Allowed

Axis Bank Ltd., v. Sh. Satnam Singh Sidhu

DRT9 Jun 2025OA/179/2025

Case brief

AI extract

What is this about?

The Appellate court allowed an Original Application filed by Axis Bank Ltd. against three defendants for recovery of a loan amount of Rs. 28,57,015.41p along with costs and simple interest at 8% pa, adjusting the claimed rate based on market conditions, and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 28,57,015.41p with costs and simple interest at 8% pa granted. Recovery Certificate issued. Enforcement via sale of mortgaged or personal assets allowed.

Axis Bank Ltd., versus Sh. Satnam Singh Sidhu — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.179/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.02.2025

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DATE OF DECISION: 09.06.2025

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Axis Bank Ltd., having its Registered Office at “Trishul” 3^rd 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.

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……..Applicant

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Versus

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Sh. Satnam Singh Sidhu S/o Sh. Zora Singh, R/o VPO Khai, Teh. Nihal Singh Wala, District Moga, Punjab-142001.

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Sh. Zora Singh S/o Sh. Gurbax Singh R/o VPO Khai, Teh. Nihal Singh Wala, District Moga, Punjab-142001.

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Sh. Joginder Singh S/o Sh. Santa Singh R/o VPO Khai, Teh. Nihal Singh Wala, District Moga, Punjab-142001.

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….……Defendants

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Advocates:

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Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Ms. Dipti Toni, 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.28,57,015.41p (Rupees Twenty Eight Lacs Fifty Seven thousand Fifteen & Forty One Paise Only) The Original Application has been filed through Sh. Sandeep Kumar, authorized representatives 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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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs

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2 OA NO.179-2025 AXIS BANK LIMITED VS SATNAM SINGH SIDHU AND OTHERS

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vide Loan application dated 02.03.2011, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.25.00 vide Sanction letter dated 04.03.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 100Kanal situated at VPO Khai, Hadbast no.148, Teh. Nihal Singh Wala, District Moga, Punjab vide Registered Mortgage Deed bearing vasika no.2656 dated 10.03.2011 with its translation, which is Annexure A8 to this OA.

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Documents executed: - Guarantor form dated 02.03.2011, which is Annexure A3 to this OA; Loan cum hypothecation, Demand Promissory Note, Deed of guarantee all dated 16.03.2011, which are Annexures A5 to A7 to this OA; Statements of account, which is Annexure A9 to this OA and Demand Notice 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 Rs.28,57,015.41p, 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 05.06.2025.

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In support of the OA, affidavit of Sh. Sandeep Kumar, authorized representatives, Axis Bank Ltd., h as been filed. 8. Ld. proxy counsel for applicant present has not advanced any arguments. Perused record. 9. 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

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3 OA NO.179-2025

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AXIS BANK LIMITED VS SATNAM SINGH SIDHU AND OTHERS

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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.28,57,015.41p (Rupees Twenty Eight Lacs Fifty Seven thousand Fifteen & Forty One Paise 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.

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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 @11.5%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, 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.

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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.28,57,015.41p (Rupees Twenty Eight Lacs Fifty Seven thousand Fifteen & Forty One 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 hypothecated/mortgaged properties of the defendants

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OA NO.179-2025 AXIS BANK LIMITED VS SATNAM SINGH SIDHU AND OTHERS

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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 01.07.2025.

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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 .

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Dated: 09.06.2025.

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

Axis Bank Ltd., v. Sh. Satnam Singh Sidhu

Case brief

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Axis Bank Ltd., v. Sh. Satnam Singh Sidhu

Case brief

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