Allowed

Hdfc Bank Limited v. Sh. Nisan Singh and Others

DRT21 Apr 2025OA/1021/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application by HDFC Bank Ltd. for recovery of a principal sum of approx. Rs. 36.31 lakhs along with interest due from four defendants who had defaulted on loan accounts.

What did the court decide?

Recovery certificate issued directing repayment of Rs. 36,31,355.75 plus 8% p.a. interest; enforcement via sale of mortgaged or personal assets permitted.

Hdfc Bank Limited versus Sh. Nisan Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1021/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.08.2024

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DATE OF DECISION: 21.04.2025

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HDFC Bank Limited, having its Registered Office at: Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 having its Branch Office at: Bhikhwind Amritsar Road, Punjab Tarn Taran, Punjab also at: HDFC Bank Ltd. Plot No.1-15, Sector-101, ALFA IT City, Mohali, Punjab160062 through its Authorized Representative, Mr. Dinesh Kumar

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……..Applicant

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Versus

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Sh. Nishan Singh S/o Sh. Mohan Singh R/o H.No. 110, Chungh Patti, Tarn Taran

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Sh. Nanak Singh S/o Sh. Mohan Singh R/o H.No. 110, Chungh Patti, Tarn Taran

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Sh. Jagjit Singh S/o Sh. Mohan Singh R/o H.No. 110, Chungh Patti, Tarn Taran

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Sh. Hardiyal Singh S/o Sh. Mahinder Singh R/o H.No. 96, Chungh Patti, Tarn Taran

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….……Defendants

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Advocates:

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Argued by Sh. Sahaj Punj, Advocate proxy for Sh. Iqbal Mohammed, Advocate 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.36,31,355.75p (Rupees Thirty Six Lacs Thirty One Thousand Three Hundred Fifty Five and Seventy Five Paise only). The Original Application has been filed through Mr. Dinesh Kumar, Authorised Representative, 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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2 OA/1021/2024 HDFC BANK LTD. VS. NISAN SINGH AND OTHERS

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The brief facts of the OA are that the defendant Nos. 1 & 2 had approached the applicant for the grant of CC Limit Rs.13.80 Lacs and Term Loan under KCC/KGC Scheme of Rs.4.50 Lacs and further enhancement of KCC Limit to Rs.17.94 Lacs vide Loan Applications dated 25.01.2012 and 04.02.2017, which are Annexures A2 & A10 to this OA.

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The applicant sanctioned the defendant Nos. 1 & 2 had approached the applicant for the grant of KCC Limit Rs.13.80 Lacs and Term Loan of Rs.4.50 Lacs and further sanctioned the enhancement of KCC Limit to Rs.17.94 Lacs vide Sanction Letters dated 28.03.2017, which is Annexures A11 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 & 3 had mortgaged their immovable properties i.e. total land measuring 80K-0M situated at Village Chung, Tehsil Patti, District Tarn Taran, Punjab bearing vasika No.2459 vide Mortgaged Deed dated 01.02.2012, which is Annexure A7 t o this OA. Documents executed:- Copies of Agreements for CC & OD Limit dated 30.06.2021, which are Annexures A3, A4, A12 & A13 to this OA; Copies of Demand Promissory Notes dated 03.02.2012, which are Annexures A5 & A6 to this OA; Copy of Title Search Report dated 01.02.2012, which is Annexure A8 to this OA; Copy of Affidavit dated 17.01.2012, which is Annexure A9 to this OA; Copy of Recall dated 27.02.2023, which is Annexure A14 to this OA; Copies of Statement of Accounts dated 20.06.2024, which are Annexures A15 & A16 to this OA and Copy of Certificate dated 05.08.2024, which is Annexure A17 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 both the loan accounts there was a debit of Rs.36,31,355.75p, 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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3 OA/1021/2024 HDFC BANK LTD. VS. NISAN SINGH AND OTHERS

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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 03.04.2025. 7. In support of the OA, affidavit of Mr. Dinesh Kumar, Authorised Representative, Principal Officer and Authorised Signatory , HDFC Bank Limited, h as been filed.

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Heard arguments. 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 had proved its case. From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.36,31,355.75p (Rupees Thirty Six Lacs Thirty One Thousand Three Hundred Fifty Five and Seventy Five Paise 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. in CC Limit along with penal interest @16.00%p.a. and @14.00%p.a. in Term Loan along with penal interest @24.00%p.a. with half yearly rests in both the loan accounts from 21.06.2024 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 defendants, quantum of loan and prevalent market rates of interest

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4 OA/1021/2024 HDFC BANK LTD. VS. NISAN SINGH AND OTHERS

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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 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.

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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.36,31,355.75p (Rupees Thirty Six Lacs Thirty One Thousand Three Hundred Fifty Five and Seventy Five Paise 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 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.

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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 16.05.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 21.04.2025.

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

Hdfc Bank Limited v. Sh. Nisan Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Nisan Singh and Others

Case brief

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