Allowed

Hdfc Bank Limited v. Sh. Simranjeet Singh Sandhu

DRT21 Apr 2025OA/1076/2024

Case brief

AI extract

What is this about?

Dr. DRT-III allowed an original application filed by HDFC Bank Limited against two borrowers for recovery of Rs. 29,37,412.00. The court granted uniform simple interest at 8% p.a. in lieu of claimed rates and directed recovery via sale of mortgaged properties under the SARFAESI Act.

What did the court decide?

Declaratory order holding defendants liable to pay Rs. 29,37,412.00 jointly and severally with costs and simple interest @8% p.a. from filing date till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1076/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.08.2024

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DATE OF DECISION: 21.04.2025

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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 Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Pare, Mumbai 400011, whereas its Branch at “Moga, Distrcit Moga (Punjab)” through Ms. Pooja Arora, Senior Manager (Agri Legal), HDFC Bank Limited, Ludhiana Branch, District Ludhiana(Punjab) being Authorized Officer of Applicant

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……..Applicant

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Versus

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Sh. Simranjeet Singh Sandhu S/o Sh. Gajjan Singh, R/o Village Mundi Jamal, Tehsil Dharamkot, District Moga (Punjab) 142043

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Sh. Karaj Singh, S/o Sh. Balkar Singh, R/o H No.418, Village Basti Gobindgarh, Tehsil and District Moga (Punjab) 142043.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bahardwaj, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.29,37,412.00 (Rupees Twenty Nine Lacs Thirty Seven Thousand Four Hundred Twelve Only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agri Legal)o f the applicant bank, 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 defendants had approached the applicant bank for the grant of KCC Limit of Rs.25.00

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2 OA NO.1076/2024 HDFC BANK LIMITED VS SIMRANJEET SINGH SIDHU AND ANOTHER

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Lacs and Term Loan of Rs.7.00 Lacs vide Application Form dated 20.10.2015, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.19.00 Lacs and Term Loan of Rs.5.00 Lacs vide Sanction Letters dated 03.02.2016, which are Annexures A3 and 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. land measuring 44K-2M situated at Mundi Jamal, Hadbast no.106, Tehsil Dharamkot, District Moga (Punjab) vide Letter to Sub Registrar for creation of charge and Declaration U/s 4(1) dated 09.02.2016, which is Annexure A9 to this OA.

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Documents executed:- DP Notes, Agreement for OD/CC cum Guarantee cum Hypothecation and Agreement for Term loan all dated 09.02.2016, which are Annexures A5 to A8 to this OA; Legal Notice dated 20.07.2024, which is Annexure A10 to this OA and Statements of Accounts with certificate, which are Annexure A11 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.29,37,412.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 03.04.2025.

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In support of the OA, affidavit of Sh. Rajendra Prasad, Authorized Representative, HDFC Bank Limited h as 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,

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3 OA NO.1076/2024 HDFC BANK LIMITED VS SIMRANJEET SINGH SIDHU AND ANOTHER

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the applicant bank had proved its case. From the perusal of all the Annexures A1 to A11 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.29,37,412.00 (Rupees Twenty Nine Lacs Thirty Seven Thousand Four Hundred Twelve 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 interest @ 11.00%p.a. plus penal interest @2.00%p.a. from 19.07.2024 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 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 amounts 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.29,37,412.00 (Rupees Twenty Nine Lacs Thirty Seven Thousand

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4 OA NO.1076/2024 HDFC BANK LIMITED VS SIMRANJEET SINGH SIDHU AND ANOTHER

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Four Hundred Twelve 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 17.05.2025

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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.

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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. Simranjeet Singh Sandhu

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Simranjeet Singh Sandhu

Case brief

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What did the court decide?

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