Allowed

Hdfc Bank Ltd. v. Sh. Shamsher Singh

DRT1 Jul 2025OA/1762/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by HDFC Bank Limited to recover Rs. 23,49,110.18 from the legal heirs of the deceased debtor. A uniform interest rate of 8% p.a. was granted. The court directed issuance of a Recovery Certificate and enforcement through the SARFAESI Act.

What did the court decide?

Direction to issue a Recovery Certificate and recover Rs. 23,49,110.18 including simple interest at 8% p.a. through sale of mortgaged/hypothecated properties.

Hdfc Bank Ltd. versus Sh. Shamsher Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1762/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.09.2022

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DATE OF DECISION: 01.07.2025

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, lower Parel, Mumbai-400013. Also at, DCM Complex, G.T. Road, Punjab, through its Authorized Representative Mr. Parampreet Singh Kahlon.

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.. … …..Applicant Versus

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Sh. Shamsher Singh S/o Gurcharanjeet Singh R/o Ward No. 15, Street No. 1, Bittu MC Wali Gali, Malout, Tehsil Malout, District Muktsar (Punjab)-152107, since deceased through his Legal Heirs

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a) Sh. Bittu Singh MC, S/o Late Sh. Shamsher Singh, R/o Ward No. 15, Street No. 1, Bittu MC Wali Gali, Malout, Tehsil Malout, District Muktsar (Punjab)-152107

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….……Defendants

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Advocates:

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Present Sh. Gaurav Thakur, Advocate proxy for Sh. Tarunjit Singh Grewal, Advocate for Applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.23,49,110.18p (Rupees Twenty Three Lacs Forty Nine Thousand One Hundred Ten and Paise Eighteen Only). The Original Application has been filed through Mr. Parampreet Singh Kahlon, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant (since deceased) had approached the applicant bank for the grant of CC Limit I of Rs.

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2 OA NO.1762-2022

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HDFC BANK LIMITED VS LATE SH. SHAMSHER SINGH AND ANOTHER

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13.80 Lacs, CC Limit II of Rs.3.65 Lacs and TL 1 (Auto Loan) of Rs.40,000.00 vide loan application dated 01.02.2016 and 18.07.2016, which are Annexures A2 & A2/A to this OA and further for Term Loan II of Rs.84,779.00 and Term Loan III of Rs.15,490.00.

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The applicant Bank sanctioned the CC Limit I of Rs. 12.60 Lacs, CC Limit II Rs.3.65 Lacs and TL 1 (Auto Loan) of Rs. 40,000/- vide Sanction Letter dated 19.02.2016 and 21.07.2016, which are Annexures A4 to A6 to this OA to this OA and Further sanctioned Term Loan II of Rs.84,779.00 and Term Loan III of Rs.15,490.00 and the terms and conditions were duly accepted by the defendants.

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Defendant had Mortgaged/hypothecated his immovable/movable properties i.e. a. Land measuring 32Kanal 0 Marla situated at Village Chhapianwali, Hadbast No. 157, Tehsil Malout, District Muktsar, Punjab vide Declaration U/S 4(1) dated 24.02.2016 which is Annexure A13 to this OA;

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b. vehicle namely Hero Moto Corp Motorcycle Deluxe bearing Registration no. PB 30S 6332, Engine no. HA11EJG4GO2277 and Chassis no. MBLHA11ATG4GO2231 Vide Details of Vehicle which is Annexure A3 to this OA;. Documents executed:- Agreement for Over Draft/ Cash Credit- cum Guarantee Hypothecation I and II dated 25.02.2016 which are Annexures A7 and A8 to this OA to this OA; Agreements for Term loan I (Auto Loan) along with letter of undertaking, which are Annexures A9 & A10(Colly) to this OA; Demand Promissory Notes with Letter dated 25.02.2016 which are Annexure A11 and A12 to this OA; Copy of Title search report dated 24.02.2016 which is Annexure A14 to this OA; Bank Charge, Non –Encumbrance Certificate, Undertakings which are Annexures A15 to A17(Colly) to this OA; Demand Notice along with Postal Receipt dated 10.06.2022 which is Annexure A18 to this OA; Copy of Statement of Accounts (CC I), Copy of Statement of

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3 OA NO.1762-2022

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HDFC BANK LIMITED VS LATE SH. SHAMSHER SINGH AND ANOTHER

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Accounts (CC II) dated 06.06.2022 which are Annexures A19 and A20 to this OA; Copy of Statement of Accounts (TL I), Copy of Statement of Accounts (TL II), Copy of Statement of Accounts (TL III) dated 07.06.2022 which are Annexures A21 to A23 to this OA; Certificate under Banker Book of Evidence, which is Annexure A24 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 23,49,110.18p, 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 legal heir of deceased defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex parte on 27.06.2025. 7. In support of the OA, affidavit of Mr. Parampreet Singh Kahlon, Authorized Representative, HDFC Bank Limited, has been filed. 8. Ld. proxy counsel for applicant present has not advanced any argument. Perused record. 9. In view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A24 to this OA, it is proved that the defendants approached applicant bank 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 defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.23,49,110.18p (Rupees Twenty Three Lacs Forty Nine Thousand One Hundred Ten and Paise Eighteen Only) along with interest from the from the 08.06.2022

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4 OA NO.1762-2022

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HDFC BANK LIMITED VS LATE SH. SHAMSHER SINGH AND ANOTHER till the realization, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest detailed as: a. interest in CC I @12.00%p.a. along with penal interest @16%p.a. with half yearly rests, from the 02.04.2022 till the realization b. interest in CC II @15.50%p.a. along with penal interest @16%p.a. with half yearly rests, from the 02.04.2022 till the realization c. interest in TL I (Auto Loan) @17.00%p.a. along with penal interest @2%p.a. with half yearly rests, from the 08.06.2022 till the realization d. Interest in TL II @11.00%p.a. along with penal interest @24%p.a. with half yearly rests, from the 08.06.2022 till the realization e. Interest in TL III @12.50%p.a. along with penal interest @24%p.a. with half yearly from the 08.06.2022 till the realization. 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 all 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 from the 08.06.2022 till the realization is liable to pay to the applicant a total sum of Rs.23,49,110.18p (Rupees Twenty Three Lacs Forty Nine Thousand One Hundred Ten and Paise Eighteen Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to

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OA NO.1762-2022

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HDFC BANK LIMITED VS LATE SH. SHAMSHER SINGH AND ANOTHER

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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 from the 08.06.2022 till the realization. The applicant is at liberty to enforce the claim through due process of law.

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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 19.07.2025.

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

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Dated: 01.07.2025

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

Hdfc Bank Ltd. v. Sh. Shamsher Singh

Case brief

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Hdfc Bank Ltd. v. Sh. Shamsher Singh

Case brief

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