Allowed

Hdfc Bank Limited v. Raghav Bhalla and Others

DRT7 Sept 2024OA/589/2023

Case brief

AI extract

What is this about?

The applicant bank sought recovery of Rs.1.26 Cr as a working stress in the Recovery of Debts Due to Banks and Financial Institutions Act proceedings against borrowers and guarantors. The Tribunal, after perusing unrebutted evidence, allowed the application, granted 8% simple interest, and directed issuance of a Recovery Certificate.

What did the court decide?

Application allowed; defendants liable to pay Rs.1.26 Cr with interest at 8% p.a.; Recovery Certificate issued; appeal directed for enforcement via SARFAESI Act.

Hdfc Bank Limited versus Raghav Bhalla and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.589/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.04.2023

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DATE OF DECISION: 07.09.2024 H.D.F.C. Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act,1949 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel(West) Mumbai 400013 and its Regional Office at HDFC Bank Ltd., Bank House, Plot No I-15, Sector 101 Alpha, IT City, Mohali, District SAS Nagar, Punjab-160062 and having one of its Branch Office at Pathankot branch District Pathankot (Punjab),through its authorized signatory Sh. Harminder Pal Singh (Manager Legal).

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……..Applicant

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Versus

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Sh. Raghav Bhalla S/o Sh. Kultarak Bhalla, resident of H.No.B11-476 Bhalla Niwas, Patel Nagar, Tehsil Pathankot, District Gurdaspur.

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(Borrower) 2. Smt. Jyoti Bhalla W/o Sh. Kultarak Bhalla, resident of H.No.B11-476 Bhalla Niwas, Patel Nagar, Tehsil Pathankot, District Gurdaspur.

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(Co-Borrower) 3. Sh. Tajinder Singh S/o Sh. Faqir Singh, resident of Village Kila, Jamalpur, P.O. Sarna, Tehsil Pathankot, District Gurdaspur.

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(Guarantor) ….……Defendants

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Advocates:

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Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, Advocate for the Applicant (through VC) Defendants are ex-parte

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FINAL ORDER

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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

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Rs.1,25,95,326.15p (Rupees One Crore Twenty Five Lakh Ninety Five Thousand Three Hundred Twenty Six And Paise Fifteen Only). The Original Application has been filed through Sh. Harminder Pal Singh, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 16.12.2020 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 bank for the grant of KCC Limit of Rs.4.00 Crores vide Loan Application dated 15.09.2012, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor.

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The applicant Bank sanctioned the KCC Limit of Rs.90.00 Lacs vide Sanction Letter dated 26.11.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged her immovable properties i.e. total land measuring 80 Kanal 17 Marla situated at R/o Village Kotli Mugla, Hadbast No.139, Tehsil and District Pathankot (Punjab) vide Registered Mortgage Deed bearing Vasika No.5757 d ated 04.12.2012 with its translation and Mutation Certificate dated 06.12.2012, which are Annexures A4 to A5 to this OA.

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Documents executed:-Agreement for Cash Credit Facility, Demand Promissory Note, Letter of Continuity all dated 06.12.2012, which are Annexures A6 to A8 to this OA; Statement of Account with Certificate, which are Annexures A9 & A10 to this OA and Legal Notice dated 28.02.2023with Postal Receipts, which are Annexures A11 to A14 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 all the loan account there was a debit of Rs.1,25,95,326.15p, 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 31.07.2024.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Branch Manager, HDFC Bank Limited h as been filed. 8. Heard ex parte arguments and perused record.

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It was argued by learned proxy counsel through video conferencing 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 Annexure A1 to A14 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.1,25,95,326.15p (Rupees One Crore Twenty Five Lakh Ninety Five Thousand Three Hundred Twenty Six And Paise Fifteen Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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In so far as pendent elite and future rate of interest is concerned the applicant bank in relief clause has claimed [email protected]%p.a. rests from 01.10.2022 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

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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.1,25,95,326.15p (Rupees One Crore Twenty Five Lakh Ninety Five Thousand Three Hundred Twenty Six And Paise Fifteen 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 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 03.10.2024. 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: 07.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Raghav Bhalla and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Raghav Bhalla and Others

Case brief

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