Allowed

Hdfc Bank Ltd. v. Sh. Shabeg Singh and Another

DRT28 Aug 2026OA/1054/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the original application filed by HDFC Bank Limited for recovery of Rs.22,03,669.90 from two defendants. The court reduced the claimed interest rate to 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.22,03,669.90 with 8% p.a. simple interest; Issuance of Recovery Certificate; Right to enforce under SARFAESI Act.

Hdfc Bank Ltd. versus Sh. Shabeg Singh and Another — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1054/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 05.08.2025

¶5

DATE OF DECISION: 28.08.2026

¶6

HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013. Also at HDFC Bank House, Plot No. I-15, Sector 101 Alpha, IT City, Mohali -160662, also at HDFC Bank Branch, Chhotti Baradari, Patiala, Punjab through its Authorized Representative, Sh. Dinesh Kumar.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Shabeg Singh S/o Sh. Vareyam Singh, R/o H No. 85, Part-1, Near Gurdwara Sahib, Village Attalan, Tehsil Patran, District Patiala, Punjab – 147102.

¶10

Sh. Joga Singh S/o Sh. Dial Singh, R/o H No. 204 B, Village Duggal Kalan, Tehsil Patran, District Patiala, Punjab – 147105.

¶11

…….. Defendants

¶12

Advocates:

¶13

Argued by Ms. Sunita Rani, Advocate proxy for Sh. Abhishek Garg, Advocate for the applicant

¶14

None for defendants (Already ex-parte vide order dated 24.08.2026).

¶15

FINAL ORDER

¶16

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.22,03,669.90 (Rupees Twenty Two Lacs Three Thousand Six Hundred Sixty Nine and Paise Ninety Only). The Original Application has been filed through Sh. Dinesh Kumar, Authorized Representative of the applicant, who is competent to institute the Original Application vide Power of Attorney, dated 17.01.2024, which is Annexure A1 to this OA.

¶17

The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Cash Credit Limit of Rs.12,50,000.00 and Farm Development Overdraft Limit of

¶18

2 OA NO.1054/2025 HDFC BANK LTD. VS SH. SHABEG SINGH AND ANOTHER

¶19

Rs.5,00,000.00 vide Application for Retail Agriculture Loan, dated 04.05.2016, which is Annexure A2 to this OA.

¶20

Thereafter, the defendant no. 1 a pproached the applicant for convert of Farm Development Overdraft Limit to KGC Overdraft Facility of Rs.5,00,000.00 vide Application for Retail Agriculture Loan, dated 27.07.2020, which is Annexure A3 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.12,50,000.00 and Farm Development Overdraft Limit of Rs.5,00,000.00 vide Sanction of Agriculture Credit Overdraft/Cash Credit Facilities, dated 31.05.2016, along with its true typed copies, which are Annexure A4(Colly) to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

¶21

Thereafter, th e applicant converted Farm Development Overdraft Limit to KGC Overdraft Facility of Rs.5,00,000.00 vide Sanction of Agriculture Credit Overdraft/Cash Credit Facilities, dated 04.08.2020, along with its true typed copy and loan agreement, which are Annexure A6(Colly) to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 mortgaged his Immo vable Property i.e., Total Land measuring 40K-11M, as per Jamabandi for the year 20122013, situated at Village Attalan, Tehsil Patran, District Patiala, vide Declaration u/s 4(1) along with Registration of Bank’s Charge for mortgage of agriculture land, dated 25.05.2016, which are Annexure A7(Colly) to this OA. Documents executed: Agreements for Overdraft/Cash Credit cum Guarantee cum Hypothecation, dated 18.05.2016, which is Annexure A5(Colly) to this OA; Legal Notice dated 04.12.2024, along with postal receipts, which are Annexure A8(Colly) to this OA; Statement of Accounts along with certificate, which are Annexure A9(Colly) to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there

¶22

3 OA NO.1054/2025 HDFC BANK LTD. VS SH. SHABEG SINGH AND ANOTHER

¶23

was a debit of Rs.22,03,669.90, 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.

¶24

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 24.08.2026.

¶25

In support of the OA, affidavit of Sh. Dinesh Kumar, Authorized Representative, HDFC Bank Ltd. has been filed.

¶26

Heard ex-parte arguments and perused record.

¶27

It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶28

From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of loan facilities which were granted to him, defendant no. 2 stood as guarantor 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,03,669.90 (Rupees Twenty Two Lacs Three Thousand Six Hundred Sixty Nine and Paise Ninety 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.

¶29

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with half yearly rests in Cash Credit Limit and interest @15.00%p.a. with half yearly rests in Overdraft Limit, with penal interest @16%p.a. in both the loan accounts till the realization.

¶30

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

¶31

4 OA NO.1054/2025 HDFC BANK LTD. VS SH. SHABEG SINGH AND ANOTHER

¶32

instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans 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 sum Rs.22,03,669.90 (Rupees Twenty Two Lacs Three Thousand Six Hundred Sixty Nine and Paise Ninety 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 mortgaged property of defendant no. 1 i n 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.

¶33

12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2026. 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. Pronounced by me in the open Tribunal . Dated: 28.08.2026

¶34

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

Hdfc Bank Ltd. v. Sh. Shabeg Singh and Another

Case brief

What is this about?

What did the court decide?

Hdfc Bank Ltd. v. Sh. Shabeg Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Sh. Anuj Singh

Bank of India versus Sh. Bikram Singh through His Legal Heirs and Another

State Bank of India versus Sh. Simranjot Singh

Canara Bank versus M/S M. K. Industries and Another

Central Bank of India versus M/S Guru Kirpa Knitwear Fashion and Another

Icici Bank Limited versus Sh. Mohit Sethi and Another