Allowed

Axis Bank Ltd. v. Sh. Harpal Singh

DRT3 Jul 2025OA/316/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Axis Bank against Harpal Singh for recovery of a defaulted loan of Rs.24,12,121.52. The court granted uniform simple interest at 8% per annum and authorized execution against mortgaged or personal assets under SARFAESI provisions.

What did the court decide?

Recovery certificate issued; defendant liable to pay Rs.24,12,121.52 with interest at 8% p.a.; execution via SARFAESI Act authorized.

Axis Bank Ltd. versus Sh. Harpal Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.316/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.03.2025

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DATE OF DECISION: 03.07.2025.

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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”, 3rd 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, 3rd 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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Harpal Singh S/o Sh. Khushal Singh R/o Village Hulka, Daherka, Tehsil Rajpura, District Patiala, Punjab-140401.

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….……Defendant

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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 Defendant is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.24,12,121.52p (Rupees Twenty Four Lacs Twelve Thousand One Hundred Twenty One & Fifty Two Paise Only). The Original Application has been filed through Sh. Nitish Aggarwal, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 24.08.2023, which is Annexure

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A1 to this OA.

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2 OA NO.316-2025 AXIS BANK LIMITED VS HARPAL SINGH

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.22.00 Lacs vide loan application dated 18.02.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.22.00 Lacs vide Sanction letter dated 08.03.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 15B-01B situated at Village Nadiali, Tehsil Banur, District SAS Nagar, Mohali vide Registered Mortgaged Deed bearing vasika no.932 dated 10.03.2014, w hich 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 11.03.2014, which are Annexures A4 to A6 to this OA; Mutation dated 21.03.2014, which is Annexure A8 to this OA; AOD letters dated 02.04.2021, which is Annexure A9 to this OA; Recall notice dated 24.01.2025, which is Annexure A10 to this OA and Statement of account with certificate, which is Annexure A11 to this OA.

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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.24,12,121.52p, which is recoverable and the defendant were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 01.07.2025.

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

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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3 OA NO.316-2025 AXIS BANK LIMITED VS HARPAL SINGH

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the applicant had proved its case. From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,12,121.52p (Rupees Twenty Four Lacs Twelve Thousand One Hundred Twenty One & Fifty Two Paise Only) along with interest from the defendant, 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 @12.25%p.a. from 18.01.2025 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 defendant, 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.24,12,121.52p (Rupees Twenty Four Lacs Twelve Thousand One Hundred Twenty One & Fifty Two Paise Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date

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4 OA NO.316-2025 AXIS BANK LIMITED VS HARPAL SINGH

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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 defendant 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 defendant. 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 25.07.2025. 15. Copy of this order be given Dasti to the applicant bank and be sent to defendant 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: 03.07.2025.

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

Axis Bank Ltd. v. Sh. Harpal Singh

Case brief

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Axis Bank Ltd. v. Sh. Harpal Singh

Case brief

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