Allowed

Axis Bank Ltd. v. sh. Ekam Singh and Another

DRT20 Nov 2025OA/1360/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of a loan facility. The borrowers failed to repay the sanctioned KCC limit, leading to classification as NPA. The defendants did not appear. The tribunal issued a recovery certificate and directed enforcement via sale of mortgaged property or attachment of assets.

What did the court decide?

Application allowed; recovery certificate issued; defendants liable to pay declared amount with 8% interest; enforcement authorized through sale of mortgaged property or attachment of assets.

Axis Bank Ltd. versus sh. Ekam Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1360/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.09.2025

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DATE OF DECISION: 20.11.2025

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Axis Bank Ltd, having its Registered Office at "Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad, Gujrat

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Also at: - Axis Bank, Loan Centre, SCO-390, Sector-20, Panchkula through Sh. Hari Om, its Authorized Representative

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……. Applicant

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Versus

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Sh. Ekam Singh S/O Sh. Sant Singh, Vill Maholi Khurd, Tehsil Malerkotla, Distt Sangrur, Punjab.

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Sh. Nirbhai Singh S/O Sh. Avtar Singh, Vill Maholi Khurd, Tehsil Malerkotla, Distt Sangrur, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant

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Defendants 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 defendants for recovery of Rs.56,60,075.06p (Rupees Fifty Six Lacs Sixty Thousand Seventy Five and Paise Six Only). The Original Application has been filed through Sh. Hari Om, Authorized Representative, of the applicant, who is competent to institute the Original Application vide Power of attorney dated 23.04.2025, 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 approached the applicant for the grant of KCC Limit of Rs.50.00 Lacs

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OA NO.1360/2025 AXIS BANK LTD. VS SH. EKAM SINGH AND ANOTHER

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vide Loan application dated 14.01.2013, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.50.00 Lacs vide Sanction letter dated 09.02.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. The limit was further renewed by the applicant vide sanction letter dated 28.02.2023, which is Annexure A8 to this OA.

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Defendant no.1 had mortgaged his immovable property i.e. land measuring 38B-15B situated at Village Maholi Khurd, Hadbast No.8, Tehsil Ahmedgarh, District Sangrur, Punjab vide Mortgage Deed dated 20.02.2013 bearing vasika no. 2199, which is Annexure A7 to this OA. Documents executed: - Loan cum hypothecation agreement, Demand Promissory Note, D.P. Note cum wavier letter, Deed of guarantee, all dated 21.02.2013, which are Annexures A4 to A6 to this OA; Statement of account, which is Annexure A9 to this OA and Demand Notice dated 29.07.2025, along with postal receipts, which are Annexures A10 to A12 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.56,60,075.06p 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 14.11.2025. 7. In support of the OA, affidavit of Sh. Hari Om, Authorized Representative, Axis bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record.

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OA NO.1360/2025 AXIS BANK LTD. VS SH. EKAM SINGH AND ANOTHER

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were 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 bank is entitled to recover a sum of Rs.56,60,075.06p (Rupees Fifty Six Lacs Sixty Thousand Seventy Five and Paise Six Only) along with interest 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12%p.a. from 24.06.2025 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/hypothecated assets, 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.

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OA NO.1360/2025 AXIS BANK LTD. VS SH. EKAM SINGH AND ANOTHER

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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.56,60,075.06p (Rupees Fifty Six Lacs Sixty Thousand Seventy Five and Paise Six 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 mortgaged property/hypothecated vehicle of 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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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.12.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 20.11.2025.

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

Axis Bank Ltd. v. sh. Ekam Singh and Another

Case brief

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Axis Bank Ltd. v. sh. Ekam Singh and Another

Case brief

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