HDFC BANK vs K Regina Rosemary on 31 January 2019

**ORDER**

1. This application is filed by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act (erstwhile Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a sum of Rs.13,69,752.25p due under the Loan Account No.46568502 together with interest at 10.05% per annum from 17.4.2018 till the date of realization in full, for sale of the schedule mentioned property along with costs of this application.

2. Brief facts of Application are as follows:

2.1 The applicant bank submits that the defendant approached the applicant bank on 22.3.17 for the purpose of purchase of Auto Loan i.e. Innova Crysta VX and the applicant considered the said request of the defendant and sanctioned Loan of Rs.13,84,950/- 2.2. It is further stated that on 27.3.2017 the defendant executed the Agreement for AUTO Loan and in favour of the applicant bank vide account in and by which the defendants agreed to repay the loan amount in 60 installments at Rs.29,775/- from 5.5.2017 to 5.4.2022. Further the defendants agreed to hypothecate the vehicle purchased in favour of the applicant bank thereby creating a charge over in favour of the applicant bank for repayment of the amount due under the said loan.

2.3. The applicant bank further stated that apart from the said agreement, the defendants also executed the following documents;

- i) Loan Agreement

- ii) Key Fact Statement

- iii) Customer SI Debit Authorisation Form

- iv) ECS mandate form

- v) Irrevocable power of attorney

- vi) Priority Sector Advance declaration by customer availing loan,

- vii) Forex Unhedged Exposure Letter

2.4. It is further stated that the after disbursement of an amount of Rs.13,62,266/- the defendant purchased the said vehicle and registered the same with the concerned registration department. Thereafter, the defendant was irregular in making payments towards the said loan account. Since the defendant failed and neglected to pay the amount due, the applicant bank caused a legal notice dt. 17.4.2018 calling upon the defendants to repay the amount due. The said notice was duly delivered on the defendant. Although the defendant received the said legal notice, neither they complied with the demands contained therein nor sent any reply thereto. Hence, the present OA.

3. Defendant remained exparte.

4. Point for consideration:

Whether the applicant bank is entitled for the claim amount in the application from the defendant? If so for what amount and at what rate of interest?

5. Point

Whether the applicant bank is entitled for the claim amount in the application from the defendant? If so, for what amount and at what rate of interest?

To prove its claim, the applicant bank filed proof affidavit through its Authorised Signatory / Legal Manager along with 9 documents, which are marked as Ex.A-1 to A-9. The proof affidavit of the applicant bank remain unchallenged. Therefore, on careful consideration of the material placed before the Tribunal, coupled with the proof affidavit filed on behalf of the applicant bank, I am satisfied that the applicant bank has successfully proved the OA claim against the defendant. Hence, it is held that the applicant bank is entitled for a Recovery Certificate for a sum of Rs.13,69,752.25p alongwith pendeite lite and future interest @ % p.a. simple. Point is answered accordingly.

6. For the reasons stated as above, it is held that the applicant bank is entitled for a Recovery Certificate against the defendant for a sum of Rs.13,69,752.25p due under the Loan Account together with interest at 10.05% per annum simple from 17.4.2018 till the date of realization in full and for sale of the schedule mentioned property along with costs.

7. In the result, application is allowed as under:

(a) The applicant bank is entitled to recover from the defendant a sum of Rs.13,69,752.25p due under the Loan account together with interest at 10.05% per annum simple from 17.4.2018 till the date of realization in full, (b) It is further ordered that in case of default of payment by the defendant, the applicant bank is entitled to sell the schedule mentioned property and adjust the sale proceeds towards the amount due,

- (c) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant is personally liable for all such amounts due,

- (d) It is further ordered that any amount remitted or realized, if any, during the course of the proceedings, shall be given due credit to the loan account of the defendant,

- (e) The applicant bank is entitled for costs of this application.

1. 8. The applicant bank is directed to file costs memo within two weeks of the receipt of this order.

2. 9. Issue recovery certificate in favour of the applicant bank in terms of this final order.

3. 10. Communicate a copy of the order to the parties concerned in terms of Rule 16 read with Rule 2(c) of DRT (Procedure) Rules, 1993.

(Dictated to PS, transcribed by him, corrected, signed and pronounced by me in the Open Court, this 31^st day of January, 2019)

Sd/- **(N.V. BADARINATH)** PRESIDING OFFICER DRT-I, CHENNAI