Allowed

Hdfc Bank Limited v. M/s Sachin Gift Centre and Others

DRT2 May 2024OA/217/2022

Case brief

AI extract

What is this about?

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH allowed an application filed by HDFC Bank Limited for recovery of a debt of Rs. 7,78,06,980.10 owed by M/s Sachin Gift Centre and its proprietor. The Tribunal granted the bank 8% simple interest instead of the claimed 18%.

What did the court decide?

Recovery of Rs. 7,78,06,980.10 plus 8% simple interest; issue of recovery certificate; enforcement via sale of properties under SARFAESI Act if dues remain unsatisfied.

Hdfc Bank Limited versus M/s Sachin Gift Centre and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 217/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.01.2022

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DATE OF DECISION: 02.05.2024

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HDFC Bank Limited, a Banking Companies incorporated and registered under The Companies Act, 1956 and is 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 Branche Office at Plot and Shet No.B-XV-168/1, G.T. Road, Millerganj, Ludhiana, Punjab-141003 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 Sachin Gift Centre a proprietorship concern, of Sh. Inderjit Kalra, having its Registered Office City Palza, Shop No.4, Near Crop Parking Mata Rani Road, Ludhiana(Punjab)

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2^nd Address : B-XVIII-370, Pushpa Tower, Sant Fateh Singh Nagar, Ludhiana(Punjab) since deceased through LR’s:-

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a. Smt. Sudesh Kalra W/o Late Sh. Inderjit Kalra(Wife)

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b. Sh. Sachin Kalra S/o Late Sh. Inderjit Kalra(Son)

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c. Sh. Sunny Kalra S/o Late Sh. Inderjit Kalra(Son)

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All R/o 71-D, Model Town Extension, Ludhiana-Punjab

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Sh. Inderjit Kalra S/o Sh. Hans Raj Kalra, Proprietor M/s M/s Sachin Gift Centre having its Registered Office City Palza, Shop No.4, Near Crop Parking Mata Rani Road, Ludhiana(Punjab) since deceased through his legal heirs:-

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a. Smt. Sudesh Kalra W/o Late Sh. Inderjit Kalra(Wife)

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b. Sh. Sachin Kalra S/o Late Sh. Inderjit Kalra(Son)

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c. Sh. Sunny Kalra S/o Late Sh. Inderjit Kalra(Son) All R/o 71-D, Model Town Extension, Ludhiana-Punjab
2^ndAddress: B-XVIII-370, Pushpa Tower, Sant Fateh Singh Nagar, Ludhiana(Punjab)
3. Smt. Sudesh Kalra W/o Late Sh. Inderjit Kalra, R/o 71-D, Model Town Extension, Ludhiana-Punjab
2^ndAddress: C/o M/s Sachin Gift Centre, having its Registered Office
City Palza, Shop No.4, Near Crop Parking Mata Rani Road,
Ludhiana(Punjab)-
4. Sh. Sachin Kalra S/o Late Sh. Inderjit Kalra, R/o 71-D, Model Town Extension, Ludhiana-Punjab-141003
2^ndAddress:- C/o M/s Sachin Gift Gallery, Having its Registered Office shop No.12-13, Model Town Extension, Ludhiana
5. Sh. Sunny Kalra S/o Late Sh. Inderjit Kalra, R/o 71-D, Model Town Extension, Ludhiana-Punjab-141003
6. M/s Sachin Gift Gallary, a proprietorship firm of Sh. Sachin kalra having places of Business at Shop No.12-13, Model Town Extension, Ludhiana ………Defendants
Advocates: Argued by Sh. C.S. Pasricha, counsel for the applicant Defendants are ex-parte FINAL ORDER
1. 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.7,78,06,980.10p (Rupees Seven Crores Seventy Eight Lacs Six
Thousand Nine Hundred Eighty and Ten Paisa only). The Original
Application has been filed throughSh. Sunil Kalra, Manager Legal,

