Allowed

Hdfc Bank Limited v. Jeewan Singh and others

DRT26 Nov 2024OA/971/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an Original Application filed by HDFC Bank against borrowers and a guarantor. The court granted uniform simple interest at 8.00% p.a. instead of the claimed rate and ordered recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 46,98,346.93 plus simple interest at 8.00% p.a. granted; Recovery Certificate issued; Enforcement via sale of mortgaged and personal assets.

Hdfc Bank Limited versus Jeewan Singh and others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.971/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.07.2023

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DATE OF DECISION: 26.11.2024

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HDFC Bank Ltd., a banking company, carrying on banking business under 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 one of its Branch at “Bhulath, District Kapurthala(Punjab)” through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd., Regional House, Mohali, District Mohali (Punjab) being Power of Attorney holder of applicant. … …..Applicant

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Versus

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Sh. Jeewan Singh S/o Sh. Udham Singh, R/o H.No.77, Village Bhagwanpur, Tehsil Bhulath, District Kapurthala, Punjab-144622.

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Smt. Kulwinder Kaur W/o Sh. Udham Singh R/o H.No.77, Village Bhagwanpur, Tehsil Bhulath, District Kapurthala, Punjab-144622

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Sh. Palwinder Singh S/o Sh. Joginder Singh R/o H.No.77, Village Bhagwanpur, Tehsil Bhulath, District Kapurthala, Punjab-144622.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bharadwaj, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.46,98,346.93p (Rupees Forty Six Lacs Ninety Eight Thousand Three Hundred Forty Six And Paise Ninety Three only). The Original Application has been filed through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal) o f the applicant, who is competent to institute

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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 1 & 2 had approached the applicant for the grant of KCC Limit of Rs.45.00 Lacs vide Loan Application dated 19.06.2014, which is Annexure A2 to this OA. Defendant no.3 stood as a Guarantor. 3. The applicant sanctioned the KCC Limit of Rs.40.00 Lacs vide Credit Sanction dated 28.06.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos. 1 and 2 had mortgaged their immovable properties i.e. total land measuring 71kanal 03Marla situated at Village Lit, Tehsil Bhulath, District Kapurthala, Punjab vide Registered Mortgage Deed bearing vasika no. 705 dated 0 7.07.2014 & 868 d ated 25.07.2014, along with its Translations, which are Annexures A7 & A8 to this OA. Documents executed:- D.P. Note, Letter of Continuity, Agreement for Overdraft/Cash Credit Cum Hypothecation all dated 08.07.2014, which are Annexures A4 to A6 to this OA; Letter of acknowledgments of debts dated 06.02.2020, which is Annexure A9 to this OA; Legal Notice dated 06.06.2023 with postal receipts, which is Annexure A10 to this OA and Statement of account with certificate, which is Annexure A11 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.46,98,346.93p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 21.11.2024. 7. In support of the OA, affidavit of Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), HDFC Bank Ltd., h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.46,98,346.93p (Rupees Forty Six Lacs Ninety Eight Thousand Three Hundred Forty Six And Paise Ninety Three 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 in relief clause has claimed interest @11.25%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.06.2023 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 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 the loan account 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 defendants are liable to pay to the applicant a total sum of Rs.46,98,346.93p (Rupees Forty Six Lacs Ninety Eight Thousand Three

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Hundred Forty Six And Paise Ninety Three only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 applicant 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.12.2024.

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Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal . Dated: 26.11.2024.

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

Hdfc Bank Limited v. Jeewan Singh and others

Case brief

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Hdfc Bank Limited v. Jeewan Singh and others

Case brief

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