Allowed

Axis Bank Limited v. Late Sh. Gurnam Singh through His Legal Heirs and Others

DRT4 Nov 2025OA/168/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Axis Bank Ltd against legal heirs of a deceased borrower for recovery of a loan of Rs. 24.28 lakhs. Proceedings were conducted ex-parte after defendants failed to appear. The Tribunal modified the claimed interest rate from 14.75% to 8% per annum and granted a recovery certificate.

What did the court decide?

Recovery Certificate issued; Defendants directed to pay Rs. 24,28,205.88p plus simple interest at 8% p.a.; Liberty granted for attachment/sale of mortgaged or personal assets.

Axis Bank Limited versus Late Sh. Gurnam Singh through His… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.168/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.01.2025

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DATE OF DECISION: 04.11.2025

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Axis Bank Ltd, Having Its Registered Office at "Trishul, 3rd Floor, Opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad, Gujrat

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Also at: - Axis Bank, Loan Centre, SCO-367-368, Sector- 34 A, Chandigarh - 160022 through Sh. Sandeep Kumar, its Authorized Representative.

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……..Applicant

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Versus

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Sh. Gurnam Singh (now deceased) son of Sh. Hajara Singh, VPO Sheron, Tehsil and District Tarn Taran, Punjab-143401

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Through his Legal Heirs:

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I. Sh. Nishan Singh S/O Late Sh. Gurnam Singh, V.P.O Sheron, Tehsil and District Tarn Taran, Punjab-143401

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Sh. Nishan Singh S/O Late Sh. Gurnam Singh, V.P.O Sheron, Tehsil and District Tarn Taran, Punjab-143401

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Sh. Anil Sood S/O Sh. Raghunath Sood, R/O Jandiala Road, District Tarn Taran, Punjab .

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….……Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant (through VC) Defendants already 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.24,28,205.88p (Rupees Twenty Four Lacs Twenty Eight Thousand Two Hundred Five & Eighty Eight Paise only). The Original Application has been filed through Sh. Sandeep Kumar, Authorized Representative, of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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2 OA/168/2025 AXIS BANK LTD. VS LATE SH. GURNAM SINGH THROUGH HIS LEGAL HEIR AND OTHERS

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The brief facts of the OA are that the defendant no. 1 (since deceased) & 2 approached the applicant for the grant of CC Limit (production credit) of Rs.20.00 Lacs vide Loan application dated 04.01.2010, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor form dated 04.01.2010, which is Annexure A3 to this OA. 3. The applicant sanctioned the CC Limit (production credit) of Rs.20.00 Lacs vide Sanction letter dated 09.01.2010, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 (now deceased) had mortgaged his immovable properties i.e. land measuring 103K-16M (12.97 Acres) situated at Village Sheron, Hadbast no. 266, Tehsil and District Tarn Taran, Punjab vide Registered Mortgage deed bearing vasika no. 4079 dated 22.01.2010, which is Annexure A8 to this OA. Documents executed: - Loan cum hypothecation agreement, demand promissory note, Deed of guarantee, all dated 27.01.2010, which are Annexures A5 to A7 to this OA; Statement of account, which is Annexure A9 to this OA and Demand Notice dated 16.11.2024, along with postal receipts which are Annexures A10 to A13 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,28,205.88p, 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. No one appeared on behalf of defendant nos. 1 and 2. Sh. Pulkit Kumar, Advocate appeared on behalf of defendant no. 3 on 27.05.2025 and filed his memo of appearance and was directed to file Power of Attorney. Thereafter, neither Power of Attorney was filed nor

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3 OA/168/2025 AXIS BANK LTD. VS LATE SH. GURNAM SINGH THROUGH HIS LEGAL HEIR AND OTHERS

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any one appeared on behalf of defendant no. 3. Therefore, the defendants were proceeded ex-parte on 31.10.2025.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Representative , Axis Bank Ltd., h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through Video Conferencing 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 A13 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.24,28,205.88p (Rupees Twenty Four Lacs Twenty Eight Thousand Two Hundred Five & Eighty Eight Paise 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 @14.75%p.a. from 29.10.2024 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/hypothecated assets, 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

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4 OA/168/2025 AXIS BANK LTD. VS LATE SH. GURNAM SINGH THROUGH HIS LEGAL HEIR AND OTHERS

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realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,28,205.88p (Rupees Twenty Four Lacs Twenty Eight Thousand Two Hundred Five & Eighty Eight Paise 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 mortgaged property/hypothecated assets vehicle 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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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.11.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 04.11.2025.

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

Axis Bank Limited v. Late Sh. Gurnam Singh through His Legal Heirs and Others

Case brief

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Axis Bank Limited v. Late Sh. Gurnam Singh through His Legal Heirs and Others

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