Allowed

Axis Bank Ltd. v. Sh. Karamjeet Kaur and Others

DRT29 Jul 2025OA/396/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Axis Bank Ltd. against three defendants for recovery of a ₹35,14,221.30 dues. The Tribunal allowed a prayer for uniform simple interest at 8% p.a. and directed the issue of a Recovery Certificate.

What did the court decide?

Declaration that defendants are liable to pay ₹35,14,221.30 jointly and severally with simple interest @8.00% p.a.; Recovery Certificate issued; entitlement to recover amount via sale of properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.396/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.03.2025

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DATE OF DECISION: 29.07.2025

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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

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Versus

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Smt. Karajeet Kaur W/o Sh. Manveer Singh R/o Village P.O. Tharajwala, Near Baba Ramdev Mandir, Near Dispensary, Tehsil Gidderbaha, District Muktsar Sahib, Punjab.

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Sh. Arshpreet Singh S/o Sh. Manveer Singh R/o Village P.O. Tharajwala, Near Baba Ramdev Mandir, Near Dispensary, Tehsil Gidderbaha, District Muktsar Sahib, Punjab.

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Sh. Manveer Singh S/o Sh. Kuldeep Singh R/o Village P.O. Tharajwala, Near Baba Ramdev Mandir, Near Dispensary, Tehsil Gidderbaha, District Muktsar Sahib, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Yogesh Kumar, Advocate proxy for Sh. Gaurav Gupta, Advocate for Applicant

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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.35,14,221.30p (Rupees

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2 OA/396/2025 AXIS BANK LTD. VS KARAMJEET KAUR AND OTHERS

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Thirty Five Lacs Fourteen Thousand Two Hundred Twenty One & Paise Thirty only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager, authorized signatory o f the applicant, 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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The brief facts of the OA are that the defendants had approached the applicant for the grant of Overdraft Limit of Rs.26,17,500/- & Working Capital Limit for Production credit of Rs.8,72,500/- vide Loan applications dated 21.07.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Overdraft facility of Rs.24,15,000/& Working Capital Limit for Production credit of Rs.8,35,000/- vide Sanction letter dated 04.08.2023 which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant nos. 1 & 3 had mortgaged their immovable property i.e. total land measuring 64K-04M situated at Village Tharajwala, Tehsil Gidderbaha, District Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 07.08.2023, along with letter to Sub- Registrar for creation of charge bearing no. 413 dated 07.08.2023, which is Annexure A9 to this OA.

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Documents executed: - Loan cum hypothecation agreement, DP Note delivery cum waiver letter, Joint & Several DP Note all dated 07.08.2023, which are Annexures A4 to A8 to this OA; Recall notice dated 24.01.2025, which is Annexure A10 to this OA and statement of account along with certificate under Banker’s Books Evidence Act, which are Annexures A11 & A12 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.35,14,221.30p 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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3 OA/396/2025 AXIS BANK LTD. VS KARAMJEET KAUR AND OTHERS

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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 25.07.2025.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, authorized signatory, Axis Bank Ltd., h as been filed. 8. Heard ex-parte 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, the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts 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.35,14,221.30p (Rupees Thirty Five Lacs Fourteen Thousand Two Hundred Twenty One & Paise Thirty only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. with half yearly rests plus penal interest @24.00% p.a. in OD account and @15.00%p.a. in CC account 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 defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while

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4 OA/396/2025 AXIS BANK LTD. VS KARAMJEET KAUR AND OTHERS

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both 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.35,14,221.30p (Rupees Thirty Five Lacs Fourteen Thousand Two Hundred Twenty One & Paise Thirty only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 04.09.2025. 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. Pronounced by me in the open Tribunal . Dated: 29.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Karamjeet Kaur and Others

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Karamjeet Kaur and Others

Case brief

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