Allowed

Axis Bank Ltd. v. Late Sh. Buta Singh and Another

DRT11 Jul 2025OA/2/2025

Case brief

AI extract

What is this about?

The Tribunal allowed Axis Bank's application for recovery of Rs.33.73 lakhs outstanding against two deceased borrowers. Interest rate was adjusted to 8% p.a. Respondents were held jointly and severally liable, and the court is to issue a Recovery Certificate.

What did the court decide?

Recovery certificate issued for Rs.33,73,316.08 with interest @8.00% p.a.; respondents liable jointly and severally.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.02/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.12.2024

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DATE OF DECISION: 11.07.2025

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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. Sandeep Kumar.

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……. Applicant

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Versus

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Sh. Buta Singh S/o Sh.Najar Singh (now deceased) through his LRs

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i. Ms. Jashanjot Kaur (Grand Daughter of Sh. Buta Singh)

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ii. Ms. Akash Jot Kaur (Grand Daughter of Sh. Buta Singh)

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Both residents of Village Meeha Singh Wala, Tehsil Zira, District Ferozepur, Punjab.

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Sh. Gurtej Singh S/o Sh. Buta Singh (now deceased) through his LRs

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i. Smt. Amarjit Kaur (W/o Sh. Gurtej Singh)

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ii. Ms. Jashanjot Kaur (Daughter of Sh. Gurtej Singh)

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iii. Ms. Akash Jot Kaur (Daughter of Sh. Gurtej Singh)

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All residents of Village Meeha Singh Wala, Tehsil Zira, District Ferozepur, Punjab.

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.……Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant (through VC) Defendants already ex parte

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2 OA/2/2025 AXIS BANK LTD. V/S BUTA SINGH AND ANOTHER

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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.33,73,316.08p (Rupees Thirty Three Lacs Seventy Three Thousand Three Hundred Sixteen & Eight Paise only). The Original Application has been filed through Sh. Sandeep Kumar Manager, Authorized Signatory o f 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. 2. The brief facts of the OA are that the deceased defendant nos. 1 and 2 had approached the applicant for the grant of Working Capital Limit for Production Credit Facility of Rs.30.00 Lacs vide Loan application dated 02.05.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the Limit for Production Credit Facility of Rs.30.00 Lacs vide Sanction letter dated 03.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Deceased Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 48K-00M situated at residents of Village Mihan Singh Wala, Tehsil Zira, District Ferozepur, Punjab Vide Registered Mortgaged Deed bearing vasika no.1118 dated 07.06.2013, which is Annexure A7 to this OA. Documents executed: -Loan cum Hypothecation Agreement, Joint and Several DP Note, DP Note delivery cum waiver letter all dated 15.06.2023, which are Annexures A4 to A6 to this OA; Mutation dated 12.06.2013, which is Annexure A8 to this OA; AOD letter dated 21.12.2016, 22.03.2019 & 01.03.2023, which is Annexure A9 to this OA; Recall notice dated 13.11.2014, which is Annexure A10 to this OA and statement of account along with certificate under Bankers Books Evidence Act,1891, which is Annexure A11 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

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3 OA/2/2025 AXIS BANK LTD. V/S BUTA SINGH AND ANOTHER

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debit of Rs.33,73,316.08p, 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.

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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 09.07.2025.

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

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Heard arguments and perused record.

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It was argued by learned Proxy 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 A11 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.33,73,316.08p (Rupees Thirty Three Lacs Seventy Three Thousand Three Hundred Sixteen & Eight Paise only) 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 [email protected]%p.a. plus penal interest @4% p.a. from 30.10.2024 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

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4 OA/2/2025 AXIS BANK LTD. V/S BUTA SINGH AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,73,316.08p (Rupees Thirty Three Lacs Seventy Three Thousand Three Hundred Sixteen & 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 31.07.2025. 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: 11.07.2025.

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

Axis Bank Ltd. v. Late Sh. Buta Singh and Another

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Axis Bank Ltd. v. Late Sh. Buta Singh and Another

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