Allowed

Hdfc Bank Limited v. Harbhajan Singh and Others

DRT4 Jan 2025OA/661/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application allowing recovery of Rs. 33.45 Lakhs. Legal heirs and joint borrowers are liable jointly and severally. Tribunal granted future interest at 8% p.a. Rule Recovery Certificate.

What did the court decide?

Allowed recovery of Rs.33,45,028.21 joint and several. Granted future interest at 8% p.a. Issued Recovery Certificate.

Hdfc Bank Limited versus Harbhajan Singh and Others — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.661/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.04.2022

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DATE OF DECISION: 04.01.2025

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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 Tarn Taran, Punjab Also at: HDFC Bank House, Plot No.28, Industrial Area, Phase-1, Chandigarh Through its Authorized Representative Sh. Harminder Pal Singh.

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……..Applicant Versus 1. Sh. Harbhajan Singh S/o Sh. Sadagar Singh (Deceased) through his legal heirs:-

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(i) Sh. Birpal Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414.

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(ii) Sh. Kulwinder Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414.

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(iii) Sh. Baljinder Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414.

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(iv) Sh. Gurpreet Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414.

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Sh. Gurpreet Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414. 3. Sh. Kulwinder Singh S/o Late Sh. Harbhajan Singh R/o H.No.114, Village Chahal, Tarn Taran-143414.

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Sh. Varinderjeet Singh R/o Village Heerapur Jhabal Mannan Chahal, Punjab, Tarn Taran-143301.

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Advocates:

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Argued by Sh. Pancham Sharma, Advocate proxy for Sh. Amit Rishi, 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.33,45,028.21p (Rupees Thirty Three Lacs Forty Five Thousand Twenty Eight & Twenty One Paisa Only). The Original Application has been filed through Sh. Harminder Pal Singh, Authorized Representative of the applicant, who 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 defendant no.1 (since deceased) to 4 had approached the applicant for the grant of CC Limit of Rs.22.80 Lac & Overdraft Limit of Rs.3.50 Lacs (Under KCC Scheme).

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The applicant sanctioned CC Limit of Rs.22.80 Lac & Overdraft Limit of Rs.3.50 Lacs (Under KCC Scheme) vide Sanction Letters dated 13.07.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 (since deceased) & 2 had mortgaged their immovable property i.e. total land measuring 104Kanal-10Marla situated at Village Chahal, Hadbast no.176, District Tarn Taran vide Declaration u/s 4(1) of the Punjab Agriculture Credit Operations and Miscellaneous Provisions Banks Act,1978 and Letter to Sub Registrar both dated 31.07.2018, with its translations, which is Annexure A5 to this OA.

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Documents executed:-Agreement for Cash Credit, Agreement for Dropline Overdraft Cum Guarantee both dated 18.07.2018, which are Annexures A3 & A4 to this OA; The Copy of title search report along with confirmation of mutation as per Advocate Certificate dated 31.07.2018, which is Annexure A6 to this OA; Demand Notice dated

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26.11.2021 & 12.03.2022 with postal receipts, which is Annexure A7 to this OA and Copy of Statements of Accounts with certificate under Bankers Books Evidence, which are Annexures A8 to A11 to this OA. 5. 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.33,45,028.21p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant nos.2 to 4 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded 15.04.2024.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Authorized Representativ e, HDFC Bank Limited, h as been filed.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A11 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 loan 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.33,45,028.21p (Rupees Thirty Three Lacs Forty Five Thousand Twenty Eight & Twenty One Paisa Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and from defendant nos.2 to 4, jointly and severally, from the date of filing of the present Original Application till realization of all 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. plus penal interest @16.00%p.a. & interest @12.00%p.a. along with plus penal interest @24.00%p.a. with half yearly rests from 26.11.2021 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 defendant, 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 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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant nos.2 to 4 are liable to pay to the applicant a total sum of Rs.33,45,028.21p (Rupees Thirty Three Lacs Forty Five Thousand Twenty Eight & Twenty One Paisa 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 bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant nos.2 to 4 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant nos.2 to 4. 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 07.02.2025.

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Copy of this order be given dasti to the applicant and be sent to legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii), 1(iv) and defendant nos.2 to 4 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: 04.01.2025

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

Hdfc Bank Limited v. Harbhajan Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Harbhajan Singh and Others

Case brief

What is this about?

What did the court decide?

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