Allowed

Hdfc Bank Limited v. Anand Pal Singh

DRT15 Jun 2024OA/90/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 23,59,470.88. While acknowledging the contractual interest, the court exercised discretion under Section 19 of the DR Act to award future interest at 12% per annum, directing immediate payment permissible, execution against hypothecated vehicle, recovery certificate issuance to Recovery Officer, and obtained.

What did the court decide?

Defendants directed to pay Rs. 23,59,470.88 plus pendentelie and future interest @12% p.a. within 30 days; recovery certificate issued; execution against hypothecated vehicle and other properties in d

Hdfc Bank Limited versus Anand Pal Singh — Banking and Recovery | DRT (2024)

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0.A. No.90 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 90 of 2023

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HDFC Bank Ltd. 1st Floor, Tower A, Plot No.31, Najafgarh Industrial Area Shivaji Marg, Moti Nagar New Delhi-110015

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Applicant

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Versus

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Anand Pal Singh House No.7, 2nd Floor Village Shalimar Block B Village Shalimar, Near Saini Dharamshala Delhi-110088

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Also at: BH-732, East Shalimar Bagh North West, Delhi-110088

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Sh.Arvind Kumar Singh At : House No.7, 2nd Floor Village Shalimar Block B Village Shalimar, Near Saini Dharamshala Delhi-110088

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Also at:

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BH-732, East Shalimar Bagh North West, Delhi-110088

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Defendants

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Present: Ms Amita KuMari, Counsel for the applicant bank

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Date of Institution: 09.12.2022

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Date of Pronouncement: 15.06.2024

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3.A. No.90 of 2023

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FINAL ORDER

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This original application has been filed by the applicant bank on 09.12.2022 through Shri Sagar Juneja, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.23,59,470.88 (Rupees Twenty Three Lacs Fifty Nine Thousand Four Hundred Seventy and paisa Eighty Eight only) as on 03.12.2022 along with pendentelite and future interest @18.00% per annum with monthly rest from the date of filing of this O.A. till the date of realization and costs.

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The brief facts of the case are that at the request of defendant no.1, the applicant bank sanctioned commercial loan facility of Rs.20,69,377/- and Rs.12,11,343/- for purchase of commercial vehicle consisting chases and body @11.51% rate of interest to be repayable in 62 & 63 EMI of Rs.58,141/& Rs.34.072/- respectively against hypothecation of vehicle being TATA LPO 1618 62, Chasis No. MAT499305K0G09654, Engine No.91D84877202, Registration No.AR06A4569. Further, defendant no.2 stood as guarantor for the loan facility availed by defendant no.1.

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That in order to avail the said vehicles loan facilities, the defendants executed Loan Application Form dated 22.07.2019 with KYC documents, Loan Agreement and Guarantee for the loans availed along with hypothecation deed of vehicles.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions despite of several requests and reminders and started defaulting since October

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0.A. No.90 of 2023

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The defendants failed to pay the monthly installments which became overdue. Ultimately, the applicant bank issued legal notice on 23.11.2022 recalling the loan facilities and to repay the entire dues with interest, but defendants failed to so. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. Vide its order dated 05.03.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed on behalf of the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sagar Juneja, authorized representative of the applicant bank who has proved the documents as Board Resolution Exhibit AVV1/1, Original Loan Applications Exhibit AW1/2(colly), Original Loan Agreement Exhibit AW1/3, Legal Notice dated 23.11.2022 with postal receipts Exhibit AW1/4(colly), Delivery Reports Exhibit AW1/5(colly), Statement of Accounts with Foreclosure Letters along with Certificate under Bankers' Book of Evidence Act Exhibit AW1/6(colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the

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O.A. No.90 of 2023

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applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.23,59,470.88 (Rupees Twenty Three Lacs Fifty Nine Thousand Four Hundred Seventy and paisa Eighty Eight only) as on 03.12.2022 along with pendentelite and future interest @12% per annum with monthly rest from date of filing of this application and costs till the date of realization, failing which the aforesaid amount shall be recovered from the sale of the hypothecated vehicle being TATA LPO 1618 62, Chasis No. MAT499305K0G09654, Engine No.91D84877202, Registration No.AR06A4569. In case of default, the same

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5-d-

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O.A. No.90 of 2023

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shall be recovered from sale of the moveable and immovable properties of defendants.

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(II) The recovery certificate be issued forthwith and be sent the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(Ill) Parties are directed to appear the Recovery Officer, DRT I, Delhi on 16.08.2024.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.