In an application under Section 19 RDBFI Act, 1993, the Tribunal allowed the bank's application for recovery of outstanding vehicle loan dues from defendants who remained absent.
Recovery Certificate issued; Defendants liable to pay Rs.51,07,375.41 with 8% p.a. simple interest from filing of OA.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 1331/2024
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 12.11.2024
DATE OF DECISION: 05.06.2025
HDFC Bank Limited, having its registered office at Senapati Bapat Marg, Lower Parel–(West) Mumbai-400013 Also at Plot No.1-15, Sector-101, Alpha IT City, SAS Nagar, (Mohali) Through its authorized representative Mr. Rajendra Prasad.
….……Defendants
Advocates:
Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, Advocate for Applicant (through VC) Defendants are ex parte
FINAL ORDER
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.55,10,567.16p (Rupees Fifty Five Lacs Ten Thousand Five Hundred Sixty Seven And Sixteen Paise 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 Copy of Board resolution dated 15.04.2023, which is Annexure A1 to this OA.
Vehicle Loan II of Rs.21.00 Lacs & Vehicle Loan III of Rs.13.00 Lacs and
2
Vehicle Loan IV of Rs.52.00 Lacs and the terms and conditions were duly accepted by the defendants. 4. Defendants had hypothecated Four Vehicle namely i.e. I. Model INNOVA CRYSTA, Chassis No. MBJGB8EM602003856, Registration No. PB10FU8217 & Engine No.2GDA016466 II. Model TATA LPT 3118 Chassis No. MAT466422E5G07450, Registration No. PB06V9798 & Engine No.41F84169649 III. Model BHARAT BENX 4828 RBS VI Chassis No. MEC909FFDPP139144, Registration No. PB10JD9313 & Engine No.926956D0145131 Vide details of vehicle filed in compliance of the orders dated 28.03.2025 and 08.05.2025 vide diary no.8587 dated 03.06.2025. Documents executed :- Copy of agreement for loan and guarantee dated 23.08.2022, 30.11.2022 & 06.07.2023, which are Annexures A6 to A9 to this OA. Statement of account dated 16.10.2024, which are Annexures A10 to A13 to this OA and Legal notice dated 21.10.2024, which are Annexures A14 to A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.55,10,567.16p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded 12.06.2024. 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. 9. It was argued by learned proxy counsel (through Video Conferencing) 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 Annexure A1 to A16 to this OA, it is
3
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 the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA.
On 03.06.2025 an affidavit filed vide diary no.8587 by Sh. Rajendra Prasad, Authorized Officer of applicant and deposed that out of four accounts one account has been closed. After the adjustment of amount received, now total outstanding is Rs.51,07,375.41p (Fifty One Lacs Seven Thousands Three Hundred Seventy Five and Paise Fourty One only) as on 16.10.2024 .
From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.51,07,375.41p (Fifty One Lacs Seven Thousands Three Hundred Seventy Five and Paise Fourty 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 accounts.
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 defendant, 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 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.
4
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendants were liable to repay the outstanding loan amounts and interest.
What rate of interest was appropriate to be granted considering market rates and mortgaged properties.
2 provisions across 2 enactments
HDFC Bank Limited
Sh. Pankaj Sanchar S/o Sh. Rattan Pal
Sh. Deepak Sachar S/o Sh. Rattan Pal
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
