Allowed

Axis Bank Ltd. v. Manshant Singh and Another

DRT2 Jul 2025OA/306/2025

Case brief

AI extract

What is this about?

The DRT allowed Axis Bank's application under Section 19 RDDBFI Act for recovery of Rs. 35.87 lakhs from two defendants. The court decreed joint and several liability and fixed interest at 8% p.a., authorizing recovery via sale of mortgaged properties under SARFAESI.

What did the court decide?

Recovery certificate issued for Rs. 35.87 lakhs plus costs and future interest at 8% p.a.; authorizing sale of mortgaged property.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.306/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2025

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DATE OF DECISION: 02.07.2025

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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, Ahmedabad380006 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.

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……..Applicant

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Versus

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1. Manshant Singh S/o Sh. Gian Singh R/o House No.30, Village Jalalgarh, Tehsil and District Malerkotla, Punjab.

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Par upkar Singh S/o Sh. Avtar Singh R/o House No.43, Village Jalalgarh, Tehsil and District Malerkotla, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Manav Singal, 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.35,87,598.11p (Rupees Thirty Five Lacs Eighty Seven Thousand Five Hundred Ninety Eight & Eleven 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 Power of attorney dated 24.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs

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2 OA NO.306-2025 AXIS BANK LIMITED VS MANSHANT SINGH AND ANOTHER

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vide Loan application dated 02.09.2013, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction letter dated 12.11.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 28bigha-16biswa situated at Village Jalalgarh, Tehsil and District Malerkotla, Punjab vide Registered Mortgaged Deed bearing vasika no.1301 dated 13.01.2014, which is Annexure A8 to this OA. Documents executed: - Loan cum hypothecation agreement, DP Note, DP Note delivery cum waiver, Deed of guarantee all dated 18.01.2014, which are Annexures A4 to A7 to this OA; Letter of acknowledgement dated 01.03.2016, 18.01.2018 & 14.08.2020, which are Annexures A9 to A11 to this OA; Legal notice dated 17.12.2024 along with postal receipts, which is Annexure A12 to this OA and statement of account with certificate, which is Annexure 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.35,87,598.11p, 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 30.06.2025. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal, authorized signatory, Axis Bank Ltd., has been filed. 8. Heard arguments and perused record.

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3 OA NO.306-2025 AXIS BANK LIMITED VS MANSHANT SINGH AND ANOTHER

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It was argued by learned 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 Rs.35,87,598.11p (Rupees Thirty Five Lacs Eighty Seven Thousand Five Hundred Ninety Eight & Eleven 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 @12.75%p.a. with yearly rests from 12.12.2024 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.35,87,598.11p (Rupees Thirty Five Lacs Eighty Seven Thousand

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4 OA NO.306-2025 AXIS BANK LIMITED VS MANSHANT SINGH AND ANOTHER

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Five Hundred Ninety Eight & Eleven 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 19.07.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 02.07.2025

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

Axis Bank Ltd. v. Manshant Singh and Another

Case brief

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Axis Bank Ltd. v. Manshant Singh and Another

Case brief

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