Allowed

Hdfc Bank v. Ali Hussain

DRT22 Oct 2024OA/384/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application by HDFC Bank for issuance of a Recovery Certificate. The court found that the defendants executed loan agreements and security documents but failed to repay the dues, making the accounts NPA. Liability was established based on unchallenged evidence and the Tribunal facilitated recovery through the certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs 21,26,911.20 with interest; charge on hypthecated vehicle; entitlement to proceed against secured and personal assets.

Hdfc Bank versus Ali Hussain — Execution and Attachment | DRT (2024)

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O A 364/2022lDRT-Guwahan

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IN THE DEBTS RECOVERY TRIBUNAL,^GUWAHATI

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(North Eastern Region)

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(Tribunal of Assam, Nagaland, Meghalaya, Manipur Mizoram, Arunachal Pradesh & Tripura)

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Before Shri Shiv Sharan Dubev.^{PresidinoOfficer}

O,A. No. 3&U2022

ln the mrttor of -

HDFC BANK LTD.

Rukminigaon Branch A. P. TOWER, 3d Floor, G.s Road, Guwahati- 781022, Kamrup (Metro), Assam.

.Applicant

Vs.

't. ALI HUSSAIN

Son of Khadem Ali

RYo Sonai Ghuli

Dakhingaon, Near Bura Mosjid

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P.O. Kahilipara, Guwahati, Assam-781019.

2. AFJALUR RAHMAN

Son of Khadem Ali

R/o Sonai Ghuli

Dakhingaon, Near Bura^Mosjid

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P.O. Kahilipara, Guwahati, Assam-781019

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Defendants

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Presence of the CounSel^:

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: Mr. Mukesh Sharma, Advocate For the Applicant For the Defendants^: None (Ex-parte)

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Oaled .2211012024

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JUDGMENT

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This is an application under section 19 of the Recovery of^{Oebts Due to} Banks and Financial lnstitutions Act,^{1993 filed by the HDFC Bank Ltd. Rukminigaon} Branch A.P TOWER, 3'd Floor, G.S^{Road,Guwahati} -^{781022,Kamrup} (Metro), Assam, with a prayer to issue Recovery Certificate for the sum of Rs. 21,26,911,20 (Rupess Twentyone Laca Twenty€ix Thousand Nine HundBd Elevon and P.isa Twonty) only as on 01.09.2022 against the defendants with pendentelite and future interest from 02.09.2022 at contractual rates with monthly resis till realization along with cost and other relief.

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"*,kwORT. Guwahati

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O a 344r2022/DRT-Guwahai

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A few facts^{givingriseto the present applicationare as under'}

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The Dsfendant Nol^{is the Borrowerand theDefendantNo'2 is the Co-} Borrower.TheDefendantNo.land2videloanapplicationdated20.l2.2019applied for financial^{assistancefor purchasinga commercialvehicle beforethe Applicant} Bank and after^{consideringthe said application the Applicant Bank on 27 12'2019} had sanction a sum^{of RS.2O,62,OOOOOas Term Loan to the Oefendants which was} disbursed on 21.01.2020^{lot purchasingthe said commercial vehicle with the interest} charged at'lO.5O%^{p-a. calculatedon dailyproductat monthly rests and in caseof} default'thebankShallbeentitledtochargeanadditionalinterest@2olopermonthor such rate as^{may be specified by the bank from time to time The aforesaid Term} Loan was^{initiallyrepayablein 59 equated monthly installmentsof Rs44'89200} commencing^{from15 02.2020 lo 15122024'Subsequentlyduringthe period of} covid-19'theDefendantsavai|edmoratoriumofS(eight)monthsandtheinterestof the said moratorium^{period has beenconverted into extra8 nos ol EMI and further} at the request^{of the defendants for restructureof loan, the applicant bank reducod} the amount of^{EMI trom Rs.44,892.00 to Rs 36,242 00, therebyrestructuredthe} loan, hence^{there is additionof 25 EMls, thus totaling 92 EMls as such the total} tenure become^{92 monthS.}

