Allowed

Hdfc Bank Limited v. Sh. Kartar Singh

DRT25 May 2026OA/1330/2024

Case brief

AI extract

What is this about?

Ex-parte order in recovery proceedings under RDB Act 1993. Tribunal allowed application for recovery of outstanding loan and fixed simple interest at 8% p.a. permitted recovery via hypothecated vehicle sale or attachment of personal assets.

What did the court decide?

Ordered recovery of Rs.21,03,341.07 with simple interest at 8% p.a. from hypothecated vehicle sale or attachment of personal assets.

Hdfc Bank Limited versus Sh. Kartar Singh — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1330/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.11.2024

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DATE OF DECISION: 25.05.2026

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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 Plot No. I-15, Sector 101, Alpha IT City, SAS Nagar, Mohali through its Authorized Representative Sh. Rajendra Prasad.

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……..Applicant Versus

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Sh. Kartar Singh S/o Sh. Balkar Singh, R/o Julkan, Patiala, Punjab - 147111. ……..Defendant

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant (through VC) None for Defendant (Already ex-parte vide order dated 18.03.2026).

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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 defendant for recovery of Rs.21,03,341.07 (Rupees Twenty One Lacs Three Thousand Three Hundred Forty One and Paise Seven Only). The Original Application has been filed through Sh. Rajendra Prasad, Authorized Representative of the applicant, who is competent to institute the Original Application vide Board Resolution dated 15.04.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant approached the applicant for grant of Term Loan for purchase of commercial vehicle of Rs.24,57,348.00 vide Commercial Loan Application Form dated 16.12.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan for purchase of commercial vehicle of Rs.24,57,348.00 and terms and conditions were

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2 OA NO.1330/2024 HDFC BANK LTD. VS SH. KARTAR SINGH

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duly accepted by the defendant vide Agreement for Loan and Guarantee dated 26.12.2022, which is Annexure A3 to this OA.

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Defendant hypothecated his Moveable Asset i.e.,

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Commercial vehicle namely "AL ECOMET 1815 HE BS VI" having Registration No. PB11DC1854, Engine no. NBEZ420590 and Chassis no. MB1AZHCD0NABN1618 vide copy of E Vahan Details filed on

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22.05.2026 in compliance of order dated 22.04.2026.

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Documents executed : Statement of account along with certificate, which is Annexure A4 to this OA; Legal Notice dated 21.10.2024 along with postal receipt, which are Annexures A5 & A6 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.21,03,341.07, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served summons to appear before this Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 18.03.2026.

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In support of the OA, affidavit of Sh. Rajendra Prasad, Authorized Representative, 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 for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A6 to this OA, it is

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proved that the defendant approached applicant for availing of the loan facility, which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant 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

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the documentary evidence brought on record, it is proved that

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applicant is entitled to recover a sum of Rs.21,03,341.07 (Rupees

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3 OA NO.1330/2024 HDFC BANK LTD. VS SH. KARTAR SINGH

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Twenty One Lacs Three Thousand Three Hundred Forty One and Paise Seven Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.52%p.a. 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 defendant, 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 @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 defendant is liable to pay to the applicant a total sum of Rs.21,03,341.07 (Rupees Twenty One Lacs Three Thousand Three Hundred Forty One and Paise Seven Only), 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 hypothecated vehicle of the defendant 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 defendant. 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

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Tribunal on 16.06.2026.

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4 OA NO.1330/2024

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HDFC BANK LTD. VS SH. KARTAR SINGH

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Copy of this order be given dasti to the applicant and be sent to defendant 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 .

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Dated: 25.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Kartar Singh

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Kartar Singh

Case brief

What is this about?

What did the court decide?

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