Allowed

Hdfc Bank Limited v. Baljinder Singh and Another

DRT28 Mar 2025OA/1101/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applications filed by HDFC Bank Limited to recover ₹23,38,988 from two borrowers who failed to repay loans secured by property mortgage. The court ordered a simple interest rate of 8% per annum.

What did the court decide?

Directing the recovery of the principal amount of Rs.23,38,988 along with simple interest at 8% per annum and issuance of a Recovery Certificate.

Hdfc Bank Limited versus Baljinder Singh and Another — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1101/2024

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 03.09.2024

¶5

DATE OF DECISION: 28.03.2025

¶6

HDFC Bank Limited, a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 having its Registered Office at HDFC Bank House, Senapati Bapat Marg, lower Parel, Mumbai-400013 whereas its branch at “Talwandi Bhai, District Ferozepur (Punjab)” through Dinesh Kumar, Deputy Manager (Agri. Legal), H.D.F.C. Bank Ltd., Regional Office, Mohali, District Mohali (Punjab) being Power of Attorney Holder/Authorized Officer of applicant.

¶7

.. … …..Applicant Versus

¶8

Sh. Baljinder Singh S/o Sh. Surjit Singh R/o Village Jhandeana Garbi, Tehsil & District Moga (Punjab)-142028.

¶9

Sh. Gurjit Singh S/o Sh. Jagtar Singh R/o Village Jhandeana Garbi, Tehsil & District Moga (Punjab)-142028.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bhardwaj, Advocate for Applicant Defendants are ex parte

¶13

FINAL ORDER

¶14

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.23,38,988.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Nine Hundred Eighty Eight Only). The Original Application has been filed through Sh. Dinesh Kumar, Deputy Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.01.2024, which is Annexure A1 to this OA.

¶15

2 OA NO.1101/2024 HDFC BANK LIMITED VS BALJINDER SINGH AND ANOTHER

¶16

The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of CC Limit of Rs.4.00 Lacs and Dropline Overdraft of Rs. 10.00 Lacs and Term Loan of Rs.8.00 Lacs vide Loan Application dated 20.01.2016, which is Annexure A2 to this OA. Further, defendant no.1 again approached the bank for another OD Limit of Rs.1.50 Lacs vide Application Form dated 01.07.2016, which is Annexure A10 to this OA and further approached the bank for converting the Term Loan to Overdraft of Rs.8.00 Lacs vide Application Form dated 04.02.2019, which is Annexure A14 to this OA. Thereafter, defendant no.1 approached the bank for enhancement of CC Limit to Rs.10.00 Lacs vide Loan Application dated 02.06.2020, which is Annexure A17 to this OA.

¶17

The applicant sanctioned CC Limit of Rs.4.00 Lacs and Dropline Overdraft of Rs. 10.00 Lacs and Term Loan Limit of Rs.8.00 Lacs vide Sanction Letters dated 30.01.2016, which are Annexures A3 to A5 to this OA. Further, applicant sanctioned for another OD Limit of Rs.1.50 Lacs vide Sanction Letter dated 02.07.2016, which is Annexure A11 to this OA and further sanctioned for converting the Term Loan to Overdraft of Rs.8.00 Lacs vide Sanction Letter dated 07.02.2019, which is Annexure A15 to this OA. Thereafter, applicant sanctioned for enhancement of CC Limit to Rs.10.00 Lacs vide Sanction Letter dated 24.06.2020, which is Annexure A18 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable property i.e. total land measuring 44K-00M situated at Village Jhandeana Garbi, H.B. No. 69, Tehsil & District Moga vide Mortgaged Deed dated 02.02.2016, which is Annexure A9 to this OA. Documents executed:-Agreements for Overdraft/cash credit cum guarantee cum hypothecation & Agreement for Term Loan cum Guarantee cum Hypothecation dated 04.02.2016, which are

¶18

3 OA NO.1101/2024 HDFC BANK LIMITED VS BALJINDER SINGH AND ANOTHER

¶19

Annexures A6 to A8 to this OA; D.P. Note with Letter of Continuity & Agreement for Overdraft/cash credit cum guarantee cum hypothecation, dated 05.07.2016, which are Annexures A12 & A13 to this OA; Agreements for Overdraft/cash credit cum guarantee cum hypothecation dated 08.02.2019, which is Annexure A16 to this OA; Agreements for Overdraft/cash credit cum guarantee cum hypothecation & Addendum dated 24.06.2020, which are Annexures A19 & A20 to this OA; Legal Notice along with postal receipt dated 20.07.2024, which is Annexure A21 to this OA and Statements of Accounts along with Certificate under Bankers Book of Evidence, which are Annexures A22 to A24 to this OA.

¶20

The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.23,38,988.00, 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 06.03.2025.

¶21

In support of the OA, affidavit of Sh. Dinesh Kumar, Deputy Manager, HDFC Bank Limited, has been filed. 8. Heard arguments and perused record.

¶22

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A24 to this OA, it is proved that the defendants approached applicant bank 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 bank. The defendants failed to pay back

¶23

4 OA NO.1101/2024 HDFC BANK LIMITED VS BALJINDER SINGH AND ANOTHER

¶24

the loans 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 bank is entitled to recover a sum of Rs.23,38,988.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Nine Hundred Eighty Eight 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.

¶25

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. along with penal interest @2%p.a. with half yearly rests from the 12.07.2024 till the realization.

¶26

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 @08.00%p.a. in 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.

¶27

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,38,988.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Nine Hundred Eighty Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid

¶28

5 OA NO.1101/2024 HDFC BANK LIMITED VS BALJINDER SINGH AND ANOTHER

¶29

amount from the sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.04.2025.

¶30

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.

¶31

Pronounced by me in the open Tribunal . Dated: 28.03.2025

¶32

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

Hdfc Bank Limited v. Baljinder Singh and Another

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Baljinder Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Ltd. versus Sh. Baldev Singh

Punjab National Bank versus M/S Ps Doaba Auto Industries

Axis Bank Ltd. versus Mk Enterprises

Hdfc Bank Limited versus Messers Deep Medical Agencies and Others

Hdfc Bank Limited versus H S Enterprises

Hdfc Bank Limited versus Messrs Kumar Trading Co. and Others