Allowed

Hdfc Bank Limited v. Jasbir Singh and Others

DRT23 Aug 2024OA/230/2023

Case brief

AI extract

What is this about?

This DRT order allowed an Original Application filed by HDFC Bank for recovery of Rs. 20.19 Lakhs against borrowers and a guarantor. The Tribunal, applying discretion, granted uniform simple interest at 8% p.a. instead of claimed rates and directed recovery via sale of mortgaged or personal assets.

What did the court decide?

The application was allowed; defendants liable to pay Rs. 20,19,894.91 with interest at 8% p.a.; Recovery Certificate issued; assets to be sold for satisfaction of dues.

Hdfc Bank Limited versus Jasbir Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.230/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:14.02.2023

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DATE OF DECISION: 23.08.2024

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H.D.F.C. Bank Ltd. having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai 400013, having its Branch Office at Malout Punjab, also at HDFC Bank House, Plot No.28, Industrial Area, Phase-I, Chandigarh, through its authorized representative Mr. Parampreet Singh Kahlon.

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……..Applicant Bank Versus 1. Sh. Jasbir Singh S/o Sh. Jangir Singh, R/o Raniwala, Malout, Muktsar, Punjab. (Borrower) 2. Sh. Jarnail Singh S/o Sh. Jangir Singh, R/o # 180 Raniwala, Malout Muktsar, Punjab. (Co-Borrower) 3. Sh. Harmail Singh S/o Sh. Jarnail Singh R/o Bodiwala Kharak Singh Malout Muktsar, Bhagsar, Abohar, Ferozepur, Punjab-152116. (Guarantor) ….……Defendants Advocates: Argued by Sh. Shivam Dheer, Advocate proxy for Sh. Iqbal Mohammed, Advocate 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.20,19,894.91p (Rupees Twenty Lacs Nineteen Thousand Eight Hundred Ninety Four And Ninety One Paise only). The Original Application has been filed through Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal) o f the applicant bank, who is

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competent to institute the Original 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 defendant No.1 and 2 had further approached the applicant bank for grant of KCC Limit of Rs.10.00 Lacs and Term Loan Limit of Rs.3.50 Lacs and further approached the applicant bank for the enhancement of CC Limit from Rs.10.00 Lacs to Rs.13.40 Lacs and a fresh OD of Rs.8.00 Lacs of vide Loan applications dated 05.08.2014 and 04.08.2016, which are Annexures A2 & A12 to this OA. Defendant No.3 stood as guarantor.

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The applicant Bank sanctioned the grant of CC Limit of Rs.10.00 Lacs and further sanctioned the Term Loan of Rs.3.50 Lacs and thereafter enhanced the CC Limit to Rs.13.40 Lacs and sanctioned a fresh OD of Rs.6.00 Lacs vide Sanction Letters dated 11.08.2014 & 22.08.2016, which are Annexures A3(Colly) & A13 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant Nos.1 and 2 had mortgaged their immovable property i.e. total land measuring 60K-00M situated at Village Raniwala, Hadbast No.175, Tehsil Malout, District Shri Muktsar Sahib Punjab vide Registered Mortgaged Deed bearing Vasika no.2402, dated 14.08.2014 & Amended Deed bearing Vasika No.2460, dated 20.08.2014 and Declaration u/s 4(1) vide Vasika No.724, dated 23.08.2016 along with their English Translations, which are

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Annexures A8, A10 & A16 to this OA.

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Documents executed:- Agreement for Term of Loan and Agreement for Cash Credit and Demand of Promissory Notes all dated 23.08.2014,

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which are Annexures A4, A5 , A6 & A7 to this OA; Title Search

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Report dated 04.08.2014, which is Annexure A9 to this OA; Mutation Certificate dated 22.08.2014 with translation, which is Annexure A11 to this OA; Agreement for Dropline Overdraft cum hypothecation cum Guarantee & Copy of Agreement for Overdraft/Cash Credit cum Guarantee cum hypothecation(for secured cash credit) both dated

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26.08.2016, which are Annexures A14 & A15 to this OA; Title Search Report dated 23.08.2016, which is Annexure A17 to this OA; Legal Notice dated 07.01.2023 with Postal Receipts which is Annexure A18(Colly) and Copies of Statement of Accounts with certificate which are Annexures A19, A20, & A21 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 loan accounts there was a debit of Rs.20,19,894.91p which is recoverable and the defendants 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.07.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal), HDFC Bank Ltd. h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A21 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 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 bank is entitled to recover a sum of Rs.20,19,894.91p (Rupees Twenty Lacs Nineteen Thousand Eight Hundred Ninety Four And Ninety One Paise only) along with interest from the defendants,

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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 @12.00% p.a. in KCC Limit plus penal interest @16% p.a. & interest @16% p.a. plus penal interest @24% p.a. with half yearly rests in both from 02.10.2022 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 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 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.20,19,894.91p (Rupees Twenty Lacs Nineteen Thousand Eight Hundred Ninety Four And Ninety One Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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. 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

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Tribunal on 17.09.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 23.08.2024

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

Hdfc Bank Limited v. Jasbir Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Jasbir Singh and Others

Case brief

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