Allowed

Hdfc Bank Limited v. Sh. Kabal Singh and Others

DRT7 Aug 2026OA/773/2024

Case brief

AI extract

What is this about?

In an ex-parte application for recovery of debt, the tribunal allowed the bank's claim for Rs. 27,06,625.00 plus costs and interest at 8% p.a., ordering recovery from mortgaged property and personal assets under SARFAESI Act.

What did the court decide?

Order recovery of Rs. 27,06,625.00 with interest at 8% p.a. and costs; declare defendants jointly and severally liable; authorize recovery via sale of mortgaged property and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.773/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.03.2024

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DATE OF DECISION: 07.08.2026

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H.D.F.C. Bank Lid., a Banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956, having its Registered Office at HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400011, whereas its branch at "Sur Singh, District Tarn Taran (Punjab)" through Sh. Dinesh Kumar, Deputy Manager (Agri. Legal), H.D.F.C. Bank Ltd., Regional Office, Mohali, District Mohali (Punjab) being Authorized Officer of applicant bank.

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……..Applicant

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Versus

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Sh. Kabal Singh S/o Sh. Santokh Singh, R/o Village Patti Mana Ki, Sur Singh, Tehsil Bhikhiwind, District Tran Taran (Punjab) - 143302.

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Sh. Sawinder Singh @ Savinder Singh S/o Sh. Santokh Singh, R/o Village Patti Mana Ki, Sur Singh, Tehsil Bhikhiwind, District Tran Taran (Punjab) -143302.

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Sh. Sahab Singh S/o Sh. Kartar Singh, R/o Link Road, Village Patti Mana Ki, Sur Singh, Tehsil & District Tran Taran (Punjab) - 143302.

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…….. Defendants

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Advocates:

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Argued by Sh. Saurabh Bhardwaj, Advocate for the applicant (through VC)

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None for Defendants (Already ex-parte vide order dated 05.08.2026).

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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 & Bankruptcy Act 1993,

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2 OA NO.773/2024 HDFC BANK LTD. VS SH. KABAL SINGH AND OTHERS

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against the defendants for recovery of Rs.27,06,625.00 (Rupees Twenty Seven Lacs Six Thousand Six Hundred and Twenty Five Only). The Original Application has been filed through Sh. Dinesh Kumar, Deputy Manager 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.

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for grant of Credit Card Limit of Rs.17,70,000.00, Term Loan Facility of Rs.1,00,000.00 and Overdraft Facility of Rs.3,00,000.00 vide Application for Retail Agricultural Loan dated 04.01.2021, which is Annexure A2 to this OA.

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The applicant sanctioned the Credit Card Limit of Rs.17,55,000.00, Term Loan Facility of Rs.1,15,000.00 and Overdraft Facility of Rs.3,00,000.00 vide Sanction of Agriculture Credit Overdraft/Cash Credit Facilities dated 20.01.2021, which are Annexures A3 to A5 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant nos. 1 & 2 mortgaged their Immovable Property i.e., Agriculture Land measuring 60K 00M situated in Village Sur Singh-1, Tehsil Bhikhiwind, District Tarn Taran, as per Jamabandi for the year 2016-17 vide Declaration u/s 4(1) along with Request Letter for Registration of Bank’s charge for mortgage of agriculture land, dated 21.01.2021, which is Annexure A9 to this OA.

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Documents executed: Agreements for Overdraft/Cash Credit cum Guarantee cum Hypothecation, dated 20.01.2021, which are Annexures A6 & A7 to this OA; Agreement for Term Loan cum Guarantee cum Hypothecation, dated 21.01.2021, which is Annexure A8 to this OA; Legal Notice dated 02.11.2023, along with postal receipts, which is Annexure A10 to this OA; Statement of Accounts along with certificate, which is Annexure A11 to A13 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.27,06,625.00, which is recoverable and the

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3 OA NO.773/2024 HDFC BANK LTD. VS SH. KABAL SINGH AND OTHERS

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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 05.08.2026.

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In support of the OA, affidavit of Sh. Dinesh Kumar, Deputy Manager, HDFC Bank Ltd. has been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 A13 to this OA, it is proved that the defendant nos. 1 & 2 a pproached applicant for availing of loan facilities which were granted to them, defendant no. 3 stood as guarantor 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.27,06,625.00 (Rupees Twenty Seven Lacs Six Thousand Six Hundred and Twenty Five 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. 10. 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. with half yearly rests with penal interest @2% 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, undertaking of the defendants, quantum of loans and prevalent market rates of

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4 OA NO.773/2024 HDFC BANK LTD. VS SH. KABAL SINGH AND OTHERS

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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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.27,06,625.00 (Rupees Twenty Seven Lacs Six Thousand Six Hundred and Twenty Five Only), jointly and severally, with costs, current and future simple interest @8.00%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 property of defendant nos. 1 & 2 i n 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 24.08.2026. 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: 07.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Kabal Singh and Others

Case brief

What is this about?

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Hdfc Bank Limited v. Sh. Kabal Singh and Others

Case brief

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