Allowed

Hdfc Bank Limited v. Sh. Kartar Singh and Another

DRT15 May 2025OA/1670/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan principal of Rs.47.93 Lakhs. The court modified the requested interest rate to a uniform simple interest of 8% per annum from the date of filing the application.

What did the court decide?

Recovery of Rs.47,93,021 plus simple interest at 8% p.a. declared; Recovery Certificate issued; claim to be enforced via sale of mortgaged properties.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1670/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 14.10.2022

¶5

DATE OF DECISION: 15.05.2025

¶6

HDFC Bank Limited, a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai- 400013 and branch office amongst other places one at Sardulgarh, Distt. Mansa, through Mrs. Pooja Arora, Manager holder of an attorney from the Applicant.

¶7

……..Applicant Versus

¶8

Sh. Kartar Singh, S/o Sh. Kirpal Singh, R/o House no. 169, Village Rorhki, Tehsil Sardulgarh, Distt. Mansa, Punjab-151507.

¶9

Sh. Sukhwinder Singh S/o Sh. Kartar Singh R/o House no. 169, Village Rorhki, Tehsil Sardulgarh, Distt. Mansa, Punjab-151507.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Sh. J S Sehgal, Advocate for the 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.47,93,021.00 (Rupees Forty Seven Lacs Ninety Three Thousand and Twenty One only). The Original Application has been filed through Mrs. Pooja Arora, Manager o f 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.

¶15

The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit of Rs.13.62 Lacs and Term Loan of Rs.03.88 Lacs vide Application Form dated 02.04.2015, which is Annexure A2 to this OA.

¶16

2 OA NO.1670/2022 HDFC BANK LIMITED VS KARTAR SINGH AND ANOTHER

¶17

The applicant sanctioned the Cash Credit Limit of Rs.13.55 Lacs and Term Loan of Rs.03.57 Lacs vide Sanction Letters dated 11.04.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 40K-00M situated at Village Rorki, Hadbast No.188, Tehsil Sardulgarh, Distt. Mansa, Punjab vide Declaration U/s 4(1) dated 2 0.04.2015, which is Annexure A11 to this OA.

¶18

Documents executed:- Acceptance of Credit Facilities dated 11.04.2015, which is Annexure A4 to this OA; Agreement for Term Loan cum Guarantee cum hypothecation, Agreements for Over Draft/Cash Credit cum Guarantee cum Hypothecation, D P Note, Letter of Continuity, D P Note, Letter of Continuity, Mutation/Rapat Certificate all dated 20.04.2015, which are Annexures A5 to A10 & A12 to this OA; Notice dated 30.07.2022 with Postal Receipts which are Annexures A13 to A15 to this OA and Account Statements with certificate, which are Annexures A16 to A18 to this OA.

¶19

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.47,93,021.00, 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 ex-parte on 08.05.2025.

¶20

In support of the OA, affidavit of Mrs. Pooja Arora, Manager, HDFC Bank Ltd h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned 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

¶21

3 OA NO.1670/2022 HDFC BANK LIMITED VS KARTAR SINGH AND ANOTHER

¶22

Annexures A1 to A18 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 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 is entitled to recover a sum of Rs.47,93,021.00 (Rupees Forty Seven Lacs Ninety Three Thousand and Twenty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @16.00%p.a. plus penal interest @2.00%p.a. with monthly rests from 31.07.2022 till the realization.

¶23

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 loans 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.47,93,021.00 (Rupees Forty Seven Lacs Ninety Three Thousand and Twenty One 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

¶24

¶25

OA NO.1670/2022

¶26

HDFC BANK LIMITED VS KARTAR SINGH AND ANOTHER

¶27

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.

¶28

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶29

Parties to appear before Learned Recovery Officer of this Tribunal on 30.05.2025.

¶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 .

¶32

Dated: 15.05.2025

¶33

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

Hdfc Bank Limited v. Sh. Kartar Singh and Another

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Kartar 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

Union Bank of India versus Smt. Paramjit Saini and Others

Rakesh Thakur and Another versus Union Bank of India and Another

Neetu Thakur and Another versus Union Bank of India and Another

Punjab National Bank versus Messrs Meghraj and Sons and Others

Punjab National Bank versus M/S Anurag Textiles and Others

Punjab Gramin Bank versus Sh. Bikramjit Singh and Others