OTT ordered recovery of Rs.20.92 lakhs from borrowers and guarantor with simple interest at 8% p.a. granted Recovery Certificate and authorized future enforcement via SARFAESI Act.
Recovery of Rs.20,92,126.00 with simple interest @ 8% p.a. from filing date till realization; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 663/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 08.05.2023
DATE OF DECISION: 25.05.2026
HDFC BANK LIMITED, a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at HDFC Bank House, Senapati Bapat Marg, lower Parel, Mumbai 400013 and Branch Office amongst other places one at Moonak, Distt. Sangrur, Punjab, through Smt. Pooja Arora, Manager, holder of an attorney from the Applicant Bank.
……..Applicant
Versus
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for Applicant.
Sh. Sukhvinder Singh, Advocate proxy for Sh. Tejinder Singh, Advocate for Defendants.
FINAL ORDER
2
OA/663/2023 HDFC BANK LIMITED VS. KARNAIL SINGH AND OTHERS
Applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the Defendant no.1 & 2 approached the applicant for sanction of KCC Limit of Rs.20,00,000.00 vide Application Form for Agriculture Loan dated 05.06.2014, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.15,00,000.00, vide Sanction Letter and acceptance of Credit Facility dated 25.06.2014, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 mortgaged his Land measuring 84K-15M situated at Village Mandvi-A, Sub Tehsil Khanori, Tehsil Moonak, District Sangrur, Punjab, vide Mortgaged Deed bearing Vasika no. 370 dated 02.07.2014, along with its translation, which are Annexures A7 and A8 to this OA. Documents executed: Agreement for Overdraft/Cash Credit cum Guarantee cum Hypothecation dated 02.07.2014, which is Annexure A4 to this OA; Demand Promissory Note dated 02.07.2014, which is Annexure A5 to this OA; Letter of Continuity for DP Note dated 02.07.2014, which is Annexure A6 to this OA; Notice with Postal receipts dated 22.12.2022, which are Annexures A9 to A12 to this OA; Statement of Loan Account with certificate dated 20.12.2022, which is Annexure A13 to this OA.
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OA/663/2023 HDFC BANK LIMITED VS. KARNAIL SINGH AND OTHERS
documents. Sh. Dinesh Kumar, Manager of the applicant, appeared with original documents, which were seen by the counsel for defendants. The counsel for defendants admitted the signatures on documents produced but denied their contents.
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OA/663/2023 HDFC BANK LIMITED VS. KARNAIL SINGH AND OTHERS
property, 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 appropriate to grant simple interest @08.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,92,126.00 (Rupees Twenty Lacs Ninety Two Thousand One Hundred Twenty Six Only), jointly and severally, with costs, current and future simple interest @08.00%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 mortgaged property of the defendant no.2 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 16.06.2026 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: 25.05.2026.
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the respondent bank is entitled to recover the outstanding loan amount with interest from the principal borrowers and guarantor.
Whether the Tribunal should modulate the rate of interest claimed by the bank to a lower simple rate as a matter of discretion.
2 provisions across 2 enactments
HDFC BANK LIMITED
Sh. Karnail Singh
Sh. Jhramal Singh
Sh. Rajbir Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
