Allowed

Axis Bank Limited v. Messrs Prabhgun Agro and Another

DRT21 Apr 2025OA/1492/2024

Case brief

AI extract

What is this about?

DRT allowed the Original Application filed by Axis Bank for recovery of Rs.51,39,841 against M/s Prabhgun Agro and another. The court decreed repayment with interest fixed at 8% p.a.

What did the court decide?

Recovery of principal sum Rs.51,39,841 jointly and severally with simple interest at 8% p.a.; direction to issue Recovery Certificate.

Axis Bank Limited versus Messrs Prabhgun Agro and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1492/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.12.2024

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DATE OF DECISION: 21.04.2025

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Axis Bank Limited (earlier known as UTI Bank Limit), a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered office at “Trishul, 3^rd Floor, opposite Samartheswar Temple, Law Garden, Ellis bridge, Ahmedabad, 380006, Gujarat and one of its Branch Offices amongst other places known as Axis Bank Limited, Situated SCO-367-368, 3^rd Floor, Sector-34 A, Chandigarh through its Manager Sh. Nitish Aggarwal.

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……..Applicant

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Versus

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M/s Prabhgun Agro, through its Proprietor having its registered office at House No.42, Babli Patti, Malikpur, District Mansa, Punjab151508

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Sh. Gurpreet Singh S/o Sh. Bhola Singh, Proprietor M/s Prabhgun Agro, R/o H No.42, Babli Patti, Malikpur, District Mansa, Punjab- 151508

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………Defendants

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Advocates:

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Present Sh. Sahaj Punj, Advocate proxy for Sh. Gaurav Gupta, 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.51,39,841.00 (Rupees Fifty One Lacs Thirty Nine Thousand Eight Hundred Fourty One only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager, who is competent to institute

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2 OA NO.1492/2024 AXIS BANK LIMITED VS M/S PRABHGUN AGRO AND ANOTHER

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the Original Application vide Power of Attorney dated 24.08.2023, 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 grant of CC Limit of Rs.10.01 Lacs and further for its enhancement to Rs.25.00 and thereafter to Rs.50.00 Lacs under CGTMSE scheme vide Application Forms dated 10.08.2021, 27.10.2023 and 04.10.2023, which are Annexures A3, A9 and A15 to this OA.

¶18

The applicant sanctioned CC Limit of Rs.10.01 Lacs and further sanctioned its enhancement to Rs.25.00 and thereafter to Rs.50.00 Lacs under CGTMSE scheme vide Sanction Letters dated 09.10.2021, 16.02.2023 and 04.11.2023, which are Annexures A4, A10 and A16 to this OA.

¶19

Defendant no.1 had hypothecated its movable properties/Assets i.e. Stock vide Deed of Hypothecation dated 09.10.2021, 22.02.2023 and 14.11.2023, which are Annexures A8, A14 and A20 to this OA. Documents executed:- Firm Registration Certificate dated 21.11.2019, which is Annexure A2 to this OA; Facility Agreement, DP Note Delivery Cum Waiver Letter, Demand Cum Promissory Note dated 09.10.2021, 22.02.2023 and 14.11.2023, which are Annexures A5 to A7, A11 to A13, A17 to A19 to this OA; Recall Notice dated 14.11.2024 along with Postal Receipts, which is Annexure A21 to this OA Statement of Account with certificate, which is Annexure A22 to this OA and

¶20

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.51,39,841.00, 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.

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3 OA NO.1492/2024 AXIS BANK LIMITED VS M/S PRABHGUN AGRO AND ANOTHER

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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 04.04.2025.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Representative, Axis Bank Limited has been filed. 8. Ld. proxy counsel 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 A22 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 Rs.51,39,841.00 (Rupees Fifty One Lacs Thirty Nine Thousand Eight Hundred Fourty One 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.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. from 13.11.2024 till the realization. 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

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OA NO.1492/2024 AXIS BANK LIMITED VS M/S PRABHGUN AGRO AND ANOTHER

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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.

¶29

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.51,39,841.00 (Rupees Fifty One Lacs Thirty Nine Thousand Eight Hundred Forty One 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 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 17.05.2025.

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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: 21.04.2025

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

Axis Bank Limited v. Messrs Prabhgun Agro and Another

Case brief

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Axis Bank Limited v. Messrs Prabhgun Agro and Another

Case brief

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