Allowed

Hdfc Bank Limited v. Messrs Kumar Trading Co. and Others

DRT28 Mar 2025OA/1385/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Chandigarh, allowed an ex-parte original application by HDFC Bank Ltd. for recovery of a dues of Rs. 1.92 crore from defaulting borrowers. The Tribunal issued a recovery certificate permitting attachment and sale of mortgaged properties to realize the amount.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 1.92 crore with 8% simple p.a. interest from date of filing; liberty to enforce via sale of mortgaged properties.

Hdfc Bank Limited versus Messrs Kumar Trading Co. and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1385/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.11.2024

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DATE OF DECISION: 28.03.2025

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HDFC Bank Ltd., a banking company, incorporated under companies act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West) Mumbai-400013, Maharashtra and having one of its branch at SCF- 7-8, Abohar Road, new Grain Market near Railway Station Muktsar, Punjab-152026 through its duly Authorized Signatory Sh. Madhur Sharma, working as Assistant Vice President currently posted at 5^th Floor, B-21-14570, G.T. Road Dholewal Chowk Adjoining, Gulzar Motors, Ludhiana, Punjab.

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……..Applicant

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Versus

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M/s Kumar Trading Company, a sole proprietorship concern having its place of business, Old Grain Market, Jalalabad Road, Muktsar, Punjab-152026 through its Sole Proprietor

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Sh. Satish Kumar S/o Sh. Mukand Lal, sole proprietor, M/s Kumar Trading Co., R/o House No. 2599, Godia Press Street, Opposite Dipty Printing Press, Muktsar, Punjab-152026

¶11

Sh. Ramesh Kumar S/o Sh. Mukand Lal, R/o House No. 683, Swami Dayanand Street, Jalalabad Road, Muktsar, Punjab-152026

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Smt. Veena Rani w/o Sh. Satish Kumar, R/o House No. 2599, Godia Press Street, Opposite Dipty Printing Press, Muktsar, Punjab152026

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Smt. Sita Rani W/o Sh. Ramesh Kumar, R/o House No. 683, Swami Dayanand Street, Jalalabad Road, Muktsar, Punjab-152026

¶14

Sh. Sahil S/o Sh. Satish Kumar, R/o House No. 2599, Godia Press Street, Opposite Dipty Printing Press, Muktsar, Punjab-152026

¶15

2 OA NO.1385/2024 HDFC BANK LIMITED VS M/S KUMAR TRADING COMPANY AND OTHERS

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Sh. Mithan Lal S/o Sh. Mukand Lal, R/o House No. 3028, Kotli Road, Godia Press Street, Muktsar, Punjab-152026

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………Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.1,92,14,152.93p (Rupees One Crore Ninety Two Lacs Fourteen Thousand One Hundred Fifty Two and Paisa Ninety Three only). The Original Application has been filed through Sh. Madhur Sharma, Authorized Signatory, who is competent to institute the Original Application vide Board Resolution dated 22.11.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietors h ad time to time approached the applicant for the grant of CC Limit of Rs. 60.00 Lacs and further for its renewal and enhancement to Rs. 140.00 Lacs. The defendants again approached the applicant for the grant of WCTL/GECL Limit of Rs.19.50 Lacs and its renewal.

¶23

The applicant sanctioned CC Limit of Rs. 60.00 Lacs and further for its renewal and enhancement to Rs. 140.00 Lacs vide Sanction letters dated 22.03.2011, 27.01.2012, 07.01.2013, 14.01.2014, 06.01.2015, 27.11.2015, 20.01.2017, 15.01.2018, 20.09.2018, 13.02.2019, 06.03.2019, 10.12.2019, 13.06.2020, 16.12.2020 and 06.12.2022, which are Annexures A2 to A8, A10, A11, A21, A22, A30, A32, A39 & A47 to this OA and applicant further sanctioned WCTL/GECL Limit of Rs.19.50 Lacs and its renewal vide Sanction Letter

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3 OA NO.1385/2024 HDFC BANK LIMITED VS M/S KUMAR TRADING COMPANY AND OTHERS

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dated 27.01.2022, which is Annexure A40 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. (i) All part and parcel of Commercial Property measuring 100 sq. yards situated at Old Grain market, Muktsar, Punjab vide Equitable Mortgage of Registered Sale Deed bearing vasika no. 4689 dated 28.02.2005 along with its English Translation, which is Annexure A17 to this OA.

