The DRT allowed the bank's application for recovery of Rs. 23,07,900 outstanding from defendants on agricultural loans. The Tribunal reduced the claimed interest rate to 8% p.a. and granted a recovery certificate.
Recovery of Rs. 23,07,900 plus costs and uniform simple interest @ 8% p.a., with a recovery certificate issued.
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.185/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.02.2023
DATE OF DECISION: 17.10.2024
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, Senpati Bapat Marg, Lower Parel, Mumbai-400013, whereas branch amongst other places at “Patti Branch, District Tarn Taran (Punjab)” through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), HDFC Bank Ltd., Regional Office, Chandigarh (U.T.) being Power of Attorney Holder of the applicant Bank.
……..Applicant
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FINAL ORDER
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20.09.2011, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.
Documents executed:- D.P. Note, Letter of Continuity, D.P. Note with Letter of Continuity, Agreement for Term Loan cum Guarantee cum Hypothecation, Agreement for Over Draft/ Cash Credit cum Guarantee cum Hypothecation all dated 24.09.2011, which are Annexures A5 to A9 to this OA; Mutation Certificate dated 11.07.2014, which is Annexure A10 to this OA; Legal Notice dated 01.01.2023 along with postal Receipts, which is Annexure A11 to this OA and Accounts Statements along with Certificate, which are Annexures A12 & A13 to this OA.
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approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.23,07,900.00 (Rupees Twenty Three Lacs Seven Thousand Nine Hundred only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.
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 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.23,07,900.00 (Rupees Twenty Three Lacs Seven Thousand Nine Hundred only) jointly and severally, with costs, current and future simple interest @8.00%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 shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution
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proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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.
Pronounced by me in the open Tribunal .
Dated: 17.10.2024.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount from the defendants.
Whether the Tribunal should modify the relief and uniform simple interest rate in light of prevailing market rates.
How the application should be disposed of given the defendants' non-appearance and ex-parte proceedings.
3 provisions across 3 enactments
HDFC Bank Ltd.
Sh. Gurbachan Singh
Sh. Gurbakshish Singh
Sh. Gurbakhshish Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
