Allowed

Hdfc Bank Limited v. Manjinder Singh and Others

DRT4 Sept 2024OA/647/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDBFI Act, 1993. The bank was directed to recover Rs. 29,50,954.29 along with simple interest at 8% p.a. The order authorized recovery from mortgaged properties under SARFAESI or attachment of personal assets.

What did the court decide?

Recovery of Rs. 29,50,954.29 plus simple interest at 8% p.a. from the defendants, or via sale of mortgaged/attachment of personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.647/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH DATE OF INSTITUTION: 16.03.2022 DATE OF DECISION: 04.09.2024 H.D.F.C. Bank Ltd. having its registered office at Senapati Bapat Marg, Lower Parel (West), Mumbai 400013, and Having its Branch Office at Tarn Taran, Punjab also at HDFC Bank House, Plot No.28, Industrial Area, Phase-I, Chandigarh and through its Authorized Representative Sh. Harminder Pal Singh. ……..Applicant Versus 1. Sh. Manjinder Singh S/o Sh. Inderjit Singh, R/o H.No.125, Village Khakh, Tehsil Khandur Sahib District Tarn Taran-143102. (Borrower) 2. Mrs. Lakhwinder Kaur W/o Sh. Inderjit Singh, R/o H.No.125, Village Khakh, Tehsil Khandur Sahib District Tarn Taran-143102. (Co-Borrower) 3. Mrs. Davinder Pal Kaur W/o Sh. Kewal Singh, R/o H.No.125, Village Khakh, Tehsil Khandur Sahib District Tarn Taran-143102 (Co-Borrower) 4. Sh. Jagjit Singh S/o Sh. Gurdev Singh, R/o Village Malia, Tehsil & District Tarn Taran-143102. (Guarantor) .……Defendants Advocates: Argued by Sh. Amit Rishi, Advocate for the applicant (Through VC) 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.29,50,954.29p (Rupees Twenty Nine Lacs Fifty Thousand Nine Hundred Fifty Four and Twenty Nine Paise only). The Original Application has been filed through Sh. Harminder Pal Singh, Manager Legal o f the applicant bank, who is competent to institute the Original

¶3

¶4

Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

¶5

The brief facts of the OA are that the defendant nso.1 to 3 had approached the applicant bank for the grant of CC Limit of Rs.18.75 Lacs and Term Loan of Rs.5.00 Lacs vide Loan application dated 02.11.2012, which is Annexure A2 to this OA. Defendant No.4 stood as guarantor.

¶6

The applicant Bank sanctioned the grant of CC Limit of Rs.18.75 Lacs and Term Loan of Rs.5.00 Lacs vide Sanction Letters dated 08.11.2012, which is Annexure A3 (Colly) to this OA and the terms and conditions were duly accepted by the defendant.

¶7

Defendant No.2 had mortgaged her immovable property i.e. land measuring 80K-01M situated at Village Sangar, District Tarn Taran, Punjab vide Registered Mortgage Deed bearing vasika no.1563, dated 19.11.2012 along with its English Translation, which is Annexure A8 to this OA.

¶8

Documents executed:- Agreement for over draft/Cash Credit cum Guarantee cum Hypothecation, Agreement for Term Loan cum Guarantee cum Hypothecation Demand Promissory Note along with Letter of Continuity (CC), and Demand Promissory Note along with Letter of Continuity (TL) all dated 23.11.2012, which are Annexure A4, A5, A6, & A7 to this OA; Title Search Report dated 26.11.2012, which is Annexure A9 to this OA; Demand Notice dated 10.02.2022 with postal receipts, which is Annexure A10 to this OA and CC Limit A/c Statement and Term Loan A/c Statement along with certificate which are Annexures A11 & A12 to this OA.

¶9

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.29,50,954.29p which is recoverable and the defendants were served recall notice 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 26.07.2024.

¶12

In support of the OA, affidavit of Sh. Harminder Pal Singh, Manager Legal, HDFC Bank Ltd. h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 Annexures A1 to A12 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.29,50,954.29p (Rupees Twenty Nine Lacs Fifty Thousand Nine Hundred Fifty Four and Twenty Nine Paise only) along with interest from the defendants, from the date of filing of the present Original Application till realization of the account. 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. in respect of CC Limit plus penal interest @16% p.a with half yearly rests from 16.01.2022 and interest @12% p.a. in respect of Term Loan plus penal interest @24% p.a with half yearly rests from 19.01.2022 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

¶13

¶14

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 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.29,50,954.29p (Rupees Twenty Nine Lacs Fifty Thousand Nine Hundred Fifty Four and Twenty Nine Paise only) 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 27.09.2024. 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: 04.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Manjinder Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Manjinder Singh and Others

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

Punjab National Bank versus Harmeet Kaur and Others

Hdfc Bank Limited versus Major Singh and Others

Punjab National Bank versus Gurcharan Singh

Idbi Bank Limited versus Gurpreet Singh and Another

Hdfc Bank Limited versus Messrs Amar Nath Megh Raj and Others

Union Bank of India versus Hardhian Singh and Others