HDFC BANK LIMITED vs SH. GURMEET SINGH AND ANOTHER on 12 August 2026

FINAL ORDER

1. Present Transfer 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. 22,36,004.00 (Rupees Twenty Two Lacs Thirty Six Thousand Four Only). The Transfer Application has been filed through Sh. Rajendra Prasad, Authorized Representative of the applicant, who is competent to institute the Transfer Application vide Board Resolution dated 15.04.2023, which is Annexure A1 to this TA.

2. The brief facts of the TA are that defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 26,15,240.00 vide Application Form dated 28.03.2024, which is Annexure A2 to this TA.

3. The applicant sanctioned Commercial Vehicle Loan of Rs.26,15,240.00 vide Agreement for Loan and Guarantee dated 04.04.2024, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendants. Defendant no. 2 stood as guarantor.

4. Defendant no. 1 hypothecated his vehicle namely JCB India Limited Backhoe Loader bearing Registration no. PB10JP7694, Chassis no. HAR3DXINC03381400 and Engine no. H00421279 vide RC filed on 10.08.2026 in compliance of order dated 23.02.2026. Documents executed: DP Note dated 31.10.2025, which is Annexure A4 to this TA; Statement of Account with certificate, which are Annexure A5 and A6 to this TA and Hon’ble Delhi High Court Judgment dated 05.02.2007, which is Annexure A7 to this TA.

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. 22,36,004.00, 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.

6. 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 12.01.2026.

7. In support of the TA, affidavit of Sh. Rajendra Prasad, Authorized Representative, HDFC Bank Limited has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned counsel (through VC) 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 Annexure A1 to A7 to this TA, it is proved that defendant no. 1 approached applicant for availing of the loan facility which was granted to him. Defendant no. 2 stood as guarantor. Defendants 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, 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. 22,36,004.00 (Rupees Twenty Two Lacs Thirty Six Thousand Four Only) along with interest from the defendants, jointly and severally from the date of filing of the present Transfer 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 @9.60%p.a. from 30.10.2025 till the realization.

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 hypothecated asset, 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 @8.00%p.a. in the loan account from the date of filing of the TA 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.22,36,004.00 (Rupees Twenty Two Lacs Thirty Six Thousand Four 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 TA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated asset 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 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 28.08.2026.

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: 12.08.2026

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