Allowed

Axis Bank Ltd. v. Sh. Sarabjit Singh and Others

DRT24 Sept 2025OA/391/2025

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Axis Bank against borrowers and a guarantor for recovery of a loan account classified as NPA. The court decreed the recovery of the principal amount along with simple interest at 8% per annum and directed the issue of a Recovery Certificate.

What did the court decide?

Order declaring the defendants liable to pay Rs. 33,46,038.96 along with costs and simple interest @ 8% p.a. and to issue Recovery Certificate.

Axis Bank Ltd. versus Sh. Sarabjit Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH ORIGINAL APPLICATION NO.391/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.03.2025

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DATE OF DECISION: 24.09.2025

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Axis Bank Ltd. (earlier known as UTI Bank Ltd.), a banking company, carrying on the business under the Banking Regulation Act, 1949, incorporated under the Companies Act, 1956 and having its Registered Office at ‘Trishul’ 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006, Gujarat, and one of its branch offices amongst other places known as Axis Bank Ltd., situated at, SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Legal Manager, Sh. Nitish Aggarwal.

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……..Applicant

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Versus

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Sh. Sarabjit Singh S/o Sh. Baldev Singh, R/o Village Ageti, Near Gurudwara Sahib, Tehsil Nabha, District Patiala, Punjab.

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Sh. Harbir Singh Gill S/o Sh. Sarabjit Singh, R/o Village Ageti, Near Gurudwara Sahib, Tehsil Nabha, District Patiala, Punjab.

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Sh. Dharam Singh S/o Sh. Sarwan Singh R/o Village Ageti, Near Gurudwara Sahib, Tehsil Nabha, District Patiala, 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 applicant (through VC) Defendants already 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.33,46,038.96p (Rupees Thirty Three Lacs Forty Six Thousand Thirty Eight And Paise Ninety Six Only). The Original Application has been filed through Sh. Nitish Aggarwal,

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2 OA/391/2025 AXIS BANK LTD. VS. SH. SARABJIT SINGH AND OTHERS

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Authorized Signatory of the applicant, who is competent to institute the Original Application vide General 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 & 2 had approached the applicant for grant of KCC Limit of Rs.22.00 Lacs vide Loan Application dated 26.012.2011, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. Further, defendant no. 1 & 2 had again approached the applicant for enhancement of KCC Limit to Rs.28.60 Lacs vide Loan Application dated 22.06.2022, which is Annexure A9 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 11.01.2012, which is Annexure A3 to this OA and further enhanced the limit to Rs. 28.60 vide sanction letter dated 29.06.2022, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated his immovable properties i.e. Land measuring 32Bigha-09Biswa (6.76 Acres) situated at Village Ageti, Tehsil Nabha, District Patiala, Punjab vide Mortgage Deed bearing Vasika No.5446 dated 2 1.01.2012 along with its translation, which is Annexure A14 to this OA and Declaration U/s 4(1) dated 07.07.2022, which is Annexure A16 to this OA; Mutation dated 21.01.2012, which is Annexure A15 to this OA. Documents executed:- Loan-cum-Hypothecation Agreement, Joint and Several DP Note, DP Note Delivery-cum-Waiver Letter, Deed of Guarantee, all dated 21.01.2012, which are Annexures A4 to A7 to this OA; Acknowledgement of Debt Letter dated 10.11.2016, 03.01.2019 & 21.04.2022, which is Annexure A8 to this OA; Loancum-Hypothecation Agreement, Joint and Several DP Note and DP Note Delivery-cum-Waiver Letter, all dated 07.07.2022, which are Annexures A11 to A13 to this OA; Recall Notice dated 24.01.2025,

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3 OA/391/2025 AXIS BANK LTD. VS. SH. SARABJIT SINGH AND OTHERS

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which is Annexure A17 to this OA; Statement of Account along with Certificate Under Banker’s Book of Evidence, which is Annexure A18 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.33,46,038.96p, 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 28.07.2025.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, Authorized Signatory, Axis Bank h as been filed.

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Heard ex-parte arguments and perused record. 9. 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 A18 to this OA, it is proved that the defendants 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 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.33,46,038.96p (Rupees Thirty Three Lacs Forty Six Thousand Thirty Eight And Paise Ninety Six 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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4 OA/391/2025 AXIS BANK LTD. VS. SH. SARABJIT SINGH AND OTHERS

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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 @14.60% p.a. and penal interest @15%p.a. w.e.f. 18.01.2025 till the realization. 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 @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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,46,038.96p (Rupees Thirty Three Lacs Forty Six Thousand Thirty Eight And Paise Ninety Six Only) jointly and severally, 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on16.10.2025.

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OA/391/2025

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AXIS BANK LTD. VS. SH. SARABJIT SINGH AND OTHERS

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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 .

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Dated: 24.09.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Sarabjit Singh and Others

Case brief

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Axis Bank Ltd. v. Sh. Sarabjit Singh and Others

Case brief

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