Allowed

Hdfc Bank Ltd. v. Jai Bharat Oil Company and Another

DRT20 Apr 2026OA/1055/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by HDFC Bank against Jai Bharat Oil Company and a guarantor for recovery of a loan amount of Rs.26,29,988.60. The Tribunal granted a recovery certificate and directed interest at 7.90% p.a.

What did the court decide?

Recovery of Rs.26,29,988.60 with interest @7.90% p.a.; Recovery Certificate issued; liberty to enforce claim through sale of hypothecated or personal assets.

Hdfc Bank Ltd. versus Jai Bharat Oil Company and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1055/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2025

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DATE OF DECISION: 20.04.2026

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act 1949, and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai- 400013 and its Regional Office at Bank House, Plot No.1-15, Sector 101, Alpha, IT City, Mohali, District S.A.S. Nagar, Punjab-160662 and having one of its Branch Offices, at Patran, District Patiala (Punjab), through its Authorized Representative, Mr. Dinesh Kumar.

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……..Applicant

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Versus

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Jai Bharat Oil Company, through its proprietor, Mr. Harbans Lal, Patran, Tohana Road, Moonak, S.H. No. 10, District Sangrur, Punjab-147105

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Also at: 13, Near Talib Chowk, Ward No. 12, Monak, Sangrur,

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Punjab-148033

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Sh. Vishal Bansal S/o Harbans Lal, R/o 13, Near Talib Chowk, Ward No. 12, Monak, Sangrur, Punjab-148033

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.……Defendants

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Advocates:

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Argued by Ms. Sunita Rani, Advocate proxy for Sh. Rajesh Jangra, Advocate for applicant

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None for defendants (already ex-parte vide order dated 11.02.2026)

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.26,29,988.60 (Rupees Twenty Six Lacs Twenty Nine Thousand Nine Hundred Eighty Eight and Paise Sixty Only). The Original Application has been filed through Mr. Dinesh Kumar, Senior Vice President of the applicant, who is competent to institute the

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2 OA NO. 1055/2025 HDFC BANK VS. JAI BHARAT OIL COMPANY AND ANOTHER

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Original Application vide General Power of Attorney dated 17.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of MEOD Limit of Rs.30.00 Lacs vide Loan Application dated 30.01.2021, which is Annexure A2 to this OA. Defendant no 2 stood as Guarantor. Thereafter, the defendant no. 1 approached the applicant for renewal of MEOD Limit of Rs.30.00 Lacs vide Loan Application dated 04.01.2022, which is Annexure A5 to this OA. Thereafter, the defendant no. 1 again approached the applicant for renewal of MEOD Limit of Rs.25.00 Lacs vide Loan Application dated 19.06.2023, which is Annexure A7 to this OA. 3. The applicant sanctioned MEOD Limit of Rs.30.00 Lacs, vide Sanction Letter dated 15.02.2021, which is Annexure A3(colly) to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the renewal MEOD Limit of Rs.30.00 Lacs and reduced the limit to 25.00 Lacs, vide Sanction Letter dated 03.03.2022, which is Annexure A6 to this OA. Thereafter, the applicant sanctioned the renewal MEOD Limit of Rs.30.00 Lacs and reduced the limit to 25.00 Lacs, vide Sanction Letter dated 19.06.2023, which is Annexure A8 to this OA.

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Defendant no. 1 hypothecated its stock and Book Debts vide Deed of Hypothecation dated 22.02.2021, which is Annexure A9 to this OA. Documents executed: Loan Agreement with DP Note, Letter of continuing security and KYC Documents dated 23.02.2021, which is Annexure A4(colly) to this OA; Letter of continuing Guarantee, which is Annexure A10 to this OA; Recall Notice dated 26.10.2024, with Postal Receipts which is Annexure A11(colly) to this OA; Statement of Account with certificate, which is Annexure A12(colly) 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.26,29,988.60, 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.

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3 OA NO. 1055/2025 HDFC BANK VS. JAI BHARAT OIL COMPANY AND ANOTHER

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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 11.02.2026. 7. In support of the OA, affidavit Mr. Dinesh Kumar, Senior Vice President, 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 A12 to this OA, it is proved that the defendants approached 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, it is proved that applicant bank is entitled to recover a sum of Rs.26,29,988.60 (Rupees Twenty Six Lacs Twenty Nine Thousand Nine Hundred Eighty Eight and Paise Sixty Only), along with interest from the defendants, jointly and severally, 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 in relief clause has claimed interest @7.90% p.a. plus penal interest @18.00% p.a. with monthly rests from 24.10.2024 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 assets, 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 @7.90% p.a. in the loan account

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4 OA NO. 1055/2025 HDFC BANK VS. JAI BHARAT OIL COMPANY AND ANOTHER

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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.26,29,988.60 (Rupees Twenty Six Lacs Twenty Nine Thousand Nine Hundred Eighty Eight and Paise Sixty Only), jointly and severally, with costs, current and future simple interest @7.90% 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 assets/mortgaged property 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. 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 11.05.2026 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: 20.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Ltd. v. Jai Bharat Oil Company and Another

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Hdfc Bank Ltd. v. Jai Bharat Oil Company and Another

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