Allowed

Hdfc Bank Limited v. M/S Gurdiyal Singh Kirpal Singh and Others

DRT26 Dec 2025OA/1420/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application for recovery of a loan of Rs. 25,39,043.74. After hearing the applicant ex parte, the Tribunal granted uniform simple interest at 8% p.a. and issued a recovery certificate for the principal, current, and future interest.

What did the court decide?

Recovery of Rs. 25,39,043.74 with costs and 8% p.a. simple interest from filing date; Recovery Certificate issued.

Hdfc Bank Limited versus M/S Gurdiyal Singh Kirpal Singh and… — Consumer Protection | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1420/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.11.2024

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DATE OF DECISION: 26.12.2025

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HDFC Bank Limited, a Banking Company, incorporated under Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra having one of its branch Chabal Kalan, Tarn Taran, through its duly Authorized Signatory and Authorized Officer Sh. Satish Bhardwaj, working as Senior Manager, presently posted and case file is dealt with at HDFC Bank Shop no. 2 and 3, Sector 3, Adjoining Sportsking Showroom, Channi Himmat Jammu- 180015.

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.. … …..Applicant

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Versus

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M/S Gurdiyal Singh Kirpal Singh, a Proprietorship firm through its Proprietor Sh. Gurdiyal Singh S/o Sh. Jeet Singh, having its place of Business at Grain Market, Chabal, VPO Chabal, District Tarn Taran Punjab-143301.

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Sh. Gurdiyal Singh S/o Sh. Jeet Singh, R/o Pakka Kila Near Gurudwara, Jhabal Kalan, VPO Chabal Kalan, New District Tarn Taran, Punjab-141120. 2^nd Address: Grain Market, Chabal, VPO Chabal, District Tarn Taran Punjab-143301.

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3^rd Address: Shop No. 369, New Grain market, Mandi Bhagtanwala, District Tarn Taran Punjab.

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Sh. Navjot Singh S/o Sh. Gurdiayal Singh, R/o Pakka Kila Near Gurudwara, Jabal Kalan, VPO Chabal Kalan, New District Tarn Taran, Punjab-141120.

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2^nd Address: Grain Market, Chabal, VPO Chabal, District Tarn Taran Punjab-143301.

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….……Defendants

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2 OA/1420/2024 HDFC BANK LIMITED VS. GURDIYAL SINGH KIRPAL SINGH AND OTHERS

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Advocates:

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Argued by Sh. Harinder Kumar, Advocate for Applicant 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.25,39,043.74 (Rupees Twenty Five Lacs Thirty Nine Thousand Forty Three and Paise Seventy Four Only). The Original Application has been filed through Sh. Satish Bhardwaj, Senior Manager, o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 22.11.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for Overdraft Limit against Property (ODAP) of Rs.35.00 Lacs, vide Loan Application dated 10.11.2014, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for renewal of the limit vide renewal request letters dated 29.11.2016, which is Annexure A12 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 40.00 Lacs vide request letter dated 12.07.2017, which is Annexure A14 to this OA and again for renewal of the limit vide renewal request letter dated 22.10.2018, which is Annexure A25 to this OA. 3. The applicant sanctioned the ODAP Limit of Rs.20.00 Lacs, vide Sanction Letter dated 15.11.2014, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant renewed the limit vide renewal sanction letter dated 07.12.2015 and 08.12.2016, which are Annexures A11 and A13 to this OA. Thereafter, the applicant enhanced the limit to Rs. 25.00

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3 OA/1420/2024 HDFC BANK LIMITED VS. GURDIYAL SINGH KIRPAL SINGH AND OTHERS

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Lacs vide enhancement sanction letter dated 18.10.2017, which is Annexure A15 to this OA. Thereafter, the limit was renewed by the applicant vide renewal sanction letter dated 25.10.2018, 05.11.2019 and 26.11.2020, which are Annexures A26, A27 and A28 to this OA and also L oan Renewal Acknowledgement Letter with Renewal Sanction Letter, dated 05.01.2023, which is Annexure A30 to this OA.

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Defendant no. 2 mortgaged his immovable property i.e. All part and parcel of Commercial Booth No. 369, measuring 33.75 sq. yards, situated at New Grain Market, Mandi Bhagatan Wala, Tehsil and District Tarn Taran, Punjab through equitable mortgage of Conveyance Deed No. 5089 dated 14.10.2014 along with its Translation, which is Annexure A10 to this OA. Memorandum recording past transactions of creation of mortgage by delivery of title deeds dated 26.11.2014 and 21.10.2017, which are Annexures A8 and A23 to this OA. Documents executed: Master Facility Agreement, Demand Promissory note, Letter of continuing Security, Letter of Continuing Guarantee, dated 20.11.2014, which are Annexures A4 to A7 to this OA; Declaration cum indemnity , dated 26.11.2014, which is Annexure A9 to this OA; Supplementary Agreement, Demand Promissory note, Declaration by Customer, Letter of continuing Security , Amendment Agreement, Demand Promissory note, Supplementary Letter of continuing Guarantee, Declaration cum Indemnity, all dated 21.10.2017, which are Annexures A16 to A22 and A24 to this OA; Addendum dated 26.11.2020, which is Annexure A29 to this OA; Letter of continuing Guarantee and Witness Declaration, both dated 14.09.2023, which are Annexures A31 and A32 to this OA; Valuation report, dated 24.11.2014, which is Annexure A33 to this OA; Statement of Accounts with Calculation chart Certified under Banker Books Evidence Act, 1891, which is Annexure A34 to this OA;

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4 OA/1420/2024 HDFC BANK LIMITED VS. GURDIYAL SINGH KIRPAL SINGH AND OTHERS

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Memoranda of interest, which is Annexures A35 to this OA; Loan Recall Notice dated 23.09.2024, which is Annexures A36 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.25,39,043.74, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex- parte 12.08.2025.

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In support of the OA, affidavit of Sh. Satish Bhardwaj, Senior Manager, HDFC Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel 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 A36 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 bank. 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.25,39,043.74 (Rupees Twenty Five Lacs Thirty Nine Thousand Forty Three and Paise Seventy Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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5 OA/1420/2024 HDFC BANK LIMITED VS. GURDIYAL SINGH KIRPAL SINGH AND OTHERS

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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 @18.00%p.a. with monthly rests from the 17.09.2024 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/hypothecated assets, 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 the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,39,043.74 (Rupees Twenty Five Lacs Thirty Nine Thousand Forty Three and Paise Seventy Four Only) with costs, current and future simple interest @8.00%p.a. in 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

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on 09.01.2026.

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6 OA/1420/2024 HDFC BANK LIMITED VS. GURDIYAL SINGH KIRPAL SINGH AND OTHERS

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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 uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal .

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Dated: 26.12.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. M/S Gurdiyal Singh Kirpal Singh and Others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. M/S Gurdiyal Singh Kirpal Singh and Others

Case brief

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