Allowed

Hdfc Bank Limited v. Gursant Singh and Others

DRT12 Sept 2024OA/80/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the RecoverySID application filed by HDFC Bank against legal heirs and co-borrowers. After considering the documentary evidence, the court confirmed the outstanding dues and adjusted the interest rate to 8% per annum from the date of filing until realization.

What did the court decide?

Recovery of Rs.29,91,898.00 jointly and severally with costs and simple interest at 8% p.a. from date of filing till realization.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.80/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 16.01.2023

¶5

DATE OF DECISION: 12.09.2024

¶6

HDFC Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its registered office at HDFC bank House, Senapati Bapat Marg, Lower Parel, Mumbai-400013, whereas branch office amongst the other places on at “Patiala branch”, District Patiala (Punjab)” through Ms. Pooja Arora, Senior Manager (Agri. Legal), HDFC Bank Ltd., Ludhiana branch, District Ludhiana (Punjab) being Power of Attorney holder of the applicant Bank.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Gursant Singh S/o Sh. Hakam Singh, since deceased through his legal heirs/ Legal representatives details as under:

¶10

1(i) Smt. Ramapreet Kaur W/o Sh. Gursant Singh R/o Village Jogipur, Tehsil and District Patiala (Punjab)-147001 1(ii) Sh. Arman Singh S/o Sh. Gursant Singh R/o Village Jogipur, Tehsil and District Patiala (Punjab)-147001 1(iii) Ms. Japjeet Kaur D/o Sh. Gursant Singh R/o Village Jogipur, Tehsil and District Patiala (Punjab)-147001 1(iv) Ms. Pritpal Kaur D /o Sh. Gursant Singh R/o Village Jogipur, Tehsil and District Patiala (Punjab)-147001 minor through her legal guardian and natural friend her mother Smt. Ramanpreet Kaur.

¶11

Sh. Parminder Singh S/o Sh. Joginder Singh, R/o H. No. 106, village Jogipur, Tehsil and District Patiala Punjab-147001 ………Defendants

¶12

Advocates:

¶13

Argued by Sh. Saurabh Bharadwaj, counsel for the applicant (through VC)

¶14

¶15

Defendants are ex-parte

¶16

FINAL ORDER

¶17

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 Rs.29,91,898.00 (Rupees Twenty Nine Lacs Ninety One Thousand Eight Hundred and Ninety Eight only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agri. Legal) w ho is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 (since deceased) and defendant no.2 had approached the applicant for the grant of Cash Credit Limit of Rs.18.00 Lacs and Term Loan of Rs.7.00 Lacs vide Application Form dated 04.08.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.17.00 Lacs and Term Loan of Rs.7.00 Lacs vide Sanction Letters dated 25.08.2014, which are Annexures A3 and A4 to this OA; in which the terms and conditions were duly accepted by the defendant no.1 (since deceased) and defendant no.2. 4. Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 40 Kanals situated at Village Jogipur, Hadbast No.117, Tehsil and District Patiala, Punjab vide Declaration under Section 4(1) dated 09.09.2014 and Letter to SubRegistrar for creation of charge dated 09.09.2014 along with translations, which is Annexure A9 to this OA. Documents executed:- Demand Promissory Note, Letter of Continuity, Agreement for Term Loan cum Guarantee cum Hypothecation, Agreement for Over/draft Cash Credit cum Guarantee cum Hypothecation all dated 23.09.2014, which are Annexures A5 to A8 to this OA; Legal notice dated 01.08.2022 with postal receipt, which is Annexure A10 to this OA and Accounts Statements of CC Limit and

¶18

¶19

Term Loan with certificate, which are Annexures A11 and A12 to this OA.

¶20

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.29,91,898.00, 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.

¶21

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 02.08.2024.

¶22

In support of the OA, affidavit of Ms. Pooja Arora , Senior Manager (Agri. Legal), HDFC Bank Limited has been filed.

¶23

Heard arguments and perused record.

¶24

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 had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 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 bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant no.1 (since deceased) and defendant no.2 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,91,898.00 (Rupees Twenty Nine Lacs Ninety One Thousand Eight Hundred and Ninety Eight only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), and from legal guardian of 1(iv) i.e. 1(i) and from defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶25

¶26

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. plus penal interest @2.00%p.a. in both from 30.07.2022 till the realization.

¶27

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.

¶28

In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), and legal guardian of 1(iv) i.e. 1(i) and defendant no.2 are liable to pay to the applicant a total sum of Rs.29,91,898.00 (Rupees Twenty Nine Lacs Ninety One Thousand Eight Hundred and Ninety Eight 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 still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), and from legal guardian of 1(iv) i.e. 1(i) and from defendant no.2. The applicant is at liberty to enforce the claim through due process of law.

¶29

12.	Any other application pending stands disposed of.
13.	Issue Recovery Certificate accordingly.

¶30

¶31

Parties to appear before Learned Recovery Officer of this Tribunal on 08.10.2024.

¶32

Copy of this order be given dasti to the applicant and be sent to the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), and legal guardian of 1(iv) i.e. 1(i) and defendant no.2 through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶33

Pronounced by me in the open Tribunal.

¶34

Dated: 12.09.2024

¶35

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

Hdfc Bank Limited v. Gursant Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Gursant 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

Indian Bank versus Surmukh Singh and Others

Punjab National Bank versus Sarabjit Kaur and Another

Union Bank of India versus Mitanshu Garg

Punjab National Bank versus Geeta Rani

Punjab National Bank versus Surjit Singh and Another

Union Bank of India versus Messrs Namho Fashion and Another