Allowed

Hdfc Bank v. Gurjinder Singh and Another

DRT1 Jul 2026OA/102/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an application under the RDB Act for recovery of a defaulting loan of Rs. 21.41 lakhs. The bank requested 10.01% plus 2% penal interest, but the Tribunal granted simple interest at 8% per annum due to market rate fluctuations. A Recovery Certificate was issued.

What did the court decide?

Recovery of Rs. 21,41,986.85 plus simple interest at 8% p.a. from filing date. Directed to issue Recovery Certificate and permit sale of assets.

Hdfc Bank versus Gurjinder Singh and Another — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 102/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.01.2026

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DATE OF DECISION: 01.07.2026

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HDFC Bank Limited having its Registered Office at Senapati Bapat Marg, Lower Parel (West), Mumbai, Maharashtra- 400013, having its Branch Office at Mansa, Punjab and also at HDFC Bank House, Plot no. I-15, Sector 101, Alpha IT City, Mohali, Punjab through its Authorized Representative, Sh. Deepak Sharda

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……..Applicant

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Versus

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Sh. Gurjinder Singh, S/o Sh. Gurdev Singh, R/o House no. 506, Lala Patti, Khiala Kalan, Mansa, Punjab- 151508

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Smt. Jaspal Kaur, W/o Sh. Gurjinder Singh, R/o House no. 433, Khiala Kalan, Mansa, Punjab- 151508

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….……Defendants

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Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Sh. Amit Rishi, Advocate for applicant

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None for defendants (already ex-parte vide order dated 25.06.2026)

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 21,41,986.85 (Rupees Twenty One Lacs Forty One Thousand Nine Hundred Eighty Six and Paise Eighty Five Only). The Original Application has been filed through Sh. Deepak Sharda, Authorized Representative of the applicant, who is competent to institute the Original Application vide Board Resolution dated 21.08.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendants approached the applicant for grant of Vehicle Loan of Rs. 27,83,384.00 vide Application Form dated 19.02.2024, which is Annexure A2 to this OA.

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2 OA NO. 102/2026 HDFC BANK LIMITED VS. GURJINDER SINGH AND ANOTHER

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The applicant sanctioned Vehicle Loan of Rs. 27,83,384.00 and the terms and conditions were duly accepted by the defendants. 4. Defendants hypothecated their movable asset namely Backhoe Loader 3DX Plus 2WD bearing Registration no. PB03BN8391, Chassis no. HAR3DXS4A03376298 and Engine no. H00406764 vide RC, which is Annexure A3 to this OA. Documents executed: Irrevocable Power of Attorney dated 27.02.2024, which is Annexure A4 to this OA; Demand Notice dated 13.12.2025 along with postal receipts, which is Annexure A5 to this OA; Statement of Account with certificate, which is Annexure A6 to this OA and Hon’ble Delhi High Court Judgement dated 05.02.2007, which is Annexure A7 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs. 21,41,986.85 which is recoverable and the defendants were served recall notice 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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 25.06.2026. 7. In support of the OA, affidavit of Sh. Deepak Sharda, Authorized Representative, HDFC Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that 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 Annexure A1 to A7 to this OA, it is proved that defendants approached the applicant for availing of the loan facility 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record,

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3 OA NO. 102/2026 HDFC BANK LIMITED VS. GURJINDER SINGH AND ANOTHER

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it is proved that applicant is entitled to recover a sum of Rs.21,41,986.85 (Rupees Twenty One Lacs Forty One Thousand Nine Hundred Eighty Six and Paise Eighty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.01%p.a. plus @2% penal interest from the date of filing of the application 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 hypothecated asset, 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 simple interest @8.00% 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 defendants are liable to pay to the applicant a total sum of Rs.21,41,986.85 (Rupees Twenty One Lacs Forty One Thousand Nine Hundred Eighty Six and Paise Eighty Five Only) jointly and severally, with costs, current and future simple interest @8.00% 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 asset of 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.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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4 OA NO. 102/2026

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HDFC BANK LIMITED VS. GURJINDER SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.07.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 01.07.2026

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

Hdfc Bank v. Gurjinder Singh and Another

Case brief

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Hdfc Bank v. Gurjinder Singh and Another

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