Allowed

Hdfc Bank Limited v. Sh. Amrik Singh

DRT27 Aug 2024OA/665/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application for recovery of a loan of Rs 38.33 lakhs mortgaged by the defendant. The court adjusted the interest rate to 8% per annum and ordered issuance of a recovery certificate. The principal outcome is the confirmation of liability and the release of the bank's right to execute against mortgaged properties.

What did the court decide?

The defendant is liable to pay Rs.38,33,002.45p with interest @08.00p.a., and the applicant is entitled to recover the amount from sale of mortgaged or personal assets via execution.

Hdfc Bank Limited versus Sh. Amrik Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.665/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.03.2022

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DATE OF DECISION: 27.08.2024

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HDFC Bank Limited, having its registered office at; Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 having its branch office at; Phagwara, Punjab. Also at; HDFC Bank House, Plot No. 28, Industrial Area, Phase-1, Chandigarh through its Authorised Representative Sh. Harminder Pal Singh

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……..Applicant Versus

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Sh. Amrik Singh S/o Sh. Sandhu Singh R/o H.No. 183 Village Bhanoki, Tehsil Phagwara, District Kapurthala-144401

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….……Defendant

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Advocates:

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Argued by Sh. Amit Rishi, Advocate for the applicant Defendant is 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.38,33,002.45p (Rupees Thirty Eight Lacs Thirty Three Thousand Two and Forty Five Paise only). The Original Application has been filed through Sh. Harminder Pal Singh, Manager Legal of the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 27.10.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs vide Sanction Letter dated 31.10.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. agricultural land measuring 16K-00M situated at Village Bhanoki, Hadbast No.107, Tehsil Phagwara, District Kapurthala, Punjab vide Declaration u/s 4(1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 10.11.2014, which is Annexure A6 to this OA.

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Documents executed:- Agreement of Cash Credit, DPN along with letter of continuity and The copy of Legal Opinion along with letter of Registration of Rapat of mortgage property before revenue record all dated 10.11.2014, which are Annexures A4, A5 & A7 (Colly) to this OA; Demand Notice dated 10.02.2022 along with Postal Receipt, which is Annexure A8 to this OA and Statement of account (CC) along with under Bankers Book of Evidence, which is Annexure A9 to this OA.

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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.38,33,002.45p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 18.07.2024.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Manager Legal, HDFC Bank Limited has 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 A9 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant

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documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.38,33,002.45p (Rupees Thirty Eight Lacs Thirty Three Thousand Two and Forty Five Paise only) along with interest from the defendant, 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 @12.00%p.a. along with penal interest @16.00%p.a. with half yearly rests from 16.01.2022 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 defendant, 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.38,33,002.45p (Rupees Thirty Eight Lacs Thirty Three Thousand Two and Forty Five Paise only) with costs, current and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI

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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 defendant. 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 18.09.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 27.08.2024

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

Hdfc Bank Limited v. Sh. Amrik Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Amrik Singh

Case brief

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