The Debt Recovery Tribunal allowed the bank's application filed under Section 19 of the RDB Act, 1993. Adjusting loan accounts, the court directed recovery of Rs. 5,19,180. The interest rate was fixed at 8% p.a. instead of the claimed 9.25% p.a.
Recovery of Rs. 5,19,180 with costs and simple interest at 8% p.a. from the date of filing till realization.
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.735/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 23.05.2023
DATE OF DECISION: 21.04.2025
HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel- (West), Mumbai- 400013 and also at Plot No. 1-15, Sector 101, ALPHA IT City, SAS Nagar, Mohali through its authorized representative, Sh. Rajendra Prasad
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, counsel for the applicant (through VC) Defendants are ex parte
FINAL ORDER
2 OA NO.735/2023 HDFC BANK LIMITED VS SEWA SINGH AND ANOTHER
application forms dated 01.11.2017, which are Annexures A2 & A3 to this OA and further approached the applicant bank for grant of CVGECL Loan of Rs. 6,66,000/- vide Application Form dated 18.03.2016, which is Annexure A6 to this OA.
(ii) TATA LPS 4018 bearing Registration no.PB13AR8613, Engine no.61E84307958 and Chassis no. G5E09010 It is pertinent to be mention here that account of PB13AR8613 is adjusted by defendants . Documents executed:- Agreement for Loan & guarantee dated 17.01.2018, which are Annexures A4 & A5 to this OA. Most Important Term & Conditions which is Annexure A7 to this OA; Facility cum Hypothecation Agreement and Declaration cum Undertaking dated 29.09.2020, which are Annexures A9 to A10 to this OA; Legal Notice dated 03.05.2023, which is Annexure A11 to this OA; Original Postal Receipts dated 04.05.2023, which are Annexures A12 to A13 to this OA and Statement of Account which are Annexures A14 to A18 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in all loan accounts there was adebit of Rs.23,02,790.26p, which is recoverable and the
3 OA NO.735/2023 HDFC BANK LIMITED VS SEWA SINGH AND ANOTHER
defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
An affidavit of Sh. Rajendra Prasad, Authorized Officer of applicant was filed in compliance of the order dated 07.04.2025 vide diary no.5767 dated 16.04.2025. It was deposed that out of 5 loan accounts 3 are active and 2 loan accounts have been adjusted by defendant and total outstanding for recovery as on 28.04.2023 is Rs.5,19,180.00(Rupees Five Lacs Nineteen Thousand One Hundred Eighty Only).
Therefore, from the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.5,19,180.00 (Rupees Five Lacs Nineteen Thousand One Hundred Eighty Only) along with interest from the defendants, jointly and severally, from the date
4 OA NO.735/2023 HDFC BANK LIMITED VS SEWA SINGH AND ANOTHER
of filing of the present Original Application till realization of 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 all the loan accounts from the date of filing of the OA till realization of the amounts 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.5,19,180.00 (Rupees Five Lacs Nineteen Thousand One Hundred Eighty 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 recover aforesaid amount from the sale of hypothecated vehicle bearing Registration no. PB13BB5613 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.
5 OA NO.735/2023 HDFC BANK LIMITED VS SEWA SINGH AND ANOTHER
Tribunal on 17.05.2025
Pronounced by me in the open Tribunal .
Dated: 21.04.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount with interest from the defaulting borrowers.
What quantum of interest rate should be applicable on the outstanding dues.
Whether the application is maintainable against the non-appearing defendants.
1 provisions across 1 enactments
HDFC Bank Limited
Sh. Sewa Singh
Sh. Joginder Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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