Allowed

Hdfc Bank Ltd. v. Ess Ess Technofabs Private Limited and Others

DRT3 Dec 2024OA/473/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicants recovery application against defaulting borrowers. After noting unauthorized non-appearance by respondents, the court fixed simple interest at 8.00% per annum and directed their personal liability for the principal sum.

What did the court decide?

Judgment for the applicant to recover Rs.2,69,82,815.90 plus simple interest @ 8% p.a., issuing a Recovery Certificate.

Hdfc Bank Ltd. versus Ess Ess Technofabs Private… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.473/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.02.2024

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DATE OF DECISION: 03.12.2024

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HDFC Bank Ltd., a Banking Company, incorporated under Companies Act,1956 having its Registered Office at HDFC bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400 013, Maharashtra having branches amongst other places at 28, Second Floor, Industrial Area, Phase-I, Union Territory of Chandigarh and a Regional Office at 3^rd Floor, Plot NO.I-15, Alpha IT City, Sector 101, Sahibzada Ajit Singh Nagar (Mohali), Punjab through its duly Authorized Officer Mr. Narender Kumar Nanda, Recovery Manager.

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……..Applicant

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Versus

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Ess Ess Technofabs Private Limited through its Directors, village Saidpura, Behind PSPCL Office, Barwala Road, Dera Bassi, District Sahibzada Ajit Singh Nagar (Mohali), Punjab Pin Code-140 507.

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Sh. Rajindra Sharma, son of Sh. Kewal Krishan Sharma, House No.102, Village Lohgarh, Badal Colony, Near Market, Zirakpur, District Sahibzada Ajit Singh Nagar (Mohali), Punjab Pin Code-140 603.

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Ms. Sanwali Sharma, daughter of Mr. Kewal Krishan Sharma, House No.102, Village Lohgarh, Badal Colony, Near Market, Zirakpur, District Sahibzada Ajit Singh Nagar (Mohali), Punjab Pin Code-140 603.

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Mrs. Urmil Sharma, wife of Sh. Rajendra Sharma, House No.102, Village Lohgarh, Badal Colony, Near Market, Zirakpur, District Sahibzada Ajit Singh Nagar (Mohali), Punjab Pin Code-140 603..

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….……Defendants

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Advocates:

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Argued by Sh. Vijay Sharma, 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.2,69,82,815.90p (Rupees Two Crore Sixty Nine Lacs Eighty Two Thousands Eight Hundred Fifteen and Ninety Paise only). The Original Application has been filed through Mr. Narender Kumar Nanda, Recovery Manager of the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.07.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its Director i.e. defendant No.2 had approached the applicant for the grant of Work Capital Limit of Rs.5.25 Cr. vide Loan application dated 02.05.2017, which is Annexure A3 to this OA. Thereafter approached the applicant for renewal of the sanction limit from time to time vide Request Letters dated 10.07.2018, 01.05.2019, 12.06.2020 and 07.06.2021, which are Annexures A22, A26, A28 & A39 to this OA. Later, defendant no. 1 through its Director i.e. defendant No.2 approached the applicant for reduction in the Work Capital Limit to Rs.4.39 Cr. vide Request Letter Dated 27.04.2022 which is Annexure A43 to this OA.

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The applicant sanctioned the Work Capital Limit of Rs.5.25 Cr vide Sanction Letter dated 02.05.2017, which is Annexure A4 to this OA. Thereafter, applicant renewed the limit from time to time on the request of defendant vide Sanction Letters dated 10.07.2018, 11.07.2019, 11.06.2020 and 07.06.2021, which are Annexures A23, A27, A29 and A40 to this OA. The applicant later sanctioned a GECL Term loan of Rs.75.69 Lacs vide Sanction Letter dated 22.07.2020, which is Annexure A32 to this OA. Later the applicant reduce the Work Capital Limit to Rs.439.50 Lacs vide Sanction Letter dated

