Allowed

Hdfc Bank Limited v. M/S Tilak Ram and Sons and Others

DRT18 Dec 2024OA/510/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a non-performing agriculture loan. It declared the defendants liable to pay the outstanding principal and granted uniform simple interest at 8% per annum pending realization.

What did the court decide?

Declaration of liability to pay Rs. 23,03,571.17 with costs and simple interest at 8% p.a. from filing date until realization; issuance of Recovery Certificate.

Hdfc Bank Limited versus M/S Tilak Ram and Sons and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.510/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2022

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DATE OF DECISION: 18.12.2024

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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-400013, Maharashtra and one of its branch at Sunam, Tehsil Sunam, District Sangruru(Punjab), through its authorized Signatory Sh. Narinder Kumar Nanda, who is duly authorized vide Board Resolution dated 16.10.2021 and presently posted as a Recovery Manager at HDFC Bank Ltd., HDFC Bank House, Plot No.28, 1^st Floor, Industrial Area, Phase-1, Chandigarh.

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……..Applicant

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Versus

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M/s Tilak Ram & Sons, through its Proprietor Mrs. Santosh Rani, registered office at Shop No.111, New Grain Market, Sunam, District Sangrur, Punjab-148028.

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Mrs. Santosh Rani W/o Mr. Ashok Kumar, Proprietor of M/s Tilak Ram & Sons, resident of House 397, Ward No.3, Railway Station Road, Sunam, Tehsil Sunam, District Sangrur, Punjab-148028.

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Mr. Ashok Kumar S/o Mr. Soni Ram Gupta, Resident of H.No.147, Ward No.5, Indira Basti Railway Station Road Sunam, Tehsil Sunam, District Sangrur, Punjab-148028.

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Mrs. Kiran Goyal W/o Mr. Rajinder Gupta resident of House 397, Ward No.3, Railway Station Road Sunam, Tehsil Sunam, District Sangrur, Punjab-148028.

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….……Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant None for Defendants

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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.23,03,571.17p (Rupees Twenty Three Lacs Three Thousand Five Hundred Seventy One & Seventeen Paisa only). The Original Application has been filed through Sh. Narinder Kumar Nanda, authorized Representative o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.10.2021, 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 ODAP Limit of Rs.12.00 Lacs vide Loan Application, which is Annexure A2 to this OA and further from time to time for its several renewals vide Request Letters dated 06.11.2015, 19.08.2016 and 11.09.2017, which are Annexures A13, A15 and A17 to this OA.

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The applicant sanctioned the ODAP Limit of Rs.12.00 Lacs vide Sanction Letter dated 25.07.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Further from time to time applicant sanctioned the renewals vid Sanction Letters dated 18.01.2016, 03.09.2016 & 14.09.2017, which are Annexures A14, A16 and A18 to this OA.

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Defendant no. 3 & 4 had mortgaged their properties i.e. All that Part and Parcel of Built up house bearing No.147, Situated at Ward No.5, Railway Station Road, Indira Basti, Sunam, District Sangrur, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.1835 dated 14.11.1974 and Will Deeds bearing vasika no. 449 and vasika no.450 both dated 31.01.2002, along with theirTranslations, which are Annexures A8 to A10 to this OA.

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Documents executed:- Demand Promissory Note, Letter of Continuity, Master Facility Agreement, Letter of Continuing Guarantee,

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Memorandum of Mortgage, Declaration cum Indemnity all dated 30.08.2013, which are Annexures A4 to A7 & A11 & A12 to this OA; Demand Notice U/s 13(2) of SARFAESI Act dated 24.05.2018, which is Annexure A19 to this OA and Statement of Account along with Memorandum of Interest and Certificate under Bankers Book Act, which are Annexures A20 & A21 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.23,03,571.17p, 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. M.S. Yadav, Advocate appeared for defendants and filed his Power of Attorney on 10.05.2023 and thereafter he filed WS beyond stipulated period, which was not taken on record and their defense was struck of on 13.12.2024.

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In support of the OA, affidavit of Sh. Narinder Kumar Nanda, authorized Representative, HDFC Bank Ltd. h as been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. Perused record. 9. 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 A21 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that

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applicant is entitled to recover a sum of Rs.23,03,571.17p (Rupees Twenty Three Lacs Three Thousand Five Hundred Seventy One & Seventeen Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @18.00%p.a. from 11.02.2022 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 account 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.23,03,571.17p (Rupees Twenty Three Lacs Three Thousand Five Hundred Seventy One & Seventeen Paisa only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 18.12.2024.

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

Hdfc Bank Limited v. M/S Tilak Ram and Sons and Others

Case brief

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Hdfc Bank Limited v. M/S Tilak Ram and Sons and Others

Case brief

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