Allowed

Axis Bank Ltd. v. Sh. Iqbal Singh Sandhu and Another

DRT6 Jun 2025OA/140/2025

Case brief

AI extract

What is this about?

This debt recovery tribunal allowed the applicant bank's original application against two defendants. The court converted the claimed interest rates to uniform simple interest at 8% per annum and issued a recovery certificate, granting rights to sell mortgaged properties under SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 64.02 Lacs with interest @8% p.a.; rights to recover from sale of mortgaged and personal assets granted.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.140/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.02.2025

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DATE OF DECISION: 06.06.2025

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AXIS BANK LTD., (earlier 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 branches at different places throughout India including one at Mukatsar, through its attorney Sh. Sandeep Kumar, Manager of the applicant.

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……..Applicant

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Versus

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Sh. Iqbal Singh Sandhu S/o Sh. Jarnail Singh R/o Village Pind Sukhna Ablu, Tehsil and District Mukatsar Sahib, Punjab 152026.

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Sh. Amandeep Singh S/o Sh. Iqbal Singh R/o Village Pind Sukhna Ablu, Tehsil and District Mukatsar Sahib, Punjab 152026

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….……Defendants

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Advocates:

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Argued by, Sh. Rahul Garg, Advocate proxy for Sh. J.S. Sehgal, 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.64,02,628.00p ( Rupees Sixty Four Lacs Two Thousand Six Hundred Twenty Eight Only) The Original Application has been filed 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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2 OA NO.140-2025 AXIS BANK LIMITED VS IQBAL SINGH SANDHU AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of CC Limit of Rs.25.00 Lacs vide Loan application dated 26.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.25.00 Lacs vide Sanction letter dated 17.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 56K-00Marla situated at Village Sukhna Ablu, Hadbast no.76, Tehsil Gidderbaha District Muktsar Sahib, Punjab vide Declaration under 4(1) dated 20.02.2015, with its translations, which is Annexure A7 to this OA. Documents executed: - Loan cum hypothecation agreement, Joint and several Demand Promissory Note, DP Note Delivery cum waiver letter, Legal Opinion regarding lien mark all dated 24.02.2015, which are Annexures A4 to A6 & A8 to this OA; Notice dated 12.12.2024 along with postal receipts, which are Annexures A9 to A11 to this OA and Statement of account, which is Annexure A12 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 ofRs.64,02,628.00p, 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 04.06.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar Manager, authorized signatory, Axis Bank Ltd., h as been filed. 8. Heard arguments and perused record.

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3 OA NO.140-2025 AXIS BANK LIMITED VS IQBAL SINGH SANDHU 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 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 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.64,02,628.00p (Rupees Sixty Four Lacs Two Thousand Six Hundred Twenty Eight 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 @10.60%p.a. along with penal interest @2.00%p.a. with half yearly rests from 06.12.2024 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 Rs.64,02,628.00p ( Rupees Sixty Four Lacs Two Thousand Six Hundred

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4 OA NO.140-2025

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AXIS BANK LIMITED VS IQBAL SINGH SANDHU AND ANOTHER

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Twenty Eight 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 30.06.2025.

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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 . Dated: 06.06.2025.

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

Axis Bank Ltd. v. Sh. Iqbal Singh Sandhu and Another

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Iqbal Singh Sandhu and Another

Case brief

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