The Debt Recovery Tribunal allowed the bank's application for recovery of a Rs. 21 Lakh loan to M/s Malhotra Cycle Industries. The Tribunal adjusted interest to 8% p.a. and issued a recovery certificate.
Recovery of Rs. 21,68,389 with costs and simple interest @ 8% p.a. Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1369/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 25.11.2024
DATE OF DECISION: 21.04.2025
Axis Bank Limited, having its Registered office at “Trishul, 3rd Floor, opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad, Gujarat. Also at:- Axis Bank, Loan Centre, SCO-367-368-Sector-34 A, Chandigarh-160022 through Sh. Sandeep Kumar, its Authorized Representative.
……..Applicant
Versus
Present Sh. Sahaj Punj, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant Defendants are ex parte.
FINAL ORDER
2 OA NO.1369/2024 AXIS BANK LIMITED VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
Business Term Loan of Rs. 20.00 Lacs under CGTMSE scheme vide Application Form dated 06.09.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned Business Term Loan of Rs. 20.00 Lacs under CGTMSE scheme.
Documents executed: - Business Power Agreement, Deed of Guarantee, Undertaking by Borrower and Demand Promissory Note dated 14.09.2023, which are Annexures A3 & A6 to this OA; Statement of Account with certificate, which is Annexure A7 to this OA and Demand Notice dated 13.09.2024 along with Postal Receipts, which are Annexures A8 to A10 to this OA
3 OA NO.1369/2024 AXIS BANK LIMITED VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.21,68,389.00 (Rupees Twenty One Lacs Sixty Eight Thousand Three Hundred Eighty Nine 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.
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.
4 OA NO.1369/2024 AXIS BANK LIMITED VS M/S MALHOTRA CYCLE INDUSTRIES AND ANOTHER
Pronounced by me in the open Tribunal .
Dated: 21.04.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount from the petitioners.
Whether the Tribunal should grant a reduced rate of interest considering market conditions.
1 provisions across 1 enactments
Axis Bank Limited
M/s Malhotra Cycle Industries
Sh. Devinder Pal Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
