Allowed

Hdfc Bank Ltd. v. Malkiyat Singh and Another

DRT14 Nov 2024OA/196/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by HDFC Bank Limited to recover Rs. 21,49,479.33 from two defendants who failed to repay sanctioned loans and had mortgaged their property. The court granted a uniform interest rate of 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 21,49,479.33 plus costs and simple interest @8% p.a., with liberty to enforce via sale of mortgaged or personal assets; Recovery Certificate issued.

Hdfc Bank Ltd. versus Malkiyat Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.196/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.02.2023

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DATE OF DECISION: 14.11.2024

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and its Registered Office at HDFC Bank Ltd., 5^th Floor, B-21-14570, GT Road, Dholewal Chowk, Ludhiana and having one of its Branch Office at Sardulgarh, District Mansa (Punjab) through its Authorized Signatory Smt. Pooja Arora.

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……..Applicant

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Versus

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Sh. Malkiyat Singh S/o Sh. Gurcharan Singh, R/o House no. 93/1, village Matar, Near Namberdar Dhani, Tehsil and district Sirsa125055

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Sh. Sumandeep Singh S/o Sh. Jagdev Singh, R/o House no. 93/1, village Matar, Near Namberdar Dhani, Tehsil and district Sirsa125055

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….……Defendants

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Advocates:

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Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, Advocate for the applicant (through VC) Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,49,479.33p (Rupees Twenty One Lacs Forty Nine Thousand Four Hundred Seventy Nine and Paisa Thirty Three only). The Original Application has been filed through Smt. Pooja Arora, Authorized Signatory o f the applicant, who is competent to institute the Original

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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 defendants had approached the applicant for the grant of Cash Credit Limit of Rs.15.23 Lacs and Term Loan of Rs.4.40 Lacs vide Application for loan dated 19.01.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.13.75 Lacs and Term Loan of Rs.3.95 Lacs vide Sanction Letters dated 28.01.2015, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 & 2 had mortgaged their immovable properties i.e. total land measuring 32K-0M situated at Village Mattar, Tehsil and District Sirsa (Punjab) vide Registered Mortgaged Deed bearing v asika No.2659 dated 0 5.02.2015 and Confirmation of Mutation Letter dated 06.02.2015 along with its Translations , which are Annexures A5 & A6 to this OA. Documents executed:- Agreement for Cash Credit facility, Demand Promissory Note, Letter of Continuity for Demand Promissory Note, Agreement cum Hypothecation for Term Loan all dated 05.02.2015, which are Annexures A7 to A10 to this OA; Statement of Account of Cash Credit Loan and Statement of Account Term Loan, which are Annexures A11 & A12 to this OA and Legal Notice dated 31.10.2022 along with its translations and postal Receipts to defendant no. 1 & 2, along with Certificate of Computer Application and Data, which are Annexures A13 to A16 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.21,49,479.33p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 12.11.2024.

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In support of the OA, affidavit of Smt. Pooja Arora, Authorized Signatory, HDFC Bank Limited has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel through Video Conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants 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.21,49,479.33p (Rupees Twenty One Lacs Forty Nine Thousand Four Hundred Seventy Nine and Paisa Thirty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.75%p.a. in Cash Credit with yearly rests from 01.10.2022 and @13.00%p.a. in Term Loan with yearly rests from 30.10.2022 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

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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.21,49,479.33p (Rupees Twenty One Lacs Forty Nine Thousand Four Hundred Seventy Nine and Paisa Thirty Three 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.12.2024. 15. Copy of this order be given dasti to the applicant 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: 14.11.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. Malkiyat Singh and Another

Case brief

What is this about?

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Hdfc Bank Ltd. v. Malkiyat Singh and Another

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