Allowed

Axis Bank Ltd. v. Sh. Iqbal Singh and Another

DRT10 Oct 2025OA/197/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's claim for recovery of Rs. 28.65 lakhs against two defendants as a joint and several liability. The court suspended the claimed interest rate to 8% per annum, directed issuance of a recovery certificate, and authorised recovery through sale of hypothecated assets under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants jointly and severally liable to pay Rs.28,65,273.50 plus interest at 8% p.a.; recovery from sale of hypothecated vehicle allowed.

Axis Bank Ltd. versus Sh. Iqbal Singh and Another — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.197/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.02.2025

¶5

DATE OF DECISION: 10.10.2025

¶6

Axis Bank Ltd., (earlier Known as UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulations Act, 1949 incorporated under the companies Act, 1956 and having its registered office at “Trishul”, 3^rd Floor, Opposite Samratheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006 Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd., situated in SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Manager Sh. Nitish Aggarwal.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Iqbal Singh S/o Sh. Nachhatar Singh R/o Village Kheri, Gourian Kalyan, District Patiala, Punjab-147001.

¶10

Smt. Shamsher Kaur W/o Sh. Nachhatar Singh R/o Village Kheri, Gourian Kalyan, District Patiala, Punjab-147001.

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Ms. Parmeet Kaur, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant

¶14

Defendants already ex parte

¶15

FINAL ORDER

¶16

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.28,65,273.50p (Rupees Twenty Eight Lacs Sixty Five Thousand Two Hundred Seventy Three & Fifty Paise only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA.

¶17

2 OA/197/2025 AXIS BANK LTD. VS SH.IQBAL SINGH AND ANOTHER

¶18

The brief facts of the OA are that the defendant no. 1 had approached the applicant for the grant of Term Loan of Rs.23,47,270/for purchase of commercial vehicle vide Loan application dated 21.09.2022, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

¶19

The applicant sanctioned the Term Loan of Rs.22,05,477/- for purchase of commercial vehicle vide Sanction letter dated 12.10.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶20

Defendant no. 1 had hypothecated his moveable property i.e. commercial vehicle namely Ashok Leyland CA1615-52 H FBL bearing Registration No. PB-11-DB-5688, Chassis No. MB1A3HCD4NREA6530 & Engine No. NEHZ423354. The registration certificate of vehicle filed along with affidavit of Sh. Hari Om, Authorized Signatory on 29.09.2025 vide diary no. 15937 in compliance to order dated 16.06.2025.

¶21

Documents executed: -Disbursement advice cum Delivery order dated 13.10.2022, which is Annexure A4 to this OA; Loan cum hypothecation agreement D.P. Note, D.P. Note delivery cum waiver letter and Deed of guarantee, all dated 12.10.2022, which are Annexures A5 to A7 & A9 to this OA; Retail invoice dated 21.09.2022, which is Annexure A8 to this OA; Loan recall notice dated 26.12.2024, along with postal receipts which is Annexure A10 to this OA; Foreclosure dated 20.12.2024, which is Annexure A11 to this OA and statement of account, along with certificate under Banker’s Books Evidence Act, which are Annexures A12 & A13 to this OA. 5. 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.28,65,273.50p, 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.

¶22

3 OA/197/2025 AXIS BANK LTD. VS SH.IQBAL SINGH AND ANOTHER

¶23

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 12.06.2025.

¶24

In support of the OA, affidavit of Sh. Nitish Aggarwal Manager, Axis Bank Ltd., h as been filed. 8. Heard ex-parte arguments and perused record.

¶25

It was argued by learned Proxy counsel 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.28,65,273.50p (Rupees Twenty Eight Lacs Sixty Five Thousand Two Hundred Seventy Three & Fifty Paise only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶26

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with monthly rests from 22.12.2024 till the realization.

¶27

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

¶28

4 OA/197/2025

¶29

AXIS BANK LTD. VS SH.IQBAL SINGH AND ANOTHER

¶30

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.

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,65,273.50p (Rupees Twenty Eight Lacs Sixty Five Thousand Two Hundred Seventy Three & Fifty 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 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.

¶32

12. Any other application pending stands disposed of.

¶33

Issue Recovery Certificate accordingly.

¶34

Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2025.

¶35

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.

¶36

Pronounced by me in the open Tribunal .

¶37

Dated: 10.10.2025

¶38

(MRIDULESH KUMAR SINGH)

¶39

Presiding Officer,

¶40

DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Iqbal Singh and Another

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Sh. Iqbal Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Smt. Gurmeet Kaur and Another

Union Bank of India versus Sh. Raj Kumar and Others

Punjab Gramin Bank versus Sh. Kashmir Singh

State Bank of India versus Sh. Bakhshish Singh and Others

Hdfc Bank Limited versus Sh. Kulwant Singh and Others

Punjab Gramin Bank versus Sh. Ram Gir