Debts Recovery Tribunal allowed an original application by HDFC Bank Ltd. for recovery of Rs. 27,64,631.00 and interest from three defendants holding agricultural loans, noting the defendants were ex-parte and the bank was served refusals to repay.
Recovery of Rs. 27,64,631.00 with costs and simple interest at 8.00% p.a. granted; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.803/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 19.04.2022
DATE OF DECISION: 03.06.2024
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 and branch office amongst other places one at Kapurthala, through Sh. Harminder Pal Singh, Manager, holder of an attorney from the Applicant Bank.
……..Applicant
Versus
Borrower/Defendant
Guarantor/Defendant ….……Defendants
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
2
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 defendants had approached the applicant bank for the grant of Agriculture Cash Credit Limit (KCC Limit) of Rs.28.00 Lacs and Term Loan of Rs.4.50 Lacs vide Loan application dated 25.07.2016, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.21.50 Lacs and Term Loan(FDL) of Rs. 3.75 Lacs vide Sanction Letters dated 05.09.2016, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 32K-3M detailed as: a. land measuring 12K-11M situated at Village Devlawala, Hadbast No.91, Tehsil and District Kapurthala (Punjab) b. l and measuring 17K-0M situated at Village Bhwanipur, Hadbast No. 90, Tehsil and District Kapurthala (Punjab) c. l and measuring 2K-12M situated at Village Ratta Kadim, Hadbast No. 100, Tehsil and District Kapurthala (Punjab) vide Letter to Joint Sub Registrar and Declaration under Section 4 (1) bearing v asika No.1742 dated 3 0.08.2016, which is Annexure A11 to this OA. Documents executed:- Agreements for Overdraft/cash credit cum guarantee cum hypothecation and Demand Promissory Notes all dated 31.08.2016, which are Annexures A5 to A7 and A9 to this OA; Letters of Continuity, which are Annexures A8 and A10 to this OA Notice dated 14.02.2022 with Postal Receipts, which are Annexures A12 to A15 to this OA and Statement of Loan Accounts along with Certificate regarding the Computer System and the genuineness of the statement of accounts being prepared through Computer System which are Annexure A16 & A17 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.27,64,631.00, which is recoverable and the defendants
3
were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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
4
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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,64,631.00 (Rupees Twenty Seven Lacs Sixty Four Thousand Six Hundred and Thirty One 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 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.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendants jointly and severally.
What rate of interest should be granted on the outstanding loan amount considering market rates.
Whether a recovery certificate should be issued against the defendants.
1 provisions across 1 enactments
HDFC Bank Ltd.
Sh. Avtar Singh
Sh. Harwinder Singh
Sh. Bagga Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
