Allowed

Hdfc Bank Limited v. Sh. Partap Singh through His Legal Heirs and Others

DRT25 Aug 2026OA/606/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a dues of Rs. 22.67 lakhs. The court approved a reduced interest rate of 8% p.a. despite a claim for 11% plus penalty. Defendants to pay jointly and severally.

What did the court decide?

Defendants directed to pay Rs. 22,67,611 jointly and severally with 8% p.a. simple interest; Recovery Certificate issued.

Hdfc Bank Limited versus Sh. Partap Singh through His Legal… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 606/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.04.2023

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DATE OF DECISION: 25.08.2026

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H.D.F.C. Bank Ltd., a Banking Company carrying on Banking Business under the Banking Regulation Act, 1949 incorporated under the Companies Act, 1956 and having Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai- 400013 whereas one of its Branch at District Patiala, Punjab through Ms. Pooja Arora, Senior Manager (Agriculture Legal), H.D.F.C. Bank Ltd. Ludhiana Branch, District Ludhiana, Punjab being Power of Attorney Holder

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……..Applicant

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Versus

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Sh. Partap Singh, S/o Sh. Hardeep Singh since deceased through his Legal Heirs/Representatives detailed as under:

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A. Smt. Prakash Kaur, W/o Sh. Partap Singh, R/o Village Bhagwanpur @Sadharanpur, Tehsil Patran, District Patiala, Punjab- 147102

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B. Sh. Ranjodh Singh, S/o Sh. Partap Singh, R/o Village Bhagwanpur @Sadharanpur, Tehsil Patran, District Patiala, Punjab- 147102

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C. Ms. Parminder Kaur, D/o Sh. Partap Singh, R/o Village Bhagwanpur @Sadharanpur, Tehsil Patran, District Patiala, Punjab- 147102

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D. Ms. Harwinder Kaur, D/o Sh. Partap Singh, R/o Village Bhagwanpur @Sadharanpur, Tehsil Patran, District Patiala, Punjab- 147102

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Sh. Ranjodh Singh, S/o Sh. Partap Singh, R/o Village Bhagwanpur @Sadharanpur, Tehsil Patran, District Patiala, Punjab- 147102

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Sh. Balbir Singh, S/o Sh. Milkha Singh, R/o House no. 7, Part 4, Shatrana, Tehsil Patran, District Patiala, Punjab- 147005

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………Defendants

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2 OA NO. 606/2023 HDFC BANK LIMITED VS. PARTAP SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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Advocates:

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Argued by Ms. Sakshi Chauhan, Advocate proxy for Sh. Saurabh Bhardwaj, Advocate for applicant

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None for defendants (already ex-parte vide order dated 18.08.2026)

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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. 22,67,611.00 (Rupees Twenty Two Lacs Sixty Seven Thousand Six Hundred Eleven Only). The Original Application has been filed through Ms. Pooja Arora, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 (since deceased) approached the applicant for grant of CC Limit of Rs. 35.80 Lacs and DOD of Rs. 16.17 Lacs vide Application Form dated 06.02.2017, which are Annexure A2 to this OA. Thereafter, defendant no. 1 (since deceased) approached the applicant for conversion of DOD Limit to OD Limit of Rs. 15.00 Lacs vide Application Form dated 23.07.2019, which is Annexure A8 to this OA.

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The applicant sanctioned CC Limit of Rs. 35.00 Lacs and DOD Limit of Rs. 15.00 Lacs vide Sanction Letters, both dated 16.07.2017, which are Annexure A3 and A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned conversion of DOD Limit to OD Limit of Rs. 15.00 Lacs vide Sanction Letter dated 31.07.2019, which is Annexure A9 to this OA. Defendant nos. 2 and 3 stood as guarantors in both the loan accounts.

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Defendant no. 1 (since deceased) mortgaged his immovable property i.e. Land measuring 92K 00M situated at Village Sadharanpur, Tehsil Patran, District Patiala, Punjab vide Declaration u/s 4 (1) of the Punjab Agriculture Credit Operations and Miscellaneous Provision

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3 OA NO. 606/2023 HDFC BANK LIMITED VS. PARTAP SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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(Banks) Act, 1978 dated 02.03.2017, which is Annexure A7 to this OA.

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Documents executed: Agreements for Guarantee cum Hypothecation dated 22.03.2017 and 31.07.2017, which are Annexure A5, A6 and A10 to this OA; Legal Notice dated 15.03.2023 along with postal receipts, which is Annexure A11 to this OA and Account Statements, which are Annexure A12 and A13 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. 22,67,611.00 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.

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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 18.08.2026.

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In support of the OA, affidavit of Ms. Pooja Arora, Senior Manager, HDFC Bank Ltd., has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 Annexure A1 to A13 to this OA, it is proved that defendant no. 1 (since deceased) approached applicant for availing of the loan facilities which were granted to him. Defendant nos. 2 and 3 stood as guarantors in both the loan accounts. Defendants had executed all the relevant documents in favour of the applicant. 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. Defendant nos. 1.B. and 2 are the same person. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 22,67,611.00 (Rupees Twenty Two Lacs Sixty Seven Thousand Six Hundred Eleven Only) along with interest from all the

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4 OA NO. 606/2023 HDFC BANK LIMITED VS. PARTAP SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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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. plus @2% penal interest from 21.12.2022 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/mortgaged property, 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 @08.00% 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.

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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.22,67,611.00 (Rupees Twenty Two Lacs Sixty Seven Thousand Six Hundred Eleven Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in both 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 property of defendant no. 1 (since deceased) 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 defendant nos. 2 and 3 and also of defendant nos. 1.A., 1.C. and 1.D. to the extent they inherited the property of deceased defendant no. 1. 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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5 OA NO. 606/2023 HDFC BANK LIMITED VS. PARTAP SINGH THROUGH HIS LEGAL HEIRS AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.09.2026. 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: 25.08.2026

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

Hdfc Bank Limited v. Sh. Partap Singh through His Legal Heirs and Others

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Hdfc Bank Limited v. Sh. Partap Singh through His Legal Heirs and Others

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