Allowed

Axis Bank Ltd. v. Tahil Singh

DRT8 Jul 2025OA/328/2025

Case brief

AI extract

What is this about?

In an original application under Section 19 RDBFI Act, 1993 for recovery of Rs.22.57 Lakhs, the Tribunal allowed the application ex parte. It directed recovery from mortgaged properties under SARFAESI Act or through attachment of personal assets, and fixed interest at 08.00% p.a.

What did the court decide?

Recovery of Rs.22,57,627.03p with simple interest @08.00% p.a.; entitlement to recover from sale of mortgaged properties or attachment of personal assets; issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.328/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.03.2025

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DATE OF DECISION: 08.07.2025

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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. Nitish Aggarwal.

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……..Applicant Versus

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Tahil Singh S/o Sh. Karam Singh R/o Village Manak Dehar URF Nandgarh, Tehsil and District Patiala Punjab-147111.

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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.22,57,627.03p (Rupees Twenty Two Lacs Fifty Seven Thousand Six Hundred Twenty Seven & Three Paise Only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager, o f the applicant bank, who is competent to institute the Original Application vide GPA of Bank Official dated 24.08.2023, which is Annexure A1 to this OA.

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2 OA NO.328-2025 AXIS BANK LIMITED VS TAHIL SINGH

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 12.12.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction letter dated 31.01.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage her immovable properties i.e. total land measuring 40K-00M situated at Village Manak Dehar, Sub Tehsil Dudhan Sadha District Patiala Punjab vide Registered Mortgaged deed bearing vasika no.1480 dated 05.02.2014, which is Annexure A7 to this OA.

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Documents executed:- Loan cum hypothecation agreement, Joint and Several DP Note, DP Note delivery cum waiver letter, all dated 06.02.2014, which are Annexures A4 to A6 to this OA; AOD letter dated 09.05.2016, 28.05.2018 & 19.01.2022, which is Annexure A8 to this OA; Recall notice dated 24.01.2025, which is Annexure A9 to this OA and statement of account along with certificate under banker books evidence, which is Annexure A10 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.22,57,627.03p, 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 02.07.2025. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal, Manager, Axis Bank Ltd., h as been filed. 8. Heard arguments and perused record

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3 OA NO.328-2025

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AXIS BANK LIMITED VS TAHIL SINGH

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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, the applicant had proved its case. From the perusal of all the Annexures A1 to A10 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.22,57,627.03p (Rupees Twenty Two Lacs Fifty Seven Thousand Six Hundred Twenty Seven & Three 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 bank in relief clause has claimed interest @12.25%p.a. plus penal interest @4.00%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

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4 OA NO.328-2025 AXIS BANK LIMITED VS TAHIL SINGH

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Rs.22,57,627.03p (Rupees Twenty Two Lacs Fifty Seven Thousand Six Hundred Twenty Seven & Three Paise Only) with costs, current and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.07.2025.

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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.

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Pronounced by me in the open Tribunal . Dated: 08.07.2025.

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

Axis Bank Ltd. v. Tahil Singh

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Tahil Singh

Case brief

What is this about?

What did the court decide?

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