Allowed

Axis Bank v. Sh. Arif

DRT12 Dec 2023OA/893/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Axis Bank Limited for recovery of Rs. 44,70,231/- from two defendants who defaulted on a vehicle loan. The bank claimed 12.75% interest, but the Tribunal exercised discretion to grant a uniform simple interest rate of 8% per annum from the date of filing.

What did the court decide?

Recovery of Rs. 44,70,231/- payable with simple interest at 8% p.a. from 30.05.2023, to be attached if left unsatisfied.

Axis Bank versus Sh. Arif — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO.893/2023

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DATE OF INSTITUTION: 30.05.2023

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DATE OF DECISION: 12^th DAY OF DECEMBER, 2023

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Axis Bank Limited, having its Registered Office at Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahemdabad, Gujrat and also at Axis Bank, Loan Centre, SCO Nos. 367-368, Sector-34A, Chandigarh-160022, through Sh. Sandeep Kumar, Authorised Representative

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…..Applicant

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Versus

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Sh. Arif r/o House No.1/1136, Baba Nagar, Old Faridabad, KheriKalan, Haryana-121002

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Ms Apsana r/o House No.1/1136, Baba Nagar, Old Faridabad, Kheri-Kalan, Haryana-121002

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....Defendants

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Argued by: Ms Dipti Toni proxy counsel for Sh. Gagandeep Toni, Advocate for the applicant bank Defendants ex parte vide order dated 19.08.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Banks and Financial Institution Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.44,70,231/-

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(Rupees Forty Four Lac Seventy Thousand Two Hundred and Thirty One Only) . It has been filed through Sh. Sandeep Kumar,

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OA/893/2023 AXIS BANK VS SH. ARIF AND ANOTHER

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Authorised Representative of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 16.09.2021, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that defendant Nos. 1 and 2 had approached the applicant bank for grant of Rs. 55 lac for purchase of vehicle vide loan application Form dated 27.08.2021, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid facility to the defendants vide sanction letter dated 11.06.2021, Annexure-A3 (copy), as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed loan-cum-hypothecation agreement dated 11.06.2021, Annexure-A4 (copy) and demand promissory note dated 11.06.2021, Annexure-A5 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA. The applicant bank recalled entire outstanding amount vide legal notice dated 24.03.2023, Annexure-A7 (copy) and original postal receipts, Annexures-A8 and A9 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.44,70,231/(Rupees Forty Lac Seventy Thousand Two Hundred and Thirty One Only), is recoverable against the defendants as per statement of

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OA/893/2023 AXIS BANK VS SH. ARIF AND ANOTHER

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account duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A6 (copy).

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Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex-parte vide order dated 19.08.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Sandeep Kumar, Manager Legal of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel for the applicant bank and gone through the record carefully.

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It was argued by the learned proxy counsel for the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A9 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.44,70,231/- (Rupees Forty Four Lac

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OA/893/2023 AXIS BANK VS SH. ARIF AND ANOTHER

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Seventy Thousand Two Hundred and Thirty One Only) from the defendants.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause, has claimed rate of interest @12.75% per annum. In sanction letter dated 11.06.2021, AnnexureA3 (copy), the rate of interest has been mentioned @12.75% per annum.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, purpose of loan, i.e. purchase of vehicle , quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No.2 being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.44,70,231/(Rupees Forty Four Lac Seventy Thousand Two Hundred and Thirty One Only) with current and future simple interest @8% per annum w.e.f. 30.05.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of hypothecated vehicle of the defendants in execution proceedings, if not sold earlier

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OA/893/2023 AXIS BANK VS SH. ARIF AND ANOTHER

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under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at

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liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 02.02.2024.

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Axis Bank v. Sh. Arif

Case brief

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Axis Bank v. Sh. Arif

Case brief

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