HDFC BANK vs PRADEEP N N on 17 April 2018

FINAL ORDER

The applicant bank has filed Original Application [OA] on 17.10.2014 under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for recovery of a sum of Rs.14,13,206.82/- with future interest @ 18% with monthly rests from the date of the application till realization and application costs from the defendants jointly and severally and by sale of properties owned defendants.

BRIEF FACTS OF THE CASE

1. The applicant is Banking Company within the meaning of Banking Regulation Act Constituted under the companies Act and having its registered office at Senapati Bapat Marg Lower Parel, (West) Mumbai- 400013 and even though the agreement is executed at Trivandrum and the account was being operated by the defendants through Kollam branch. The Business Division at S.L.Plaza being the Regional Office is competent to represent the bank for recovery of the amount being its regional office. The Manager (Legal) is authorized and competent to verify the application and represent the bank and to file this application.

2. It is the case of the applicant that the 1st defendant is a businessman. The 1st defendant being the principal borrower and 2nd defendant being the co-borrower had applied for a commercial vehicle loan of Rs.12,90,000/- on 30.01.2014 for the purchase of TATA LPT 1613 CAB. Since the defendants were found to be eligible for the loan, the applicant on 30.01.2014 had sanctioned a loan of Rs.12,90,000/- to the defendants. The loan was repayable in 48 equal monthly installments of Rs.33,979/- payable on 5th of every month commencing from 05.03.2014 and the last payment date on 05.02.2018. The EMI and tenure were arrived at by calculating interest at the rate of 12.01% per annum. As a security to the loan defendants had executed Agreement for Loan and Guarantee on 30.01.2014 agreeing to the terms and conditions of the sanction. In addition to the above, defendants had created security interest by way of hypothecation over the vehicle and also executed a demand promissory note for Rs.12,90,000/- in favour of the applicant on 30.01.2014.

3. It is stated by the applicant that the defendants did not adhere to the terms and conditions of the sanction and started defaults in repayment of loan. Since the defendants failed to regularize the accounts or to make substantial payments, the applicant had caused to issue a notice dated 30.09.2014 calling upon the defendants to pay back the amount due in the accounts. As per the statement of account maintained with the applicant bank, an amount of Rs.14,13,206.82 is due from the defendants as on 29.09.2014.

4. After filing of the OA, the applicant has taken out summons on defendants as directed by the Tribunal and filed proof of service on 12.12.2014. The defendants were duly served with summons and services of summons were completed as per regulation. Inspite of service of summons defendants neither appeared nor were they represented and thus the defendants were declared exparte on 24.07.2015.

5. The evidence on the side of the applicant bank consists of the proof affidavit of its Manger (Legal), AW1 and Exhibits A1 to A5 is marked on the side of applicant and closed their side of evidence.

6. Heard arguments of the applicant bank and perused the records of the case. The following points arise for my consideration:

(i) Whether the applicant is entitled for the reliefs prayed for in the OA?

(ii) What order?

My findings on the above points are as follows:-

Point No.(i):

In the affirmative

Point No.(ii):

As per final order.

Reasons:-

7. The case of the applicant bank regarding recovery of the sum of Rs.14,13,206.82 claimed as due under Exhibit A5 statement of account relating to the loan account No.80886375 as on 29.09.2014 from the defendants jointly and severally is proved by the proof affidavit of AW1 and Exts.A1 to A5. Added to this, the absence of defendants inspite of service of summons appears to be intentional without any bonafide reasons and it appears that they remained absent as they admitted the entire case of the applicant as sought for in the present OA.

8. Having regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, I am of the view that the applicant bank is entitled to get interest pendente-lite and post-decree interest @12.01% per annum.

9. The applicant bank, therefore, is entitled to get a final order on the following lines:- In the result, the applicant bank is given a final order allowing it to recover the sum of Rs.14,13,206.82 (Rupees Fourteen lakhs thirteen thousand two hundred six and paise eight two only) together with future interest @12.01% per annum with monthly rests from 16.10.2014 to till realisation and also its costs, from the defendants jointly and severally and their assets.

10. The applicant bank shall file memo of costs within ten days from the date of this final order.

11. Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

12. The Registry is directed to communicate copy of the order to the parties concerned by speed post or registered post with AD. [Dictated to the Steno, transcribed by her, corrected by me and then pronounced in the open court on this the 17th day of April, 2018]

(S.V.GOWRAMMA) Presiding Officer

A P P E N D I X Witness for Applicant: AW1: Shyam Prasanth.H, Manager (Legal) of the applicant bank.

Witness for Defendant(s): Nil

Exhibits on the part of the applicant

Ext.No. Date Particulars of documents

A1 22.01.2014 The commercial vehicle loan application submitted by the defendants. A2 30.01.2014 Loan agreement executed by the defendants along with the schedule showing tenure and mode of repayment. A3 30.01.2014 Demand Promissory Note for an amount of Rs.12,90,000/- executed by the defendants in favour of the applicant bank A4 30.09.2014 Lawyer notice issued by the applicant to the defendants. A5

Statement of accounts of loan transaction of loan account No.80886375 from 23.01.2014 to 29.09.2014

Defendants’ Exhibits – Nil

(PRESIDING OFFICER)

IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM

Dated this the 17th day of April, 2018

Present: S.V.Gowramma, B.A., LL.B Presiding Officer

Between HDFC Bank Ltd. …Applicant And Pradeep.N & another. …Defendants

FINAL ORDER