Allowed

Hdfc Bank Limited v. Sh. Nirvair Singh

DRT1 Mar 2025OA/489/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by HDFC Bank Limited for recovery of Rs.33,14,127.01p from two defendants for loans classified as NPA. The court awarded a uniform simple interest rate of 8% p.a. and directed recovery through sale of hypothecated or personal assets.

What did the court decide?

Granted recovery of Rs.33,14,127.01p with current and future simple interest @ 8% p.a., recoverable from sale of hypothecated/mortgaged or personal assets of defendants.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.489/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2024

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DATE OF DECISION: 01.03.2025

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HDFC Bank Limited, having its Registered Office at: Senapati Bapat Marg, Lower Parel-(West), Mumbai-400013 having its branch office at: Talwandi Bhai, Moga, also at: HDFC Bank Ltd., Plot No. I-15, Sector 101, Alfa IT City, Mohali-Punjab-160062 through its Authorized Representative, Sh. Dinesh Kumar.

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……..Applicant

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Versus

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Sh. Nirvair Singh S/o Sh. Nirmal Singh, Mahla Kalan, Bhagha Purana, Moga-142038

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Sh. Chamkaur Singh S/o Sh. Gurdev Singh, Kot Karor Kalan, Moga.

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….…Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammed, 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.33,14,127.01p (Rupees Thirty Three Lacs Fourteen Thousand One Hundred Twenty Seven and Paisa One Only). The Original Application has been filed through Sh. Dinesh Kumar, Authorized Representative of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.08.2020, 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 KCC Limit of Rs.10.00 Lacs and KGC Limit of Rs. 5.00 Lacs vide Loan Application dated 09.12.2015, which is Annexure A2 to this OA. The defendant again

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approached the applicant for the enhancement of the KCC Limit to Rs.7.00 Lacs and KGC Limit of Rs.20.50 Lacs vide Loan Application dated 18.12.2020, which is Annexure A11 to this OA.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs and KGC Limit of Rs. 5.00 Lacs vide Sanction dated 19.12.2015, which is Annexure A3 to this OA and also sanctioned the enhancement of the KCC Limit to Rs.7.00 Lacs and KGC Limit of Rs.20.50 Lacs vide Sanction dated 28.12.2020, which is Annexure A12 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant no. 1 had mortgaged his immovable property i.e. Total land measuring 112K situated in the area of Villag Mahla Kalan, Tehsil Baghapurana, District Moga , Punjab vide Declaration under Section 4 (1) dated 22.02.2015 and 30.12.2020 along with English Translations, ,which are Annexures A8 & A15 to this OA.

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Documents executed:- Hypothecation Agreement dated 19.12.2015, which are Annexures A4 & A5 to this OA; DP Note dated 24.12.2015, which are Annexures A6 & A7 to this OA; Title Search Report, Registration of Bank Charge dated 22.12.2015, which are Annexures A9 & A10 to this OA; Hypothecation Agreement dated 29.06.2021, which are Annexures A13 & A14 to this OA; Title Search Report dated 23.12.2020, which is Annexure A16 to this OA; Legal Notice dated 14.11.2023 along with Postal Receipts, which is Annexure A17 to this OA and Account Statement and Evidence Certificate, which are Annexures A18 to A20 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.33,14,127.01p, 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 ex-parte on 14.02.2025.

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In support of the OA, affidavit of through Sh. Dinesh Kumar, Authorized Representative, HDFC Bank Limited has been filed. 8. Heard arguments and perused record.

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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 loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant 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.33,14,127.01p (Rupees Thirty Three Lacs Fourteen Thousand One Hundred Twenty Seven and Paisa 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 @11.00%p.a. in KCC and @13.00%p.a. in KGC plus Penal Interest @16.00%p.a. with half yearly rests from 02.10.2023 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 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

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just and appropriate to grant uniform simple interest @8.00%p.a.in bothll 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 is liable to pay to the applicant a total sum of Rs.33,14,127.01p (Rupees Thirty Three Lacs Fourteen Thousand One Hundred Twenty Seven and Paisa One Only) 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 03.04.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 01.03.2025

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

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Hdfc Bank Limited v. Sh. Nirvair Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Nirvair Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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