HDFC BANK LTD. Vs. ST. JOHNS EDUCATIONAL TRUST

JUDGEMENT

(1.) The Plaintiff is a Schedule Bank, governed by the Banking Regulation Act, 1949. The 1 st and 2 nd defendants are Public Trusts represented by its Managing Trustee - Dr.R.Kishore Kumar. The family members of Dr.R.Kishore Kumar, as the other trustees of these two trusts. The 1 st defendant Trust availed credit facility to an extend of Rs.10,90,00,000/- (Rupees Ten Crores Ninety Lakhs Only) and as security executed equitable mortgage of the properties, memorandum relating to charge over the fixed deposits to the extent of Rs.6 crores, shares/cash deposits and Deed of Hypothecation dated 28.07.2017. The 2 nd defendant Trust is the co-borrower of the credit facility.

(2.) The defendants 1 and 2 jointly executed a power of attorney in favour of the plaintiff Bank on 28.07.2017, authorising the bank, "to ask and demand, sue for, recover and receive of and from all other constituents, customers, agents, dealers and all other persons liable to pay, transfer and deliver the same respectively all and every debt to debts sum or sums of money goods, chattels and effects due and owing to me/us by virtue of one security or upon any balance of account or otherwise howsoever as I/We shall at any time hereafter in writing under my/our hand express to be due from them or any of them and upon receipt thereof any part thereof for me/us and in my/our name to give, sign and execute good and sufficient, receipts, release, re-conveyance and other discharges for the same respectively."

(3.) The plaintiff Bank, time to time called upon the defendants 1 and 2 nd to regularise their accounts and make payments under the above said credit facility. Since, the defendants consistently breached and defaulted in making payments of the outstanding amount, the account of 1 st defendant was declared as Non Performing Assets (NPA) on 30.10.2019. As per the statement of accounts, the defendants 1 and 2 are liable to pay Rs.44,00,46,313/- as on 09.11.2020.