Allowed

Hdfc Bank Limited v. Sh. Paramjit Singh and Others

DRT16 May 2025OA/1285/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by HDFC Bank against four respondents for recovery of a loan amount of Rs. 30,76,246.14p. The court confirmed the defendants' liability and directed the issue of a recovery certificate, allowing the bank to recover dues through sale of mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 30,76,246.14p jointly and severally with interest at 8% per annum and issuance of a recovery certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1285/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.06.2022

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DATE OF DECISION: 16.05.2025

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 and its Regional Officer at HDFC Bank Ltd., 5^TH Floor, B-21-14570, GT Road, Dholewal Chownk, Ludhiana and having one of its branch office at Patran, District Patiala (Punjab) through its authorized signatory Mrs. Pooja Arora

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……..Applicant

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Versus

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Sh. Paramjit Singh S/o Sh. Nihal Singh, R/o Village Kheri Chandwan, Tehsil and District Sangrur.

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Sh. Karamjit Singh S/o Sh. Nihal Singh, R/o Village Kheri Chandwan, Tehsil and District Sangrur- 148002.

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Sh. Nihal Singh S/o Sh. Arjan Singh, R/o Village Kheri Chandwan, Tehsil and District Sangrur- 148002.

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Sh. Guljar Singh S/o Gurmail Singh, R/o House No. 115, Village Kheri

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Chandwan, Tehsil and District Sangrur- 148002.

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………Defendants

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Advocates:

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Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, Advocate for the applicant None for defendant nos.1 to 3 Defendant no.4 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

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2 OA NO.1285/2022 HDFC BANK LIMITED VS PARAMJIT SINGH AND OTHERS

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Rs.30,76,246.14p (Rupees Thirty Lacs Seventy Six Thousand Two Hundred Forty Six And Paise Fourteen only). The Original Application has been filed through Mrs. Pooja Arora, Manager Legal of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, 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.28.39 Lacs and Term Loan I of Rs.7.00 Lacs vide Loan Application dated 16.12.2013, which is Annexure A2 to this OA and further approached the applicant for restructure of CC limit by conversion into Term Loan II of Rs.1,41,482.00

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The applicant sanctioned the CC Limit of Rs.28.39 Lacs and Term Loan I of Rs.7.00 Lacs vide Sanction Letters dated 23.12.2013, which is Annexures A3 and A4 to this OA and further sanctioned the restructure of CC limit by conversion into Term Loan II of Rs.1,41,482.00 and the terms and conditions were duly accepted by the defendants.

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Defendant nos.1 and 4 had mortgage their immovable property i.e. Land measuring 28 Bigha–16 Biswa situated at Village Kheri Chandwan, Tehsil Sangrur vide Registered Mortgaged deed bearing vasika no.2574 dated 27.12.2013 along with its Translation and Mutation Confirmation dated 28.12.2013, which are Annexures A9 & A10 to this OA.

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Documents executed:- Agreement of Term Loan cum Guarantee Cum Hypothecation, Agreement of Overdraft/Cash Credit cum Guarantee Cum, Demand Promissory Note, Letter of Continuity all dated 27.12.2013, which are Annexures A5 to A8 to this OA; RBI Notification dated 27.03.2020, which is Annexure A11 to this OA; Statements of Accounts with certificate, which are Annexures A12 to A15 to this OA;

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3 OA NO.1285/2022 HDFC BANK LIMITED VS PARAMJIT SINGH AND OTHERS

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Recall notice dated 28.03.2022 along with Postal Receipts, which are Annexures A16 to A20 to this OA and.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.30,76,246.14, 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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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant no.4 and he was proceeded ex-parte on 27.09.2024. Sh. Kamal Dev Sharma, Advocate appeared on behalf of defendant nos.1 to 3 and field his Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendants nos.1 to 3 was closed and defense was struck of on 27.09.2024.

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In support of the OA, affidavit of Mrs. Pooja Arora, Manager Legal, HDFC Bank Limited has been filed. 8. Heard arguments and 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 A20 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, both the 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.30,76,246.14p (Rupees Thirty Lacs Seventy Six Thousand Two Hundred Forty Six And Paise Fourteen only)

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4 OA NO.1285/2022 HDFC BANK LIMITED VS PARAMJIT SINGH AND OTHERS

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along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both 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 @12%p.a. in all from 05.03.2022 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 all 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,76,246.14p (Rupees Thirty Lacs Seventy Six Thousand Two Hundred Forty Six And Paise Fourteen only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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. 12. Any other application pending stands disposed of .

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5 OA NO.1285/2022

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HDFC BANK LIMITED VS PARAMJIT SINGH AND OTHERS

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal

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on 31.05.2025.

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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: 16.05.2025

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

Hdfc Bank Limited v. Sh. Paramjit Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Paramjit Singh and Others

Case brief

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