Allowed

Axis Bank Limited v. Ajmer Singh and Another

DRT11 Nov 2024OA/858/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's recovery application against two defendants jointly and severally for Rs.26.13 lakhs with interest. The court issued a Recovery Certificate and ordered the sale of mortgaged properties to recover dues.

What did the court decide?

Issuance of Recovery Certificate; declaration of joint and several liability; recovery from sale of mortgaged and personal assets.

Axis Bank Limited versus Ajmer Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.858/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2024

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DATE OF DECISION: 11.11.2024

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Axis Bank Ltd., (earlier as UTI Bank Ltd.), a Banking Company, carrying on the Banking business under the Banking Regulations Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at “Trishul”, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006, Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd., situated in SCO No.367-368, 3^rd Floor, Sector-34A, Chandigarh through its Manager, Sh. Sandeep Kumar.

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……..Applicant Versus

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Sh. Ajmer Singh S/o Sh. Balbir Singh, R/o Village Abadi Amarkot Mehmoodpura, Tehsil Patti, Tarn Taran, Punjab-143419.

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Smt. Sharanjit Kaur W/o Sh. Balbir Singh @ Balveer Singh R/o Village Abadi Amarkot Mehmoodpura, Tehsil Patti, Tarn Taran, Punjab-143419.

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………. Defendants

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Advocates:

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Argued by Sh. Gaurav Gupta, Advocate for Applicant Defendants are ex-parte

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,13,004.10p (Rupees Twenty Six Lac Thirteen Thousand Four Rupees and Ten Paise Only). The Original Application has been filed through Sh. Sandeep Kumar, Manager o f the applicant, who is

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competent to institute the Original Application vide General Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application Form dated 18.02.2015, which is Annexure A2 to this OA and further defendants approached the applicant for its renewals. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 04.03.2015, which is Annexure A3 to this OA and further applicant bank sanctioned the renewals of CC Limit of Rs.20.00 Lacs vide Sanction Letters dated 04.03.2015 and 05.03.2020, which is Annexure A7 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 48Kanal-0Marla situated at Village Mehmoodpura, Hadbast no.88 Tehsil Patti, District Tarn Taran, Punjab vide Declaration under Section 4(1) of the Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 bearing vasika no.470 dated 09.03.2015 Letter to Sub Registrar for creation of charge , along with its translation, which is Annexure A6 to this OA. Documents executed:-Loan Cum Hypothecation Agreement, D.P. Note Delivery Cum Waiver both dated 09.03.2015, which are Annexures A4 & A5 to this OA; Recall Notice dated 07.05.2024 with postal receipts, which is Annexure A8 to this OA; Fore closure Letter And Statement of Account along with certificate under Bankers Books of Evidence, which are Annexures A9 to A11 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.26,13,004.10p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 on 06.11.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Manager, Axis Bank Ltd., has been filed.

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Heard 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 A11 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.26,13,004.10p (Rupees Twenty Six Lac Thirteen Thousand Four Rupees and Ten Paise 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 @10.50%p.a. from 26.11.2023 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, undertaking of the defendants, quantum of loan and prevalent market rates of

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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 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.26,13,004.10p (Rupees Twenty Six Lac Thirteen Thousand Four Rupees and Ten Paise 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 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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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.12.2024.

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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 . Dated: 11.11.2024.

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

Axis Bank Limited v. Ajmer Singh and Another

Case brief

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Axis Bank Limited v. Ajmer Singh and Another

Case brief

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