The Debt Recovery Tribunal allowed the bank's application seeking recovery of a loan classified as NPA from the defaulting borrowers, granting recovery with interest at 10% per annum.
Declaration of liability to pay Rupees 1,13,95,889.94 plus simple interest at 10% per annum; order to issue Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1805/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 17.10.2022
DATE OF DECISION: 03.02.2024
HDFC Bank Limited, 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), Mumbai 400013 (hereinafter referred to as “the Bank”) and one of its Branch Office situated at Building 30/7, The Mall, Ferozepur City, Ferozepur (Pb) through its duly constituted Authorized Signatory, Sh. Sunil Kalra, Manager Legal presently posted at Plot No.28, Phase-1, Industrial Area, Chandigarh – 160002
…….Applicant Versus
2
2nd Address : - R/o Ward No.17, Gali No.5, Bharat Nagar, Ferozepur city, Punjab-152002
………Defendants
Advocates:
Argued by Sh. C.S. Pasricha, counsel for the applicant Defendants are ex-parte
FINAL ORDER
3
Limit of Rs.180.00 Lacs vide Sanction Letter dated 06.05.2019, which is Annexure A4 to this OA.
Later, on request of the defendants, the applicant bank renewed/modified the Cash Credit Limit to Rs.120.00 Lacs vide Sanction Letters dated 15.10.2022 and 15.09.2021, which are Annexures A15 and A18 to this OA.
Documents executed: - Partnership Deed dated 23.08.2016, which is Annexure A2 to this OA, Demand Promissory note, Master facility agreement, Amendment agreement, Deed of Hypothecation, Letter of authority for takeover of the credit facility, Letter of authority by partnership firm for banking facilities and Letter of continuing guarantee all dated 06.05.2019, which are Annexures A5 to A11 to this OA; Copy of memorandum recording past transaction dated 19.08.2019, which is Annexure A13 to this OA; Addendum Agreement dated 15.10.2020, which is Annexure A16 to this OA; Notice dated 02.06.2022 along with postal receipts, which is Annexure A19 (Colly) to this OA; Notice u/s 13(2) dated 08.08.2022, which is Annexure A20 to this OA; Statement of account, which is Annexure A21 to this OA; Memoranda Statement of account, which is Annexure A22 to this OA and Valuation reports, which is Annexure A23 to this OA.
4
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.
5
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 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.1,13,95,889.94p (Rupees One Crore Thirteen Lacs Ninety Five Thousand Eight Hundred Eighty Nine and Ninety Four Paisa only) jointly and severally, with costs, current and future simple interest @10.00%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 |
| Tribu | nal on 19.02.2024. |
| 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 |
6
also uploaded on the official website of this Tribunal and record be consigned.
Pronounced by me in the Open Tribunal.
Dated: 03.02.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount of Rs.1,13,95,889.94 jointly and severally from the defendants.
Whether the rate of simple interest claimed by the bank should be modified by the Tribunal.
3 provisions across 3 enactments
HDFC Bank Limited
M/s Fortune Ventures
Smt. Monika Suri
Sh. Rajinder Kumar
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
