Allowed

Hdfc Bank Limited v. Sh. Narinder Singh and Others

DRT25 Jul 2025OA/1060/2024

Case brief

AI extract

What is this about?

The tribunal allowed the recovery application filed by HDFC Bank Ltd. against borrowers and a guarantor for Rs. 32,79,901 due to loan defaults. The court approved uniform simple interest at 8% p.a., permitting recovery from mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 32,79,901, costs, and current/future simple interest @ 8% p.a.; directions to recover from sale of properties or attachment of assets.

Hdfc Bank Limited versus Sh. Narinder Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1060/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.08.2024

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DATE OF DECISION: 25.07.2025

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HDFC Bank Ltd., a Banking company, carrying on banking business under Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai 400013, whereas branch at “Moonak, District Sangrur (Punjab)” through Ms. Pooja Arora, Senior Manager (Agriculture Legal), HDFC Bank Ltd., Ludhiana Branch District Ludhiana(Punjab) being Power of Attorney

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holder/Authorized Officer of the applicant.

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……. Applicant

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Versus

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Sh. Narinder Singh S/o Sh. Nachhattar Singh R/o House No.213, Village Babangarh alias Ghamur Ghat, Part 2 Tehsil Moonak, District Sangrur (Punjab)-148033.

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Smt. Jashwinder Kaur W/o Sh. Narinder Singh R/o House No.213, Village Babangarh alias Ghamur Ghat, Part 2 Tehsil Moonak, District Sangrur (Punjab)-148033.

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Sh. Sukhwinder Singh S/o Sh. Sher Singh R/o Village Babangarh alias Ghamur Ghat, Part 2 Tehsil Moonak, District Sangrur (Punjab)-148033.

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, Advocate for the applicant (through VC)

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Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.32,79,901.00p (Rupees

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OA NO.1060/2024 HDFC BANK LIMITED VS SH. NARINDER SINGH AND OTHERS

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Thirty Two Lacs Seventy Nine Thousand Nine Hundred One only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agri. Legal), of the applicant, who is competent to institute the Original Application vide Power of attorney dated 16.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 & 2 had approached the applicant for grant of Agri. CC Limit of Rs.24.00 Lacs & Agri. Term Limit of Rs.10.20 Lacs vide Application form dated 28.07.2020 & 22.06.2021, which are Annexures A2 & A9 to this OA. Defendant no.3 stood as guarantor. Thereafter, the defendants approach the applicant for enhancement of CC Limit to Rs. 27.63 Lacs.

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The applicant sanctioned Agri. CC Limit of Rs.23.30 Lacs & Agri. Term Limit of Rs.9.70 Lacs vide Sanction Letters dated 20.10.2010 & 29.06.2021, which are Annexures A3 & A4 to this OA and thereafter enhance the CC Limit to Rs. 23.63 Lacs vide sanction letter dated 29.06.2021, which is Annexure A10 to this OA; the terms and conditions were duly accepted by the defendants.

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Defendant no.1 & 2 had mortgaged their Immovable properties, i.e. total land measuring 128K-00M situated at Village Babangarh alias Ghamurghat, Tehsil Moonak, District Sangrur (Punjab) vide Declaration u/s 4(1) along with letter to Sub-Registrar for creation of charge dated 30.10.2010, w hich is Annexure A7 to this OA.

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Documents executed:- Agreement for Term loan cum Guarantee Cum Hypothecation, Agreement for Overdraft / Cash Credit cum Guarantee Cum Hypothecation both dated 20.10.2010, which are Annexures A5 & A6 to this OA; Letter of Acknowledgment dated 07.06.2021, which is Annexure A8 to this OA; Addendum cumundertaking dated 24.06.2021, which is Annexure A11 to this OA; Legal Notice dated 30.06.2024 along with Postal Receipts, which is Annexure A12 to this OA and Statements of Accounts with Banker’s

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OA NO.1060/2024 HDFC BANK LIMITED VS SH. NARINDER SINGH AND OTHERS

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Book Evidence Act, certificate regarding computer system, which are Annexures A13 & A14 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.32,79,901.00p, 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 23.07.2025. 7. In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd., h as been filed. 8. Heard ex-parte 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 A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,79,901.00p (Rupees Thirty Two Lacs Seventy Nine Thousand Nine Hundred One only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest

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OA NO.1060/2024 HDFC BANK LIMITED VS SH. NARINDER SINGH AND OTHERS

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@11.00%p.a. with penal interest @2% from 30.06.2024 from 29.06.2024 till the realization.

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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 both the loan accounts from the date of filing of the OA 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 Rs.32,79,901.00p (Rupees Thirty Two Lacs Seventy Nine Thousand Nine Hundred One only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan account from the date of filing of OA 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 applicant 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.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.09.2025.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also

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OA NO.1060/2024 HDFC BANK LIMITED VS SH. NARINDER SINGH AND OTHERS uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 25.07.2025.

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

Hdfc Bank Limited v. Sh. Narinder Singh and Others

Case brief

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Hdfc Bank Limited v. Sh. Narinder Singh and Others

Case brief

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