The DRT allowed the bank's application for recovery of Rs. 58,92,935 plus interest from borrowers and a guarantor under RDBFI Act, 1993, adjudging a uniform simple interest rate of 10% p.a. and ordering issuance of a Recovery Certificate.
Recovery of Rs.58,92,935 with 10% p.a. simple interest; Issue of Recovery Certificate.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.981/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 18.06.2022
DATE OF DECISION: 24.01.2024
HDFC Bank Limited, 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 and branch office amongst other places one at Gidderbaha, District Sri Muktsar Sahib, through Sh. Parampreet Singh Kahlon, Assistant Manager holder of an attorney from the Applicant Bank
……..Applicant
Advocates:
Argued by Sh. J.S. Sehgal, counsel for the applicant 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.58,92,935.00 (Rupees Fifty Eight Lacs Ninety Two Thousand Nine
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Hundred and Thirty Five only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Assistant Manager 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.
The KCC limit was subsequently restructured into two Term loan accounts amounting Rs.16,77,198/- and Rs.8,98,664/-. 4. Defendant No.2 had mortgaged his immovable properties i.e. total land measuring 73 Kanal 06 Marlas situated at Village Karreiwala, Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab; vide Registered Mortgage Deed bearing Vasika No.771 dated 06.06.2014 alongwith its translation, which are Annexures A10 and A11 to this OA. Documents executed:- Agreements for loans-cum-guaranteehypothecation, D.P. notes and Letter of continuity all dated 10.06.2014, which are Annexures A5 to A9 to this OA; Notice and postal receipts dated 21.03.2022, which are Annexures A12 to A15 to this OA and Statements of accounts alongwith Certificate of computer system, which are Annexures A16 to A18 to this OA. 5. 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.58,92,935.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding
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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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
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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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.58,92,935.00 (Rupees Fifty Eight Lacs Ninety Two Thousand Nine Hundred and Thirty Five 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 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.
Tribunal on 12.02.2024.
Pronounced by me in the Open Tribunal.
Dated: 24.01.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount and interest from the borrowers and guarantor.
What uniform rate of interest should be granted in all loan accounts considering market rates.
1 provisions across 1 enactments
HDFC Bank Limited
Sh. Gurlal Singh
Sh. Darshan Singh
Sh. Surjit Singh
Mridulesh Kumar Singh
As recorded by the court registry
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