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Having accepted^{the terms and conditionsof the sanctionof the aforesaid} Term Loan of Rs.2O,62,OOO.OO^{sanctionedby the ApplicantBankand availed of by} tha Defendants, an^{Agreementtor Loanand Guaranteedated 27 122019was} signed and exscuted^{by the Defendants in favour of the Applicant Bsnk as security} for repayment of^{the loan tacility, thereby agreeing to all the termsand conditions} laid down in the said^{Agreementand alsohypothecated the vshicle(more} spscifically described^{in SchBdule-A of the OA) in favour of the Applicant Bank'}

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ln connection with the^{sanctionof the aforesaidTerm Loan of Rs 20,62,00000} sanctioned by the^{Applicant Bank, the DefendantNo. 1 and 2 had signed and} executed an lrrevocable^{Power of Attorneyd aled27j2.2019-}

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ln terms of the Government of^{lndia"Emergency Credit LineGuarantee} Scheme^{("ECLGS"), and on the requestof the defendants, the Applicant vide}

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s{,,;d^ro-0"1", "."""n*'*, DRT, Guwahati^lo'\0

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O A 384/2022lDRT-Guw.hatr

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Sanctioned Letter dated 18.09.2020 had sanctioned Guarantea^{Emergency Credit} Line (GECL) by way of working capital Term^Loan of^{Rs.4,00,000.00} to^the Defendant No.1 with the rata of interest @ 8.25o/o^{per annum. Theaforesaid Term} Loan was repayable in 48 Months from the^{date of disbursement afler the expiry of} the moratorium^period. The Defendants^{were providedmoratorium of 12 monthson} principal amount, during which interest will continue to accrue and become^payable during the moratorium^period. ln^{order to secure the said GECL facility,the} Defendants had executed a Facility cum^{HypothecationAgleement and a} Oeclaration Cum Undertaking^{both dated 18.09.2020in favour of the applicantbank.} The aforesaid GECL loan was disbursed^{throughthe GECL Account No. 8744701} standing in the name of defendant No.1.

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The Defendants had availed of the said loan^{facility from the ApplicantBank,} but have not^paid the loan amount in the Term Loan accounts as^per the terms and conditions as agreed upon with the Applicant^{Bank, inspite of repeated demandsand} rEquasts by the Applicant Bank.

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As the Defendants have failed to repay the outstanding amouni in the loan accounts, subsequently the Loan Accounts became NPA on 05.06.2022 as^per the guidelines of Reserve Bank of lndia. Therefore, lhe Applicant Bank had issued Recall Notice dated 05.09.2022 to the defendants demanding payment of the entire outstanding amount in the loan account within seven (7) days from the date thereof, failing which necessary action will be taken against them. But the defendants failed to respond to the said notice.

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The statements of Accounts maintained by the Applicant Bank in the usual and ordinary course of business shows lhat there is an outstanding balance of Rs.21,26,911.20 as on 01.09.2022 (i.e. Rs.^{'17,55,262.20} in A,/c No.97571137 and Rs.3,71,649.00 in A/c No.8744701) and as such the Defendants are legally bound and^jointly and severally liable to repay the said amount to the Applicant Bank with interest till realization with cost and charges.

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The applicant bank thus became constrained to llle the presant Original

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Application for the recovery of Rs. 21,26,9'11.20 (Rupees Twonty-One Lacs Twonty-

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&;,,/loto*,a'gr. - )>.10,2,1.r r I U Presrdho offcer ORT. Guwahati

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O.A 344/2022lDRT-Guwahati

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Six Thousand Nine Hund.ed Eleven and Paisa Twenty) only as on 01.09.2022 along with interest and cost of the application.

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After filing of the OA the Tribunal issued notices upon the defendants through registered post and the applicant bank filed service report on 06.12.2022 and brought on record the postal receipts along with track consignment report which shows that notice have not been served upon the defendants. Thereafter the Tribunal ordered paper publication of notice upon the defendanls and the applicant bank issued notice to the defendants through Paper Publication in two newspapers namely "The Times of ldia' and "Dainik Assam" both dated 2'1.'12.2022. Even after issuance of notice through paper publication also there was no representation on behalf of the defendants either by the counsel or the person and hence the defendants were set ex-parte on 08-02-2023 and thejr right to file written statement cum evidence on affidavit was closed and the matter was posted for hearing on behalf of the applicant bank.

