In an Original Application filed under Section 19 of RDBFI Act, 1993, a bank sought recovery of Rs.1.14 crore from borrowers who defaulted on credit facilities. The hearing was conducted ex parte. The Tribunal, exercising discretion regarding interest rates, allowed the application and ordered recovery of the principal plus 8% simple interest.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.264/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 16.02.2023
DATE OF DECISION: 23.04.2025
HDFC Bank Limited, a Banking Company incorporated and registered under the Companies Act 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai400013 and one of its Branch Office, amongst at plot and Shed No.BXV-168/1, G.T. Road, Millerganj, Ludhiana, Punjab-141003 through its duly constituted attorney Sh. Sunil Kalra, Manager Legal, presently posted at Plot No.I-15, Alpha IT City Sector 101, Mohali (Pb)-160062
……..Applicant
Versus
Advocates:
Argued by Sh. C.S. Pasricha, Advocate for the applicant (through VC) Defendants are ex-parte
2 OA NO.264/2023 HDFC BANK OF LIMITED VS M/S JATIN STEELS AND OTHERS
FINAL ORDER
3 OA NO.264/2023
HDFC BANK OF LIMITED VS M/S JATIN STEELS AND OTHERS
(i) All that part and Parcel of Industrial Plot No.03, measuring 525 Sq. Yard situated at Village Gobindgarh, H.B. No.243, Sub-Tehsil Sahnewal, near Narain Kanda, Opposite Arora Iron and Steel Focal Point Ludhiana, District Ludhiana, Punjab vide equitable mortgage of sale Deed bearing vasika no. 3068 dated 17.02.2016 along with its Translation which are Annexures A11 & A-11/T to this OA.
(ii) All that part and Parcel of Industrial Plot No.19, measuring 166 Sq. Yard situated at Village Daad, H.B. No.279, Pakhowal Road, Tehsil and District Ludhiana, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no. 6098 dated 24.09.2009 and Jamabandi for the year 19992000 along with their Translation, which are Annexures A12 & A- 12/T to this OA;
Documents executed:- Demand Promissory Note, Amendment Agreement, Master Facility Agreement, Power of Attorney, Deed of Hypothecation, Deed of Indemnity, Letter of Continuing Guarantee all dated 23.02.2017, which are Annexures A4 to A10 to this OA; Memorandum recording past transaction of creation of mortgage by delivery of title deeds dated 10.04.2017, which is Annexure A13 to this OA; Addendum Agreement dated 11.02.2020, which is Annexure A17 to this OA; Customer request and SI ECS Debit authorization form facility under ECLGS dated, Facility-cum-hypothecation Agreement, Declaration cum undertaking, Undertaking, Supplementary Letter of continuing guarantee, Memorandum recording past transaction of creation of mortgage by delivery of title deeds all dated 06.07.2020, which are Annexures A20 to A25 to this OA; Recall notice dated 29.07.2022 along with Postal Receipts, which is Annexure A30 to this OA; Notice under Section 13(2) along with postal receipts dated 12.10.2022, which is Annexure A31 to this OA; Statements of Accounts, Memoranda of Statement of Account, foreclosure Statement along with certificate and the Valuation report of Mortgage Property, which are Annexures A32 to A36(colly) to this OA.
4 OA NO.264/2023 HDFC BANK OF LIMITED VS M/S JATIN STEELS AND OTHERS
On 05.09.2024 Sh. Vishisht, Advocate appeared on behalf of defendants and filed his Power of Attorney. He has filed an IA no.1436/2024 for stay on physical dispossession from the mortgaged properties and the same was dismissed on 18.02.2025.
5 OA NO.264/2023 HDFC BANK OF LIMITED VS M/S JATIN STEELS AND OTHERS
filing of the present Original Application till realization of both the accounts.
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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.1,14,06,508.33p (Rupees One Crore Fourteen Lacs Six Thousand Five Hundred Eight and Thirty Three Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.
6 OA NO.264/2023 HDFC BANK OF LIMITED VS M/S JATIN STEELS AND OTHERS
Pronounced by me in the open Tribunal .
Dated: 23.04.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount along with interest from the defendants jointly and severally.
Whether the Tribunal can exercise discretion to grant uniform simple interest at a reduced rate considering market rates.
2 provisions across 2 enactments
HDFC Bank Limited
M/s Jatin Steels
Ashu Jain
Soni @ Sonia Jain
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
