Allowed

Axis Bank Limited v. Sh. Anmol Singh and Another

DRT18 Jul 2025OA/484/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Axis Bank Ltd. against two defendants for recovery of a loan of Rs. 38,14,780.96. The Tribunal issued a Recovery Certificate and reduced the applicable interest rate from 15.80% to 8% per annum, also authorizing recovery from mortgaged property.

What did the court decide?

Issuance of Recovery Certificate; Declaration of joint and several liability to pay Rs. 38,14,780.96 plus interest at 8% p.a.; Authority to recover from sale of mortgaged property or attachment of per

Axis Bank Limited versus Sh. Anmol Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.484/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2025

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DATE OF DECISION: 18.07.2025

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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, Above Akash Education Institute, Sector-34A, Chandigarh-160022 through its Legal Manager, Sh. Nitish Aggarwal.

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……..Applicant Versus

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Sh. Anmol Singh S/o Sh. Harbhagwan Singh, Village Chhapianwali, Tehsil Malout, District Sri Muktsar Sahib, Punjab- 152107.

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Sh. Davinder Singh S/o Sh. Baldev Singh, R/o House No. 217, Village Chhapianwali, Burj Sidhwan road, Tehsil Malout, District Sri Muktsar Sahib, Punjab-152107.

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………. Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for the applicant Defendants are 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. 38,14,780.96p (Rupees Thirty Eight Lacs Fourteen Thousand Seven Hundred Eighty And Paise Ninety Six

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2 OA/484/2025

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AXIS BANK LIMITED VS ANMOL SINGH AND ANOTHER

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Only). The Original Application has been filed through Sh. Nitish Aggarwal, Legal Manager of the applicant, who is competent to 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 grant of CC Limit for Production Credit of Rs.20.00 Lacs vide Loan Application dated 22.05.2014, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned CC Limit for Production Credit of Rs.20.00 Lacs vide Sanction Letter dated 06.08.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant no. 1 had mortgaged their immovable properties i.e. Total land measuring 48K-0M, situated at Village Chhapianwali, Hadbast No. 157, Tehsil Malout, District Sri Muktsar Sahib, Punjab vide Mortgaged Deed bearing v asika No.2486 dated 2 2.08.2014, which is Annexure A8 to this OA.

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Documents executed:- Loan Cum Hypothecation Agreement, D.P. Note, D.P. Note Delivery cum Waiver Letter, Deed of Guarantee, all dated 26.08.2014, which are Annexures A4 to A7 to this OA; Letter of Acknowledgement of debt dated 16.11.2016 and 23.01.2019 which are Annexures A9 and A10 to this OA; Legal Notice dated 17.12.2024 along with Postal Receipts, which is Annexure A11 to this OA and Statement of Account which is Annexure A12 to this OA. 5. 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. 38,14,780.96p, 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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3 OA/484/2025 AXIS BANK LIMITED VS ANMOL SINGH AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.07.2025. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal, Legal Manager, Axis Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 facility which was granted to them 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. 38,14,780.96p (Rupees Thirty Eight Lacs Fourteen Thousand Seven Hundred Eighty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @15.80%p.a. with half rests from 12.12.2024 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 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

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OA/484/2025 AXIS BANK LIMITED VS ANMOL SINGH AND ANOTHER

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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 defendants are liable to pay to the applicant a total sum of Rs. 38,14,780.96p (Rupees Thirty Eight Lacs Fourteen Thousand Seven Hundred Eighty 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 mortgaged property 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 25.08.2025 15. Copy of this order be given dasti to the applicant 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. Pronounced by me in the open Tribunal . Dated: 18.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Anmol Singh and Another

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Axis Bank Limited v. Sh. Anmol Singh and Another

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