Allowed

Hdfc Bank Limited v. Palwinder Singh and Others

DRT6 Aug 2024OA/593/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by HDFC Bank Ltd. against borrowers and a guarantor for recovery of a loan of Rs.53.46 lakhs and determined a reduced rate of interest pending execution under the SARFAESI Act.

What did the court decide?

Recovery of Rs.53,46,184.00 with interest at 8% p.a. and costs. Issuance of Recovery Certificate.

Hdfc Bank Limited versus Palwinder Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.593/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.04.2023

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DATE OF DECISION: 06.08.2024

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HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013, whereas one of its branch at “Sultanpur Lodhi Branch, District Kapurthala (Punjab)” through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), HDFC Bank Ltd., Regional Office, Mohali, District Mohali (Punjab) being Power of Attorney holder of applicant bank

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……..Applicant

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Versus

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Sh. Palwinder Singh S/o Sh. Darbara Singh, R/o Village Channa Ahmadpur, Sherpur Dona, Tehsil Sultanpur Lodhi, District Kapurthala (Punjab)-144626

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Sh. Gurdev Singh S/o Sh. Darbara Singh, R/o Village Channa Ahmadpur, Sherpur Dona, Tehsil Sultanpur Lodhi, District Kapurthala (Punjab)-144626 (Borrowers)

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Sh. Swarn Singh S/o Sh. Ajit Singh, R/o Village Channa Ahmadpur, Sherpur Dona, Tehsil Sultanpur Lodhi, District Kapurthala (Punjab)144626 (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.53,46,184.00 (Rupees Fifty Three Lacs Forty Six Thousand One Hundred Eighty Four only). The Original Application has been filed through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal) o f the

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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.

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The brief facts of the OA are that the defendant nos.1 & 2 had approached the applicant bank for the grant of KCC Limit of Rs.49.00 Lacs vide Loan application dated 20.07.2015, which is Annexure A2 to this OA. Later the defendant nos.1 & 2 had approached the applicant bank for grant of Funded Interest Term Loan of Rs.2,38,663.00.

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The applicant Bank sanctioned the CC Limit and Term Loan of Rs.40.00 Lacs vide Sanction Letter dated 18.08.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Later applicant Bank sanctioned Funded Interest Term Loan of Rs.2,38,663.00.

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Defendant Nos.1 and 2 had mortgaged their immovable properties i.e. total land measuring 38K-17M situated at Village Ahmadpur, Hadbast No.10, Tehsil Sultanpur Lodhi, District Kapurthala (Punjab) vide Letter to Sub Registrar for creation of charge bearing vasika no.407/SR/SPL and Declaration under Section 4(1) of the Punjab Agricultural Credit Operation & Miscellaneous Provisions (Banks) Act, 1978 both dated 16.09.2015 along with English Translation, which is Annexure A7 to this OA.

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Documents executed:- D.P. Note, Letter of Continuity and Agreement for Over Draft/Cash Credit cum Guarantee cum Hypothecation all dated 16.09.2015, which are Annexures A4 to A6 to this OA; Letter of Acknowledgement of Debts dated 01.07.2021, which is Annexure A8 to this OA; Legal Notice dated 15.03.2023 along with Postal Receipts, which is Annexure A9 to this OA; Statement of accounts with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System (CC Limit and Term Loan), which are Annexures A10 & A11 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.53,46,184.00, 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 29.05.2024.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), HDFC Bank Ltd., h as been filed. 8. Heard ex-parte arguments and 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 bank had proved its case. From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendants approached applicant bank 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 bank. 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 applicant bank is entitled to recover a sum of Rs.53,46,184.00 (Rupees Fifty Three Lacs Forty Six Thousand One Hundred Eighty Four only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both 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 interest @11.00%p.a. with monthly rests from 21.02.2023 till the realization. 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

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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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.53,46,184.00 (Rupees Fifty Three Lacs Forty Six Thousand One Hundred Eighty Four only) jointly and severally, with costs, current and future simple interest @8.00%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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.08.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 06.08.2024

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

Hdfc Bank Limited v. Palwinder Singh and Others

Case brief

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Hdfc Bank Limited v. Palwinder Singh and Others

Case brief

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