Allowed

Hdfc Bank Limited v. Sh. Prabhjeet Singh and Another

DRT24 Jul 2026OA/178/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues from two borrowers granted term loans and credit facilities. In the absence of the defendants, the Tribunal awarded the principal amount and adjusted the claimed interest rate to 8% per annum considering market conditions.

What did the court decide?

Defendants declared liable to pay Rs. 33,21,872.18 jointly and severally and Rs. 60,700 cost, with simple interest at 8% p.a. A Recovery Certificate was issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.178/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.01.2026

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DATE OF DECISION: 24.07.2026

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013. Also at Plot No 1-15, Sector 101, ALPHA IT City, SAS Nagar (Mohali) through its Authorized Representative Sh. Deepak Sharda, also at HDFC Bank Limited, Ludhiana (Punjab).

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……..Applicant

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Versus

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Sh. Prabhjeet Singh S/o Sh. Sarvjit Singh, R/o House No. 147, Street No. 2, Jamalpur, GTB Nagar, Mundian Kalan, Ludhiana (Punjab) – 141015.

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Sh. Sarvjit Singh S/o Sh. Pritam Singh, R/o House No. 147, Street No. 2, Jamalpur, GTB Nagar, Mundian Kalan, Ludhiana (Punjab) – 141015.

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…….. Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant (through VC) None for Defendants (Already ex-parte vide order dated 22.07.2026).

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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.33,82,572.18 (Rupees Thirty Three Lacs Eighty Two Thousand Five Hundred Seventy Two and Paise Eighteen Only). The Original Application has been filed through 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.

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The brief facts of the OA are that the defendants approached the applicant for grant of Term Loan Facilities for purchase of Two units of

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2 OA NO.178/2026 HDFC BANK LTD. VS SH. PRABHJEET SINGH AND ANOTHER

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Commercial Vehicles of Rs.93,60,000.00 vide Commercial Loan Application Form dated 14.03.2022, which is Annexure A2 to this OA. Thereafter, the defendant no.1 approached the applicant for grant of Credit Card vide Credit Card Application Form dated 14.03.2022, which is Annexure A4 to this OA.

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The applicant sanctioned the Term Loan Facilities for purchase of Two units of Commercial Vehicles of Rs.93,00,000.00 and terms and conditions were duly accepted by the defendants vide Agreement for Loan and Guarantee dated 30.03.2022, which is Annexure A3 to this OA.

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Thereafter, the applicant sanctioned the Credit Card Limit of Rs.58,000.00.

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Defendant no.1 hypothecated his movable assets i.e., (i) Commercial Vehicle namely Bharatbenz 5428TT, bearing Registration No. PB05AP8247, Chassis No. MEC862FCCNP120537, Engine No. 926956D0124071 vide Virtual Registration Certificate filed vide dairy no. 13652 on 23.07.2026.

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(ii) Commercial Vehicle namely Bharatbenz 5428TT, bearing Registration No. PB05AP8347, Chassis No. MEC862FCCNP120541, Engine No. 926956D0124080 vide Virtual Registration Certificate filed vide dairy no. 13652 on 23.07.2026.

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Documents executed: Statement of Accounts and Credit Card Statement along with certificates, which are Annexures A5 to A7 to this OA; Legal Notice dated 16.12.2025, along with postal receipts, which are Annexures A8 to A10 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.33,82,572.18, 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 22.07.2026.

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3 OA NO.178/2026 HDFC BANK LTD. VS SH. PRABHJEET SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Deepak Sharda, Authorized Representativ e, HDFC Bank Ltd. has been filed.

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Heard ex-parte arguments and perused record. 9. 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. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendants approached applicant for availing of Term Loan facilities, which were granted to them and the defendant no. 1 a pproached applicant for availing of Credit Card Facility, which was granted to him and for that 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,21,872.18 (Rupees Thirty Three Lacs Twenty One Thousand Eight Hundred Seventy Two and Paise Eighteen Only), along with interest from the defendants jointly and severally and Rs.60,700.00 (Rupees Sixty Thousand and Seven Hundred Only), along with interest from the defendant no. 1, 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 Para 5.3(a) has claimed interest @24%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 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 @8.00%p.a. in the loan

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4 OA NO.178/2026 HDFC BANK LTD. VS SH. PRABHJEET SINGH AND ANOTHER

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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 sum of Rs.33,21,872.18 (Rupees Thirty Three Lacs Twenty One Thousand Eight Hundred Seventy Two and Paise Eighteen Only), jointly and severally and the defendant no. 1 is liable to pay to the applicant sum of Rs.60,700.00 (Rupees Sixty Thousand and Seven Hundred Only) with costs, current and future simple interest @8.00%p.a. in 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 vehicles of defendant no. 1 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.08.2026. 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: 24.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Prabhjeet Singh and Another

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Prabhjeet Singh and Another

Case brief

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What did the court decide?

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