Allowed

H.D.F.C Bank Ltd. v. Sh. Rakbir Singh

DRT23 Jan 2024OA/963/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under the RDBFI Act for recovery of banking dues. It granted a lower uniform interest rate and declared the respondent liable to pay the principal amount with interest, permitting recovery from mortgaged or personal assets.

What did the court decide?

Recovery of Rs.41,99,323.00 plus simple interest @10.00%p.a., with liberty to enforce through sale of properties under SARFAESI Act or attachment of personal assets.

H.D.F.C Bank Ltd. versus Sh. Rakbir Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.963/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.06.2022

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DATE OF DECISION: 23.01.2024

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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, Senapati Bapat Marg, Lower Parel, Mumbai 400013, whereas branch amongst other places on at “Malout Branch, District Muktsar (Punjab)” through Sh. Parampreet Singh Kahlon, Assistant Manager (Agri. Legal), H.D.F.C Bank Ltd., Regional Office, Chandigarh (U.T.) being Power of Attorney holder of the applicant bank

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……..Applicant Versus

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Sh. Rakbir Singh @ Ranbir Singh S/o Sh. Tara Singh R/o House No.14/30, Mohalla Bawian Wala, Ferozepur City, Tehsil & District Ferozepur, Punjab- 152001

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Second Address: Sh. Ranbir Singh S/o Sh. Bhag Singh @ Tara Singh S/o Sh. Udham Singh R/o Pakki Tibbi, Tehsil Malout, District Muktsar, (Punjab)- 152001 (Borrower) ....Defendant

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, counsel for the applicant Defendant is ex-parte

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FINAL ORDER

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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 defendant for recovery of Rs.41,99,323.00 (Rupees Forty One Lacs Ninety Nine Thousand Three Hundred Twenty Three Only). The Original Application has been filed

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through Sh. Parampreet Singh Kahlon, 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 defendant had approached the applicant bank for the grant of C.C. Limit of Rs.13.70 Lacs and Term Loan of Rs.3.90 Lacs vide loan application dated 15.02.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the C.C. Limit of Rs.13.20 Lacs and Term Loan of Rs.3.75 Lacs vide Sanction letters dated 18.02.2014, which are Annexures A3 and A4 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total agricultural land measuring 40 Kanal 00 Marla; situated at Village Pakki Tibbi; Tehsil Malout, District Muktsar (Punjab) vide Mortgage Deed bearing vasika no.5307 dated 21.02.2014, which is Annexure A10 to this OA.

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Documents executed: - D.P. Notes, Letter of Continuity, Agreement for Overdraft/ Cash Credit cum Guarantee cum Hypothecation, Agreement for Overdraft cum Hypothecation cum Guarantee all are dated 25.02.2014, which are Annexures A5 to A9 to this OA; Legal Notice with postal receipts dated 25.04.2022, which is Annexure A11 to this OA; Statements of accounts dated 18.02.2022, which are Annexures A12 and 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 loan accounts there was a debit of Rs.41,99,323.00, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 29.12.2023.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Assistant Manager (Agri. Legal), H.D.F.C Bank Ltd. h as 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 defendant 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.

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Later, the CC limit was rescheduled by the applicant bank and converted into two Term loan accounts. Despite that, the defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant 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.41,99,323.00 (Rupees Forty One Lacs Ninety Nine Thousand Three Hundred Twenty Three Only) along with interest from the defendant, 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. in all the term loan accounts from 19.02.2022 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 instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of

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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 @10.00%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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.41,99,323.00 (Rupees Forty One Lacs Ninety Nine Thousand Three Hundred Twenty Three Only) jointly and severally, with costs, current and future simple interest @10.00%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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.02.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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

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Dated: 23.01.2024

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

H.D.F.C Bank Ltd. v. Sh. Rakbir Singh

Case brief

What is this about?

What did the court decide?

H.D.F.C Bank Ltd. v. Sh. Rakbir Singh

Case brief

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What did the court decide?

What the court decided

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