Allowed

Hdfc Bank Limited v. M/S Orbit Knit Fab and Others

DRT8 Jan 2025OA/1056/2024

Case brief

AI extract

What is this about?

The DRT, Chandigarh allowed an original application filed by HDFC Bank Ltd for recovery of Rs. 1.59 Crore. The court issued a recovery certificate declaring the defendants liable jointly and severally to pay the principal amount, costs, and future simple interest at 8.00% per annum from the filing date till realization.

What did the court decide?

Recovery Certificate issued; Defendants ordered to jointly and severally pay Rs. 1,59,56,816.05 plus costs and simple interest at 8.00% p.a. from filing till realization.

Hdfc Bank Limited versus M/S Orbit Knit Fab and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1056/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:15.08.2024

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DATE OF DECISION: 08.01.2025

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HDFC Bank Limited, having its registered office at Senapati Bapat Marg, Lower Parel (West) Mumbai-400013, also at: Plot No.I-15, Sector-101, ALPHA IT City, SAS Nagar (Mohali) Through its authorized representative Mr. Rajendra Prasad.

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……..Applicant

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Versus

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M/s Orbit Knit Fab, Through its Proprietor Sh. Subhash Chander, H.No.152/A, Street No.5, 33 Feet Road, Sai Enclave, Bhamian Kalan, Ludhiana (Punjab)-141015.

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Sh. Subhash Chander S/o Sh. Ranveer Singh, R/o H.No.152/A, Street No.5, 33 Feet Road, Sai Enclave, Bhamian Kalan, Ludhiana (Punjab)-141015.

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Sh. Satnam Singh S/o Sh. Mangat Singh R/o House No.427, Ward No.2, Sahnewal, Kalan Bir, Sahnewal, Ludhiana (Punjab)-141120.

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….……Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Gagandeep Toni, 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.1,59,56,816.05p (Rupees One Crore Fifty Nine Lacs Fifty Six Thousand Eight Hundred Sixteen And Five Paisa only). The Original Application has been filed through Mr. Rajendra Prasad, authorized representative of the applicant, who is competent to institute the Original Application vide Board Resolution dated 15.04.2023, 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 the grant of CC Limit of Rs.70.00 Lacs vide Loan

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Applications dated 05.09.2022, which is Annexure A2 to this OA and further for its enhancement to Rs.1.50 Crore.

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3. The applicant sanctioned the CC Limit of Rs.70.00 Lacs vide
Sanction Letters dated 05.09.2022/02.09.2022, which isAnnexure A3 to this OA and further applicant sanctioned the enhancement of CC Limit
from Rs.70.00 Lacs to Rs.1.50 Crore vide Sanction Letter dated
06.02.2023, which isAnnexure A8to this OA and the terms and
conditions were duly accepted by the defendants.
4. Defendant no.1 had hypothecated its movable assets i.e. Stocks and Books Debt vide Copy of Hypothecation Deed dated 07.02.2023, which areAnnexures A5 & A11to this OA. Documents executed:- Master Facility Agreement, which isAnnexure
A4to this OA; Copy of Letter of Continuing Guarantee dated
05.09.2022, which isAnnexure A6to this OA; Copy of Undertaking
dated 06.09.2022, which isAnnexure A7to this OA; Copy of
Supplementary Agreement, Copy of Supplementary Letter of Guarantee
Agreement, Copy of Continuing Security, Copy of Demand Promissory
Note all dated 07.02.2023, which areAnnexures A9, A10, A12 & A13
to this OA; Copy of Legal Notice dated 30.07.2023 with postal receipts, which areAnnexures A14 to A17to this OA and Statement of Account with certificate, which isAnnexure A18to this OA.
5. 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.1,59,56,816.05p, 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.
6. 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 04.01.2025.
7. In support of the OA, affidavit of Mr. Rajendra Prasad, authorized
representative, HDFC Bank Limited,has been filed.
8. 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 A18 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.1,59,56,816.05p (Rupees One Crore Fifty Nine Lacs Fifty Six Thousand Eight Hundred Sixteen And Five Paisa 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.30%p.a. (including 2.00%p.a. penal interest) from 16.08.2024 till the realization. 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,59,56,816.05p (Rupees One Crore Fifty Nine Lacs Fifty Six Thousand Eight Hundred Sixteen And Five Paisa 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

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.02.2025.

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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. Pronounced by me in the open Tribunal . Dated: 08.01.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Orbit Knit Fab and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Orbit Knit Fab and Others

Case brief

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What did the court decide?

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