Allowed

Hdfc Bank Limited v. Sh. Darshan Singh

DRT7 Aug 2024OA/604/2023

Case brief

AI extract

What is this about?

In this original application under the RDBFI Act, 1993, the DRT allowed HDFC Bank's claim against six borrowers and a guarantor for Rs.40.55 Lakhs overdue from loan accounts. The Tribunal reduced the claimed interest rate to 8% per annum, ordered issuance of a recovery certificate, and authorized recovery via hypothecated properties or personal assets if unpaid.

What did the court decide?

Recovery of Rs.40,55,290.00 jointly and severally with 8% simple interest annually; issuance of Recovery Certificate; liberty to enforce via sale of mortgaged or personal assets.

Hdfc Bank Limited versus Sh. Darshan Singh — Contract and Commercial Disputes | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.604/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 26.04.2023

¶4

DATE OF DECISION: 07.08.2024 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 and branch office amongst other places one at Chabal Kalan, Distt. Tarn Taran, Punjab, through Sh. Harminder Pal Singh, Manager holder of an Attorney from the Applicant Bank. ……..Applicant Versus 1. Sh. Darshan Singh S/o Sh. Ranbir Singh, R/o Village Fatehpur Sugga, Tehsil Patti, District Tarn Taran -143304 2. Sh. Sukhwinder Singh S/o Sh. Dharam Singh, R/o Village Fatehpur Sugga, Tehsil Patti, District Tarn Taran -143304. 3. Sh. Ranbir Singh S/o Sh. Sukhwinder Singh, R/o Village Fatehpur Sugga, Tehsil Patti, District Tarn Taran -143304. 4. Sh. Mahabir Singh S/o Sh. Sukhwinder Singh, R/o Village H.No. 182/C, New Partap Nagar, Amritsar -143001 (Borrowers) 5. Sh. Ashish Dhawan S/o Sh. Sarabjeet Singh, R/o Village Khalra Road, Near OBC Bank, Bhikhiwind, Tarn Taran. (Guarantor) ….……Defendants Advocates: Argued by Sh. Sumeet Sehgal, Advocate proxy for Sh. J.S. Sehgal, Advocate for 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

¶5

¶6

Rs.40,55,290.00 (Rupees Fourty Lakh Fifty Five Thousand Two Hundred Ninety Only). The Original Application has been filed through Sh. Harminder Pal Singh, Manager of 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.

¶7

The brief facts of the OA are that the defendant No.1 to 4 had approached the applicant bank for the grant of Credit Facilities i.e. KCC Limit of Rs.24.83 Lacs, Overdraft Limit of Rs.12.00 Lacs and DOD Limit of Rs.3.00 Lacs vide Loan Application dated 04.01.2018, which is Annexure A2 to this OA.

¶8

The applicant Bank sanctioned the Credit Facilities i.e. KCC Limit of Rs.24.30 Lacs and Overdraft Limit of Rs.4.90 Lacs vide Sanction Letters dated 23.02.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants Nos.2, 3 and 4 had mortgaged their immovable properties i.e. total land measuring 90 Kanal-12 Marla situated at Village Fatehpur Sugga, HadBast No.144, Tehsil Patti, District Tarn Taran vide Letter to Sub Registrar for creation of Charge and Declaration U/s 4(1) bearing vasika no.1443 dated 27.02.2018, which are Annexure A7 to this OA.

¶9

Documents executed:- Agreements of Overdraft/Cash Credit cum Guarantee Cum Hypothecation, dated 26.02.2018, which is Annexures A5 & A6 to this OA; Notice dated 24.02.2023 with Postal receipts, which are Annexures A8 to A13 to this OA; Statements of Loans Accounts with postal receipt, which are Annexures A14 & A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.40,55,290.00 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.

¶10

¶11

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 30.05.2024.

¶12

In support of the OA, affidavit of Sh. Harminder Pal Singh, Bank Manager, HDFC Bank Ltd. has been filed. 8. Heard ex parte arguments and perused record. 9. 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 A15 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.40,55,290.00 (Rupees Fourty Lakh Fifty Five Thousand Two Hundred Ninety 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 @11.00%p.a. with half yearly rests in both the accounts from 02.10.2022 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

¶15

¶16

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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.40,55,290.00(Rupees Fourty Lakh Fifty Five Thousand Two Hundred Ninety 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.

¶17

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶18

Parties to appear before Learned Recovery Officer of this Tribunal on 30.08.2024. 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.

¶19

Pronounced by me in the open Tribunal . Dated: 07.08.2024

¶20

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

Hdfc Bank Limited v. Sh. Darshan Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Darshan Singh

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

Central Bank of India versus Avtar Singh and Others

Punjab National Bank versus Amandeep Singh and others

Hdfc Bank Limited versus Palwinder Singh and Others

Canara Bank versus Gurnam Singh

Bank of India versus Sh. Dilbagh Singh @ Dalbagh Singh

Union Bank of India versus M/S v O Maggo Hosiery And Others