendant

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Advocates:

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Argued by Sh. K.P.S. Dhillon, Advocate for the applicant Defendant is 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.26,23,157.18p (Rupees Twenty Six Lacs Twenty Three Thousand One Hundred Fifty Seven and Paisa Eighteen only). The Original Application has been filed through Sh. Rajendra Prasad, Legal Manager

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of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 03.11.2021, which is Annexure P/A to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of Business Loan of Rs.20.00 Lacs vide Loan application dated 17.02.2020, which is Annexure A1 to this OA. 3. The applicant Bank sanctioned the Business Loan of Rs.20.00 Lacs vide Loan Agreement dated 29.02.2020, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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Documents executed: - Notice dated 16.07.2022 along with its Postal Receipt, which are Annexures A4 & A5 to this OA and Statement of account, which is Annexure A3 to this OA.

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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.26,23,157.18p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 29.05.2024.

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In support of the OA, affidavit of Sh. Rajendra Prasad, Legal Manager, HDFC Bank Ltd. has been filed. 8. Heard ex-parte 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 A5 & P/A to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant

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documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.26,23,157.18p (Rupees Twenty Six Lacs Twenty Three Thousand One Hundred Fifty Seven and Paisa Eighteen only) along with interest from the defendant, 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 @16.00%p.a. plus penal interest @2.00%p.a. with monthly rests from 17.07.2022 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 defendant, 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.26,23,157.18p (Rupees Twenty Six Lacs Twenty Three Thousand One Hundred Fifty Seven and Paisa Eighteen only) 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

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amount from the sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.10.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal.

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Dated: 09.09.2024

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

Hdfc Bank Limited v. Johit Arora

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Johit Arora

Case brief

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What did the court decide?

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