Allowed

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

DRT22 Jul 2025OA/461/2025

Case brief

AI extract

What is this about?

This Tribunal allowed an original application for recovery of Rs.30,15,924 against borrowers and guarantor for defaulted loan facilities though accounts. While hearings were ex parte, the Tribunal decreed the full amount and reduced interest rate to 8% pa based on discretion and market conditions.

What did the court decide?

Recovery Certificate issued and Rs.30,15,924 with 8% simple interest directed to be recovered from mortgaged/ personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.461/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2025

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DATE OF DECISION: 22.07.2025

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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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Sh. Ravinder Singh S/o Sh. Madan Lal R/o Village and Post Office Khelan, Tehsil Derabassi, District SAS Nagar, Mohali, Punjab- 140401.

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Sh. Madan Lal S/o Sh. Jai Singh R/o Village and Post Office Khelan, Tehsil Derabassi, District SAS Nagar, Mohali, Punjab140401.

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….……Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for the 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.30,15,924.00p (Rupees Thirty Lacs Fifteen Thousand Nine Hundred Twenty Four only). The Original Application has been filed through Sh. Nitish Aggarwal Manager, authorized signatory o f the applicant, who is competent to

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2 OA/461/2025 AXIS BANK VS RAVINDER SINGH AND ANOTHER

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institute the Original Application vide 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 had approached the applicant for the grant of Overdraft Facility of Rs.29.00 Lacs & CC Limit for Production Credit of Rs.5.00 Lacs (Total facilities of Rs.33.00Lacs) vide Loan application dated 21.09.2022, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the Overdraft Facility (Kissan Samrath) of Rs.22.55 Lacs & CC Limit for Production Credit of Rs.4.45 Lacs (Total facilities of Rs.27.00Lacs) vide Sanction letter dated 28.09.2022, 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 20Bighas 11Biswas situated at Village Khelan, Hadbast No.169, Tehsil Derabassi, District SAS Nagar, Mohali, Punjab. Vide Declaration u/s 4(1) and Letter to Sub Registrar for Creation of charge, both dated 29.09.2022, which are Annexures A10 & A11 to this OA.

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Documents executed: - Loan cum hypothecation agreement, DP Note, DP note delivery cum waiver letter, DP Note, DP note delivery cum waiver letter, all dated 29.09.2022, which are Annexures A4 to A8 to this OA; Deed of guarantee dated 30.09.2022, which is Annexure A9 to this OA; Legal notice dated 16.01.2025, along with postal receipts, which is Annexure A12 to this OA and statement of accounts, which are Annexures A13 & A14 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.30,15,924.00p, 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/461/2025 AXIS BANK VS RAVINDER SINGH AND ANOTHER

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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 18.07.2025. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal Legal Manager, Axis Bank Ltd., h as been filed. 8. Heard ex- parte arguments and perused record. 9. It was argued by learned counsel (through Video

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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 A14 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 were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,15,924.00p (Rupees Thirty Lacs Fifteen Thousand Nine Hundred Twenty Four 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 @15%p.a. in CC Limit and @24%p.a. in Overdraft account with half yearly rests from 02.05.2024 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 exercising the discretion vested in this Tribunal, this Tribunal deems it

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4 OA/461/2025 AXIS BANK VS RAVINDER SINGH AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,15,924.00p (Rupees Thirty Lacs Fifteen Thousand Nine Hundred Twenty Four 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.

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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 27.08.2025. 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: 22.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

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

Case brief

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