Allowed

Hdfc Bank Limited v. Messrs Harbans Lal Dhawan and Co. and Others

DRT16 May 2025OA/532/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by HDFC Bank Limited against borrowers for recovery of a loan account classified as NPA. The court granted recovery of the principal amount along with reduced interest rates and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.1,23,13,707.13 with costs and simple interest at 8% p.a. from filing date until realization; issuance of Recovery Certificate.

Hdfc Bank Limited versus Messrs Harbans Lal Dhawan and Co. and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.532/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.03.2023

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DATE OF DECISION: 16.05.2025

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HDFC Bank Limited, a banking company, incorporated under the Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having branches across the country including at Tran Taran, Punjab and Regional Office at 3^rd Floor, Plot No.1-15, Alpha IT City, Sector-101, Mohali, Punjab, through its duly authorized Officer Sh. Narender Kumar Nanda, Recovery Manager.

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……..Applicant

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Versus

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M/s Harbans Lal Dhawan and Co., Dana Mandi, Main Bazar, Village and Post Office Khalra-143305, Tehsil Patti, District Tarn Taran, Punjab through its proprietor Sh. Lakhwinder Pal Dhawan.

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Sh. Lakhwinder Pal Dhawan S/o Sh. Harbans Lal Dhawan, Prop. M/s M/s Harbans Lal Dhawan and Co. Dana Mandi, Main Bazar, VPO Kahlra-143305, Tehsil Patti, District Tarn Taran, Punjab

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Also At : House No.109 Min, Gali No.2, Gopal Nagar, Near Wahe Guru Medical Store, Majitha, Amritsar 143001, Punjab

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Smt. Madhu Dhawan W/o Sh. Lakhwinder Pal Dhawan, R/o House No.109 Min, Gali No.2, Gopal Nagar, Near Wahe Guru Medical Store, Majitha, Amritsar 143001, Punjab

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Sh. Sahil Dhawan S/o Sh. Lakhwinder Pal Dhawan, R/o House No.109 Min, Gali No.2, Gopal Nagar, Near Wahe Guru Medical Store, Majitha, Amritsar 143001, Punjab

¶13

Sh. Parvesh Kumar Dhawan S/o Sh. Harbans Lal Dhawan, VPO Khalra-143305, Tehsil Patti, District Tarn Taran, Punjab

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2 OA NO.532/2023 HDFC BANK LIMITED VS M/S HARBANS LAL DHAWAN AND OTHERS

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………Defendants

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Advocates:

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Argued by Sh. Vijay Sharma, Advocate for the applicant Present Ms. Meena Malhotra, Advocate proxy for Sh. Anil Malhotra, Advocate for Defendants

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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.1,23,13,707.13p (Rupees One Crore Twenty Three Lacs Thirteen Thousand Seven Hundred Seven And Paise Thirteen only). The Original Application has been filed through Sh. Narender Kumar Nanda, Recovery Manager o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 16.07.2022, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendants had approached the applicant for the grant of ODAP Limit of Rs.80 Lacs vide Loan Application dated 05.07.2017, which is Annexure A2 to this OA and further from time to time approached the applicant for its renewals and enhancement upto Rs.95.00 Lacs and WCTL GECL of Rs.16.51 Lacs vide Request Letters for renewal dated 13.06.2019, 17.06.2019 and 17.06.2020, which are Annexures A18, A19 and A28 to this OA. Later Defendants again approached the applicant for enhancement of WCTL GECL to Rs.22.45 Lacs.

¶21

The applicant sanctioned the ODAP Limit of Rs.80 Lacs Sanction Letter dated 10.07.2017, which is Annexure A3 to this OA and further from time to time applicant sanctioned its renewals and enhancement upto Rs.95.00 Lacs and WCTL GECL of Rs.16.51 Lacs vide Sanction Letters dated 16.05.2018, 17.06.2019, 05.06.2020 and 07.08.2020, which are Annexures A11, A20, A21 and A29 to this OA. Later applicant sanctioned the enhancement of WCTL GECL to Rs.22.45 Lacs

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3 OA NO.532/2023 HDFC BANK LIMITED VS M/S HARBANS LAL DHAWAN AND OTHERS

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vide sanction Letter dated 29.09.2020, which is Annexure A30 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgage their immovable properties i.e. a. All the part and parcel comprising commercial building measuring 0K-1M (length 20’- Breath 12’) situated at Gillpan, Main Adda Kahlra, Tehsil Patti and District Tarn Taran vide Equitable Mortgaged of Sale deed bearing vasika no.2289 dated 31.01.2011 along with its Translation, Valuation Report dated 14.07.2017, which is Annexure A33(colly) to this OA.

