Allowed

Hdfc Bank Limited v. Kulwant Singh and Others

DRT21 Oct 2024OA/391/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDDBFI Act, 1993 for recovery of loan dues. It granted a uniform simple interest rate of 8% p.a. and ordered the issuance of a Recovery Certificate ex-parte.

What did the court decide?

Recovery of Rs.52,51,922.01 plus simple interest at 8% p.a.; Issuance of Recovery Certificate; Sale of mortgaged or personal assets.

Hdfc Bank Limited versus Kulwant Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.391/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.04.2024

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DATE OF DECISION: 21.10.2024

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H.D.F.C. Bank Ltd., having its Registered Office at Senapati Bapat Marg, Lower Parel (West), Mumbai 400013, Also at HDFC Bank House Plot No.I-15, Sector 101 Aplha IT City, Mohali, HDFC Bank Branch Samana, Patiala Punjab through its Authorized Representative Ms. Pooja Arora.

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……..Applicant Versus 1. Sh. Kulwant Singh S/o Sh. Sahib Singh R/o Village Khudadpur, Kutabnpur, Patiala (Punjab)-147101.

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Sh. Jaswinder Singh S/o Sh. Sahib Singh R/o Village Khudadpur, Kutabnpur, Patiala (Punjab)-147101.

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3. Sh. Gurnam Singh S/o Sh. Joginder Singh R/o Village Khudadpur, Kutabnpur, Patiala (Punjab)-147101

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….……Defendant

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Advocates:

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Argued by Sh. Abhishek Garg, Advocate for the Applicant 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.52,51,922.01p (Rupees Fifty Two Lac Fifty One Thousand Nine Hundred Twenty Two and One Paise Only). The Original Application has been filed through Ms. Pooja Arora, Authorised Representative o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 16.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 to 2 had approached the applicant for the grant of KCC Limit of Rs.50.00 Lacs and Term Loan Limit of Rs.25.00 Lacs vide Loan Applications dated 28.07.2015, which is Annexure A2 to this OA. Defendant no.4 stood as guarantor.

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The applicant sanctioned the CC Limit of Rs.40.00 Lac and Term Loan Limit of Rs.20.00 Lacs vide Sanction Letters dated 02.09.2015, which are Annexures A3 (Colly) to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 & 2 had mortgaged their immovable properties i.e. total land measuring 120 Kanal 00 Marla situated at Village Danipur, Hadbast No.10, Tehsil Samana, District Patiala, Punjab vide Letter to Sub Registrar for Registration of Bank’s Charge and Declaration U/s 4(1) bearing vasika No.1171/1/A d ated 13.11.2015, which is Annexure A5 (Colly) to this OA.

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Documents executed:- DP Note, Letter of Continuity, Agreement for Overdraft /Cash Credit cum Guarantee Cum Hypothecation, Authorisation/Declaration and Undertakings, Agreement for Term Loan cum Guarantee Cum Hypothecation, both dated 18.11.2015, which is Annexure A3 (Colly) to this OA; Demand Notice dated 14.02.2024 along with its postal receipts, which is Annexure A6 (Colly) to this OA and Statements of Accounts with certificate, which are Annexures A7 (Colly) to this OA. 5. 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.52,51,922.01p, 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. 6. 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 15.10.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Authorized Representative, HDFC Bank Limited h as been filed.

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Heard arguments and perused record.

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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 Annexure A1 to A7 (Colly) 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.52,51,922.01p (Rupees Fifty Two Lac Fifty One Thousand Nine Hundred Twenty Two and One Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. plus penal interest @16.00%p.a. rests from 24.01.2024 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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.52,51,922.01p (Rupees Fifty Two Lac Fifty One Thousand Nine Hundred Twenty Two and One Paise 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 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.

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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 01.11.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 21.10.2024.

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

Hdfc Bank Limited v. Kulwant Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Kulwant Singh and Others

Case brief

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