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Supporting the claim of the applicant bank Ritu Deka, Manager of the Applicant Bank has filed evidence on affidavit coupled with the security documenls marked as Document -P, Exhibit- AW-1/1 to AW-1/9, supporting the ctaim of the appticant bank.

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Heard the learned counsel for the applicant bank who prayed for issuance of Recovery Certificate against the defendants as per pleadings made in the Application, suppo(ed by evidence on affidavit of their witness who affirmed on oath the execution of the security and other documents by the defendants and also execution of their own documenls relied upon, which have been marked exhibits.

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Considering the facts and circumstances of the case, I am of the considered view that the document filed by the applicant bank are supporting the claim of the applicant bank and establishing the liability of the defendant. lt is proved that the defendants are liable to pay to the applicant bank the claim made in the Original Application. The loan was obtained and documents have been executed on 19.11.2019, 27.'12.2019 & 18.09.2020. The account became NpA on 05.06.2022 and the OA has been filed on '12.09.2022. Hence, the OA is filed well within the period of limitation and this Tribunal having a jurisdiction to adjudicate the Odginal Application.

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sUi,.l 2)-'I0,2 Presid nq Oflicel I DRT. Guwahali

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0.A 38,U2o22,ORT-Gwah.t

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Considering the unchallenged/unrebutted version of Ritu Deka, the applicant,s witness and all the documents ma*ed as exhibits, including duly certified copy of the statement of account along with interest calculation sheet maintained by the applicant Bank in it's regular course of business, I hold that the applicant is entiflad to get the Recovery Certiricale as prayed for.

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ln the r6ult, the presenl Originat Apptication No. 384 of 2022 is aflowed with cost as under :-

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i) The defendant No. 1 & 2 are joinfly and severa[y tiable to pay to the applicant bank a sum of Rs. 21,26,911.20 (Rupeos Twenty_One L.cs Twenty€ix Thousand Nino Hundred Eleven and paisa Twenty) only with pendentelite and future interest @10.50% per annum with monthly rests from OZ.OI.2O22 till the date of full paymenurealization and also cost of the application.

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li) The charge of the certificated amount be kept alive on hypothecated vehicla Mode| : TATA STARBUS ULTM 36 PLUS, chassis No, MAT755073KFG12445, Engine No. 497TC41 cpy824728, Registration No. AS01MC0226, as described in Schedule_A of the OA tilt the amount is realized in full.

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iii) The applicant bank is entifled to proceed against the securod items towards recovery of the debts.

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iv) The applicant bank is also entifled to proceed against the personal assets and properties of the defendanls towards recovery of the dues.

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v) The applicant bank is entifled to th6 costs of the O.A. which includes the advocate fees of the applicant bank. Applicant is directed to file tha cost memo within 2 weeks from today.

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vl) lssue Rscovery Certilicate accordingly for a sum Rs. 2f,26,91,t.20 (Rupeeg Twenty-One Laca Twenty-Six Thousand Nlne Hund.od Elaven and paisa Tw3nty) only in favour of the applicant bank against the defendants No.1 & 2.

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vii) Communicate copy of this order to the concerned parties.

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sl).dou-q&. ","",.,nn DRT, Guwahati^{*i, lo ''1 6}

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O A 384/2022YORT-G!warral

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This order is dictated and correcled by the undersigned.

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Judgment diled 22nd October 2024, signed and pronounced in the Tribunal

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today under my signature.

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Copy of the JudgmenuFinal Order be uploaded in the Tribunal's Website and

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file be consigned to Record Room.

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22't0^.) (Shiv Sharan Dtbey) Presiding Officer DRT, Guwahati.

Hdfc Bank v. Ali Hussain

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Ali Hussain

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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