Allowed

Axis Bank v. Galaxy Business Solution And Marketing

DRT15 Oct 2025OA/284/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application by Axis Bank Ltd. for recovery of dues of Rs.52,62,344.34p from the respondents regarding a Working Capital Facility. The order was made ex-parte as the respondents failed to appear-after summons were returned unserved or unclaimed-and no contrary evidence was on record.

What did the court decide?

The applicants are allowed to recover Rs.52,62,344.34p along with further interest, monthly rests, and penal interest from the respondents jointly and severally.

Axis Bank versus Galaxy Business Solution And… — Contract and Commercial Disputes | DRT (2025)

¶1

O.A. No. 284 of 2022

¶2

15.10.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 15^th day of October, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 284 of 2022

¶8

Axis Bank Ltd.,

¶9

No.199, Nehru Bazar Road, Poovai Road, Tiruvallur -600 054, Represented by its Authorized Signatory. ….Applicant

¶10

-Vs-

¶11

M/s. Galaxy Business Solution and Marketing, Rep by its Proprietor –B. Velu, Ground and First Floors,

¶12

No.28, Secretariat Colony, First Street, Vinayagapuram, Kolathur,

¶13

Chennai -600 099.

¶14

B. Velu, S/o. Babu, C Block, First Floor, 2C, Cholambedu Road, Thamarai Nagar Extension, Thirumullaivoyal, Chennai -600 062. …..Defendants

¶15

Counsels on record / appeared:

¶16

Counsel for Applicant : M/s. Kvp. Deepak Raj

¶17

Defendants were set ex-parte on 04.01.2023

¶18

: - FINAL ORDER - :

¶19

This Original Application is filed on 30.08.2022 by the Applicant

¶20

Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993

¶21

O.A. No. 284 of 2022

¶22

¶23

15.10.2025

¶24

(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants jointly and severally for recovery of a total sum of Rs.52,62,344.34p (Rupees Fifty Two Lakhs Sixty Two Thousand Three Hundred and Forty Four and Thirty Four Paise Only) due in respect of Working Capital Facility (Account No.918030109588558) repayable together with further interest @ 12.70% p.a. with monthly rests and a penal interest @ 2%, from the date of filing the OA, till date of realization in full and for costs of this application.

¶25

Brief Facts of the case:

¶26

The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

¶27

It is the case of the applicant bank that the defendants have approached the applicant bank seeking for a Working Capital Facility for business purpose, by submitting a Loan Application on 25.11.2018.

¶28

It is submitted by the applicant bank that based on the documents furnished by the defendants, the bank has sanctioned the said loan on 07.12.2018 for an amount of Rs.40,00,000/- vide loan account No.918030109588558, which was repayable in 36 monthly installments.

¶29

O.A. No. 284 of 2022

¶30

¶31

15.10.2025

¶32

The applicant bank states that the 1^st Defendant had executed all the necessary loan documents on 10.12.2018 for an amount of Rs.40,00,000/- and agreed to pay interest at the rate of 14% per annum.

¶33

It is further submitted by the applicant bank that the in order to secure the loan, the 1^st defendant had executed the following documents on 10.12.2018 in favour of applicant bank:

¶34

i. Facility Agreement along with the Demand Promissory Note.

¶35

ii. Deed of Hypothecation for an amount of Rs.40,00,000/-

¶36

The applicant bank states that for the aforesaid facility, the 2^nd defendant stood as Guarantor for due repayment and had executed the Guarantee Agreement for an amount of Rs.40,00,000/- on 10.12.2018.

¶37

It is submitted that subsequent to availing of loan, the Defendants had neither repaid the loan amount, except for a few repayments which was not sufficient for maintaining the loan account and hence the loan account became irregular and the loan account was declared as NonPerforming Asset (NPA) on 30.11.2020 in accordance with RBI guidelines. The applicant bank had issued a Legal Notice dated 01.06.2022 to the defendants demanding the outstanding amount in respect of the loan. The notices sent to the 1^st Defendant Office address has been returned with an endorsement ‘unclaimed’ and the notice sent to the 2^nd

¶38

O.A. No. 284 of 2022

¶39

15.10.2025

¶40

¶41

Defendant’s residential address has been duly served. In spite of receiving the said notice, the defendants miserably failed to repay the loan amount in respect of the loan account. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶42

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, summons to first defendant returned as unclaimed, while summon to second defendant returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 04.01.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 04.01.2023.

¶43

Heard the submissions of Applicant Bank and perused the records.

¶44

To prove the case of the Applicant Bank, Sh. P. Rajesh, Authorized Signatory representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-8 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

¶45

O.A. No. 284 of 2022

¶46

15.10.2025

¶47

¶48

With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

¶49

: O R D E R :

¶50

The OA is allowed with costs,

¶51

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.52,62,344.34p (Rupees Fifty Two Lakhs Sixty Two Thousand Three Hundred and Forty

¶52

Four and Thirty Four Paise Only) due in respect of Working Capital Facility (Account No.918030109588558) repayable together with further interest @ 12.70% p.a. with monthly rests and a penal interest @ 2%, from the date of filing the OA, till date of realization in full along with costs.

¶53

(b) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

¶54

¶55

O.A. No. 284 of 2022

¶56

15.10.2025

¶57

¶58

from the date of receipt of this final order.

¶59

(d) Recovery Certificate shall be drawn up and issued to the

¶60

Recovery Officer in terms of the final order.

¶61

A copy of this order be communicated to the parties concerned.

¶62

Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

¶63

(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 15^th day of October, 2025)

¶64

ANNEXURES

¶65

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶66

AW-1: Sh. P. Rajesh, Authorized Signatory representing the Applicant Bank.

¶67

Exhibits on the part of the Applicant:

¶68

Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application dated 25.11.2018.	A-1
2.	Sanction Letter dated 07.12.2018.	A-2
3.	Facility Agreement along with Promissory Note executed by the 1^st Defendant dated 10.12.2018.	A-3
4.	Deed of Hypothecation executed by the 1^st Defendant dated 10.12.2018.	A-4
5.	Deed of Guarantee executed by the 2^nd Defendant dated 10.12.2018.	A-5
6.	Copy of the Legal Notice dated 01.06.2022.	A-6
7.	Acknowledgement Cards and Returned Covers.	A-7
8.	Statement of Account.	A-8

¶69

O.A. No. 284 of 2022

¶70

15.10.2025

¶71

¶72

Witness Examined for the Defendants: -Nil-

¶73

List of Documents Exhibited for the Defendants: -Nil –

¶74

:- SCHEDULE -:

¶75

NIL

¶76

Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Axis Bank v. Galaxy Business Solution And Marketing

Case brief

What is this about?

What did the court decide?

Axis Bank v. Galaxy Business Solution And Marketing

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

Rbl Bank Limited versus M s Siva Sakthi Travels Rep by its Proprietor and another

Bank of Baroda versus Ms S R a a Shipping

State Bank of India versus Padma Priya

Encore Asset Reconstruction Company Ltd. versus Tamil nadu Cloth Stores

State Bank of India versus R Prasanth

Mrs K Manimegale versus Indian Bank