DRT allowed Axis Bank's recovery application against Bahadur Singh for a loan account treated as NPA. The court modified the interest rate to 8% p.a. and directed issuance of a recovery certificate executable under SARFAESI Act.
Recovery Certificate issued directing defendant to pay Rs.42,80,766.64 plus costs and 8% simple interest from date of filing.
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.165/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.02.2025
DATE OF DECISION: 09.06.2025.
Axis Bank Ltd., 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-34A, Chandigarh-160022 through Sh. Sandeep Kumar, its authorized representatives.
……..Applicant Versus
Sh. Bahadur Singh S/o Sh. Hazura Singh R/o Near Government Girls School, Chamkaur Sahib, District Rupnagar, Punjab-140112.
….……Defendant
Advocates:
Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant Defendant are ex parte
FINAL ORDER
2 OA NO.165-2025 AXIS BANK LIMITED VS BAHADUR SINGH
3 OA NO.165-2025 AXIS BANK LIMITED VS BAHADUR SINGH
the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.42,80,766.64p (Rupees Forty Two Lacs Eighty Thousand Seven Hundred Sixty Six & Sixty Four Paise Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.25%p.a. from 15.12.2024 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 defendant, 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.42,80,766.64p (Rupees Forty Two Lacs Eighty Thousand Seven Hundred Sixty Six & Sixty Four Paise Only) with costs, current and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal
4 OA NO.165-2025 AXIS BANK LIMITED VS BAHADUR SINGH
assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the dues including interest from the hypothecated properties under RDBFI Act.
Whether the court can exercise discretion to modify the rate of interest claimed.
1 provisions across 1 enactments
Axis Bank Ltd.
Mridulesh Kumar Singh
As recorded by the court registry
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