Allowed

Hdfc Bank Limited v. Sh. Lovepreet Singh and Another

DRT17 Jun 2026OA/578/2026

Case brief

AI extract

What is this about?

DT-III amended the interest rate claimed by the bank in an ex-parte proceedings. The Tribunal allowed the application for recovery of an outstanding loan amount of approximately 20.80 lakhs against two defendants who defaulted on agricultural credit facilities, granting uniform simple interest at 08% p.a.

What did the court decide?

Recovery certificate issued directing defendants to pay Rs. 20,80,818.73 plus simple interest at 8% p.a. with liberty for execution against mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.578/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.04.2026

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DATE OF DECISION: 17.06.2026

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HDFC Bank Limited, incorporated under the Companies Act, 1956 and Bank within the meaning of the Banking Regulation Act, 1949 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013 and its Regional Office at HDFC Bank Ltd., Bank House, Plot No I-15, Sector 101 Alpha, IT City, Mohali, District S.A.S. Nagar, Punjab - 160062 and having one of its Branch Office at Badal, District Muktsar , Punjab through its Authorized Signatory Sh. Sandeep Kumar Garg.

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........A pplicant

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Versus

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Sh. Lovepreet Singh S/o Sh. Sukhbir Singh @ Sukhveer Singh, R/o Village Kheowali Tehsil Malout, District Muktsar – 152113.

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Smt. Paramjit Kaur W/o Sh. Sukhbir Singh @ Sukhveer Singh, R/o Village Kheowali, Tehsil Malout, District Muktsar – 152113.

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........Defendants

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Advocates:

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Argued Sh. Anirudh Gupta, Advocate proxy for Sh. Ankur Jindal, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 15.06.2026).

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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 defendants for recovery of Rs.20,80,818.73 (Rupees Twenty Lacs Eighty Thousand Eight Hundred Eighteen and Paise Seventy Three Only). The Original Application has been filed through Sh. Sandeep Kumar Garg, Authorized Signatory, who is competent to institute the Original Application vide Power of Attorney dated 17.01.2024, which is Annexure A1 to this OA.

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2 OA NO.578/2026 HDFC BANK LTD. VS SH. LOVEPREET SINGH AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Cash Credit Limit of Rs.12,50,000.00, Overdraft KGC Limit of Rs.4,00,000.00 and Farm Development Loan of Rs.2,00,000.00 vide Application for Retail Agricultural Loan from HDFC Bank dated 16.01.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.10,70,000.00, Overdraft KGC Limit of Rs.5,30,000.00 and Farm Development Loan of Rs.1,00,000.00 vide Sanction of Agriculture Credit Overdraft/Cash Credit Facilities dated 02.02.2022, which are Annexures A3 to A5 to this OA and terms and conditions were duly accepted by the defendants.

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Defendants mortgaged their Immovable Properties i.e., Total Land measuring 72 Kanal 00 Marla situated at Village Kheowali, Tehsil Malout, District Muktsar vide Jamabandi for the year 2015-16 vide Vasika No 851, dated 24.03.2022 and Certificate of Vasika Verification letter dated 29.03.2022, which are Annexures A6 & A7 to this OA. Documents executed : Agreements for Overdraft/Cash Credit cum Guarantee cum Hypothecation dated 03.02.2022, which are Annexures A8 to A10 to this OA; Statement of accounts along with certificate, which are Annexures A11 to A14 to this OA; Legal Notice dated 16.01.2026 along with postal receipts, which are Annexures A15 to A17 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 loan accounts there was a debit of Rs.20,80,818.73, 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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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 15.06.2026.

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In support of the OA, affidavit of Sh. Sandeep Kumar Garg, Authorized Signatory, HDFC Bank Ltd. has been filed.

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3 OA NO.578/2026 HDFC BANK LTD. VS SH. LOVEPREET SINGH AND ANOTHER

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel for applicant 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 A17 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 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.20,80,818.73 (Rupees Twenty Lacs Eighty Thousand Eight Hundred Eighteen and Paise Seventy Three Only), along with interest from the defendants, jointly and severally, 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 relief clause has claimed interest @11.00%p.a. in Cash Credit Account, interest @15.25%p.a. in Overdraft KGC Account and Farm Development Loan Account from 01.10.2025 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 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 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

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OA NO.578/2026 HDFC BANK LTD. VS SH. LOVEPREET SINGH AND ANOTHER

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Rs.20,80,818.73 (Rupees Twenty Lacs Eighty Thousand Eight Hundred Eighteen and Paise Seventy Three Only), jointly and severally, with costs, current and future simple interest @08.00%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 mortgaged properties 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.

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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 01.07.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 17.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Lovepreet Singh and Another

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Lovepreet Singh and Another

Case brief

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