Allowed

Hdfc Bank Ltd. v. Sh. Pal Singh and Others

DRT30 May 2025OA/505/2023

Case brief

AI extract

What is this about?

DRT allowed Original Application filed by HDFC Bank for recovery of dues from respondents. Ex-parte hearing was conducted. Interest rate was modified to 8% p.a. Recovery certificate was issued and enforcement proceedings directed.

What did the court decide?

The application is allowed; defendants are liable to pay Rs. 29,75,610 plus 8% p.a. interest; Recovery Certificate issued; parties to appear before Recovery Officer.

Hdfc Bank Ltd. versus Sh. Pal Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.505/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.04.2023

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DATE OF DECISION: 30.05.2025

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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, Mumabi 400013 and Branch Office amongst other places one at Patran, Distt. Patiala, Punjab, through Mrs. Pooja Arora, Manager holder of an attorney from the Applicant.

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.. … …..Applicant Versus

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1. Sh. Pal Singh S/o Sh. Sandhu Singh R/o Village Kakrala, Tehsil Samana, Distt. Patiala-147102.

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2. Sh. Amardeep Singh S/o Sh. Jaspal Singh R/o Village Kakrala, Tehsil Samana, Distt. Patiala-147102

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3. Sh. Dalbir Singh S/o Sh. Prithpal Singh R/o Village Kakrala, Tehsil Samana, Distt. Patiala-147102.

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….……Defendants

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Advocates:

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Argued by Ms. Ramneek Kaur, Advocate proxy for Sh. J.S. Sehgal, Advocate for 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.29,75,610.00 (Rupees Twenty Nine Lakh Seventy Five Thousand Six Hundred Ten Only). The Original Application has been filed through

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Sh. Rajendra Prasad, Authorized Representative o f the applicant, who

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2 OA NO.505/2023 HDFC BANK LIMITED VS PAL SINGH AND OTHERS

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is competent to institute the Original Application vide General 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 Bank for the grant of CC Limit of Rs.22.00 Lacs and FDL DOD Limit of Rs.05.80 Lacs vide Application Form for Agriculture Loan dated 14.09.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs.22.00 Lacs and FDL DOD Limit of Rs.05.80 Lacs vide Sanction Letters dated 26.09.2016, which are Annexure A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. Land measuring 40K-0m situated at Village Kakrala, Tehsil Samana, Distt. Patiala vide simple mortgage creaded by Registered Schedule Declaration under Section 4(1) dated 27.09.2016, which is Annexure A9 to this OA.

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Documents executed:- Agreement for Dropline Overdraft cum Hypothecation cum Guarantee, Agreement for Overdraft/cash credit cum guarantee cum hypothecation, Demand Promissory Note and Letter of Continuity for DP Note dated 28.09.2016, which are Annexures A5 to A8 to this OA; Punjabi to English Translation of Schedule Declaration under Section 4 (1), which is Annexure A10 to this OA; Notice & Postal receipts dated 22.12.2022, which are Annexure A11 to A14 to this OA and Statement of Loan Accounts dated 20.12.2022, which are Annexures A15 and A16 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.29,75,610.00, 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.

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3 OA NO.505/2023 HDFC BANK LIMITED VS PAL SINGH AND OTHERS

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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 28.05.2025. 7. In support of the OA, affidavit of Sh. Rajendra Prasad, Authorized Representative, HDFC Bank Limited, has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel appeared 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 A16 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.29,75,610.00 (Rupees Twenty Nine Lakh Seventy Five Thousand Six Hundred Ten 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 lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50%p.a. with half yearly rests from 01.10.2022 till the realization. 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

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4 OA NO.505/2023 HDFC BANK LIMITED VS PAL SINGH AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,75,610.00 (Rupees Twenty Nine Lakh Seventy Five Thousand Six Hundred Ten 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 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 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.06.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 30.05.2025

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

Hdfc Bank Ltd. v. Sh. Pal Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. Sh. Pal Singh and Others

Case brief

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