Allowed

Hdfc Bank Ltd. v. Gurpal Singh and Another

DRT21 Jan 2025OA/278/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery under Section 19 RDBFI Act, 1993. It declared the defendants jointly and severally liable to repay the outstanding debt including a uniform simple interest of 8% per annum.

What did the court decide?

Allowed application, declared liability to pay Rs.21,05,678.61 with 8% p.a. interest, and ordered issuance of Recovery Certificate.

Hdfc Bank Ltd. versus Gurpal Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.278/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.02.2023

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DATE OF DECISION: 21.01.2025

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel-(West), Mumbai-400013 and having its Branch Office at Bhikhiwind, Amritsar Road, Tehsil Patti, Distt. Tarn Taran Punjab and also at HDFC Bank Ltd. Plot No.I-15, Sector 101, Alpha IT City, Mohali, District S.A.S. Nagar, Punjab through its Authorised Representative, Mr. Harminder Pal Singh.

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.. … …..Applicant

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Versus

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1. Sh. Gurpal Singh S/o Sh. Karnail Singh R/o H.No.61, Kotali Wasawa Singh, Tehsil Patti, District Tarn Taran, Punjab-152123.

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2. Sh. Sukhdev Singh S/o Sh. Karnail Singh R/o H.No.61, Kotali Wasawa Singh, Tehsil Patti, District Tarn Taran, Punjab-152123.

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….……Defendants

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Advocates: Argued by Sh. Tarunjit Singh Grewal, Advocate for Applicant (through VC) Defendants is 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.21,05,678.61p (Rupees Twenty One Lacs Five Thousand Six Hundred Seventy Eight And Paise Sixty One Only). The Original Application has been filed through Mr. Harminder Pal Singh, Authorised Representative 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.7.98 Lacs and Term Loan Limit of Rs.3.33 Lacs vide Loan Application dated

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13.06.2013, which is Annexure A2 to this OA. Further, defendants again approached the applicant for the enhancement of CC Limit to Rs.15.00 Lacs and Term Loan of Rs.3.90 Lacs vide Loan Application dated 23.12.2014, which is Annexure A3 to this OA.

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The applicant sanctioned CC Limit of Rs.7.97 Lacs and Term Loan Limit of Rs.3.25 Lacs vide Sanction Letter dated 19.06.2013, which is Annexure A4 to this OA. Further, applicant again sanctioned enhancement of CC Limit to Rs.15.00 Lacs and Term Loan Limit of Rs.3.90 Lacs vide Sanction Letter dated 29.12.2014, which is Annexure A5 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. total land measuring 72K-00M situated at Village Kotali Wasawa Singh, H.B. No.200, Tehsil Patti, District Tarn Taran, Punjab vide Registered Mortgaged Deed bearing vasika no.1433 dated 26.06.2013 and Declaration under Section 4(1), which are Annexures A17 & A18 to this OA.

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Documents executed:-Agreement for Cash Credit & Term Loan both dated 29.12.2014, which are Annexures A6 & A7 to this OA; Agreement for Cash Credit & Term Loan both dated 27.06.2013 & 02.01.2015, which are Annexures A8 to A11 to this OA; Letter of Acknowledgement dated 12.08.2020, which is Annexure A12 to this OA; D.P. Notes with Letter dated 02.01.2015 & 27.06.2013, which are Annexures A13 to A16 to this OA; Title Search Reports dated 29.06.2013 & 02.01.2015, which are Annexures A19 & A20 to this OA; Bar Related Certificated, which are Annexures A21 & A22 to this OA; Affidavit dated 02.01.2015, which is Annexure A23 to this OA; Demand Notice along with postal receipt dated 05.12.2022, which is Annexure A24 to this OA and Statements of Accounts along with Certificate under Bankers Book of Evidence, which are Annexures A25 & A26 to this OA.

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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.21,05,678.61p, 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 defendants and they were proceeded 10.01.2025.

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In support of the OA, affidavit of Mr. Harminder Pal Singh, Authorised Representative, HDFC Bank Limited, has been filed.

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Heard arguments and perused record.

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It was argued by learned 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 Annexures A1 to A26 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 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.21,05,678.61p (Rupees Twenty One Lacs Five Thousand Six Hundred Seventy Eight And Paise Sixty 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.

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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 @12.00%p.a. in CC Limit with penal interest @16%p.a. with half yearly rests from 02.10.2022 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 @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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,05,678.61p (Rupees Twenty One Lacs Five Thousand Six Hundred Seventy Eight And Paise Sixty One 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 amount from the 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.03.2025.

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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 . Dated: 21.01.2025

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

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Hdfc Bank Ltd. v. Gurpal Singh and Another

Case brief

What is this about?

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Hdfc Bank Ltd. v. Gurpal Singh and Another

Case brief

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