Allowed

Hdfc Bank Limited v. Sh. Sarup Singh and others

DRT18 Aug 2026OA/857/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a recovery application filed by H.D.F.C. Bank against borrowers and guarantors for an overdue agriculture loan. The court confirmed the debt amount and awarded simple interest at 8% p.a., permitting recovery from mortgaged properties. Relief was granted in the absence of defendants.

What did the court decide?

Dockets to pay Rs. 69,14,237.29 with simple interest @8% p.a.; Recovery Certificate issued; Sale of mortgaged/hypothecated assets permitted. Any other application disposed of.

Hdfc Bank Limited versus Sh. Sarup Singh and others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 857/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2023

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DATE OF DECISION: 18.08.2026

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H.D.F.C. Bank Ltd., 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 whereas one of its Branch at Sultanpur Lodhi, District Kapurthala, Punjab through Sh. Harminder Pal Singh, Senior Manager (Agri. Legal), H.D.F.C. Bank Ltd. Regional Office, District Mohali, Punjab being Power of Attorney Holder

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……..Applicant

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Versus

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Sh. Sarup Singh, S/o Sh. Mukhtar Singh, R/o Near Gurudwara, Village Bharoana, Tehsil and District Kapurthala, Punjab-

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144626

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Sh. Saroop Singh, S/o Sh. Sardara Singh, since deceased through his Legal Heirs detailed as under:

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A. Smt. Jaswinder Kaur, W/o Late Sh. Saroop Singh, R/o Village Yusafpur, Darewal Chananwindi, Tehsil and District Kapurthala, Punjab- 144626

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B. Ms. Harsirat Kaur, D/o Late Sh. Saroop Singh, R/o Village Yusafpur, Darewal Chananwindi, Tehsil and District Kapurthala, Punjab- 144626

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Sh. Jaswinder Singh, S/o Sh. Mukhtar Singh, R/o Village Bharoana, Tehsil and District Kapurthala, Punjab- 144626

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…Defendants

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Advocates:

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Argued by Sh. Saurabh Bhardwaj, Advocate for applicant

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None for defendants (already ex-parte vide order dated 11.08.2026)

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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. 69,14,237.29 (Rupees Sixty Nine

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2 OA/857/2023 HDFC BANK VS. SARUP SINGH AND OTHERS

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Lacs Fourteen Thousand Two Hundred Thirty Seven and Paise Twenty Nine Only). The Original Application has been filed through Sh. Harminder Pal Singh, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.12.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of CC Limit of Rs. 85.00 Lacs vide Application Form dated 28.04.2016, which is Annexure A2 to this OA. Thereafter, defendant no. 1 approached the applicant for enhancement of CC Limit to Rs. 49.20 Lacs vide Application Form dated 25.06.2019, which is Annexure A8 to this OA.

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The applicant sanctioned the CC Limit of Rs. 41.00 Lacs vide Sanction Letter dated 10.05.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs.49.20 Lacs vide Sanction Letter dated 04.07.2019, which is Annexure A9 to this OA. Defendant nos. 2 (since deceased) and 3 stood as guarantors.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 81K 09M situated at Village Bharoana, Hadbast no. 186, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide Declaration u/s 4 (1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 10.05.2016 along with its translation, which is Annexure A7 to this OA.

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Defendant no. 1 hypothecated his crops vide Agreements for Guarantee cum Hypothecations dated 10.05.2016 and 04.07.2019, which are Annexure A6 and A10 to this OA.

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Documents executed: DP Note and Letter of Continuity, both dated 10.05.2016, which are Annexure A4 and A5 to this OA; Addendum cum Undertaking dated 25.06.2019, which is Annexure A11 to this OA; Legal Notice dated 06.06.2023 along with postal receipts, which is Annexure A12 to this OA and Account Statement, which is Annexure A13 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was

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3 OA/857/2023 HDFC BANK VS. SARUP SINGH AND OTHERS

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a debit of Rs. 69,14,237.29, 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 11.08.2026.

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In support of the OA, affidavit of Sh. Harminder Pal Singh, Senior Manage r, HDFC Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 Annexures A1 to A13 to this OA, it is proved that defendant no. 1 approached applicant for availing of the loan facility, which was granted to him. Defendant nos. 2 (since deceased) and 3 stood as guarantors. Defendants had executed all the relevant documents in favor of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.69,14,237.29 (Rupees Sixty Nine Lacs Fourteen Thousand Two Hundred Thirty Seven and Paise Twenty Nine 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75%p.a. with monthly rests from 01.06.2023 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/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester

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4 OA/857/2023 HDFC BANK VS. SARUP SINGH AND OTHERS

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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 account 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.69,14,237.29 (Rupees Sixty Nine Lacs Fourteen Thousand Two Hundred Thirty Seven and Paise Twenty Nine Only), jointly and severally, with costs, current and future simple interest @8.00% 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 and hypothecated assets of defendant no. 1 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. 1 and 3 and also of defendant nos. 2A. and 2B. to the extent they inherited the property of deceased defendant no. 2. 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 02.09.2026. 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.

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Pronounced by me in the open Tribunal .

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Dated: 18.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Hdfc Bank Limited v. Sh. Sarup Singh and others

Case brief

What is this about?

What did the court decide?

Hdfc Bank Limited v. Sh. Sarup Singh and others

Case brief

What is this about?

What did the court decide?

What the court decided

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