Allowed

Axis Bank Limited v. Late Smt. Madhu Kaushal

DRT28 Aug 2025OA/1007/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application by Axis Bank Limited for recovery of Rs.35,57,275.00p from the legal heir of Smt. Madhu Kaushal. The Court fixed simple interest at 8%/p.a. and granted a Recovery Certificate, permitting recourse to the SARFAESI Act or attachment of assets.

What did the court decide?

Recovery Certificate issued. Applicant entitled to recover Rs.35,57,275.00p plus @8% p.a. simple interest via sale of vehicle or personal assets.

Axis Bank Limited versus Late Smt. Madhu Kaushal — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1007/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.08.2024

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DATE OF DECISION: 28.08.2025

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Axis Bank Ltd., having its Registered Office at ‘Trishul’, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat, and having its branch office at Axis Bank Ltd., Loan Centre, SCO No.367-368, Sector 34-A, Chandigarh-160022 through Sh. Sandeep Kumar, its Authorized Representative.

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……..Applicant

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Versus

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Smt. Madhu Kaushal (deceased) through his Legal Heir Sh. Sachin Kaushal (son) R/o H. No. 433/5, Basant Road Civil Lines, Ludhiana – 141001.

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2^nd Address- R/o 26-A, Industrial Area a Extn Ludhiana - 141003

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………. Defendant

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Advocates:

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Argued by Ms. Pinki, Advocate proxy for Sh. Gagandeep Toni, Advocate for the Applicant

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Defendant already 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 & Bankruptcy Act, 1993, against the defendant for recovery of Rs.35,57,275.00p (Rupees Thirty Five Lacs Fifty Seven Thousand Two Hundred Seventy Five Only). The Original Application has been filed through Sh. Sandeep Kumar, Authorized Representative of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 16.09.2021,

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which is Annexure A1 to this OA.

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The brief facts of the OA are that the deceased defendant had approached the applicant for the grant a loan of Rs. 35,21,335/- for the

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OA NO.1007/2024 AXIS BANK LIMITED VS LATE SMT. MADHU KAUSHAL THROUGH LEGAL HEIR

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purchase of vehicle namely “Toyota Fortuner” vide Loan Application dated 04.09.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned Vehicle loan of Rs.35,21,335/- and the terms and conditions were duly accepted by the defendant. 4. The deceased defendant had hypothecated her movable property i.e. Vehicle namely “Toyota Fortuner” bearing Registration No. PB-10HM-0800, Engine No. 1GDA660063 and Chassis No. MBJAA3GS8005709310722 to this OA. vide Agreement of Loan cumhypothecation dated 11.09.2023, which is Annexure A3 to this OA.

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Documents executed : - Statement of Account, which is Annexure A4 to this OA; Legal Notice dated 29.05.2024, which is Annexure A5 to this OA and Original Postal Receipts dated 03.06.2024, which are Annexures A6 & A7 to this OA.

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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.35,57,275.00p, which is recoverable and the legal heir of deceased defendant was served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The legal heir of deceased defendant was served notice to appear before this Tribunal but no one appeared on behalf of legal heir of deceased defendant and he was proceeded ex-parte on 05.08.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Representative, Axis Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A7 to this OA, it is proved that the deceased defendant approached applicant for availing of the loan facility which was granted

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OA NO.1007/2024 AXIS BANK LIMITED VS LATE SMT. MADHU KAUSHAL THROUGH LEGAL HEIR

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to her and for that she had executed all the relevant documents in favour of the bank. The deceased defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the deceased defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,57,275.00p (Rupees Thirty Five Lacs Fifty Seven Thousand Two Hundred Seventy Five Only) along with interest from the legal heir of deceased defendant, 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 @15.05%p.a. with monthly rests 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 hypothecated assets, undertaking of the defendant, 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 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 legal heir of deceased defendant is liable to pay to the applicant a total sum of Rs.35,57,275.00p (Rupees Thirty Five Lacs Fifty Seven Thousand Two Hundred Seventy Five Only) 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

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OA NO.1007/2024 AXIS BANK LIMITED VS LATE SMT. MADHU KAUSHAL THROUGH LEGAL HEIR

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vehicle of the defendant 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 legal heir of deceased defendant. 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 24.09.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 28.08.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Late Smt. Madhu Kaushal

Case brief

What is this about?

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Axis Bank Limited v. Late Smt. Madhu Kaushal

Case brief

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