Allowed

Hdfc Bank Ltd. v. Gurmel Singh and Others

DRT16 Dec 2024OA/452/2023

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed an original application filed by HDFC Bank Ltd. for recovery of a defaulted loan amount of approximately Rs. 38.56 lakhs from the respondents. The Tribunal granted a recovery certificate and directed recovery from mortgaged or personal assets, modifying the claimed interest rate to 8% per annum.

What did the court decide?

Issued Recovery Certificate; ordered respondents to pay Rs. 38,56,544.50 plus 8% p.a. simple interest; recovery from sale of hypothecated/mortgaged properties or personal assets.

Hdfc Bank Ltd. versus Gurmel 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.452/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.03.2023

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DATE OF DECISION: 16.12.2024

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HDFC Bank Ltd., having its Registered Office at Senapati Bapat Marg, Lower Parel-(West), Mumbai-400013, Having its Branch Office at Phagwara, Punjab also at HDFC Bank Ltd., Plot No. I-15, Sector-101, Alfa IT City, Mohali, Punjab-160062 through its Authorized Representative Mr. Harminder pal Singh. ……..Applicant Versus 1. Sh. Gurmel Singh S/o Sh. Darshan Singh, R/o H.No.3, Village Maherh, Tehsil Phagwara, District Kapurthala, Punjab.

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Smt. Sheetal Kaur W/o Sh. Gurmel Singh, R/o H.No.3, Village Maherh, Tehsil Phagwara, District Kapurthala, Punjab.

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Smt. Jaswinder Kaur, R/o H.No.17, Village Maherhu, Tehsil Phagwara, District Kapurthala, Punjab.

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………Defendants

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Advocates:

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Argued by Sh. Manish Kumar, Advocate proxy for Sh. Iqbal Mohammed, 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.38,56,544.50p (Rupees Thirty Eight Lacs Fifty Six Thousand Five Hundred Forty Four & Fifty Paisa Only). The Original Application has been filed through Mr. Harminder pal Singh, Authorized Representative of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 16.12.2012, 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 CC Limit of Rs.32.12 Lacs and Term Loan of Rs.7.15 Lacs vide Loan Application dated 18.12.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs.32.12 Lacs and Term Limit of Rs.7.15 Lacs vide Sanction Letters dated 26.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable property i.e. total land measuring 40K-0M situated at Village Gohaver, Hadbast no.238, Tehsil Gorayan, District Jalandhar vide Declaration u/s 4(1) dated 09.02.2015 with its translation, w hich is Annexure A8 to this OA. Documents executed:- Agreement for CC & TL, Demand Promissory Note & Letter dated 26.12.2014, which are Annexures A4 to A7 to this OA; title search report dated 09.02.2015, which is Annexure A9 to this OA; Demand Notice dated 27.02.2023 with Postal Receipts, which is Annexure A10 to this OA and Copy of Statements of Account with certificate under Bankers Book Evidence, which are Annexures A11 & A12 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.38,56,544.50p, 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. 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 10.12.2024. 7. In support of the OA, affidavit of Mr. Harminder pal Singh, Authorized Representative, HDFC Bank Ltd. h as been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexure A1 to A12 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.38,56,544.50p (Rupees Thirty Eight Lacs Fifty Six Thousand Five Hundred Forty Four & Fifty Paisa Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both 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 @12.00%p.a. in CC Limit plus penal interest @16.00%p.a. with half yearly rests from 13.02.2023 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 defendant, 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 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.38,56,544.50p (Rupees Thirty Eight Lacs Fifty Six Thousand Five

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Hundred Forty Four & Fifty Paisa 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 30.01.2025. 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: 16.12.2024

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

Hdfc Bank Ltd. v. Gurmel Singh and Others

Case brief

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Hdfc Bank Ltd. v. Gurmel Singh and Others

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