The DRT allowed the bank’s original application for recovery of a loan of Rs.39.56 lakhs from borrowers and a guarantor. The court reduced the claimed interest to 8% p.a. and directed issuance of a Recovery Certificate.
Recovery of Rs.39,56,244.00 with costs and simple interest at 8% p.a.; Issuance of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.459/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.04.2023 DATE OF DECISION: 10.07.2024 HDFC Bank Ltd. a banking Company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013 and Branch Office amongst other places one at Patiala, Punjab, through Mrs. Pooja Arora, Manager holder of an attorney from the applicant bank. ……..Applicant Versus 1. Sh. Mahinder Pal S/o Sh. Bachan Lal, R/o Mahashya Plot, Village Kalsa, Tehsil Pehowa, District Kurukshetera-136128 2. Sh. Bachan Lal S/o Sh. Fakir Chand, R/o Mahashya Plot, Village Kalsa, Tehsil Pehowa, District Kurukshetera-136128 3. Sh. Puran Singh S/o Sh. Bachan Lal, R/o Mahashya Plot, Village Kalsa, Tehsil Pehowa, District Kurukshetera-136128 Borrowers 4. Sh. Deep Lal S/o Sh. Pyara Lal, R/o Village Kalsa, Tehsil Pehowa, District Kurukshetera-136128 Guarantor ….……Defendants Advocates: Argued by Sh. J.S. Sehgal, counsel proxy for Sh. Sumeet Sehgal, 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.39,56,244.00 (Rupees Thirty Nine Lacs Fifty Six Thousand Two Hundred and Forty Four only). The Original Application has been filed through Mrs. Pooja Arora, Manager of 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.
Documents executed:- Agreement for Term Loan cum Guarantee cum Hypothecation, Agreement for Overdraft/Cash Credit cum Guarantee cum Hypothecation, Demand Promissory Note, Letter of Continuity all dated 10.02.2015, which are Annexures A5 to A8 to this OA; Notice dated 16.12.2022 along with postal Receipts, which are Annexures A10 to A14 to this OA and Statement of Loan Accounts along with Certificate regarding the Computer System and the genuineness of the statement of Accounts being prepared through Computer System, which are Annexures A15 & A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.39,56,244.00, 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 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
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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.39,56,244.00 (Rupees Thirty Nine Lacs Fifty Six Thousand Two Hundred and Forty Four 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount of Rs.39,56,244.00 from the defendants jointly and severally.
Whether the Tribunal can modify the claimed rate of interest to a uniform simple interest of 8% per annum.
2 provisions across 2 enactments
HDFC Bank Ltd.
MRIDULESH KUMAR SINGH
As recorded by the court registry
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