Allowed

H.D.F.C. Bank Ltd. v. Ms. Charanjeet Kaur and Others

DRT6 Jun 2024OA/911/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal adjudged the present Original Application filed by the bank for recovery of agricultural loans. Proceeding ex-parte due to the absence of defendants, the Tribunal adjudged the defendants liable to pay the outstanding dues along with costs and interest.

What did the court decide?

Defendants ordered to pay Rs.43,81,968.00 jointly and severally with costs and simple interest @8% p.a. Applicants entitled to execute the amount through sale of mortgaged properties under SARFAESI Ac

H.D.F.C. Bank Ltd. versus Ms. Charanjeet Kaur and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.911/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.06.2022 DATE OF DECISION: 06.06.2024 H.D.F.C. 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, Senapti Bapat Marg, Lower Parel, Mumbai 400031, whereas branch amongst other places at “Muktsar Branch, District Muktsar (Punjab)” through Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal), H.D.F.C. Bank Ltd., Regional Office, Chandigarh being Power of Attorney holder of the applicant bank.

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……..Applicant

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Versus

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1. Ms. Charanjeet Kaur D/o Sh. Jaswant Singh R/o H. No. 1, Village Kingran, Tapa Khera, Tehsil Malout, District Muktsar (Punjab)152114

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1. Ms. Amarjeet Kaur D/o Sh. Jaswant Singh, R/o H. No.1, Village Kingran, Tapa Khera, Tehsil Malout, District Muktsar (Punjab)152114

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Borrowers

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Sh. Sukhdev Singh S/o Sh. Naranjan Singh, R/o H.No. 24, Village Kingran, Tehsil Malout, District Muktsar (Punjab)-152114. Guarantor ….……Defendants Advocates: Argued by Sh. Saurabh Bhardwaj, Advocate for the applicant (through VC) Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.43,81,968.00 (Rupees Forty Three Lacs Eighty One Thousand Nine

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Hundred and Sixty Eight only). The Original Application has been filed through Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal) of the applicant bank, who is competent to institute the Original Application vide 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 defendants had approached the applicant bank for the grant of Agriculture Cash Credit Limit of Rs.11.70 Lacs and Term Loan of Rs.5.85 Lacs vide Loan application dated 03.12.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Agriculture Cash Credit Limit of Rs.11.70 Lacs Term Loan of Rs.5.85 Lacs and vide Sanction Letters dated 11.12.2014 which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 & 2 had mortgaged their immovable properties i.e. total land measuring 40K-05M detailed as;

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a. Land Measuring 34K-12M in the name of Defendant no.2 b. Land Measuring 5K-13M in the name of Defendant no.1 situated at Village Kingra, H.B.No. 163, Tehsil Malout, District Muktsar Sahib (Punjab) vide Letter to Sub-Registrar for registration of charge and Declaration under section 4 (1) Punjab Agricultural Credit Operations and miscellaneous provisions (Banks) Act dated 24.12.2014, which is Annexure A10 to this OA. Documents executed:- D.P. Notes, Agreement for Term Loan cum Guarantee cum Hypothecation, Agreement for Over Draft/Cash Credit cum Guarantee cum Hypothecation all dated 04.02.2015, which are Annexures A5, A7 to A9 to this OA; Letter of Continuity, which is Annexure A6 to this OA; Notice dated 25.04.2022 along with postal Receipts, which is Annexure A11 to this OA and Account Statement of CC and Term Loan along with Certificate regarding the Computer System and the genuineness of the Statement of account being prepared through Computer System, which are Annexures A12, A12A & A13 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 loan accounts there was a debit of Rs.43,81,968.00, 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 09.04.2024.

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In support of the OA, affidavit of Sh. Parampreet Singh Khalon, Assistant Manager (Agri. Legal), HDFC Bank has been filed. 8. Heard ex-parte arguments and perused record.

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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 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 was 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.43,81,968.00 (Rupees Forty Three Lacs Eighty One Thousand Nine Hundred and Sixty Eight only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @12.00%p.a. plus penal interest @2%p.a. in both the accounts along with full costs from 20.03.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in

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appropriate cases the prerogative of mercy is the brightest jewel in the

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.43,81,968.00 (Rupees Forty Three Lacs Eighty One Thousand Nine Hundred and Sixty 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 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 21.06.2024. 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: 06.06.2024

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

H.D.F.C. Bank Ltd. v. Ms. Charanjeet Kaur and Others

Case brief

What is this about?

What did the court decide?

H.D.F.C. Bank Ltd. v. Ms. Charanjeet Kaur and Others

Case brief

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What did the court decide?

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