Allowed

Yes Bank Ltd. v. Harpreet Singh

DRT15 Sept 2025OA/934/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a non-performing used car loan. The tribunal validated the debt and modified the claimed interest rate to 8% per annum, ordering recovery from hypothecated assets or personal assets if unpaid.

What did the court decide?

Declaration of liability to pay Rs.22,80,991.02 with simple interest @ 8% p.a. and directive to recover from hypothecated vehicle or personal assets.

Yes Bank Ltd. versus Harpreet Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.934/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.06.2025

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DATE OF DECISION: 15.09.2025

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Yes Bank Ltd. Registered Office at Yes Bank House, Off Western Express Highway, Santacurz(E) Mumbai – 400055 and Northern Regional Corporate Office at SCO 129-130, Madhya Marg, Sector-9C, Chandigarh having its branch office at Patiala, Punjab through its Attorney holder Sh. Aashiv Bhayana.

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……..Applicant Versus

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Sh. Harpreet Singh S/o Sh. Avtar Singh R/o H. No. 809 SST Nagar, Patiala, Punjab -147001.

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2^nd Address: R/o Shop No. 115, Guru Teg Bahadur Tractor Market, Rajpura Road Patiala, Punjab -147001.

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….……Defendant

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Advocates:

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Argued by Sh. Amit Rishi, Advocate for 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 bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.22,80,991.02p (Rupees Twenty Two Lacs Eighty Thousand Nine Hundred Ninety One and Paise Two Only). The Original Application has been filed through Sh. Aashiv Bhayana, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 28.03.2025, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of Used Car Loan of Rs.26.00 Lacs vide Application Form dated 10.10.2023, which is Annexure A2 to this OA.

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2 OA NO. 934/2025 YES BANK LTD. VS. SH. HARPREET SINGH

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The applicant sanctioned the Used Car Loan of Rs.25,92,488/and the terms and conditions were duly accepted by the defendant. Terms and conditions applicable to vehicle loan dated 12.10.2023 executed by the defendant is Annexure A3 to this OA.

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Defendant had hypothecated his movable assets i.e. Vehicle namely “KIA SONET GTX PLUS” bearing Registration No. PB11DD7077, Engine No. D4FANM608579 and Chassis No. MZBFE813LNN206916.

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Documents executed :- Terms and Conditions applicable to Vehicle Loan dated 12.10.2023, which is Annexure A3 to this OA; Demand Notice dated 12.05.2025, which is Annexure A4 to this OA; Statement of Account & Certificate under Banker’s Book of Evidence which is Annexure A5 to this OA and Delhi High Court Judgment, which is Annexure A6 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.22,80,991.02p, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.09.2025.

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In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorized Representative, Yes Bank Limited h as 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 A6 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in

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3 OA NO. 934/2025 YES BANK LTD. VS. SH. HARPREET SINGH

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favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,80,991.02p (Rupees Twenty Two Lacs Eighty Thousand Nine Hundred Ninety One and Paise Two Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @14.71% p.a. with monthly rest from 09.05.2025 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 defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.22,80,991.02p (Rupees Twenty Two Lacs Eighty Thousand Nine Hundred Ninety One and Paise Two Only) with costs, current and future simple interest @08.00%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 vehicle of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If

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4 OA NO. 934/2025 YES BANK LTD. VS. SH. HARPREET SINGH

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the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.10.2025.

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Copy of this order be given Dasti to the applicant bank and be sent to defendant 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: 15.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Yes Bank Ltd. v. Harpreet Singh

Case brief

What is this about?

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Yes Bank Ltd. v. Harpreet Singh

Case brief

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