Allowed

Hdfc Bank Limited v. Sh. Kulwinder Singh

DRT22 May 2026OA/830/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant's Original Application for recovery of a loan of Rs. 39,34,668.12 against the accused defendants. The Tribunal issued a Recovery Certificate, directed the recovery officer for recovery from mortgaged property and personal assets, and fixed a simple interest rate of 8% p.a. instead of the claimed higher rate.

What did the court decide?

Recovery Certificate issued for Rs. 39,34,668.12 with simple interest @ 8% p.a. recoverable from mortgaged property and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.830/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.06.2025

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DATE OF DECISION: 22.05.2026

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HDFC Bank Limited, having its Registered Office at Senapati Bapat Marg, Lower Parel - (West), Mumbai – 400013, having its Branch Office at Sri Muktsar Sahib, District Muktsar, Punjab – 152112, also at HDFC Bank Ltd., Plot No I-15, Sector 101, Alpha, IT City, Mohali, District S.A.S. Nagar, Punjab through its Authorized Representative, Sh. Dinesh Kumar.

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…….A pplicant

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Versus

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Sh. Kulwinder Singh, S/o Sh. Inderjeet Singh, R/o H.No. 170, Pind Khund Halal, Sri Muktsar Sahib, District Muktsar, Punjab – 152112.

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Sh. Inderjit Singh S/o Sh. Sukh Singh Darshan, R/o H.No. 170, Pind Khund Halal, Sri Muktsar Sahib, District Muktsar, Punjab – 152112.

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Sh. Dalwinder Singh S/o Sh. Jeet Singh, R/o Pind Khund Halal, Sri Muktsar Sahib, District Muktsar, Punjab – 152112 .

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…….Defendants

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Advocates:

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Argued Sh. Tarunjit Singh Grewal, Advocate for Applicant (through

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VC)

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None for Defendants (Already ex-parte vide order dated 20.05.2026).

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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.39,34,668.12 (Rupees Thirty Nine Lacs Thirty Four Thousand Six Hundred Sixty Eight and Paise Twelve Only). The Original Application has been filed through Sh. Dinesh Kumar, Authorized Representative, who is competent to

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2 OA/830/2025 HDFC BANK LTD. VS SH. KULWINDER SINGH AND OTHERS

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institute the Original Application vide Power of Attorney dated 17.01.2024, 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 Cash Credit Limit of Rs.20,00,000.00 and Overdraft Limit of Rs.14,00,000.00 vide Application for Retail Agricultural Loan dated 13.01.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.19,50,000.00 and Overdraft Limit of Rs.10,80,000.00 and Farm Development Loan of Rs.3,30,000.00 vide Sanction Letters dated 24.01.2023, which are

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Annexure A3(Colly) to this OA and the terms and conditions were duly accepted by the defendants. Defendant no.3 stood as guarantor.

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Defendant nos. 1 & 2 mortgaged their Immovable Property i.e. total Land measuring 80 Kanals 00 Marla situated in Village Khunde Halal, Tehsil Lakhewali, District Muktsar vide Declaration u/s 4(1) and Registration of Bank Charge, both dated 27.01.2023, which are Annexures A7 & A8 to this OA.

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Documents executed : Agreements for Overdraft/Cash Credit cum Guarantee cum Hypothecation, Agreement for Dropline Overdraft cum Hypothecation cum Guarantee, all dated 25.01.2023, which are Annexures A4 to A6 to this OA; Legal Notice dated 30.01.2025, along with postal receipt, which is Annexure A9 to this OA; Statement of Accounts along with Certificate under Bankers Book of Evidence Act, which are Annexures A10 to A13 to this ОА.

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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.39,34,668.12, 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

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Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 20.05.2026.

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3 OA/830/2025 HDFC BANK LTD. VS SH. KULWINDER SINGH AND OTHERS

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In support of the OA, affidavit of Sh. Dinesh Kumar, Authorized Representative, 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 approached applicant for availing of the 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 loan 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.39,34,668.12 (Rupees Thirty Nine Lacs Thirty Four Thousand Six Hundred Sixty Eight and Paise Twelve 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 @13.00%p.a. with half yearly rests with penal interest @16.00%p.a. in all the loan accounts 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 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 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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4 OA/830/2025 HDFC BANK LTD. VS SH. KULWINDER SINGH AND OTHERS

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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.39,34,668.12 (Rupees Thirty Nine Lacs Thirty Four Thousand Six Hundred Sixty Eight and Paise Twelve 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 property of the defendant nos. 1 & 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.

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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 Tribunal on 15.06.2026.

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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: 22.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Kulwinder Singh

Case brief

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Hdfc Bank Limited v. Sh. Kulwinder Singh

Case brief

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