Allowed

Hdfc Bank Ltd. v. Satnam Singh and Another

DRT12 Jul 2024OA/629/2023

Case brief

AI extract

What is this about?

HDFC Bank Ltd. filed an Original Application before the Debt Recovery Tribunal for recovery of dues from borrowers who failed to repay sanctioned loans. The Defendants did not appear, and the case proceeded ex-parte. The Tribunal allowed the application, directing the Defendants to pay the principal amount plus 8% simple interest, and issued a Recovery Certificate.

What did the court decide?

Directing respondents to pay Rs. 21,30,411.28 with costs and 8% simple interest; issuing Recovery Certificate; entitlement to recover via sale of mortgaged or personal assets under SARFAESI Act.

Hdfc Bank Ltd. versus Satnam Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.629/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2023

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DATE OF DECISION: 12.07.2024

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HDFC Bank Ltd., having its registered office at: Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 having its Branch Office at: Dirba, Sangrur, Punjab. Also at: HDFC Bank House, Plot No.1-15, Sector 101 Alpha, IT City, Mohali through its Authorised Representative Ms. Pooja Arora

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……..Applicant Versus

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Sh. Satnam Singh S/o Sh. Hukam Singh, R/o Rogla, Tehsil Dirba, District Sangrur, Dirba, Punjab-148035 (Borrower)

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Smt. Harpal Kaur W/o Sh. Satnam Singh, R/o Rogla, Tehsil Dirba, District Sangrur, Dirba, Punjab-148035 (Co-Borrower)

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….……Defendants

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Advocates:

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Argued by Sh. Amit Rishi, 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.21,30,411.28p (Rupees Twenty One Lacs Thirty Thousand Four Hundred Eleven and Twenty Eight Paise only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager Legal of 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 had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs and Term Loan of Rs.4.42 Lacs vide Loan application dated 10.06.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs and Term Loan of Rs.4.42 Lacs vide Sanction Letters dated 19.06.2013, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 28K-0M situated at Village Rogla, Tehsil Sunam and District Sangrur (Punjab) vide Registered Mortgaged Deed bearing vasika No.656 dated 24.06.2013, which is Annexure A7 to this OA. Documents executed:- Agreement for Overdraft/Cash Credit cum Guarantee cum Hypothecation and DPN along with letter of continuity both dated 26.06.2013, which are Annexures A5 & A6 to this OA; Copy of Legal Opinion along with Letter of Registration of Rapat of mortgage property before Revenue Record dated 24.06.2013, which is Annexure A8 to this OA; Demand Notice dated 19.01.2023 along with Postal Receipts, which is Annexure A9 to this OA and Statement of account (KCC) along with copy of Certificate under Bankers Book of Evidence, which is Annexure A10 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.21,30,411.28p, 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 07.05.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager Legal, HDFC Bank Ltd., h as been filed.

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Heard ex-parte arguments and perused record.

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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 A10 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 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.21,30,411.28p (Rupees Twenty One Lacs Thirty Thousand Four Hundred Eleven and Twenty Eight Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @12.00%p.a. along with penal interest @16.00%p.a. with half yearly rests from 16.01.2023 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 just and appropriate to grant uniform simple interest @8.00%p.a. in

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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.

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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.21,30,411.28p (Rupees Twenty One Lacs Thirty Thousand Four Hundred Eleven and Twenty Eight Paise 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.

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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 01.08.2024.

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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 . Dated: 12.07.2024

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

Hdfc Bank Ltd. v. Satnam Singh and Another

Case brief

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Hdfc Bank Ltd. v. Satnam Singh and Another

Case brief

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