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constituted Attorney o f the applicant bank, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 through its proprietor i.e. defendant No.2 had approached the applicant bank for takeover of CC Limit of Rs.185.00 Lacs from Asix Bank and grant of Fresh Bank Guarantee Limit of Rs.65.00 Lacs vide Loan application dated 23.03.2013, which is Annexure A2 to this OA and further for enhancement of Bank Guarantee Limit to Rs.165.00 Lacs and Fresh WCDL of Rs.50.00 Lacs. Later defendant No.1 through its proprietor i.e. defendant No.2 had approached the applicant bank for enhancement of CC Limit to Rs.235.00 Lacs and Working Capital Demand Loan to Rs.100.00 Lacs. Further defendant No.1 through its proprietor i.e. defendant No.2 had approached the applicant bank for renewal cum reduction of CC Limit to Rs.150.00 Lacs and Bank Guarantee Limit to Rs.100.00 Lacs vide request letter dated 03.10.2015, which is Annexure A36 to this OA. Thereafter for reduction of CC Limit to Rs.90.00 Lacs and reduction of Bank Guarantee Limit to Rs.25.00 Lacs vide application dated 13.09.2016, which is Annexure A38 to this OA. Thereafter for a fresh Property Term Loan of Rs 90.00 lacs vide application dated 19.07.2017, which is Annexure A42 to this OA. Further for enhancement of CC Limit to Rs.490.00 Lacs and fresh WCTL under ECLG scheme of Rs.1,05,74,400/- and for renewal of credit facilities vide request letter dated 17.09.2018, which is Annexure A68 to this OA 3. The applicant Bank sanctioned the takeover of CC Limit of Rs.185.00 Lacs from Asix Bank and Fresh Bank Guarantee Limit of Rs.65.00 Lacs vide sanction letter dated 29.09.2013, which is Annexure A3 to this OA and further enhanced the Bank Guarantee Limit to Rs.165.00 Lacs and sanctioned a Fresh WCDL of Rs.50.00 Lacs vide sanction letter dated 16.12.2013, which is Annexure A15 to this OA.

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Later applicant bank enhanced the CC Limit to Rs.235.00 Lacs and Working Capital Demand Loan to Rs.100.00 Lacs vide sanction letter dated 25.09.2014, which is Annexure A24 to this OA.

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Further applicant bank reduced the CC Limit to Rs.150.00 Lacs and Bank Guarantee Limit to Rs.100.00 Lacs vide sanction letter dated 03.10.2015, which is Annexure A37 to this OA. Thereafter applicant bank reduced the CC Limit to Rs.90.00 Lacs and Bank Guarantee Limit to Rs.25.00 Lacs vide sanction letter dated 13.09.2016, which is Annexure A39 to this OA. Thereafter applicant bank sanctioned a fresh Property Term Loan of Rs 90.00 lacs vide sanction letter and Schedule cum Key fact statement both dated 28.09.2017, which are Annexures A43 and A44 to this OA. Further CC Limit enhanced to Rs.490.00 Lacs vide sanction letter dated 12.10.2017, which is Annexure A51 to this OA and renewed credit facilities vide sanction letter dated 17.09.2018, which is Annexure A68 to this OA. Later applicant bank sanctioned a fresh WCTL under ECLG scheme of Rs.1,05,74,400/- vide sanction letter dated 09.06.2020, which is Annexure A70 to this OA and renewed the credit facilities vide sanction letter dated 25.09.2020, which is Annexure A79 to this OA.

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Defendant No.2, 3 and 5 had mortgaged their immovable properties detailed as:-

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a)	Shop No.12 measuring 13.69 Sq. yards MC No.B-IX-72-73/12 on
	the upper ground floor situated at Gur Mandi, Shiv Complex
	Tehsil and District Ludhiana owned by defendant No.2vide
	equitable mortgage of Sale Deed bearing vasika no.10552dated
	20.07.1993 and Transfer Deed bearing vasika no. 12524 dated
	09.11.2015 along with their translations, which areAnnexures A32,v A32T , A58 and A58Tto this OA;
b)	Shop No.22 measuring 13.69 Sq. yards MC No.B-IX-72-73/22
	situated at Gur Mandi, Shiv Complex Tehsil and District Ludhiana owned by defendant No.2vide equitable mortgage of Sale Deed
	bearing vasika no.1884dated 24.04.1998 and Transfer Deed
	bearing vasika no. 12522 dated 09.11.2015 along with their

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translations, which are Annexures A59, A59T, A60 and A60T to this OA; c) Shop No.27 measuring 7.5 Sq. yards MC No. B-IX-72-73/22 situated at First Floor, Gur Mandi, Shiv Complex Tehsil and District Ludhiana owned by defendant No.2 vide equitable mortgage of Sale Deed bearing vasika no.3714 dated 24.05.2011 with its translation, which are Annexures A61 and A61T to this OA;

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d) Residential house measuring 500 Sq. Yards situated at House No.71, Block-D, Model Town, MC No. B-28-208/17-8 Ludhiana Punjab owned by defendant No.3 vide equitable mortgage of sale Deed No.6800 dated 02.09.2011 and Transfer deed bearing vasika no.2019-20/103/1/4029 dated 28.06.2019 along with their translations, which are Annexures A65, A65T, A76 and A76T to this OA and

