Allowed

Axis Bank v. M/S Victory Sales Corporation

DRT21 Feb 2025OA/1505/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed Axis Bank's application for recovery of Rs.1,66,85,921.43 with interest. The court found the bank proved its case of loan advance and repayment default. The liability of all defendants was declared joint and several.

What did the court decide?

Recovery of Rs.1,66,85,921.43 with interest @24% per annum; joint and several liability; order for sale of mortgaged land; issuance of Recovery Certificate.

Axis Bank versus M/S Victory Sales Corporation — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1505/2022

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Date of Institution: 06.07.2022 Date of Decision: 21.02.2025

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Axis Bank Limited, having its branches all over India and a branch at Mukerian, Hoshiarpur, Punjab.

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……..Applicant

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Vs.

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M/s Victory Sales Corporation, Near Arya Girls School, Mukerian, Punjab, through its Proprietor Sh. Rajan Katna.

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Sh. Rajan Katna s/o Sh. Ashok Kumar, r/o Ward No.5, Banian Mohalla, Mukerian, Punjab.

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Ms. Chandni @ Punam Katna r/o Ward No.5, Lambi Gali, Banian Mohalla, Mukerian, Punjab.

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Sh. Sunil Katna s/o Sh. Shiv Kumar Katna, r/o Ward No.5, M.C. Road, Mukerian, Punjab.

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Sh. Shiv Kumar s/o Sh. Om Prakash, r/o Committee Road, Ward No.5, Mukerian, Punjab.

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……….Defendants

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Advocates

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Sh.Deepak Jain,Counsel for the applicant bank. Defendants- ex parte .

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OA for the Recovery of Rs.1,66,85,921.43p with interest @24% per annum with monthly rests from 06.07.2022.

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ORDER

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Axis Bank Limited, (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.1,66,85,921.43p with interest against M/s Victory Sales Corporation and others (defendants).

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Bank’s case is that defendant No.1 is the Proprietorship firm of defendant No.2. On 06.01.2017, it had granted a loan of Rs.130 Lacs in the form of C.C. Limit and on 30.09.2020, a loan of Rs.25.00 Lacs in the

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form of Term Loan to defendant Nos. 1 and 2, for business purpose. To secure the loan, Defendant No.3 and 4 had mortgaged their properties (fully detailed in para No.3A of the application). Defendant No. 3 to 5 stood as guarantors. The loans were chargeable to different rates of interest. On 17.01.2022, a sum of Rs.1,66,85,921.43p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 22.09.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 17.04.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Ms. Khushpreet Bains, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-16.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loans under various schemes and on 17.01.2022, a sum of Rs.1,66,85,921.43p was due.

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Accordingly, the application of the bank for the recovery of Rs.1,66,85,921.43p (Rupees One Crore Sixty Six Lacs Eighty Five Thousand Nine Hundred Twenty One and Forty Three Paise Only) with interest @24% per annum with monthly rests from 06.07.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 24.03.2025, who is directed to distribute the sale proceeds of the mortgage land as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 21.02.2025 Presiding Officer DRT-1, Chandigarh

Axis Bank v. M/S Victory Sales Corporation

Case brief

What is this about?

What did the court decide?

Axis Bank v. M/S Victory Sales Corporation

Case brief

What is this about?

What did the court decide?

What the court decided

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