Allowed

Hdfc Bank Limited v. Sh. Sukhwinder Singh and Others

DRT31 Jan 2024OA/515/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the debtor recovery application filed by HDFC Bank Ltd. against borrowers and guarantors for a debt of Rs.26,64,271.60. The court exercised discretion to award uniform simple interest at 10% p.a. instead of claimed rates and directed issue of a recovery certificate with liberty to enforce against mortgaged or personal assets.

What did the court decide?

Debt of Rs.26,64,271.60 with costs and simple interest at 10% p.a. declared; Recovery Certificate issued; liberty to enforce against mortgaged and personal assets granted.

Hdfc Bank Limited versus Sh. Sukhwinder Singh and Others — Money Laundering | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.515/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 11.04.2023 DATE OF DECISION: 31.01.2024
HDFC Bank Limited, having its Registered Office at Senapati Bapat
Marg, Lower Parel (West), Mumbai-400013, having its Branch Office at Bhikhiwind, Punjab and also at HDFC Bank Ltd., Plot No.I-15, Sector-
101, Alfa IT City, Mohali, Punjab-160062 through its authorized
representative, Sh. Harminder Pal Singh ……..Applicant Versus
1. Sh. Sukhwinder Singh S/o Sh. Nachhater Singh, R/o Basarke Khurd, Tarn Taran (Borrower)
2. Sh. Nachhater Singh S/o Sh. Harnam Singh, R/o Basarke Khurd, Tarn Taran (Co-Borrower)
3. Ms. Manjit Kaur, R/o Basarke Khurd, Tarn Taran (Co-Borrower)
4. Sh. Gurjant Singh S/o Sh. Sarwan Singh, R/o Basarke Khurd, Tarn
Taran (Guarantor) ………Defendants
Advocates: Argued by Sh. J.S. Sehgal, counsel proxy for Sh. Iqbal Mohammed, 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.26,64,271.60p (Rupees Twenty Six Lacs Sixty Four Thousand Two
Hundred Seventy One and Sixty Paisa only). The Original Application has been filed throughSh. Harminder Pal Singh, Manager (Legal) of

¶5

¶6

the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

¶7

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Cash Credit Limit of Rs.18.00 Lacs and Overdraft Limit of Rs.7.00 Lacs vide Loan Application dated 28.01.2019, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.15.00 Lacs and Overdraft Limit of Rs.5.20 Lacs vide Sanction Letter dated 10.02.2019, which is Annexure A3 (Colly) to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos.1, 2 and 3 had mortgaged their immovable properties i.e. total land measuring 88K-00M situated at Village Basarke, Tehsil Patti, District Tarn Taran, Punjab vide Declaration u/s 4(1), Title search report and Registration of bank charge dated 04.02.2019, which are Annexures A6 to A8 to this OA.

¶8

Documents executed:- Agreement for loans dated 10.02.2019, which are Annexures A4 and A5 to this OA; Recall notice dated 27.02.2023, which is Annexure A9 to this OA; Statements of accounts, which are Annexures A10 and A11 to this OA and Certificate under Banker’s Book of Evidence Act dated 22.03.2023, which is Annexure A12 to this OA.

¶9

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.26,64,271.60p, 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 03.01.2024.

¶10

¶11

In support of the OA, affidavit of Sh. Harminder Pal Singh, Manager (Legal), HDFC Bank Limited has been filed. 8. Heard ex-parte arguments and perused record.

¶12

It was argued by learned proxy 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 Annexures A1 to A12 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 loans 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.26,64,271.60p (Rupees Twenty Six Lacs Sixty Four Thousand Two Hundred Seventy One and Sixty 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 accounts.

¶13

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.00%p.a. in CC Limit and @16.00%p.a. in Overdraft Limit along with @16%p.a. penal interest with half yearly rests, in both, from 16.02.2023 till the realization.

¶14

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 @10.00%p.a. in

¶15

¶16

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.26,64,271.60p (Rupees Twenty Six Lacs Sixty Four Thousand Two Hundred Seventy One and Sixty Paisa only) jointly and severally, with costs, current and future simple interest @10.00%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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.02.2024. 15. Copy of this order be given dasti to the applicant bank 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: 31.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Sukhwinder Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Sukhwinder Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Sh. Joginder Singh

Punjab National Bank versus Sh. Sukhdarshan Singh and Another

Punjab National Bank versus Sh. Sukhpal Singh and Another

Icici Bank Ltd. versus Sh. Rajesh Kumar Yadav and Others

Union Bank of India versus Smt. Sheilja Kanwar

Punjab National Bank versus M/S Durga Enterprises and Another