Allowed

Hdfc Bank Limited v. Sanjay Jain

DRT27 Jun 2024TA/2952/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal-I, Delhi allowed an original application filed by HDFC Bank Limited for recovery of dues against Sh. Sanjay Jain. The defendant was absent and proceeded ex-parte. The Tribunal granted recovery of the principal amount with interest at 12% per annum.

What did the court decide?

Allowed the original application; directed the defendant to pay Rs. 20,60,297.23 with interest @12% per annum and costs within 30 days.

Hdfc Bank Limited versus Sanjay Jain — Contract and Commercial Disputes | DRT (2024)

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T.A. No.2952 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 2952 of 2022

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HDFC Bank Limited

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Plot No.31, Ist Floor, Tower A, Najafgarh Industrial Area, Shivaji Marg, Moti Nagar New Delhi-110015

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Applicant

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Versus

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Sh.Sanjay Jain 6, Lucky Home Apartment Near Park, Rohini Sector 13 Delhi Cantt., Delhi-110085

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Also at:

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Paras Poly n Print DSIDC K-120, K Block Sector R-2, Sawana Industrial Area Delhi-110039 Defendant

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Present: Ms Simran Verma, Counsel for the applicant bank

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Date of Institution: 16.03.2022

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Date of Pronouncement: 27.06.2024

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FINAL ORDER

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This original application has been filed by the applicant bank on 16.03.2022 before DRT-III Delhi & then transferred to DRT-I DO-1i through Sh. Shambhu Kumar Jha, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Bankruptcy Act, 1993

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T.A. No.2952 of 2022

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against the defendant for recovery of a sum of Rs.20,60,297.23 (Rupees Twenty lacs Sixty Thousand Two Hundred Ninety Seven and paisa Twenty Three only) along with pendentelite and future interest ©18.00°/0 per annum with monthly rest from date of filing of this original application till the date of realization and costs.

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The brief facts of the case are that at the request of defendant, the applicant bank sanctioned Business Loan of Rs.20.00 lacs (Rupees Twenty lacs only) on 31.08.2019 @16.40% interest to be repayable in 68 EMI of Rs.54,623/and another Loan under GECL Scheme of Rs.3,55,421/@8.25% interest per annum repayable in 48 EMI of Rs.11,179/- on 16.07.2020 under Emergency Credit Line Guarantee Scheme (ECLGS) for business purpose. In case of default, the defendant agreed to charge interest @18% per annum interest on overdue amount.

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That in order to avail the said loan facility, the defendants executed Loan application Form dated 21.08.2019, Loan Agreement, Sanction Letters, Facility Agreement dated 31.08.2019 & 16.07.2020 with the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions and despite several request and reminders, failed to pay the outstanding dues and monthly installments in time to the applicant bank. The applicant bank terminated the agreements and recall the loan through legal notice dated 24.02.2022 to adjust the outstanding amount along with interest but defendant has failed to comply with the notice and clear the outstanding

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sd-

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T.A. No.2952 of 2022

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dues. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 20.02.2024, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Shambhu Kumar Jha, authorized representative of the applicant bank who has proved the documents as Board Resolution Exhibit AW1/1, Original Loan Application Exhibit AW1/2, Original Loan Agreement Exhibit AW1/3, Sanction Letter and Facility Agreement Exhibit AW1/4(Colly), Legal notice dated 24.02.2022 along with Postal Receipts Exhibit AW1/5(Colly), Delivery Reports Exhibit AW1/6(Colly), Statement of account along with Foreclosure / Prepayment Letters duly certified under Bankers' Book of Evidence Act Exhibit AW1/7(Colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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T.A. No.2952 of 2022

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.20,60,297.23 (Rupees Twenty lacs Sixty Thousand Two Hundred Ninety Seven and paisa Twenty Three only) along with pendentelite and future interest @12.00% per annum with monthly rests and costs from date of filing of this application. In case of shortfall/ default, the same shall be recovered from the sale of movable and immovable assets of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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T.A. No.2952 of 2022

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(III)^{Parties are directed to appear before the Recovery} Officer, DRT I, Delhi on 26.08.2024.

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(IV)^{Copies of final order as well as Recovery Certificate be} sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 27.06.2024