Allowed

Hdfc Bank Limited v. Jarmanjeet Singh and Others

DRT2 Sept 2024OA/859/2023

Case brief

AI extract

What is this about?

The DRT allowed a recovery application filed by HDFC Bank Ltd. against borrowers and a guarantor for an outstanding sum of Rs. 21,19,340. The Tribunal granted uniform simple interest at 8% p.a. instead of the claimed rate, ordering recovery from sale of mortgaged properties or personal assets.

What did the court decide?

Recovery of Rs. 21,19,340 with costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI or attachment of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.859/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2023

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DATE OF DECISION: 02.09.2024

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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 at “Sardulgarh, District Mansa (Punjab)” through Ms. Pooja Arora, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd., Ludhiana Branch, District Ludhiana (Punjab) being Power of Attorney holder of applicant.

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……..Applicant

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Versus

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Sh. Jarmanjeet Singh S/o Sh. Gurdarshan Singh, R/o H. No.426, Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa (Punjab)151507.

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Smt. Narinder Kaur @ Narinder Pal Kaur W/o Gurdarshan Singh, R/o H. No.426, Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa (Punjab)-151507.

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(Borrowers)

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Sh. Ravinder Pal Singh S/o Sh. Harjit Singh, R/o H. No.159, Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa (Punjab)-151507. (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Saurabh Bhardwaj, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.21,19,340.00 (Rupees Twenty One Lacs Nineteen Thousand Three Hundred Forty Only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 to 2 had approached the applicant bank for the grant of KCC Limit of Rs.16.97 Lacs, Overdraft Limit of Rs.1.10 Lacs and Dropline Overdraft Limit of Rs.3.00 Lacs vide Loan application dated 18.08.2020, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.12.95 Lacs, Overdraft Limit of Rs.1.13 Lacs and Dropline Overdraft Limit of Rs.2.92 Lacs vide Sanction Letters along with acceptance of credit facility both dated 18.09.2020, which are Annexures A3 & A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged their immovable property i.e. total land measuring 76K situated at Village Jhanda Kalan, Hadbast no.199, Tehsil Sardulgarh, District Mansa (Punjab) vide vide Letter to Registrar for creation of charge and Declaration U/s 4(1) dated 30.09.2020, which is Annexure A9 to this OA.

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Documents executed:- Agreements for Over Draft/Cash Credit cum Guarantee cum Hypothecation and Agreement for Dropline Over Draft/Cash Credit cum Guarantee cum Hypothecation all dated 24.09.2020, which are Annexures A6 to A8 to this OA; Legal Notice dated 20.06.2023 with postal receipts, which is Annexure A10 to this OA; Account Statements for C.C. Limit-I, II, & Term Loan with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System all, which are Annexures A11 to A13 to this OA

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The loan accounts became irregular and were classified as NPA

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and after adjusting debit and credit entries in all the loan accounts

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there was a debit of Rs.21,19,340.00, which is recoverable and the defendants 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.

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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 24.07.2024.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager, 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 A13 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.21,19,340.00 (Rupees Twenty One Lacs Nineteen Thousand Three Hundred Forty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @ 11.50% p.a. along with penal interest @2%p.a from 20.06.2023 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

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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 all 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.21,19,340.00 (Rupees Twenty One Lacs Nineteen Thousand Three Hundred Forty Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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. 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 25.09.2024. 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: 02.09.2024

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

Hdfc Bank Limited v. Jarmanjeet Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Jarmanjeet Singh and Others

Case brief

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