Allowed

Axis Bank Ltd. v. Yogesh Kumar Chawla and Others

DRT3 Jun 2025OA/105/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Axis Bank against four defendants for recovery of a loan amount of Rs. 89,97,538.00, noting that the case was heard ex-parte. The Tribunal adjusted the interest rate to 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 89,97,538.00 with interest at 8% p.a. from filing date; issuance of Recovery Certificate.

Axis Bank Ltd. versus Yogesh Kumar Chawla and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.105/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.02.2025

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DATE OF DECISION: 03.06.2025

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AXIS BANK LTD., (earlier known 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 Samaratheshwar Temple Law Garden, Ellis Bridge, Ahmedabad380006 Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd., situated in SCO No.367-368, 33^rd Floor, Sector-34-A, Chandigarh through its area Legal Manager, Sh. Sandeep Kumar.

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……..Applicant

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Versus

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Yogesh Kumar Chawla, S/o Sh. Dharam Pal R/o House No.501/50, Ward No.9, Near Kanya Pathshala, Shastri Nagar, Jagraon, District Ludhiana Punjab-142026.

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Sanjeev Kumar S/o Sh. Dharam Pal R/o House No.91/50, Street No.1, Ward No.9, Shastri Nagar, Jagraon, District Ludhiana, Punjab-142026.

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Shimla Devi W/o Sh. Shree Ram R/o House No.501/50, Ward No.9, Near Kanya Pathshala, Shastri Nagar, Jagraon, District Ludhiana Punjab-142026.

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Dharam Pal S/o Sh. Kasturi Lal R/o House No.501/50, Ward No.9, Near Kanya Pathshala, Shastri Nagar, Jagraon, District Ludhiana Punjab-142026.

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….……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, 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.89,97,538.00p (Rupees Eighty Nine Lacs Ninety Seven Thousand Five Hundred Thirty Eight only). The Original Application has been filed

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2 OA NO.105-2025 AXIS BANK LIMITED VS YOGESH KUMAR CHAWLA AND OTHERS

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through Sh. Sandeep Kumar, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Overdraft Limit of Rs.99.50 Lacs & Production credit Limit of Rs. 50,000.00 vide Loan application dated 06.12.2019, which is Annexure A2 to this OA. 3. The applicant sanctioned the Overdraft Limit of Rs.60.00 Lacs & Production Credit facility of Rs. 50,000.00 vide Sanction letter dated 22.01.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.3 had mortgaged her immovable properties i.e. House No. B-XIX-946, measuring 0Kanal-15-1/6Marla situated at Village Agwar, Gujjran-III, Hadbast No.126, Tehsil Jagraon, District Ludhiana Punjab vide Equitable Mortgage of Transfer Deed bearing deed no.3328 dated 06.01.2020, with its translations , which is Annexure A9 this OA.

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Documents executed: -Loan cum hypothecation, Joint and Several Demand Promissory note, D.P. Note delivery cum waiver letter, Joint and several demand Promissory note, D.P. Note delivery cum waiver Letter all dated 23.01.2020, which are Annexures A4 to A8 to this OA; Memorandum of entry, which is Annexure A10 to this OA; Declaration cum confirmation deed 24.01.2020, which is Annexure A11 to this OA; Letter of acknowledgement of debt dated 14.01.2022, which is Annexure A12 to this OA; Legal notice dated 05.12.2024 along with postal receipts, which is Annexure A13 to this OA and Statements of account, which are Annexures A14 & A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.89,97,538.00p, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.105-2025 AXIS BANK LIMITED VS YOGESH KUMAR CHAWLA AND OTHERS

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outstanding 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 31.05.2025.

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In support of the OA, affidavit of Sh. Sandeep Kumar Manager, authorized signatory, Axis Bank Ltd., h as 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 A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.89,97,538.00p (Rupees Eighty Nine Lacs Ninety Seven Thousand Five Hundred Thirty Eight only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @24.00%p.a. in OD Facility & interest @15.00%p.a. in Production facility with half yearly rests from 27.11.2024 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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4 OA NO.105-2025

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AXIS BANK LIMITED VS YOGESH KUMAR CHAWLA AND OTHERS

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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 @8.00%p.a. in both the loan accounts 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.89,97,538.00 (Rupees Eighty Nine Lacs Ninety Seven Thousand Five Hundred Thirty Eight only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 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.

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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

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Tribunal on 26.06.2025.

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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 .

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Dated: 03.06.2025

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

Axis Bank Ltd. v. Yogesh Kumar Chawla and Others

Case brief

What is this about?

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Axis Bank Ltd. v. Yogesh Kumar Chawla and Others

Case brief

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