Allowed

Hdfc Bank Limited v. M/S Gulshan Trading Company

DRT28 Feb 2025OA/660/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 for recovery of a bank loan. It found the defendants liable to pay the principal sum and awarded uniform simple interest at 8% p.a. instead of the claimed 18% p.a., directing recovery from mortgaged properties.

What did the court decide?

Ordered defendant to pay Rs. 2,37,18,237.26 jointly and severally with simple interest at 8% p.a. from filing date till realization, to be recovered from mortgaged properties.

Hdfc Bank Limited versus M/S Gulshan Trading Company — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.660/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.04.2024

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DATE OF DECISION: 28.02.2025

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HDFC bank Limited, a banking company incorporated under the Companies Act, 1956, having its Registered officer at HDFC Bank House, Senapati Bapat Marg Lower Parel (West), Mumbai-400013, Maharashtra and branches across the country including a branch at Chandigarh and a Regional Office at 3^rd Floor, Plot No. I-15, Alpha I T City, Sector 101, Sahibzada Ajit Singh Nagar (Mohali) Punjab, through its duly Authorized Officer Sh. Narender Kumar Nanda, Senior Manager.

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……..Applicant

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Versus

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M/s Gulshan Trading Company, a proprietary Concern, near HP Petrol Pump, Kauhrian Road, Dirba-148035, District Sangrur, Punjab through its Sole Proprietor Sh. Narinder Pal, S/o Sh. Sarup Chand.

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Sh. Narinder Pal, S/o Sh. Sarup Chand, Sole Proprietor M/s Gulshan Trading Company near HP Petrol Pump, Kauhrian Road, Dirba148035, District Sangrur, Punjab

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Also At : #13, Surjan Basti, Ward No. 6, Dirba-148035, District Sangrur, Punjab

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Smt. Bhawna Rani W/o Sh. Narinder Pal, #13, Surjan Basti, Ward No.6, Dirba-148035, District Sangrur, Punjab

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………Defendants

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Advocates: Argued by Sh. Vijay Sharma, Advocate for the applicant Present Sh. Akhilesh Vyas, 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.2,37,18,237.26p (Rupees Two Crore Thirty Seven Lacs Eighteen Thousand Two Hundred Thirty Seven and Paisa Twenty Six only). The Original Application has been filed through Sh. Narender Kumar Nanda, Senior Manager who is competent to institute the Original Application vide Resolution dated 22.11.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its Proprietor i.e. defendant no.2 h ad time to time approached the applicant for the grant of ODAP facility of Rs.200.00 Lacs and Term Loan of Rs.15.00 Lacs vide Loan Application dated 16.08.2022, which is Annexure A2 to this OA.

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The applicant sanctioned ODAP facility of Rs.200.00 Lacs and Term Loan of Rs.15.00 Lacs vide Sanction letter dated 08.09.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 2 had mortgaged his immovable properties i.e. All that part and parcel of commercial property situated near H P Petrol Pump, Dirba, District Sangrur, Punjab built on total Land measuring 5K-7¾M + 3K-7M + 18K-12/30M + 10M (total 6134.5 Sq. yards) vide Equitab Mortgage of Transfer Deeds bearing vasika no. 202021/127/1/1276 to 1279 all dated 01.02.2021 along with its English Translations, which are Annexures A13 to A16 to this OA. Documents executed:- Master facility Agreement, Deed of Hypothecation, Term Loan Agreement, letter of Continuing Guarantee, Consent, Affidavit regarding mortgage deed all dated 13.09.2022, which are Annexures A4 to A6, A8, A12 & A17 to this OA; Memorandum of Recording past Transactions, Deed of Indemnity both dated 19.12.2022, which are Annexures A7 & A9 to this OA; Declaration by Customer dated 14.09.2022, which is Annexure A10

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to this OA; Letters from HDFC Bank to Axis Bank Ltd. dated 27.09.2022, which is Annexure A11 to this OA; Title Search Report dated 20.09.2022, which are Annexures A18 & A19 to this OA; Non Encumbrance Verification Report, Verification Report of Title deeds both dated 15.12.2022, which are Annexures A20 to A22 to this OA; Property valuation report, CERSAI Registration Search Report both dated 15.09.2022, which are Annexures A23 & A24 to this OA; Memorandum of Interest Calculation, Foreclosure, repayment schedule, Statement of accounts Etc. which is Annexure A25 to this OA and Loan Recall Notices dated 04.04.2024 with Postal Receipts, which is Annexure 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.2,37,18,237.26p, 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. Sh. Akhilesh Vyas, advocate for defendants filed Memo of Appearance but WS had not been filed by the defendants. Therefore, opportunity to file WS by defendants was closed and their defense was struck of on 11.02.2025.

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In support of the OA, affidavit of Sh. Narender Kumar Nanda, Senior Manager, HDFC bank Limited has been filed. 8. Heard arguments of Ld. Counsel for applicant, Ld. Counsel for defendants appeared has not advanced any arguments. 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 A26 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were

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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 Rs.2,37,18,237.26p (Rupees Two Crore Thirty Seven Lacs Eighteen Thousand Two Hundred Thirty Seven and Paisa Twenty Six 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.

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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 @18.00%p.a. with monthly rests from 28.03.2024 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 @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.

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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.2,37,18,237.26p (Rupees Two Crore Thirty Seven Lacs Eighteen Thousand Two Hundred Thirty Seven and Paisa Twenty Six 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 applicant shall be entitled to recover aforesaid amount from the sale of

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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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 29.03.2025.

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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: 28.02.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Gulshan Trading Company

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Gulshan Trading Company

Case brief

What is this about?

What did the court decide?

What the court decided

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