Debts Recovery Tribunal allowed HDFC Bank Ltd's original application against borrowers. The court confirmed liability for Rs.43,68,747.49 and reduced the claimed interest to 8% p.a., directing recovery of hypothecated assets.
Respondents to pay Rs.43,68,747.49 with simple interest at 8.00% p.a. Recovery via sale of hypothecated or personal assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.351/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.03.2024
DATE OF DECISION: 23.03.2026
HDFC Bank Ltd, a banking company, incorporated under Companies Act 1956, having its Registered office at HDFC BANK House, Senapati Bapat Marg, Lower Parel (West), Mumbai 400013, Maharashtra and one of its branch at HDFC Bank Branch Sangrur (Punjab) through its authorized Signatory/Legal Manager Sh. Rajendera Prasad, who is duly authorized vide Board Resolution dated 16.04.2022 and presently posted at HDFC Bank Limited, HDFC Bank House, 3rd Floor, Plot No. I-15, Alpha IT City, Sector 101, Mohali (Punjab).
Versus
Advocates:
Argued by Sh. Sumit Batra, Advocate for Applicant (through VC)
Defendants already ex parte vide order dated 01.01.2026.
FINAL ORDER
2
OA/351/2024 HDFC BANK LTD. VS SH. IQBAL SINGH AND ANOTHER who is competent to institute the Original Application vide board resolution dated 16.04.2022, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos.1 & 2 approached the applicant for the grant of Commercial vehicle loan under CGTMSE, of Rs.44,40,810/- vide loan application dated 16.11.2022, which is Annexure A2 to this OA. Thereafter, the defendant nos.1 & 2 approached the applicant for the grant of Commercial vehicle loan under CGTMSE, of Rs.2,64,019/- vide loan application dated 22.12.2022, which is Annexure A4 to this OA. 3. The applicant sanctioned the Commercial vehicle loans under CGTMSE, of Rs.44,40,810/- & Rs.2,64,019/- and the terms and conditions were duly accepted by the defendants. Loan cum Guarantee Agreements with schedules dated 25.11.2022 & 22.12.2022, which are Annexure A3 & A5 to this OA.
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OA/351/2024 HDFC BANK LTD. VS SH. IQBAL SINGH AND ANOTHER 7. In support of the OA, affidavit of Sh. Rajendera Prasad, authorized Signatory/Legal Manager, HDFC Bank Limited, has been filed.
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 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
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OA/351/2024 HDFC BANK LTD. VS SH. IQBAL SINGH AND ANOTHER appropriate to grant uniform simple interest @8.00%p.a. in both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.43,68,747.49 (Rupees Forty Three Lakhs Sixty Eight Thousand Seven Hundred Forty Seven & Paisa Forty Nine Only) jointly and severally, with costs, current and future simple interest @8.00%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 of 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. 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 15.04.2026. 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: 23.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount of Rs.43,68,747.49 from the borrowers.
Whether the Tribunal is justified in granting uniform simple interest at 8.00% per annum instead of the claimed rate.
1 provisions across 1 enactments
HDFC Bank Ltd
Mr. Iqbal Singh S/O Mr. Kulwant Singh
Mrs. Akashdeep Kaur W/O Mr. Iqbal Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
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