Allowed

Hdfc Bank Ltd. v. Dalbir Singh and Others

DRT15 Jan 2025OA/858/2022

Case brief

AI extract

What is this about?

HDFC Bank Limited filed an original application under Section 19 of the RDBFI Act, 1993, against three defendants for recovery of a debt of Rs. 42,54,981.45 arising from NPA KCC and Term Loan accounts. The defendants failed to appear. The Tribunal found the bank's case established via documentary evidence. The application was allowed, declaring the defendants liable for the principal sum with costs and a uniform simple interest rate of 8% per annum from the date of filing.

What did the court decide?

Declaratory decree that defendants are jointly and severally liable to pay Rs. 42,54,981.45 with costs and simple interest at 8% p.a. from the date of filing of the OA till realization. Recovery Certificate issued. Liberty to enforce claim through sale of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.858/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.05.2022

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DATE OF DECISION: 15.01.2025

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its registered office at HDFC Bank House, Senapati Bapat Marg, Lower Parel-(West), Mumbai-400013 and its Regional Office at HDFC Bank Ltd., Bank House, Plot No.28, Industrial Area, Phase-1, Chandigarh and having one of its branch office at Malout Branch Tehsil Malout District Muktsar (Punjab), through its Authorised Signatory Sh. Parampreet Singh Kahlon.

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.. … …..Applicant

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Versus

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Sh. Dalbir Singh son of Sh. Teja Singh (since deceased) through his Legal Heir Sh. Jaswinder Singh S/o Late Sh. Dalbir Singh R/o House No.233, Village Kabbar Wala, Near Railway Phatak, Tehsil Malout District Muktsar.

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Sh. Ajit Singh son of Sh. Dalbir Singh R/o House No.233, Village Kabbar Wala, Near Railway Phatak, Tehsil Malout District Muktsar.

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Sh. Jasdeep Singh son of Sh. Gurdev Singh R/o Village Kabbar Wala, Near Railway Phatak, Tehsil Malout District Muktsar.

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….……Defendants

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Advocates:

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Argued by Sh. Abhinav Singla, Advocate proxy for Sh. Ankur Jindal, Advocate for Applicant (through VC) 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

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Rs.42,54,981.45P (Rupees Forty Two Lacs Fifty Four Thousand Nine Hundred Eighty One And Paise Forty Five Only). The Original Application has been filed through Sh. Parampreet Singh Kahlon, Authorised Signatory o f the applicant, who is competent to institute the Original Application vide 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 (now deceased) along with defendant no.2 & 3 had approached the applicant for the grant of KCC Limit of Rs.24.50 Lacs and Term Loan of Rs.5.40 Lacs vide Loan Applications dated 14.05.2015, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.24.50 Lacs and Term Loan of Rs.5.40 Lacs vide Sanction Letters dated 31.05.2015, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 (now deceased) had mortgaged his immovable properties i.e. total land measuring 65-Kanal 00-Marla situated at Village Kabbarwala, H.B. No.57, Tehsil Malout, District Muktsar vide Declaration under Section 4(1) of PAC Act with Mutation dated 20.05.2015, which is Annexure A11 to this OA. Documents executed:-Agreement & D.P. Note for Cash Credit, Letters of Continuity with D.P. Note and Agreement cum Hypothecation for Term Loan, D.P. Note qua for Term Loan, Letter of Continuity with D.P. Note all dated 26.05.2015, which are Annexures A5 to A10 to this OA; RBI Notification Regarding Covid-19 Moratorium, which is Annexure A12 to this OA; Statements of Accounts along with Certificate of Computer Application & Data dated 16.12.2021, which are Annexures A13 to A16 to this OA and Legal Notices of Final Demand dated 31.12.2021 & 05.03.2022 with postal receipts, which are Annexures A17 to A22 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

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there was a debit of Rs.42,54,981.45P, 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 07.01.2025.

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In support of the OA, affidavit of Sh. Parampreet Singh Kahlon, Authorised Signatory, HDFC Bank Limited, has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel through Video Conferencing 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 A22 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.42,54,981.45P (Rupees Forty Two Lacs Fifty Four Thousand Nine Hundred Eighty One And Paise Forty Five 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 @11.50%p.a. in CC Limit and @13.00%p.a. in Term Loan from 18.06.2021 & 17.12.2021 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

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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 @08.00%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.42,54,981.45P (Rupees Forty Two Lacs Fifty Four Thousand Nine Hundred Eighty One And Paise Forty Five 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 bank shall be entitled to recover aforesaid amount from the 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.02.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 15.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. Dalbir Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. Dalbir Singh and Others

Case brief

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