Allowed

Hdfc Bank Limited v. Pasora Singh and Others

DRT5 Sept 2024OA/60/2023

Case brief

AI extract

What is this about?

HDFC Bank filed an original application under Section 19 RDBFI Act for recovery of Rs.54.33 lakhs. The Tribunal allowed the application, directed recovery jointly and severally until realization, and granted a uniform simple interest rate of 8% p.a. from the filing date.

What did the court decide?

Recovery of Rs.54,33,009.00 jointly and severally with interest at 8% p.a. from filing date; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.60/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.01.2023 DATE OF DECISION: 05.09.2024 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 branch amongst other places at Goindwal Sahib Branch, District Tarn Taran (Punjab) through Sh. Harminder Pal Singh, Senior Manager (Legal), HDFC Bank Ltd., Regional Office, Chandigarh (U.T.) being Power of Attorney holder of the bank. ……..Applicant Versus 1. Sh. Pasora Singh S/o Sh. Ajit Singh, R/o H.No. 1, village Gujarpura, Tehsil Khadoor Sahib, District Tarn Taran (Punjab)-143401. 2. Sh. Gurbhej Singh S/o Sh. Pasora Singh, R/o H.No. 1, village Gujarpura, Tehsil Khadoor Sahib, District Tarn Taran (Punjab)143401. Borrowers 3. Sh. Harpal Singh S/o Sh. Kasmir Singh, R/o H. No. 21, village Gujarpura, Tehsil Khadoor Sahib, District Tarn Taran (Punjab)143401. Guarantor/Defendant ….……Defendants Advocates: Argued by Sh. Saurabh Bharadwaj, Advocate 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.54,33,009.00 (Rupees Fifty Four Lacs Thirty Three Thousand and Nine only). The Original Application has been filed through Sh.

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Harminder Pal Singh, Senior Manager (Legal) o f 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.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.25.65 Lacs, Term Loan-I of Rs.5.18 Lacs and Term Loan-II of Rs.1.50 Lacs vide Loan application dated 27.03.2012, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.20.40 Lacs, Term Loan-I of Rs.5.25 Lacs and Term Loan-II of Rs.1.50 Lacs vide Sanction Letters dated 30.03.2012, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 85K-18M situated at Village Gujarpura, Hadbast No.351, Tehsil Kandoor Sahib, District Tarn Taran (Punjab) vide Registered Mortgaged Deed bearing v asika No.1348 dated 30.03.2012 along with its Translations, which is Annexure A12 to this OA. Documents executed:- Demand Promissory Notes, Letter of Continuity, Agreements for Term Loan cum-Guarantee cum Hypothecation, Agreement for Secured Overdraft/ Cash Credit cum Guarantee cum Hypothecation Deed all dated 06.04.2012, which are Annexures A5 to A11 to this OA; Legal Notice dated 15.12.2022 along postal Receipts, which is Annexure A13 to this OA and CC Limit Account Statement, Term Loan-I Account Statement, Term Loan-II Account Statement along with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System, which are Annexures A14 to A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.54,33,009.00, which is recoverable and the defendants were served recall notices but they did not repay the

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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 30.07.2024. 7. In support of the OA, affidavit of Sh. Harminder Pal Singh, Senior Manager (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 A16 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, 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.54,33,009.00 (Rupees Fifty Four Lacs Thirty Three Thousand and Nine 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. 10. 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 half yearly rests in all from 01.11.2022 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 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all 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.54,33,009.00 (Rupees Fifty Four Lacs Thirty Three Thousand and Nine only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.09.2024. 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: 05.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Pasora Singh and Others

Case brief

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Hdfc Bank Limited v. Pasora Singh and Others

Case brief

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