Allowed

Hdfc Bank Limited v. Messrs Samundri Trading Co. and Others

DRT1 Oct 2024OA/74/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by HDFC Bank Ltd. for recovery of Rs. 53.81 Lakhs from three respondents for default on bank loans. The Tribunal granted uniform simple interest at 8% p.a. and ordered the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 53,81,004.20 p with simple interest at 8% p.a. from the date of filing of the OA till realization; Recovery Certificate issued.

Hdfc Bank Limited versus Messrs Samundri Trading Co. and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.74/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.10.2023

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DATE OF DECISION: 01.10.2024

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HDFC Bank Ltd., a banking company incorporated under the Companies Act 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having Branches across the country including at Court Road, Amritsar, Punjab and a Regional Office at 3^rd Floor, Plot No. I- 15, Alpha IT City, Sector-101, Mohali (Punjab), through its duly authorized officer Shri Sunil Kalra, Legal Manager

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……..Applicant

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Versus

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Messrs Samundri Trading Co., a Propriety Firm, having its principal place of business at Mandi Sur Singh, Tehsil Patti, District Tarn Taran-143412, Punjab through its Proprietor Shri Gurjit Singh son of Shri Jaswant Singh.

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Shri Gurjit Singh son of Shri Jaswant Singh, Proprietor Messrs Samundari Trading Co., having its place of business at Mandi Sur Singh, Tehsil Patti, District Tarn Taran-143412, Punjab.

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Also At: House No.81, Part-I, Village Sur Singh, Tehsil Patti, District Tarn Taran-143412.

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Sh. Baljit Singh son of Shri Jaswant Singh, Resident of House No.81, Part-1, Village Sur Singh, Tehsil Patti, District Tarn Taran143412.

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………Defendants

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Advocates:

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Argued by Sh. Vijay Sharma, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.53,81,004.20p (Rupees Fifty Three Lacs Eighty One Thousand Four and Twenty Paise only). The Original Application has been filed through Shri Sunil Kalra, Legal Manager o f the applicant, who is competent to institute the Original Application Board Resolution dated 16.07.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant for the grant of Overdraft Limit against Property (ODAP) of Rs.45.00 Lacs vide Loan Application dated 10.07.2015, which is Annexure A2 to this OA and Further approached the applicant for its enhancement upto Rs.50.00 Lacs vide Request Letter dated 27.04.2016, which is Annexure A11 to this OA. Thereafter from time to time defendants approached the applicant for the renewals of ODAP Limit of Rs.50.00 Lacs vide Request Letters dated 06.06.2016, 10.06.2016, 18.07.2017, 24.07.2017, 03.09.2018, 14.06.2019, 18.07.2019 & 07.08.2020, which are Annexures A19, A20, A23, A24, A28, A30, A31 & A38 . Later defendants once again approached the applicant for grant of the Term Loan (Guaranteed Emergency Credit Line GECL- Working Capital Term Loan-WCTL) of Rs.8.54 Lacs and again approached the applicant for the renewal of the ODAP and GECL-WCTL vide request letter dated 15.07.2021, which is Annexure A41 to this OA.

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The applicant Sanctioned Overdraft (ODAP) facility of Rs.25.00 Lacs vide Sanction Letter dated 17.09.2015, which are Annexure A3 to this OA and Further sanctioned enhancement of existing limit to Rs.45.00 Lacs vide Sanction Letter dated 09.05.2016, which is Annexure A12 to this OA. Thereafter from time to time applicant sanctioned the renewals of the same vide Renewal Sanction Letters dated 10.06.2016, 24.07.2017, 06.09.2018, 18.07.2019 & 07.08.2020, which are Annexures A21, A25, A29, A32 & A39 to this OA. The applicant also sanctioned the Term Loan (Guaranteed Emergency Credit Line GECL- Working Capital Term Loan-WCTL) of Rs.8.54 Lacs vide Sanction Letter dated 22.06.2020, which is

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Annexure A33 to this OA and also sanctioned the renewal of the ODAP and GECL-WCTL vide Sanction Letter dated 14.07.2021 which is Annexures A42 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.2 & 3 had mortgaged their immovable properties detailed as under:

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a) Property admeasuring 10 Marlas situated at Village Sur Singh, Hadbast No.139, Tehsil Patti, District Tarn Taran, Punjab vide equitable mortgaged of Sale Deed bearing vasika no.103 dated 15.04.2013, along with its translation owed by defendant No.2;

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b) Property admeasuring 15 Marlas (i.e. 10 Marlas + 5 Marlas) situated at Village Sur Singh, Hadbast No.139, Tehsil Patti, District Tarn Taran, Punjab vide Equitable Mortgage of Sale Deeds bearing Vasika no. 2682 dated 28.01.2013 & Vasika No.2009 dated 16.01.2008 along with their Translations, owned by defendant No.3;

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along with title search report dated 19.09.2015 and valuation report of the mortgaged properties dated 09.05.2016, which is Annexure A43 to this OA.

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Documents executed:- DP Note, Letter of continuing security, Master Facility Agreement, Letter of Continuing Guarantee and Deed of Indemnity all dated 17.09.2015, which are Annexures A4 to A6 , A9 & A10 to this OA; Memorandum of recording past transactions of creation Mortgage creation and Declaration cum Indemnity both dated 19.09.2015, which are Annexures A7 & A8 to this OA; DP Note, Supplementary Agreement, Memorandum of Recording Past Transactions of Creation of Mortgage, Supplementary Letter of Continuing Guarantee, Deed of Indemnity all dated 10.05.2016, which are Annexures A13 to A17 to this OA; and Amendment Agreements dated 10.05.2016 and 10.06.2016, which are Annexures A18 & A22 to this OA; Demand Promissory Note, Amendment Agreement both dated 24.07.2017, which are Annexures A26 & A27 to this OA; Declaration cum undertaking, Facility cum Hypothecation Agreement,

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Supplemental Letter of Continuing Guarantee (Joint and Several) Delivery of Title Deed all dated 22.06.2020, which are Annexures A34 to A37 to this OA; Addendum dated 05.08.2020, which is Annexure A40 to this OA; Demand Notice under Section 13(2) of the SARFAESI Act, 2002 dated 22.02.2023 which is Annexure A44 to this OA and Interest Calculation Sheet, Statements of Account, Repayment Schedule, Foreclosure and Certificate under the Banker’s Books Evidence Act, 1891 which is Annexure A45 to this OA.

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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.53,81,004.20p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 23.09.2024.

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In support of the OA, affidavit of Sh. Shri Sunil Kalra, Legal Manager, HDFC Bank Ltd. has been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A45 to this OA, it is proved that the defendants approached applicant 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.53,81,004.20p (Rupees Fifty Three Lacs Eighty One Thousand Four

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and Twenty Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%p.a. with monthly rests in both from 21.06.2023 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 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.

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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.53,81,004.20p (Rupees Fifty Three Lacs Eighty One Thousand Four and Twenty Paise 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 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 applicant 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 22.10.2024. 15. Copy of this order be given dasti to the applicant 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: 01.10.2024

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

Hdfc Bank Limited v. Messrs Samundri Trading Co. and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Messrs Samundri Trading Co. and Others

Case brief

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What did the court decide?

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