Allowed

Hdfc Bank Limited v. Parkash Singh and Others

DRT4 Jan 2025OA/1024/2024

Case brief

AI extract

What is this about?

In an original application for recovery of dues under the RDB Act, the Tribunal, after noting ex-parte defendants and established loan default, allowed the bank's claim for Rs.29,39,791. The Tribunal directed recovery from mortgaged properties and modified interest rates to 8% p.a. simple interest.

What did the court decide?

Recovery of Rs.29,39,791.00 with 8% p.a. simple interest; Issue of Recovery Certificate; Enforcement against properties/assets.

Hdfc Bank Limited versus Parkash Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1024/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.08.2024

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DATE OF DECISION: 04.01.2025

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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 House Senapati Bapat Marg, Lower Parel, Mumbai-400013 and branch office amongst other places one at Sardulgarh, District Mansa, Punjab, through Mrs. Pooja Arora, Manager holder of an attorney from the applicant.

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……..Applicant

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Versus

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1. Sh. Parkash Singh S/o Sh. Lakhwinder Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507 (Since Deceased represented by LRs)

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1(a) Smt. Sukhwinder Kaur W/o Sh. Lakhwinder Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507.

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1(b) Smt. Amarjeet Kaur W/o Sh. Parkash Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507.

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1. Sh. Lakhwinder Singh S/o Jaginder Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507.

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1. Sh. Nirmal Singh S/o Sh. Joginder Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507.

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1. Sh. Parvinder Singh S/o Sh. Nirmal Singh R/o Village Jhanda Kalan, Tehsil Sardulgarh, District Mansa-151507.

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1. Sh. Nirmaljeet Singh S/o Sh. Balwant Singh R/o Village Jhanda

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Kalan, Tehsil Sardulgarh, District Mansa-151507.

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….……Defendants Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. J. S. Sehgal, 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.29,39,791.00 (Rupees Twenty Nine Lacs Thirty Nine Thousand Seven Hundred Ninety One only). The Original Application has been filed through Mrs. Pooja Arora, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 to 5 had approached the applicant for the grant of Agriculture Cash Credit Limit of Rs.25.55 Lacs vide Application Form dated 19.05.2017, which is Annexure A2 to this OA.

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The applicant sanctioned the Agriculture Cash Credit Limit of Rs.25.55 Lacs vide Sanction Letter dated 15.06.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No. 1 had mortgaged his immovable properties i.e. total land measuring 80K-00M situated in the area of village Jhanda Kalan, Tehsil Sardulgarh, Punjab vide Letter to Sub Registrar for creation of charge, Declaration under section 4 (1) and Mutation Certificate dated 21.06.2017 along with their Translations, which is Annexure A5, A6 & A7 to this OA.

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Documents executed:- Agreement for Overdraft/Cash Credit cum Guarantee Cum Hypothecation dated 27.06.2017, which is Annexure A4 to this OA; Notice dated 20.07.2024 along with and postal Receipts, which are Annexures A8 to A15 to this OA and Statement of Loan Account along with certificate under Bankers Book of evidence Act, 1891, which is Annexure A16 to this OA.

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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.29,39,791.00, which is recoverable and the defendants

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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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 01.01.2025

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In support of the OA, affidavit of Mrs. Pooja Arora, Manager, HDFC Bank Limited 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 A16 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.29,39,791.00 (Rupees Twenty Nine Lacs Thirty Nine Thousand Seven 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 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 @12.00%p.a. with half yearly rests from 02.04.2024 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

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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 @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.29,39,791.00 (Rupees Twenty Nine Lacs Thirty Nine Thousand Seven Hundred Ninety One 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.

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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 10.02.2025.

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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: 04.01.2025

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

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Hdfc Bank Limited v. Parkash Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Parkash Singh and Others

Case brief

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