Allowed

Hdfc Bank Limited v. Sh. Karminder Pal Singh and Another

DRT2 Sept 2026OA/1057/2026

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh, allowed an Original Application filed under Section 19 of the RDB Act, 1993, for recovery of a loan of Rs. 25,98,830.47. The Tribunal proceeded ex-parte due to the defendants' absence and granted the claim. It modified the interest rate to 8.00% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 25,98,830.47 with interest at 8.00% p.a., enforceable via sale of hypothecated vehicle under SARFAESI Act.

Hdfc Bank Limited versus Sh. Karminder Pal Singh… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1057/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.07.2026

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DATE OF DECISION: 02.09.2026

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013, having its Branch Office at Sunam, Sangrur, Punjab. Also at Plot No.I-15, Sector-101. Alpha IT City, Mohali through its Authorized Representative Sh. Deepak Sharda.

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……..Applicant

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Versus

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Sh. Karminder Pal Singh S/o Gajinder Singh, R/o H. No. 198, W.No.11, Sunam Sangrur, Punjab – 148028.

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Ms. Navjot Kaur C/o Sh. Karminder Pal Singh, R/o 13-B, Bazra Wala Mohalla, W.No.11 Sunam Sangrur, Punjab - 148028.

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…….. Defendants

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Advocates:

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Argued by Sh. Amit Rishi, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 29.08.2026).

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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.25,98,830.47 (Rupees Twenty Five Lacs Ninety Eight Thousand Eight Hundred Thirty and Paise Forty Seven Only). The Original Application has been filed throug h 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. 2. The brief facts of the OA are that the defendants approached the applicant for grant of Term Loan Facility for purchase of commercial

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2 OA NO.1057/2026 HDFC BANK LTD. VS SH. KARMINDER PAL SINGH AND ANOTHER

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vehicle of Rs.36,08,998.00 vide Commercial Loan Application Form, dated 03.05.2024, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan Facility for purchase of commercial vehicle of Rs.36,08,998.00 and the terms and conditions were duly accepted by the defendants vide Agreement for Loan and Guarantee, dated 13.05.2024, which is Annexure A3 to this OA. 4. Defendant no. 1 hypothecated his movable asset i.e., Commercial vehicle namely Blazo55 TR 41, bearing Chassis No. MA1UAARXFR6C77418, Engine No. VHRZC11778, Registration No. PB13BS9217 vide Virtual Registration Certificate. Documents executed: Legal Notice, dated 10.06.2026, along with postal receipts, which is Annexure A4 to this OA; Statement of Account along with certificate, which is Annexure A5 to this OA; Copy of Delhi High Court Judgment, dated 05.02.2007, which is Annexure A6 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.25,98,830.47, 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. 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 29.08.2026. 7. In support of the OA, affidavit of Sh. Deepak Sharda, Authorized Representative, HDFC Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 defendants approached applicant for availing of loan

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3 OA NO.1057/2026

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HDFC BANK LTD. VS SH. KARMINDER PAL SINGH AND ANOTHER

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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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,98,830.47 (Rupees Twenty Five Lacs Ninety Eight Thousand Eight Hundred Thirty and Paise Forty Seven 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 @9.00%p.a. with monthly rests, with penal interest@2% 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 sum of Rs.25,98,830.47 (Rupees Twenty Five Lacs Ninety Eight Thousand Eight Hundred Thirty and Paise Forty Seven 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 commercial vehicle of defendant no. 1 in

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OA NO.1057/2026 HDFC BANK LTD. VS SH. KARMINDER PAL SINGH AND ANOTHER

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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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Parties to appear before Learned Recovery Officer of this Tribunal on 17.09.2026.

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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: 02.09.2026

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

Hdfc Bank Limited v. Sh. Karminder Pal Singh and Another

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Karminder Pal Singh and Another

Case brief

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What did the court decide?

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