Allowed

Hdfc Bank Limited v. Jagrup Singh and Others

DRT15 Feb 2025OA/950/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's case for recovery of Rs.35.11 lacs as a joint and several liability of the defaulted defendants, specifying an 8% per annum simple interest rate and authorizing recovery through mortgaged and personal assets.

What did the court decide?

Recovery of Rs.35,11,091 with costs current and future simple interest @8.00% p.a. from filing date till realization, enforceable against mortgaged and personal assets.

Hdfc Bank Limited versus Jagrup Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.950/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.07.2024

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DATE OF DECISION: 15.02.2025

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HDFC Bank Ltd., a banking company, carrying on 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, Mumbai-400013, whereas branch at “Kot Ise Khan”, District Moga, Punjab through Ms. Pooja Arora, Senior Manager (Agriculture Legal), HDFC Bank Ltd., Ludhiana Branch District Ludhiana, Punjab. Being authorized officer of the Applicant.

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……..Applicant

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Versus

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Sh. Jagrup Singh S/o Sh. Chanan Singh, R/o House No.78, Village Dholewala, Tehsil and District Moga, Punjab-142042.

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Sh. Chanan Singh S/o Sh. Gurdeep Singh, R/o House No. 78, Village Dholewala Tehsil and District Moga, Punjab-142042

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Sh. Lakhwinder Singh S/o Sh. Gurbachan Singh, R/o Village Rajan Wala, Tehsil Dharamkot District Moga, Punjab-142042.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Saurabh Bharadwaj, 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.35,11,091.00p (Rupees Thirty Five Lacs Eleven Thousand Ninety One only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agriculture Legal) o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of Cash Credit Limit of Rs.33.00 Lacs and Drop Line Overdraft facility of Rs.7.00 Lacs vide Loan application form dated 04.11.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.25.00 Lacs and Drop Line Overdraft facility of Rs.3.00 Lacs vide Sanction Letters dated20.11.2015, which are Annexures A3 & A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.2 had mortgaged his immovable properties i.e. total land measuring 48K-09M situated at Village Dholewala, Hadabst no.237, Tehsil Dharamkot, District Moga (Punjab) vide Declaration u/s 4(1) dated 2 3.11.2015 and Letter to Sub Registrar for Creation of Charg e along with its Translations, which is Annexure A7 to this OA. Documents executed:- Agreements for Term loan/ cum Guarantee cum Hypothecation, Agreements for Overdraft/ cum Guarantee cum Hypothecation dated 27.11.2015, which are Annexures A5 & A6 to this OA; Letter of acknowledgement dated 16.04.2021, which is Annexure A8 to this OA; Legal Notice dated 02.05.2024 along with its translations and postal Receipts, which is Annexure A9 to this OA and Account Statements along with Certificate, which is Annexure A10 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.35,11,091.00p, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 23.01.2025. 7. In support of the OA, affidavit of Ms. Pooja Arora Senior Manager (Agriculture Legal), HDFC Bank Ltd has been filed. 8. 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 had proved its case. From the perusal of all the Annexures A1 to A10 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, 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.35,11,091.00p (Rupees Thirty Five Lacs Eleven Thousand Ninety One 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 @11.00%p.a. plus penal interest @2.00%p.a. from 01.05.2024 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.35,11,091.00p (Rupees Thirty Five Lacs Eleven Thousand Ninety One 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

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.03.2025. 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: 15.02.2025

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

Hdfc Bank Limited v. Jagrup Singh and Others

Case brief

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Hdfc Bank Limited v. Jagrup Singh and Others

Case brief

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