Allowed

Hdfc Bank Ltd. v. Sh. Nachhatar Singh and Other

DRT24 Mar 2026OA/1269/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a commercial loan from six respondents applying for compound interest of 8% annually instead of the claimed rates.

What did the court decide?

Directed respondents to pay Rs.29,73,566.28 plus costs and simple interest at 8% p.a. until realization, enforceable via sale of mortgaged assets or attachment of personal property. Recovery Certifica

Hdfc Bank Ltd. versus Sh. Nachhatar Singh and Other — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1269/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.09.2025

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DATE OF DECISION: 24.03.2026

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HDFC Bank Limited having its Registered Office at Senapati Bapat Marg, Lower Parel – (West), Mumbai – 400013 and inter alia having Regional Head Office at Plot No. 1-15, Sector 101 Alpha, IT City, Mohali and carrying on the banking business trhough its branch office Bhikhiwind, Tarn Taran, Punjab through its Authorized Representative Mr. Dinesh Kumar.

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……..Applicant

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Versus

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Sh. Nachhatar Singh S/o Pargat Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Jasbir Singh S/o Virsa Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Pargat Singh S/o Virsa Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Sakander Singh S/o Pargat Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Daler Singh S/o Jasbir Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Malkit Singh S/o Jasbir Singh, R/o H. No. 117, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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Sh. Surinder Singh S/o Kulwant Singh, R/o H. No. 124, Part 1, Village Dall, Teh Patti, District Tarn Taran, Punjab 143305.

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.………. Defendants

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2 OA/1269/2025 HDFC BANK LTD. VS SH. NACHHATAR SINGH AND OTHERS

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Advocates:

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Argued by Sh. Abhishek Garg, Advocate for the applicant

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Defendants are ex-parte vide order dated 07.03.2026.

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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.29,73,566.28 (Rupees Twenty Nine Lacs Seventy Three Thousand Five Hundred Sixty Six and Paisa Twenty Eight Only). The Original Application has been filed through Mr. 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.

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The brief facts of the OA are that the defendant nos.1 to 6 approached the applicant for the grant of CC Limit of Rs.23.45 Lacs. 3. The applicant sanctioned the CC Limit of Rs.23.45 Lacs vide sanction letter dated 11.10.2012, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 7 stood as guarantor. 4. Defendant Nos.2 & 3 had mortgaged their immovable properties i.e. total land measuring 102K-0M situated at Village Dall, Tehisl Patti, District Tarn Taran, Punjab vide registered mortgaged deed bearing vasika no. 1750 dated 17.10.2022 along with English translation, which is Annexure A4 to this OA. Documents executed: Demand Promissory Note, Letter of continuity for DP Note, Loan agreement for overdraft/cash credit cum guarantee cum hypothecation along with KYC Documents, all dated 23.10.2012, Which are Annexure A3 (Colly) to this OA; Loan recall notice dated 16.01.2025 along with postal receipts, Which are Annexure

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3 OA/1269/2025 HDFC BANK LTD. VS SH. NACHHATAR SINGH AND OTHERS

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A5(Colly) to this OA and Statement of Account along with certificate, which are Annexure A6 (Colly) 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. 29,73,566.28, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.03.2026.

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In support of the OA, affidavit of Mr. Dinesh Kumar. Authorized Representative of HDFC Bank Ltd., has 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 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 is entitled to recover a sum of Rs.29,73,566.28 (Rupees Twenty Nine Lacs Seventy Three Thousand Five Hundred Sixty Six and Paisa Twenty Eight 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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4 OA/1269/2025 HDFC BANK LTD. VS SH. NACHHATAR SINGH AND OTHERS

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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 @11% with half yearly rests with penal interest @16% per annum from 17.07.2025 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 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 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 defendants are liable to pay to the applicant a total sum of Rs.29,73,566.28 (Rupees Twenty Nine Lacs Seventy Three Thousand Five Hundred Sixty Six and Paisa Twenty Eight Only) jointly and severally, 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 mortgaged properties/hypothecated assets of the 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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OA/1269/2025

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HDFC BANK LTD. VS SH. NACHHATAR SINGH AND OTHERS

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.04.2026.

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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: 24.03.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Ltd. v. Sh. Nachhatar Singh and Other

Case brief

What is this about?

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Hdfc Bank Ltd. v. Sh. Nachhatar Singh and Other

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