Allowed

Axis Bank Ltd. v. Sh. Gurpreet Singh and Another

DRT16 Jul 2025OA/432/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an agricultural loan. The court confirmed the defendants' liability to pay the principal amount along with interest reduced to 8% p.a. despite an initial request for 10.5% p.a., and directed the issuance of a recovery certificate.

What did the court decide?

Applicant declared entitled to recover Rs. 31,35,755.35P with interest at 8% p.a. along with costs. Recovery Certificate issued. Sale of hypothecated properties authorized.

Axis Bank Ltd. versus Sh. Gurpreet Singh and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.432/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.03.2025

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DATE OF DECISION: 16.07.2025.

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Axis Bank Ltd., having its Registered Office at “Trishul”, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad- 380006 Gujarat and Also at: Axis Bank, Loan Centre, SCO-367-368, Sector-34-A, Chandigarh- 160022 through Sh. Nitish Aggarwal, it’s Authorized Representatives.

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……..Applicant

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Versus

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Sh. Gurpreet Singh S/o Sh. Palwinder Singh R/o Village Sarai Valtoha, District Tarn Taran, Punjab-143401.

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Smt. Harjinder Kaur W/o Sh. Gurpreet Singh R/o Village Sarai Valtoha, District Tarn Taran, Punjab-143401.

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….……Defendants

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Advocates:

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Argued by, Ms. Dipti Toni, 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 and Bankruptcy Act 1993, against the defendants for recovery of Rs.31,35,755.35P (Rupees Thirty One Lacs Thirty Five Thousand Seven Hundred Fifty Five & Thirty Five Paise only). The Original Application has been filed through Sh. Nitish Aggarwal, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Power of attorney 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 Agriculture Loans i.e. Production Credit of Rs.7.25 Lacs and Kisan Samarth (Overdraft) of

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2 OA/432/2025 AXIS BANK LTD. VS. SH. GURPREET SINGH AND ANOTHER

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Rs. 21.75 Lacs vide Loan Application dated 20.02.2021, which is Annexure A2 to this OA.

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The applicant sanctioned the Agriculture Loans i.e. Production Credit of Rs.7.00 Lacs and Kisan Samarth (Overdraft) of Rs. 21.15 Lacs vide Sanction Letter dated 26.02.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 112K-19M as under: (i). Land measuring 65K-0M situated at Village Rasulpur, Hadbast No. 330, Tehsil Khemkaran, District Taran Taran, Punjab; (ii). Land measuring 8K-3M situated at Village Kotli Wasawa Singh, Hadbast No. 200, Tehsil Khemkaran, District Taran Taran, Punjab; (iii). Land measuring 39K-16M situated at Village Sarai Valtoha, at Hadbast No.84, Tehsil Khemkaran, District Taran Taran Punjab; vide Declaration dated 26.02.2021 u/s 4(1) and Letter to Sub Registrar for Creation of Charge, which are Annexures A9 & A10 to this OA. Documents executed: Loan cum Hypothecation Agreement, Copy of Demand Promissory Notes, all dated 26.02.2021, which are Annexures A4 to A8 to this OA; Statement of account accounts, which are Annexures A11 & A12 to this OA and Demand Notice dated 22.01.2025 along with postal receipts, which are Annexures A13 to A15 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.31,35,755.35P, 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 14.07.2025.

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3 OA/432/2025 AXIS BANK LTD. VS. SH. GURPREET SINGH AND ANOTHER

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In support of the OA, affidavit of through Sh. Nitish Aggarwal Authorized Representative, AXIS Bank Ltd., h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,35,755.35P (Rupees Thirty One Lacs Thirty Five Thousand Seven Hundred Fifty Five & Thirty Five 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. from 11.01.2025 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 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 accounts 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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4 OA/432/2025

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AXIS BANK LTD. VS. SH. GURPREET SINGH AND ANOTHER

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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.31,35,755.35P (Rupees Thirty One Lacs Thirty Five Thousand Seven Hundred Fifty Five & Thirty Five Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 16.08.2025 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: 16.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Gurpreet Singh and Another

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Axis Bank Ltd. v. Sh. Gurpreet Singh and Another

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