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(ii) All part and parcel of Commercial Property measuring 100 sq. yards situated at Old Grain market, Jalalabad Road, Abadi Jadid, Muktsar I, Punjab vide Equitable Mortgage of Transfer deeds bearing vasika no. 2021-22/53/1/740 dated 21.04.2021 and vasika no. 202122/53/1/313 dated 22.04.2021 along with their English Translation, which is Annexure A41 to this OA

¶28

(ii) Property measuring 16M-02Sarsahi situated at Madan Colony, Street No. 4, Maur Road, Sri Muktsar Sahib I, Hadbast no.54, Tehsil and District Muktsar, Punjab vide Registered Title Deed bearing vasika no. 2021-22/53/1/1676 dated 28.07.2021 along with its English Translation, which is Annexure A43 to this OA.

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(iii) Property measuring 63 sq. yards situated in area opposite Baba Khetarpal mandir, Old grain market, near Jalalabad Road Abadi Jadid Muktsar, Punjab vide Registered Transfer Deed bearing vasika no. 2022-23/53/1/1451 dated 05.07.2022 along with its English Translations, which is Annexure A44 to this OA. Documents executed:- Amendment Agreement dated 20.01.2017, which is Annexure A9 to this OA; DP Note, Supplemental Agreement, Supplementary letter of Hypothecation, Power of Attorney, Letter of continuing security, Deed of Indemnity, Memorandum, Declarationcum indemnity, Letter of Continuing Guarantee all dated 20.09.2018, which are Annexures A12 to A16, A18 to A20 to this OA; DP Note,

¶30

Master facility agreement, Letter of continuing security, deed of

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4 OA NO.1385/2024 HDFC BANK LIMITED VS M/S KUMAR TRADING COMPANY AND OTHERS

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indemnity, Memorandum, Declaration-cum-indemnity, Continuing Guarantee all dated 06.03.2019, which are Annexures A23 to A29 to this OA; Addendum dated 10.10.2019, which is Annexure A31 to this OA; Facility agreement, Supplemental Deed of Hypothecation, Declaration cum Undertaking, Supplementary letter of Continuing Guarantee, Memorandum, Declaration-cum-Indemnity all dated 13.06.2020, which are Annexures A33 to A38 & A46 to this OA; Memorandum dated 24.08.2022 and 06.09.2022, which are Annexures A42 & A45 to this OA; Legal Notices dated 02.08.2023 with Postal Receipts, which is Annexure A48 to this OA; Demand Notice dated 05.10.2023, which is Annexure A49 to this OA and Statement of Account along with Valuation Report, which are Annexures A50 to A53 to this OA;

¶33

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.1,92,14,152.93p, 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.

¶34

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 11.03.2025.

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In support of the OA, affidavit of Sh. Madhur Sharma, Authorized Signatory, HDFC Bank Ltd has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A53 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

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5 OA NO.1385/2024 HDFC BANK LIMITED VS M/S KUMAR TRADING COMPANY AND OTHERS

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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 Rs.1,92,14,152.93p (Rupees One Crore Ninety Two Lacs Fourteen Thousand One Hundred Fifty Two and Paisa Ninety Three only) 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.

¶41

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18.00%p.a. with monthly rests from 06.08.2024 till the realization.

¶42

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 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.1,92,14,152.93p (Rupees One Crore Ninety Two Lacs Fourteen Thousand One Hundred Fifty Two and Paisa Ninety Three 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

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6 OA NO.1385/2024 HDFC BANK LIMITED VS M/S KUMAR TRADING COMPANY AND OTHERS

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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 .

¶46

Issue Recovery Certificate accordingly.

¶47

Parties to appear before Learned Recovery Officer of this Tribunal on 29.04.2025.

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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.

¶49

Pronounced by me in the open Tribunal .

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Dated: 28.03.2025

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

Hdfc Bank Limited v. Messrs Kumar Trading Co. and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Messrs Kumar Trading Co. and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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