HDFC BANK LIMITED vs M/S GILL TRADING CO AND OTHERS on 4 February 2025

FINAL ORDER

1. Present Transfer Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

Institutions Act, 1993, against the defendants for recovery of Rs.22,66,319.98p (Rupees Twenty Two Lacs Sixty Six Thousand Three Hundred Nineteen & Ninety Eight Paise Only). The Original Application has been filed through Sh. Narinder Nanda, Authorized Signatory of the applicant bank, who is competent to institute the Transfer Application vide Board Resolution dated 16.07.2022, which is Annexure A1 to this TA.

2. The brief facts of the OA that the defendants had approached the applicant for the grant of ODAP Limit of Rs.30.00 Lacs vide Loan Application dated 30.07.2021, which is Annexure A2 to this TA.

3. The applicant Bank sanctioned the ODAP Limit of Rs.30.00 Lacs vide Sanction Letter dated 08.09.2021, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendant.

4. Defendant no.2 had mortgaged his immovable property i.e. all part and parcel of property measuring 117 Sq. Yards (3¾Marla) situated at House No. 57, Gali No.1, Anand Nagar-A, Rakba Village Tripuri Saidan, Patiala, Punjab vide Equitable Mortgage of Sale Deed bearing Vasika No.2020-21/11/1/13849 dated 24.02.2021 with its translation, which is Annexure A9 to this TA. Documents executed:- Master Agreement, Letter of Continuing Guarantee and Deed of Indemnity all dated 08.09.2021, which are Annexures A4, A5 and A7 to this TA; Memorandum deposit of Title deed and Valuation Report dated 03.09.2021, which are Annexures A6 and A8 to this TA; Notice U/s 13(2) of SARFAESI Act dated 27.03.2023 with postal receipt, which is Annexure A10 to this TA and Statement of Account with certificate, which is Annexure A11 to this TA.

5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.22,66,319.98p, 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.

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 08.07.2024.

7. In support of the TA, affidavit of Sh. Narinder Nanda, Authorized Signatory, HDFC Bank Limited, has been filed.

8. Heard arguments and perused record

9. It was argued by learned counsel through Video Conferencing 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 A11 to this TA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,66,319.98p (Rupees Twenty Two Lacs Sixty Six Thousand Three Hundred Nineteen & Ninety Eight Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the account.

10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @18.00%p.a. with from 01.06.2023 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 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 the loan account from the date of filing of the TA 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.22,66,319.98p (Rupees Twenty Two Lacs Sixty Six Thousand Three Hundred Nineteen & Ninety Eight Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of TA 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 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.

12. Any other application pending stands disposed of.

13. Issue Recovery Certificate accordingly.

14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.03.2025.

15. Copy of this order be given Dasti to the applicant bank 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: 04.02.2025

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