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e) Shop No.23 measuring 13.69 Sq. yards MC No. B-IX-72-73/23 situated at Gur Mandi, Shiv Complex Tehsil and District Ludhiana owned by defendant No.3 vide equitable mortgage of Sale Deed bearing vasika no.5943 dated 10.06.2016 with its translation, which are Annexures A76 and A61T to this OA; and Memorandums recording past transactions of creating of mortgage by delivery of Title deeds, Declaration cum indemnities and Deed of indemnities dated 30.09.2014, 12.10.2017, 03.11.2017 and 02.07.2020, which are Annexures A33 to A35, A62 to 64, A66 and A78 to this OA.

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Documents executed:- Letter regarding outstanding with Axis Bank, D.P. note, Letter of continuing security, Power of Attorney, Memorandum relating to charge over fixed deposits/cash deposits, Letter of hypothecation, Master Facility agreement, request letter of acceptance of Fax and Email, declaration by customer if signature is not in English and Letter of Continuing guarantee all dated 23.09.2013, which are Annexures A4 to A14 to this OA; D.P. note, Letter of continuing security, Supplementary Agreement, Supplementary Letter

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of hypothecation, Power of Attorney, declaration by customer if signature is not in English, memorandum relating to charge over fixed deposits/cash deposits, and Letter of Continuing guarantee all dated 19.12.2013, which are Annexures A16 to A23 to this OA; D.P. note, Letter of continuing security, Supplementary Agreement, Supplementary Letter of hypothecation and Power of Attorney all dated 25.09.2014, which are Annexures A25 to A29 to this OA; Declaration by customer if signature is not in English, and Letter of Continuing guarantee all dated 30.09.2014, which are Annexures A30 to A31 to this OA; Amendment agreement and demand promissory note both dated 13.09.2016, which are Annexures A40 to A41 to this OA; SI debit authorization form, addendum agreement, Loan agreement, customer request form for debit authority and disbursement details and letter of loan agreement all dated 28.09.2017, which are Annexures A45 to A49 to this OA; Letter of continuing security, Supplementary Agreement, Supplementary Letter of hypothecation, Power of Attorney, and Letter of Continuing guarantee all dated 12.10.2017, which are Annexures A52 to A55 and A57 to this OA; Request letter for acceptance of Fax and Email instructions, which is Annexure A56 to this OA; The customer request and SI debit authorization form(facility under ECLGS) and Facility agreement all dated 09.06.2020, which are Annexures A71 to A72 to this OA; Loan agreement, Supplementary deed of hypothecation, Declaration cum undertaking and Supplementary Letter of Continuing guarantee all dated 02.07.2020, which are Annexures A73 to A75 to this OA; Notice dated 12.08.2021, which is Annexure A80 to this OA; Notice U/S 13(2) dated 05.10.2021, which is Annexure A81 to this OA; Death certificate, which is Annexure A82 to this OA; Statement of account and Memoranda Statement of account with certificate, which are Annexure A83 to A88 this OA and Valuation report dated 08.06.2019. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.7,78,06,980.10p, which is recoverable and the defendants

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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.

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The defendants were served notices to appear before this Tribunal and they appeared through their counsel who filed Power of Attorney but did not filed WS on behalf of defendants. Therefore, opportunity to file WS by defendants was closed and defense was struck off. Due to non-appearance of the defendants, they were proceeded ex-parte on 15.03.2024. 7. In support of the OA, affidavit of Sh. Sunil Kalra, Manager Legal, Constituted Attorney, HDFC Bank Limited has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A88 to this OA, it is proved that the defendants approached applicant bank 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 bank. The defendants failed to pay back the loans 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 bank is entitled to recover a sum of Rs.7,78,06,980.10p (Rupees Seven Crores Seventy Eight Lacs Six Thousand Nine Hundred Eighty and Ten Paisa 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 bank in relief clause has claimed interest @18%p.a. in all accounts, from 25.01.2022 till the realization. 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

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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 @08.00%p.a. in all 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.7,78,06,980.10p (Rupees Seven Crores Seventy Eight Lacs Six Thousand Nine Hundred Eighty and Ten Paisa only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.05.2024. 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 also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the Open Tribunal.

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Dated: 02.05.2024

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

Hdfc Bank Limited v. M/s Sachin Gift Centre and Others

Case brief

What is this about?

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Hdfc Bank Limited v. M/s Sachin Gift Centre and Others

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