Allowed

Hdfc Bank Limited v. Sh. Mahain Singh and Others

DRT28 Jul 2025OA/38/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of ₹25.56 lakh against borrowers and guarantor by declaring the principal amount due along with simple interest, vesting rights to sell mortgaged properties under the SARFAESI Act.

What did the court decide?

Recovery of principal amount with simple interest at 8% p.a.; power to sell mortgaged properties under SARFAESI Act; issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.38/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.11.2023

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DATE OF DECISION: 28.07.2025

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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 “Mansa, District Mansa (Punjab)” through Ms.Pooja Arora, Senior Manager (Agri. Legal), HDFC Bank Ltd., Ludhiana Branch District Ludhiana (Punjab) being Power of Attorney holder/Authorized Officer of the applicant.

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……..Applicant

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Versus

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Sh. Mahain Singh S/o Sh. Ajaib Singh since deceased through his legal heirs/legal representatives detailed as under: -

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a. Smt. Amarjit Kaur W/o Late Sh. Mahain Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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b. Sh. Sahib Singh S/o Late Sh. Mahain Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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c. Sh. Tarsem Singh S/o Late Sh. Mahain Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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Sh. Sahib Singh S/o Sh. Mahain Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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Sh. Tarsem Singh S/o Sh. Mahain Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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2 OA NO.38/2024 HDFC BANK LIMITED VS SH. MAHAIN SINGH AND OTHERS

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Sh. Dalbir Singh Khera S/o Sh.Gurmej Singh R/o Village Bahadarwala, Chadhuri Wala, Tehsil Dharamkot, District Moga(Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, Advocate for the applicant

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Defendant 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.25,56,779.00p (Rupees Twenty Five Lacs Fifty Six Thousand Seven Hundred Seventy Nine only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager (Agri. Legal), 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 Deceased Defendant no.1 and the defendant nos. 2 and 3 had approached the applicant for grant of Agri CC Limit and OD limit of Rs.15.50 Lacs & OD Limit of Rs.8.00 Lacs vide Application form dated 10.01.2022, which is Annexures A2 to this OA. Defendant no.4 stood as guarantor. 3. The applicant sanctioned Agri CC Limit of Rs.15.50 Lacs & OD Limit of Rs.7.80 Lacs vide Sanction Letters dated 19.01.2022, which are Annexures A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Deceased Defendant no.1 and the defendant nos. 2 and 3 had mortgaged their Immovable properties, i.e. total land measuring 56K05M situated at Village Bahadarwala-Pandori Ariayan, Tehsil Dharamkot, District Moga (Punjab) vide Declaration u/s 4(1) dated 21.01.2022 & Letter to Sub Registrar for Creation of charge bearing no. 532 dated 21.01.2022, w hich is Annexure A7 to this OA.

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3 OA NO.38/2024 HDFC BANK LIMITED VS SH. MAHAIN SINGH AND OTHERS

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Documents executed:- Agreement for Overdraft/Cash Credit cum Guarantee Cum Hypothecation, Agreement for Dropline Overdraft cum Hypothecation Cum Guarantee, both dated 20.01.2022, which are Annexures A5 & A6 to this OA; Legal Notice dated 30.08.2023 along with Postal Receipts, which is Annexure A8 to this OA and Statements of Accounts with certificate, which are Annexures A9 & A10 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.25,56,779.00p, 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 24.07.2025.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd., has been filed.

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Heard ex-parte arguments and perused record.

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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 A10 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts 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.25,56,779.00p (Rupees Twenty Five Lacs Fifty Six Thousand Seven Hundred Seventy Nine only) along with interest from the defendants, jointly and

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4 OA NO.38/2024 HDFC BANK LIMITED VS SH. MAHAIN SINGH AND OTHERS

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severally, from the date of filing of the present Original Application till realization of the account.

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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 @10.00%p.a. along with penal interest @2% from 01.09.2023 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.25,56,779.00p (Rupees Twenty Five Lacs Fifty Six Thousand Seven Hundred Seventy Nine only) jointly and severally, with costs, current and future simple interest @08.00%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2025.

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5 OA NO.38/2024 HDFC BANK LIMITED VS SH. MAHAIN SINGH AND OTHERS 15. 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 . Dated: 28.07.2025.

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

Hdfc Bank Limited v. Sh. Mahain Singh and Others

Case brief

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Hdfc Bank Limited v. Sh. Mahain Singh and Others

Case brief

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