Allowed

Axis Bank Limited v. M/S Qocept Apparels and Knits and Another

DRT24 Sept 2025OA/540/2025

Case brief

AI extract

What is this about?

In an ex-parte Original Application, the Debts Recovery Tribunal allowed Axis Bank's claim for recovery of Rs. 27,88,000.56 against borrowers who failed to repay an overdraft. The Tribunal issued a Recovery Certificate and set uniform interest at 8% p.a.

What did the court decide?

Recovery Certificate issued for Rs. 27,88,000.56 plus interest at 8% p.a. Recovery to be effected from sale of hypothecated assets or attachment of personal assets.

Axis Bank Limited versus M/S Qocept Apparels and Knits and… — Execution and Attachment | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.540/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 08.04.2025

¶5

DATE OF DECISION: 24.09.2025

¶6

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, Gujarat, 380006, and one of its branch offices amongst other places know as Axis Bank Ltd., situated at, SCO No.390, 2^rd Floor, Sector-20, Panchkula, Haryana, through its Legal Manager, Sh. Nitish Aggarwal.

¶7

……..Applicant Versus

¶8

M/s Qocept Apparels and Knits through its proprietor, Plot No. 51, Guru Gobind Singh Nagar, Tibba Road, Near Radha Swami Satsang Bhawan, District Ludhiana, Punjab-141120.

¶9

Atul Kumar Walia S/o Sh. Balbir Walia, Proprietor M/s Qocept Apparels and Knits R/o House No. 1203-D, Near Libra, Model Town Extension, District Ludhiana, Punjab-141002

¶10

………. Defendants

¶11

Advocates:

¶12

Argued by Sh. Manav Singal, Advocate for the applicant Defendants already ex-parte

¶13

FINAL ORDER

¶14

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. 27,88,000.56p (Rupees Twenty Seven Lacs Eighty Eight Thousand and Fifty Six Paise Only). The Original Application has been filed through Sh. Nitish Aggarwal, Legal Manager of the applicant, who is competent to institute the Original Application

¶15

¶16

OA NO.540/2025 AXIS BANK VS M/S QOCEPT APPARELS AND KNITS AND ANOTHER vide General Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 was availing a faculty of CC Limit of Rs. 20.00 Lacs for applicant and approached the applicant for enhancement of CC Limit to Rs. 27.00 Lacs vide Loan Application dated 04.08.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs.27.00 Lacs vide Sanction Letter dated 09.10.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 through its proprietor defendant no.2 had hypothecated its movable assets i.e. stock and book debts vide deed of hypothecation dated 20.10.2023, which is Annexure A5 to this OA. Documents executed: - Facility Agreement, D.P. Note, D.P. Note Delivery cum Waiver Letter, Deed of Guarantee, all dated 20.10.2023, which are Annexures A4, A6 to A8 to this OA; Legal Notice dated 18.02.2025, along with Postal Receipts, which is Annexure A9 to this OA and Statement of Account which is Annexure A10 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. 27,88,000.56p, 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 28.07.2025. 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.

¶17

¶18

OA NO.540/2025 AXIS BANK VS M/S QOCEPT APPARELS AND KNITS AND ANOTHER

¶19

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 A10 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 tehy 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. 27,88,000.56p (Rupees Twenty Seven Lacs Eighty Eight Thousand And Fifty Six 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.

¶20

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.65%p.a. with monthly rests from 19.01.2025 till the realization.

¶21

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/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 @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.

¶22

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. 27,88,000.56p (Rupees Twenty Seven Lacs Eighty Eight Thousand And

¶23

¶24

OA NO.540/2025 AXIS BANK VS M/S QOCEPT APPARELS AND KNITS AND ANOTHER

¶25

Fifty Six Paise 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 hypothecated assets of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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 16.10.2025. 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: 24.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. M/S Qocept Apparels and Knits and Another

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. M/S Qocept Apparels and Knits and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Icici Bank Limited versus Sh. Ravideep Singh and Another

State Bank of India versus Sh. Beant Singh

State Bank of India versus Sh. Gurjind Singh

State Bank of India versus M/S Parul Enterprises and Others

Axis Bank Ltd. versus Sh. Sarabjit Singh and Others

Axis Bank Ltd. versus Sh. Gurjant Singh and Others