HDFC BANK LIMITED vs GURPREET SINGH AND ANOTHER on 13 December 2024

FINAL ORDER

1. Present Transfer 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.20,03,992.11p (Rupees Twenty Lacs Three Thousand Nine Hundred Ninety Two and Eleven Paise Only). The Transfer Application has been filed through Mr. Rajendra Prasad, Authorized Signatory of the applicant, who is competent to institute the Transfer Application vide Board Resolution dated 15.04.2023, which is Annexure A1 to this TA.

2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of commercial vehicle and body making Loan of Rs.36,25,401.00 vide Loan Application dated 01.11.2018, which is Annexure A2 to this TA.

3. The applicant Bank sanctioned the commercial vehicle and body making Loan of Rs.36,25,401.00 and the terms and conditions were duly accepted by the defendants.

4. Defendant no.1 had hypothecated his movable property i.e. Commercial vehicle namely TATA SIGNA 4923.S CR bearing Chassis no. MAT704127J3G22450, Engine No.ISBE5.92304081G63711121 and Registration No.PB04AB0327 vide copy of registration certificate filed in compliance of the order dated 13.11.2024 vide diary no.19286 dated 10.12.2024. Documents executed:- Agreements for Loan and Guarantee both dated 19.11.2018, which are Annexures A3 & A4 to this TA; Statement of Account along with Certificate, which are Annexures A5 & A6 to this TA; Legal Notice dated 03.04.2024, along with original postal receipts which are Annexures A7 to A10 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.20,03,992.11p, 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 08.11.2024.

7. In support of the OA, affidavit of Mr. Rajendra Prasad, Authorized Signatory, HDFC Bank Ltd. has been filed.

8. Heard arguments and perused record.

9. 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 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 facility which was 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, 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.20,03,992.11p (Rupees Twenty Lacs Three Thousand Nine Hundred Ninety Two and Eleven 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 in relief clause has claimed interest @9.91%p.a. from the date of filing of the application 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 @8.00%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.20,03,992.11p (Rupees Twenty Lacs Three Thousand Nine Hundred Ninety Two and Eleven Paise Only) jointly and severally, with costs, current and future simple interest @8.00%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 bank 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 29.01.2025.

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: 13.12.2024.

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