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b. All the part and parcel residential building bearing plot no.109 min, measuring 104.3 Sq. Yards situated at Gali No.2, Amritsar Sub Urban Circle No.110, Abadi Gopal Nagar, Tehsil and District Amritsar vide Equitable Mortgaged of Sale deed bearing vasika no.5928 dated 21.07.2011 along with its Translation, Valuation Report dated 17.07.2017, which is Annexure A34(colly) to this OA.

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c. All the part and parcel residential plot no.218-219, measuring 266.66 Sq. Yards situated at Abadi Bharariwal, Sub Urban Abadi Dashmesh City, Chabbal Road, Tehsil Amritsar-I and District Amritsar vide Equitable Mortgaged of Sale deed bearing vasika no.943 dated 27.11.2017 along with its Translation, which is Annexure A35(colly) to this OA. Documents executed:- Demand Promissory Note, Master facility Agreement, Deed of Indemnity, Amendment all dated 13.07.2017, which are Annexures A4, A5, A7 to A9 to this OA; Memo Recording Past Transactions for Creation of EM dated 19.08.2017, which is Annexure A6 to this OA; No Objection Certificate dated 18.08.2017, which is Annexure A10 to this OA; Demand Promissory Note, Letter of Continuing Security, Supplementary Agreement, Memo Recording Past Transactions for Creation of EM, Declaration Cum Indemnity, Supplementary Letter of Continuing Guarantee all dated 17.05.2018,

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4 OA NO.532/2023 HDFC BANK LIMITED VS M/S HARBANS LAL DHAWAN AND OTHERS

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which are Annexures A12 to A17 to this OA; Facility Agreement, Supplemental Deed of Hypothecation, Supplementary Letter of Continuing Guarantee, Declaration Cum Undertaking all dated 06.06.2020, which are Annexures A22, A23, A25 and A26 to this OA; Memo Recording Past Transactions for Creation of EM dated 09.06.2020, which is Annexure A24 to this OA; Addendum Agreement dated 17.06.2020, which is Annexure A27 to this OA; Facility cum hypothecation Agreement dated 01.10.2020, which is Annexure A31 to this OA; Declaration Cum Undertaking dated 29.09.2020, which is Annexure A32 to this OA; Statements of Accounts and Memorandum of Interest Calculation with certificate, which is Annexure A36 to this OA; Loan Recall notice dated 10.01.2023 along with Postal Receipts, which is Annexure A37 to this OA.

¶29

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.1,23,13,707.13p, 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.

¶30

The defendants were served notices to appear before this Tribunal. Sh. Anil Kumar Malhotra, Advocate appeared on behalf of defendants and filed his Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendants was closed and their defense was struck of on 23.08.2024.

¶31

In support of the OA, affidavit of Sh. Narender Kumar Nanda, Recovery Manager, HDFC Bank Limited has been filed. 8. Heard arguments of Ld. counsel for applicant. Ld. proxy counsel for defendants appeared has not advanced any arguments. Perused record.

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5 OA NO.532/2023 HDFC BANK LIMITED VS M/S HARBANS LAL DHAWAN AND OTHERS

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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 Annexures A1 to A37 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 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 of Rs.1,23,13,707.13p (Rupees One Crore Twenty Three Lacs Thirteen Thousand Seven Hundred Seven And Paise Thirteen 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @18%p.a. in all from 01.03.2023 till the realization.

¶34

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 all 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.

¶35

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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6 OA NO.532/2023 HDFC BANK LIMITED VS M/S HARBANS LAL DHAWAN AND OTHERS

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Rs.1,23,13,707.13p (Rupees One Crore Twenty Three Lacs Thirteen Thousand Seven Hundred Seven And Paise Thirteen only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 Tribunal on 31.05.2025.

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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: 16.05.2025

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

Hdfc Bank Limited v. Messrs Harbans Lal Dhawan and Co. and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Messrs Harbans Lal Dhawan and Co. and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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