Allowed

Hdfc Bank Limited v. Kulwant Singh and Others

DRT17 Dec 2024OA/981/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by HDFC Bank Ltd. against four respondents for recovery of Rs. 23,27,391. Proceeded ex-parte due to non-appearance, the court declared the respondents jointly and severally liable for the principal, costs, and adjusted interest at 8% p.a., authorizing recovery via SARFAESI Act provisions or attachment of assets.

What did the court decide?

Recovery certificate issued; respondents liable to pay Rs. 23,27,391 plus costs and interest @8% p.a.; applicant entitled to recover from sale of mortgaged or personal assets.

Hdfc Bank Limited versus Kulwant Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.981/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.08.2024

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DATE OF DECISION: 17.12.2024

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HDFC 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 and branch office amongst other places one at Kapurthala (Pb.), through Sh. Dinesh Kumar, Assistant Manager holder of an attorney from the Applicant.

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……..Applicant

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Versus

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Sh. Kulwant Singh S/o Sh. Kapur Singh, R/o Village Khalu Gopipur, Tehsil and Distt. Kapurthala - 146628.

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Smt. Baljinder Kaur W/o Sh. Kulwant Singh, R/o Village Khalu Gopipur, Tehsil and Distt. Kapurthala - 146628.

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Sh. Nirmal Singh S/o Sh. Kapur Singh, R/o Village Gopipur, Tehsil and Distt. Kapurthala - 146628.

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Sh. Gurmeet Singh S/o Sh. Jagir Singh, R/o Village Khalu Gopipur, Tehsil and Distt. Kapurthala – 146628

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for J.S. Sehgal, Advocate for 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.23,27,391.00 (Rupees Twenty Three Lacs Twenty Seven Thousand Three Hundred Ninety One Only). The Original Application has been filed through Sh. Dinesh Kumar, Assistant Manager o f the applicant,

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who is competent to institute the Original Application vide Power of Attorney dated 17.01.2024, 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 for grant of CC Limit of Rs.21.00 Lacs and OD Limit of Rs.4.00 Lacs vide Loan application dated 12.08.2022, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs.20.70 Lacs and OD Limit of Rs.3.90 Lacs vide Sanction Letters dated 05.09.2022, which is Annexure A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable property i.e. total land measuring 74K-0M detailed as a. land measuring 54K-17M situated at Village Gopipur, H.B.no. 101, Tehsil and Distt. Kapurthala b. land measuring 19K-03M situated at Village Dabulian, H.B.no. 105, Tehsil and Distt. Kapurthala vide Letter to Sub Registrar for creating the charge vide Punjab, vide Declaration under section 4(1) dated 13.09.2022, which is Annexure A7 to this OA.

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Documents executed:-Agreement for overdraft/cash credit cum guarantee cum hypothecation dated 06.09.2022, which are Annexures A5 & A6 to this OA; Notice dated 18.07.2024 with Postal receipts, which are Annexures A8 to A12 to this OA; Statements of loan accounts with Certificate regarding the computer system and the genuineness of the statement of accounts, which are Annexures A13 & A14 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.23,27,391.00 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.

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The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 12.12.2024.

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In support of the OA, affidavit of Sh. Dinesh Kumar, Deputy Assistant Manager, State Bank of India has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 A14 to this OA, it is proved that the defendants 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. 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.23,27,391.00 (Rupees Twenty Three Lacs Twenty Seven Thousand Three Hundred Ninety One Only) along with interest from the defendants, jointly and severally, 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 in relief clause has claimed [email protected]% p.a. with half yearly rests from 03.04.2024 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 loans 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

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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.23,27,391.00 (Rupees Twenty Three Lacs Twenty Seven Thousand Three Hundred Ninety One 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.

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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 31.01.2025.

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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: 17.12.2024

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

Hdfc Bank Limited v. Kulwant Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Kulwant Singh and Others

Case brief

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