Allowed

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

DRT2 Sept 2025OA/530/2025

Case brief

AI extract

What is this about?

DRT allowed Axis Bank's application under Section 19 RDB Act for recovery of Rs.33.70 lac vehicle loan. decreed joint liability and fixed uniform simple interest at 8% p.a. authorized recovery via sale of hypothecated vehicle.

What did the court decide?

Order to recover Rs.33,70,417 jointly and severally with simple interest at 8% p.a. from sale of hypothecated vehicle and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.530/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.04.2025

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DATE OF DECISION: 28.07.2025

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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. Kuljeet Singh S/o Sh. Gurmail Singh R/o Ward No.18, Maria Road, Basant Nagar, Khanna, Ludhiana Punjab-141401.

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Sh. Sumanjeet Kaur W/o Sh. Kuljeet Singh R/o Ward No.18, Maria Road, Basant Nagar, Khanna, Ludhiana Punjab-141401.

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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

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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.33,70,417.00p (Rupees Thirty Three Lacs Seventy Thousand Four Hundred Seventeen only). The Original Application has been filed through Sh. Nitish Aggarwal Manager, authorized signatory of 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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2 OA/530/2025 AXIS BANK LTD. VS SH. KULJEET SINGH AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Vehicle Term loan facility of Rs.44.50 Lacs for purchase of commercial vehicle vide Loan application dated 07.09.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned the Vehicle Loan of Rs.41,35,080/- for purchase of commercial vehicle vide Sanction letter dated 13.09.2022 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 hypothecated his movable assets i.e Commercial vehicle namely:- Ashok Leyland 2820 bearing Registration No.PB-10-HX-5322 Chassis No.MB1H3VHD6NPGS6015 Engine No.NGPZ120313 vide Loan cum hypothecation agreement dated 13.09.2022, which is Annexure A4 to this OA. Documents executed: - DP Note, DP Note delivery cum waiver letter, both dated 13.09.2022, which are Annexures A5 and A6 to this OA; Retail notice & Insurance, which is Annexure A7 to this OA; Loan recall notice dated 25.01.2025, which is Annexure A8 to this OA; Foreclosure, which is Annexure A9 to this OA; and statement of account along with certificate under Banker’s Books Evidence Act, which are Annexures A10 & A11 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.33,70,417.00p, 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. 6. 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 24.07.2025. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal Manager, authorized signatory, Axis Bank Ltd., h as been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/530/2025 AXIS BANK LTD. VS SH. KULJEET SINGH AND ANOTHER

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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 A11 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 they had executed all the relevant documents in favour of the applicant. 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.33,70,417.00p (Rupees Thirty Three Lacs Seventy Thousand Four Hundred Seventeen only) rest 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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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 24.01.2025 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 hypothecated assets, 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 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.33,70,417.00p (Rupees Thirty Three Lacs Seventy Thousand Four Hundred Seventeen only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of

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OA/530/2025

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AXIS BANK LTD. VS SH. KULJEET SINGH AND ANOTHER

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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 vehicle 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2025.

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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.

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Pronounced by me in the open Tribunal . Dated: 28.07.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

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

Case brief

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