Allowed

Hdfc Bank Ltd. v. M/S Singla Enterprises and Another

DRT2 Jan 2026OA/224/2025

Case brief

AI extract

What is this about?

The DRT III, Chandigarh allowed OD 224/2025 filed by HDFC Bank for recovery of Rs. 22,28,983.11 from Singla Enterprises. The Tribunal deemed it just to grant uniform simple interest at 8% p.a. instead of the claimed 12% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Directing defendants to pay Rs.22,28,983.11 with interest @8% p.a.; issuing Recovery Certificate; permitting execution through hypothecated/personal assets.

Hdfc Bank Ltd. versus M/S Singla Enterprises and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT LUDHIANA

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ORIGINAL APPLICATION NO.224/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.02.2025

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DATE OF DECISION: 02.01.2026

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HDFC Bank Limited., a Banking Company incorporated and registered under the Companies Act 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Patel (West), Mumbai 400013 and one of its Branch Office, amongst others, at Kesarganj Chowk Ludhiana (Punjab) being represented through its duly authorized official Sh. Madhur Sharma, Assistant Vice President, Department For Special Operations, HDFC Bank Ltd., 5th Floor, B-2114570, GT Road, adjoining Gulzar Motors, Dholewal Chowk, Ludhiana (Punjab).

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……..Applicant

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Versus

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M/S Singla Enterprises, a proprietorship concern, represented by Sh. Jatin Singla s/o Sh. Vishnu Singla, having place of business at Chowk Lakkar Bazar (Opposite Romex Sewing Machine), Ludhiana-141008 (Punjab).

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Sh. Jatin Singla s/o Sh. Vishnu Singla, B-7, House No. 821, near Punjab National Bank, Gwala Mohalla, Ward No. 37, Ludhiana141008 (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Satish Kumar Arora, Advocate for the applicant (through VC)

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Defendants already ex-parte vide order dated 20.12.2025

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OA NO.224/2025 HDFC BANK LTD. VS. M/S SINGLA ENTERPRISES AND ANOTHER

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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.22,28,983.11 (Rupees Twenty Two Lacs Twenty Eight Thousand Nine Hundred Eighty Three & Paise Eleven Only). The Original Application has been filed through Sh. Madhur Sharma, Assistant Vice President, of the applicant, who is competent to institute the Original Application vide Board Resolution dated 28.07.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 approached the applicant for Cash Credit Limit of Rs.20.00 Lacs vide Loan application dated 06.05.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.20.00 Lacs vide Sanction letter dated 06.05.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no.1 through its proprietor defendant no. 2 had hypothecated Stocks, book debts, receivables etc. vide Deed of hypothecation dated 06.05.2023, which is Annexure A5 to this OA and Power of Attorney (for hypothecated book debts) dated 06.05.2023, which is Annexure A6/A to this OA. Documents executed: Master facility agreement, letter of continuing guarantee, both dated 06.05.2023, which are Annexures A4 & A6 to this OA; Recall notice dated 17.12.2024, along with postal receipts, which is Annexure A7 to this OA and Statement of account, which is Annexure A8 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.22,28,983.11, 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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OA NO.224/2025 HDFC BANK LTD. VS. M/S SINGLA ENTERPRISES AND ANOTHER

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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 20.12.2025. 7. In support of the OA, affidavit of Sh. Madhur Sharma, Assistant Vice President, HDFC Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel 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 A8 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.22,28,983.11 (Rupees Twenty Two Lacs Twenty Eight Thousand Nine Hundred Eighty Three & Paise Eleven 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with 6% penal interest with monthly rests from 31.01.2025 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 loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this

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OA NO.224/2025 HDFC BANK LTD. VS. M/S SINGLA ENTERPRISES AND ANOTHER

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Tribunal deems it just and appropriate to grant uniform 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 a total sum of Rs.22,28,983.11 (Rupees Twenty Two Lacs Twenty Eight Thousand Nine Hundred Eighty Three & Paise Eleven 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 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.01.2026. 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.

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Pronounced by me in the open Tribunal at Camp Court, Ludhiana. Dated: 02.01.2026

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

Hdfc Bank Ltd. v. M/S Singla Enterprises and Another

Case brief

What is this about?

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Hdfc Bank Ltd. v. M/S Singla Enterprises and Another

Case brief

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