The Tribunal allowed the debtor recovery application filed by a bank against a defaulting borrower. The bank sought enforcement of a cash credit facility. The Tribunal granted uniform simple interest at 8% per annum instead of the agreed rate.
Recovery Certificate issued. Defendant liable to pay Rs. 31,43,297.81 plus 8% simple interest per annum from 31.03.2023.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.587/2023
DATE OF INSTITUTION: 31.03.2023
DATE OF DECISION: 17th DAY OF JANUARY, 2024
HDFC Bank Limited , Department of Special Operations, Fifth Floor, Ansal Classique Tower, J-Block, Plot No. 1, Near Community Centre, Rajouri Garden, New Delhi-110027
…..Applicant
Versus
Sh. Gopal Sharma s/o Sh. Shiv Kumar Sharma, Proprietor of Sh. Virat Gadgets Zone
Address at: Old Delhi Road, Shop No. 6, Opposite Air Force School, Gurgaon, Haryana, Email: [email protected], Mobile No. 9999426644 Also at: House No. 36, Gali No. B-9, Ashok Vihar, Phase 3, Gurgaon, Haryana
....Defendant
Argued by: Ms Navdeep Kaur proxy counsel for Sh. Rajesh Punj counsel for the applicant bank Defendant ex parte vide order dated 18.08.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendant for recovery of Rs.31,43,297.81/- (Rupees Thirty One
Lakh Forty Three Thousand Two Hundred Ninety Seven and Eighty One Paisa Only) . It has been filed through Sh. Neeraj Mahajan, Assistant Vice President of the applicant bank stated to
OA/587/2023 HDFC BANK VS GOPAL SHARMA 2
be competent to institute the Original Application vide Resolution of Board dated 16.07.2022, Annexure-A1 (copy).
OA/587/2023 HDFC BANK VS GOPAL SHARMA 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.31,43,297.81/(Rupees Thirty One Lakh Forty Three Thousand Two Hundred Ninety Seven and Eighty One Paisa Only) , is recoverable against the defendant as per statement of account, Annexure-A13 (copy), duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A14 (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/587/2023 HDFC BANK VS GOPAL SHARMA 4
back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.31,43,297.81/(Rupees Thirty One Lakh Forty Three Thousand Two Hundred Ninety Seven and Eighty One Paisa Only) from the defendant.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. business , quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Only) with current and future simple interest @8% per annum w.e.f. 31.03.2023 , till the date of realisation of the amount. If the dues of
OA/587/2023 HDFC BANK VS GOPAL SHARMA 5
the bank remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendant.
What rate of interest should be granted for future dues considering the prevailing market rates.
1 provisions across 1 enactments
HDFC Bank Limited
Gopal Sharma
M.M. DHONCHAK
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
