Allowed

Hdfc Bank Ltd. v. Sh. Sarbjit Singh and Others

DRT13 Mar 2026OA/984/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application by HDFC Bank Ltd. against three respondents for recovery of outstanding dues from an agricultural credit limit. The court deeming market rates lower, granted 8% simple interest instead of the claimed 12%, and ordered recovery from mortgaged properties.

What did the court decide?

Defendants liable to pay Rs.39,23,717 with costs and simple interest at 8% p.a.; Recovery Certificate issued.

Hdfc Bank Ltd. versus Sh. Sarbjit 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.984/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.07.2025

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DATE OF DECISION: 13.03.2026

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HDFC 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 and branch office amongst other places one at Amarkot, District Tarn Taran, through Sh. Dinesh Kumar, Manager, Holder of an Attorney from the Applicant.

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……..Applicant Versus

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Sh. Sarbjit Singh S/o Sh. Rajpal Singh, R/o H. No. 397, Village Rajoke, Tehsil Patti, District Tarn Taran - 143303.

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Sh. Rajpal Singh S/o Sh. Sukhchain Singh, R/o Village Rajoke, Tehsil Patti, District Tarn Taran - 143303.

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Sh. Harjinder Singh S/o Sh. Kabal Singh, R/o H. No. 246, Village Rajoke, Tehsil Patti, District Tarn Taran - 143303.

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……….Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for Applicant

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Defendants already ex-parte vide order dated 07.01.2026.

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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.39,23,717.00 (Rupees Thirty Nine Lacs Twenty Three Thousand Seven Hundred Seventeen Only). The Original Application has been filed through Sh. Dinesh Kumar, Manager of the applicant who is competent to 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 the grant of Agri. Cash Credit Limit of Rs.25.00 Lacs vide loan application dated 08.12.2014, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

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OA NO. 984/2025 HDFC BANK LTD. VS. SARBJIT SINGH AND OTHERS

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Thereafter, defendant nos. 1 and 2 approached the applicant for enhancement of the limit from Rs.24.00 Lacs to Rs.28.80 Lacs vide loan application dated 28.05.2019, which is Annexure A9 to this OA. 3. The applicant sanctioned the Agri. Cash Credit Limit of Rs.24.00 Lacs vide Sanction letter dated 17.12.2014, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of the limit from Rs.24.00 Lacs to Rs.28.80 Lacs vide Sanction letter dated 31.05.2019, which is Annexure A10 to this OA. 4. Defendant nos. 1 and 2 mortgaged their immovable properties i.e. land measuring 88K-05M (32K-09M in the name of defendant no. and 55K-16M in the name of defendant no. 2) situated at Village Hardo Chak Banba, Hadbast no. 71, Tehsil Patti, District Tarn Taran, Punjab vide declaration dated 22.12.2014 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, along with letter to Joint Sub-Registrar for creation of charge, which is Annexure A7 to this OA; Legal Opinion dated 26.12.2014 regarding lien mark, which is Annexure A8 to this OA. Documents executed: Agreement for Overdraft/Cash credit cum guarantee cum hypothecation, Demand promissory note, Letter of Continuity for DP Note, all dated 30.12.2014, which are Annexures A4 to A6 to this OA; Agreement for Overdraft/Cash credit cum guarantee cum hypothecation dated 31.05.2019, which is Annexure A11 to this OA; Addendum cum Undertaking dated 28.05.2019, which is Annexure A12 to this OA; Legal Notice dated 21.11.2024 , along with postal receipts, which are Annexures A13 to A16 to this OA; Statement of Account with certificate, which is Annexure A17 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.39,23,717.00, 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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OA NO. 984/2025 HDFC BANK LTD. VS. SARBJIT SINGH AND OTHERS

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.01.2026.

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In support of the OA, affidavit of Sh. Dinesh Kumar, 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 counsel 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 A17 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them 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, 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.39,23,717.00 (Rupees Thirty Nine Lacs Twenty Three Thousand Seven Hundred Seventeen Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with half yearly rests from 02.04.2025 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 years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till

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OA NO. 984/2025 HDFC BANK LTD. VS. SARBJIT SINGH AND OTHERS

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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.39,23,717.00 (Rupees Thirty Nine Lacs Twenty Three Thousand Seven Hundred Seventeen 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 hypothecated/mortgaged properties of the defendants 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 02.04.2026.

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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: 13.03.2026

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

Hdfc Bank Ltd. v. Sh. Sarbjit Singh and Others

Case brief

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Hdfc Bank Ltd. v. Sh. Sarbjit Singh and Others

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