Allowed

Hdfc Bank Limited v. Sh. Sherbaz Singh and Others

DRT11 Feb 2026OA/1609/2025

Case brief

AI extract

What is this about?

This application was allowed. The Debts Recovery Tribunal decreed recovery of Rs.68,10,035 from the defendants jointly and severally along with interest at 8% p.a. and directed issuance of a Recovery Certificate, permitting enforcement under the SARFAESI Act.

What did the court decide?

Recovery of Rs.68,10,035 with interest at 8% p.a. jointly and severally; Issue of Recovery Certificate; Enforcement under SARFAESI Act.

Hdfc Bank Limited versus Sh. Sherbaz Singh and Others — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1609/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.11.2025

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DATE OF DECISION: 11.02.2026

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HDFC Bank Limited having its Registered Office at Senapati Bagpat Marg, Lower Parel- (West), Mumbai-400013, having its Branch Office at Bariwal, District Muktsar, Punjab

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Also at HDFC Bank Ltd., Plot No. I-15, Sector 101 Alpha, IT City, Mohali, District S.A.S. Nagar, Punjab through its Authorized Representative Sh. Dinesh Kumar.

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……..Applicant

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Versus

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Sh. Sherbaz Singh S/o Sh. Paramjeet Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Sh. Paramjeet Singh Brar S/o Sh. Gurpal Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Smt. Karamjeet Kaur Brar W/o Sh. Paramjeet Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Sh. Gurpal Singh Brar S/o Sh. Balbir Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Smt. Shaminder Kaur W/o Sh. Gurpal Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Sh. Shahbaz Singh Brar S/o Sh. Gurbinder Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Sh. Gurbinder Singh Brar S/o Sh. Gurpal Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Smt. Jasvir Kaur Brar W/o Sh. Gurbinder Singh Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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Sh. Jaswinder Singh Brar S/o Sh. Jabarjang Brar, R/o Fattanwala, On Main Road, District Muktsar, Punjab-152026

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……….Defendants

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2 OA NO.1609/2025 HDFC BANK VS. SHERBAZ SINGH AND OTHERS

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Advocates:

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Present: Sh. Tarunjit Singh Grewal, Advocate for Applicant Defendants already ex-parte vide order dated 06.01.2026

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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.68,10,035.00 (Rupees Sixty Eight Lacs Ten Thousand Thirty Five Only). The Original Application has been filed through Sh. Dinesh Kumar, Authorized Representative/Assistant Legal Manager, w ho is competent to institute the Original Application vide Power of Attorney dated 17.01.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos. 1 to 4 approached the applicant for grant of Agriculture Cash Credit Limit of Rs.20.00 Lacs and Farm Development Loan (DOD) Rs.30.00 Lacs and Agriculture Overdraft Limit Rs.12.00 Lacs vide loan application form dated 02.03.2023, which is Annexure A2 to this OA. Defendants nos. 5 to 9 stood as guarantors. 3. The applicant sanctioned Cash Credit Limit of Rs.35.00 Lacs, Agriculture Overdraft Limit Rs.18.00 Lacs and Farm Development Loan (DOD) Rs.6.00 Lacs for Farm/Land Development vide letters of sanction dated 13.04.2023 and 20.04.2023, which are Annexure A3 to this OA terms and conditions were duly accepted by the defendants. 4. Defendant nos. 1 to 4 mortgaged their immovable properties i.e. Total Land measuring 124Kanal-00Marla (15.50 Acres) detailed as under:

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(i) Land measuring 93-Kanal-08 (73Kanal-08Marla in the name of defendant no. 4 and 20-Kanal-00Marla in the name of defendant no. 1) situate at Village Fattanwala, Hadbast no. 127, Tehsil and District Sri Muktsar Sahib, Punjab

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3 OA NO.1609/2025 HDFC BANK VS. SHERBAZ SINGH AND OTHERS

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(ii) Land measuring 30Kanal-12Marla (21Kanal-00Marla in the name of
defendant no. 1 and 09Kanal-12Marla in the name of defendant nos. 2
and 3) situated at Village Chak Badhai, Hadbast no. 113, Tehsil and
District Sri Muktsar Sahib, Punjab Vide declaration dated 21.04.2023 u/s 4 (1) of Punjab Agricultural
Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which isAnnexure A7to this OA; Registration of Bank charge dated
21.04.2023, which isAnnexure A8to this OA.
Documents executed: Agreement for Overdraft/Cash Credit cum
guarantee cum hypothecation dated 13.04.2023 and 20.04.2023, which areAnnexures A4 to A6to this OA; Demand notice dated 30.01.2025, along with postal receipts, which isAnnexure A9to this OA; Statement of Accounts with certificate under Banker’s Book Evidence Act, which are Annexures A10 to A13to this OA.
5. The loan accounts became irregular and were classified as NPA
and after adjusting debit and credit entries in loan accounts there was a debit of Rs.68,10,035.00, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.01.2026.
7. In support of the OA, affidavit ofSh. Dinesh Kumar, Authorized
Representative/Assistant Legal Manager, HDFC Bankhas been filed.
8. Heard ex-parte arguments and perused record.
9. 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 theAnnexures A1 to A13
to this OA, it is proved that the defendants approached applicant for
availing of the loan facilities which were granted to them and for that

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4 OA NO.1609/2025 HDFC BANK VS. SHERBAZ SINGH AND OTHERS

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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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.68,10,035.00 (Rupees Sixty Eight Lacs Ten Thousand Thirty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.00%p.a. with 16% penal interest from 02.10.2024 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 mortgaged property/hypothecated properties, 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 @08.00%p.a. in all 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.

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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.68,10,035.00 (Rupees Sixty Eight Lacs Ten Thousand Thirty Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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 hypothecated assets/mortgaged properties of the defendants in execution proceedings

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OA NO.1609/2025 HDFC BANK VS. SHERBAZ SINGH AND OTHERS

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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 25.02.2026.

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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. Pronounced by me in the open Tribunal .

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Dated: 11.02.2026

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

Hdfc Bank Limited v. Sh. Sherbaz Singh and Others

Case brief

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Hdfc Bank Limited v. Sh. Sherbaz Singh and Others

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