Allowed

Hdfc Bank Limited v. Major Singh and Others

DRT3 Sept 2024OA/650/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.23,00,261.05 from defendants who defaulted on a KCC limit and term loan. The Tribunal granted uniform simple interest at 8.00% p.a. and ordered issuance of a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs.23,00,261.05 jointly and severally with costs and current/future simple interest @8% p.a.; issuance of Recovery Certificate ordered.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.650/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2023 DATE OF DECISION: 03.09.2024 HDFC BANK LTD. having its Registered Office at Senapati Bapat Marg, Lower Parel(West), Mumbai-400013 and having its branch office at Bhiwnaigarh, Sangrur, Punjab, also at HDFC Bank House Plot No.I-15,
Sector 101, Alpha, IT City Mohali, through its Authorized
Representative Ms. Pooja Arora. ……..Applicant Versus
1. Sh. Major Singh S/o Sh. Sukdev Singh, R/o H.No. 171, Bakhopir Road, Bhawanigarh, Tehsil & District Sangrur, Punjab-148026. (Borrower)
2. Smt. Karamjit Kaur, W/o Sh. Major Singh, R/o H.No. 171, Bakhopir Road, Bhawanigarh, Tehsil & District Sangrur, Punjab-148026. (Co-Borrower)
3. Sh. Jagtar Singh S/o Sh. Dalvara Singh, R/o H.No. 189, Civil Hospital Road, Bhawanigarh, Tehsil & District Sangrur, Punjab- 148026. (Guarantor) ….……Defendants
Advocates: Argued by Sh. Amit Rishi, 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.23,00,261.05p (Rupees Twenty Three Lacs Two Hundred Sixty One
And Zero Five Paise Only). The Original Application has been filed throughMs. Pooja Arora, Senior Manager Legalof the applicant bank,

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who is competent to institute the Original Application vide Power Attorney dated 16.12.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant Nos.1 to 2 had approached the applicant bank for grant of KCC Limit of Rs.18.25 Lacs and Term Loan of Rs.5.25 Lacs to this OA. Defendant No.3 stood as guarantor. 3. The applicant Bank sanctioned the KCC Limit of Rs.18.25 Lacs and Term Loan of Rs.5.25 Lacs vide sanction letters dated 19.06.2012, which are Annexures A2 and A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos.1 and 2 had mortgaged their immovable properties detailed as:-

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a) Land measuring 3B-10B situated at Village Bakhopir Tehsil and District Sangrur, Punjab, owned by defendant No.2 b) Land measuring 15B-15B situated at Village Bakhtara Tehsil and District Sangrur, Punjab owned by defendant No.1 vide Registered Mortgage Deed bearing vasika No.841 dated 20.06.2012 along with their translations, which is Annexure A7 to this OA Documents executed:- Agreement for overdraft/cash credit cum guarantee cum hypothecation, Agreement for Term Loan cum guarantee cum hypothecation, Demand Promissory Note along with Letter of continuity all dated 22.06.2012, which are Annexures A4, A5 & A6 to this OA; Title Search Report of Advocate dated 20.06.2012 which is Annexures A8 to this OA; Loan Recall Notice 19.01.2023 with Postal Receipts, which is Annexures A9 to this OA and Statements of accounts of CC Limit and Term Loan along with Certificate, which are Annexures A10 and A11 to this OA. 5. 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.23,00,261.05p, 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.

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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 03.08.2024. 7. In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager Legal, HDFC Bank Ltd. h as been filed. 8. Heard 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 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.23,00,261.05p (Rupees Twenty Three Lacs Two Hundred Sixty One And Zero Five 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 in cash credit limit @11.00%p.a. with half yearly rests plus penal interest @16% from 16.01.2023 and in term loan @11.00% with half yearly rests plus penal interest @ 24% from 18.01.2023 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 instant case including nature of the mortgaged property, undertaking

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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 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.23,00,261.05p (Rupees Twenty Three Lacs Two Hundred Sixty One And Zero Five Paise Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 26.09.2024. 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: 03.09.2024

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

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Hdfc Bank Limited v. Major Singh and Others

Case brief

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Hdfc Bank Limited v. Major Singh and Others

Case brief

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