Allowed

Axis Bank Ltd. v. Sh. Jarnail Singh and Another

DRT9 Jun 2025OA/110/2025

Case brief

AI extract

What is this about?

Application under RDDBFI Act 1993 allowed for recovery of outstanding loan principal and interest. Tribunal exercised discretion to grant interest at 8% p.a. instead of 11.25% p.a. Remitted respondents to Recovery Officer.

What did the court decide?

Recovery of Rs.50,36,428.94p with simple interest at 8% p.a. from filing of application till realization. Recovery Certificate issued. Parties to appear before Recovery Officer.

Axis Bank Ltd. versus Sh. Jarnail Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.110/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.02.2025

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DATE OF DECISION: 09.06.2025

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Axis Bank Ltd., having its registered office at “Trishul” 3^rd Floor, Opposite Samartheswar temple, Law Garden, Ellisbridge, Ahmedabad, Gujarat Also at: Axis Bank, Loan Centre, SCO-367-368, Sector-34A, Chandigarh-160022 through Sh. Sandeep Kumar, its authorized representatives.

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……..Applicant

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Versus

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Sh. Jarnail Singh S/o Sh. Gurbachan Singh R/o Village Langiana Purana, Tehsil Baghapurana, District Moga, Punjab-142038.

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Sh. Jagsir Singh S/o Sh. Tara Singh R/o Village Langiana Purana, Tehsil Baghapurana, District Moga, Punjab-142038.

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….……Defendants

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Advocates:

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Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Ms. Dipti Toni, Advocate for the 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.50,36,428.94p (Rupees Fifty Lacs Thirty Six Thousand Four Hundred Twenty Eight & Ninety Four Paise Only) The Original Application has been filed through Sh. Sandeep Kumar, authorized representatives o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of CC Limit of Rs.14.00 Lacs vide Loan application dated 25.10.2010, which is Annexure A2 to this OA and further for renewal cum enhancement of CC Limit of from

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2 OA NO.110-2025 AXIS BANK LIMITED VS JARNAIL SINGH AND ANOTHER

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Rs.14.00 Lacs to Rs.45.00 Lacs vide Loan application dated

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11.10.2024, which is Annexure A7 to this OA.

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The applicant sanctioned the KCC Limit of Rs.14.00 and further sanctioned its enhancement to Rs.45.00 Lacs. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 12.5acres 100Kanal-00Marla situated at Village Langiana Purana, Tehsil Baghapurana District Moga, Punjab vide Registered Mortgage Deed bearing vasika no.4300 dated 10.03.2014, which is Annexure A12 to this OA. Documents executed:- Guarantor form dated 26.10.2010 & 11.02.2014, which are Annexures A3 & A8 to this OA; Copy of loan cum hypothecation, Copy of demand Promissory Note, Copy of deed of guarantee all dated 23.11.2010, which are Annexures A4 to A6 to this OA; Supplemental cum hypothecation agreement dated 12.03.2014, Deed of guarantee, DP Note all dated 12.03.2014, which are Annexures A9 to A11 to this OA; Simple mortgage dated 19.11.2010, which is Annexure A13 to this OA; statements of account, which is Annexure A14 to this OA and Legal notice dated 16.11.2024 along with postal receipts, which are Annexures A15 to A17 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 Rs.50,36,428.94p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 05.06.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, authorized representatives, Axis Bank Ltd., h as been filed.

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3 OA NO.110-2025 AXIS BANK LIMITED VS JARNAIL SINGH AND ANOTHER

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Ld. proxy counsel for applicant present has not advanced any arguments. Perused record.

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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 A17 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 applicant. 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.50,36,428.94p (Rupees Fifty Lacs Thirty Six Thousand Four Hundred Twenty Eight & Ninety Four Paise Only) rest 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 @11.25%p.a. form 29.10.2024 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 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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4 OA NO.110-2025 AXIS BANK LIMITED VS JARNAIL SINGH AND ANOTHER

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Rs.50,36,428.94p (Rupees Fifty Lacs Thirty Six Thousand Four Hundred Twenty Eight & Ninety Four Paise Only) jointly and severally, with costs, current and future simple interest @8.00%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 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 Tribunal on 01.07.2025.

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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 . Dated: 09.06.2025.

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

Axis Bank Ltd. v. Sh. Jarnail Singh and Another

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Jarnail Singh and Another

Case brief

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What did the court decide?

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