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27.04.2022, which is Annexure A44 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.2 & 4 had mortgaged their immovable properties detailed as under:a) Residential House measuring 11 Marla bearing House No.102, Badal Colony, Hadbast No.46, Village Lohgarh, Tehsil Zirakpur, District Sahibzada Ajit Singh Nagar (Mohali), Punjab vide Equitable Mortgage Sale Deed bearing vasika No.3615 dated 09.11.2000, along with its translation and Title Search Report dated 05.05.2017, Jambandi for the year 2014-15, along with its translation and Valuation Report dated 01.08.2020 which is Annexure A50 to this OA owned by defendant no.4. b) All part and parcel of Industrial Property Unit measuring 4 Bigha 5 Biswa, situated at Village Saidpura, Hadbast No.10, Tehsil Dera Bassi, District Sahibzada Ajit Singh Nagar (Mohali), Punjab vide Equitable Mortgage Sale Deed bearing vasika No.4871 dated 14.09.2005, along with its translation and Title Search Report dated 09.05.2017, Jambandi for the year 2012-13, along with its translation and Valuation Report dated 01.08.2020 which is Annexure A51 to this OA owned by defendant no.2 Documents executed:- Certificate of incorporation, which is Annexure A2 to this OA; Resolution, D.P. Note, Letter of Continuing, Master Facility Agreement, Letter of Hypothecation, all dated 02.05.2017, which are Annexures A5 to A9 to this OA; Power of Attorney dated 03.05.2017, which is Annexure A10 to this OA; Memorandum of recording past transactions of creation of Title Deed dated 16.12.2017, which is Annexure A11 to this OA; Declaration cum Indemnity, Letter of Continuing Guarantee, Memorandum relating to charge over fixed deposits/cash deposits all dated 02.05.2017, which are Annexures A12 to A14 to this OA; Deed of Indemnity dated 03.05.2017, which is Annexure A15 to this OA; Request Letter for acceptance of Fax,

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Undertaking cum Indemnity, Takeover Authorization and Amendment Agreement all dated 02.05.2017, which are Annexures A16 to A19 to this OA; Letters from HDFC Bank to Punjab and Sind Bank both dated 17.05.2017 & 12.06.2017, which are Annexures A20 & A21 to this OA; DP Note & Letter of Continuing Security both dated 21.08.2018, which are Annexures A24 & A25 to this OA; DP Note, Amendment Agreement both dated 12.06.2020, which are Annexures A30 & A31 to this OA; Resolution, Facility Agreement, Supplementary Deed of Hypothecation, Memorandum of recording past transactions of creation of Title Deed, Declaration cum undertaking and supplementary Letter of Continuing Agreement all dated 22.07.2020, which are Annexures A33 to A38 to this OA; DP Note and Amendment Agreement both dated 07.06.2021, which are Annexures A41 & A42 to this OA; DP Note and Letter of Continuing Security both dated 18.05.2022, which are Annexures A45 and A46 to this OA; Master Facility Agreement, Letter of Hypothecation and Letter of Continuing Guarantee all dated 31.03.2023, which are Annexures A47 to A49 to this OA; Statement of Account, Interest Calculation, Foreclosures which are Annexures A52 to this OA and Loan Recall Notice dated 21.12.2023, which is Annexure A53 to this OA.

¶24

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.2,69,82,815.90p, 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.

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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 29.11.2024. 7. In support of the OA, affidavit of Mr. Narender Kumar Nanda, Recovery Manager, HDFC Bank Ltd has 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 had proved its case. From the perusal of all the Annexures A1 to A53 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.2,69,82,815.90p (Rupees Two Crore Sixty Nine Lacs Eighty Two Thousands Eight Hundred Fifteen and Ninety Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶29

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%p.a. with monthly rest from 01.02.2024 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 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.

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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Rs.2,69,82,815.90p (Rupees Two Crore Sixty Nine Lacs Eighty Two Thousands Eight Hundred Fifteen and Ninety 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 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 10.01.2025. 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: 03.12.2024

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

Hdfc Bank Ltd. v. Ess Ess Technofabs Private Limited and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. Ess Ess Technofabs Private Limited and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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