Allowed

Axis Bank Ltd. v. Messrs Dev Casting

DRT16 Jun 2025OA/199/2025

Case brief

AI extract

What is this about?

An Original Application was filed by Axis Bank Ltd. against M/s Dev Casting and Sh. Amandeep Singh for recovery of dues under the RDB Act. The Tribunal allowed the application, adjudged the defendants to pay the outstanding sum with modified interest, and ordered the issuance of a Recovery Certificate.

What did the court decide?

Directing defendants to pay Rs.41,16,202.91p with interest @8.00%p.a. and issuing a Recovery Certificate.

Axis Bank Ltd. versus Messrs Dev Casting — Specific Performance | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.199/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 20.02.2025

¶4

DATE OF DECISION: 16.06.2025

¶5

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.

¶6

……..Applicant

¶7

Versus

¶8

M/s Dev Casting Through its proprietor having its registered office at B-43, Focal Point, Moga, Punjab-142001.

¶9

Sh. Amandeep Singh S/o Sh. Gurdev Singh, Proprietor M/s Dev Casting R/o House No.431 6b/2, Near Gurudwara Tani Wala, Dashmesh Nagar, Moga, Punjab-142001.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Ms. Parmeet Kaur, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant Defendants are ex parte

¶13

FINAL ORDER

¶14

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.41,16,202.91p (Rupees Forty One Lacs Sixteen Thousand Two Hundred Two and Ninety One Paise only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager and authorized signatory o f the applicant, who is competent to institute the Original Application vide GPA of Bank Official dated 20.08.2023, which is Annexure A1 to this OA.

¶15

2 OA NO.199-2025 AXIS BANK LIMITED VS M/S DEV CASTING AND ANOTHER

¶16

The brief facts of the OA are that the defendant no.1 through defendant no.2 had approached the applicant for the grant of CC Limit (covered Under CGTMSE) of Rs.40.00 Lacs vide Loan application dated 08.02.2022, which is Annexure A3 to this OA and further for its renewals.

¶17

The applicant sanctioned the CC Limit (covered Under CGTMSE) of Rs.40.00 Lacs vide Sanction letter dated 14.02.2022, which is Annexure A4 to this OA and further applicant sanctioned its renewals vide Sanction letters dated 28.03.2023 and 24.09.2024, which are Annexures A9 and A10 to this OA and the terms and conditions were duly accepted by the defendants.

¶18

4 Defendant no.1 had hypothecated its movable properties/assets i.e. Stock and Book Debts vide Deed of hypothecation and Facility agreement cum hypothecation both dated 31.03.2022, which are Annexures A5 and A8 to this OA

¶19

Documents executed: -Firm registration certificate dated 30.07.2019, which is Annexure A2 to this OA; D.P. Note, DP Note Deliver cum waiver letter, all dated 31.03.2022, which are Annexures A6 and A7 to this OA; Recall notice, which is Annexure A11 to this OA and statement of account along with certificate under banker books evidence, which is Annexure A12 to this OA.

¶20

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.41,16,202.91p, 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.

¶21

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.

¶22

3 OA NO.199-2025 AXIS BANK LIMITED VS M/S DEV CASTING AND ANOTHER

¶23

In support of the OA, affidavit of Sh. Nitish Aggarwal Manager, authorized signatory, Axis Bank Ltd., h as been filed.

¶24

Heard 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 A12 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.41,16,202.91p (Rupees Forty One Lacs Sixteen Thousand Two Hundred Two and Ninety One 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 interest @12.50%p.a. with half yearly rests from 11.01.2025 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, 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

¶28

4 OA NO.199-2025 AXIS BANK LIMITED VS M/S DEV CASTING AND ANOTHER

¶29

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.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.41,16,202.91p (Rupees Forty One Lacs Sixteen Thousand Two Hundred Two and Ninety 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 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.

¶31

Any other application pending stands disposed of.

¶32

Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 10.07.2025.

¶34

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.

¶35

Pronounced by me in the open Tribunal . Dated: 16.06.2025

¶36

(MRIDULESH KUMAR SINGH) Presiding Officer,

¶37

DRT-III, Chandigarh

Axis Bank Ltd. v. Messrs Dev Casting

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Messrs Dev Casting

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

Punjab National Bank versus Sh. Harjit Singh Alias Jaswant Singh and Another

Canara Bank versus Late Sh. Gurjit Singh and Others

Icici Bank Limited versus Sh. Shubham Singla

Punjab National Bank versus Kuldeep Das

State Bank of India versus Mukhtiar Singh

State Bank of India versus Satpal Singh