Allowed

Axis Bank v. Neeraj Kumar

DRT17 Sept 2024OA/2044/2022

Case brief

AI extract

What is this about?

The single judge allowed Axis Bank Ltd.'s application under Section 19 of the RDB Act for recovery of Rs.41,40,679/- along with interest from loan defaulted defendants, directing issuance of a recovery certificate and sale of hypothecated assets.

What did the court decide?

Allowed recovery of Rs.41,40,679/- with interest; issued recovery certificate; directed sale of hypothecated goods and personal property.

Axis Bank versus Neeraj Kumar — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 2044 of 2022 Date of Institution: 28.07.2022 Date of Decision: 17.09.2024

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Axis Bank Ltd., having one of its branch at, Retail Assets Center Shop No.136 and 137, City Centre Scheme, Opposite Bus Stand, Amritsar, Punjab.

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……..Applicant

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1. Neeraj Kumar, Proprietor of M/s Balaji Fuel KSK, Baba Budha Ji Link Road, Khalra Mandi, Khalara Tarn Taran-143305.

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1. M/s Balaji Fuel KSK through Proprietor Neeraj Kumar, Attari Road, VPO Chabhai, Tarn Taran, Punjab-143401.

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1. Manoj Kumar S/o Sh. Bhushan Kumar, R/o Khalra Mandi, Khalara Tarn Taran-143305, Punjab. Also at:- M/s Balaji Fuel KSK, Attari Road, VPO Chabhal, Tarn Taran, Punjab-143401. ……….Defendants

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Advocates

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Sh. Deepak Jain, Counsel for the applicant bank. Defendants- Ex parte. OA for the Recovery of Rs.41,40,679/- with interest @24% per annum with monthly rests from the date of filing the present application i.e. 28.07.2022.

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ORDER

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Axis Bank Ltd., (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.41,40,679/- with interest against Neeraj Kumar And Others (defendants).

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Bank’s case is that on 05.12.2019, it had granted Auto Loan of Rs.48,60,606/- to defendant no.2 through its proprietor defendant no.1 and defendant no.3 for purchase of three goods carrier of Ashok Leyland.

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To secure the loan, Defendants had created hypothecation of three goods carrier of Ashok Leyland (fully detailed in para No.5.6 of the application). The loan was chargeable to interest @9.40% per annum with monthly rests. On 08.06.2022, a sum of Rs.41,40,679/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 03.11.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 24.05.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Rohit Thakur, Authorized Representative along with the loan and security documents and marked them as Exhibit A-1 to A-19.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.48,60,606/- and on 08.06.2022, a sum of Rs.41,40,679/-was due.

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Accordingly, the application of the bank for the recovery of Rs.41,40,679/- (Rupees Forty One Lacs Forty Thousand Six Hundred Seventy Nine Only) with interest @24% per annum with monthly rests from the date of filing the present application i.e. 28.07.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated three goods carrier of Ashok Leyland (fully detailed in para No.5.6 of the application) as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 21.10.2024 , who is directed to distribute the sale proceeds of the hypothecated goods carrier of Ashok Leyland as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 17.09.2024 Presiding Officer DRT-1, Chandigarh

Axis Bank v. Neeraj Kumar

Case brief

What is this about?

What did the court decide?

Axis Bank v. Neeraj Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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