Allowed

Axis Bank Limited v. Messrs Jaskirat Knitwear and Another

DRT10 Jul 2025OA/558/2024

Case brief

AI extract

What is this about?

The Tribunal allowed Axis Bank's application for recovery of Rs. 20,97,036.31 from the borrowers of a cash credit limit. The loan was classified as NPA and recovery proceedings ensued, leading to a recovery certificate and sale proceedings under SARFAESI Act.

What did the court decide?

Recovery of Rs.20,97,036.31 with interest @8.00%p.a. allowed; Recovery Certificate issued.

Axis Bank Limited versus Messrs Jaskirat Knitwear and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.558/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.04.2024

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DATE OF DECISION: 10.07.2025

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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. Nitesh Aggarwal.

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……..Applicant

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Versus

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M/s Jaskirat Knitwear Through its Proprietor, House No.1509, Bahadur Ke Road, Street No.3, Bharti Colony, Ludhiana-141008.

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Sh. Sant Singh, Proprietor M/s Jaskirat Knitwear, House No.1509, Bahadur Ke Road, Street No.3, Bharti Colony, Ludhiana-141008.

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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 the applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,97,036.31p (Rupees Twenty Lacs Ninety Seven Thousand Thirty Six & Thirty One Paise only). The Original Application has been filed through Sh. Nitesh Aggarwal, Authorized Signatory o f the applicant, who is competent to institute the Original Application vide GPA of Bank Official dated 11.08.2023, which is Annexure A1 to this OA.

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OA NO.558-2024

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AXIS BANK LIMITED VS M/S JASKIRAT KNITWEAR AND ANOTHER

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The brief facts of the OA are that the defendant no.1 through defendant no.2 had approached the applicant for the grant of CC Limit of Rs.10.00 Lacs vide Loan application dated 09.12.2021, which is Annexure A3 to this OA and further for its enhancement to Rs.20.00 Lacs vide Loan application dated 13.06.2023, which is Annexure A9 to this OA.

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The applicant sanctioned the CC Limit of Rs.10.00 Lacs and further sanctioned its enhancement to Rs.20.00 Lacs vide Sanction letters dated 18.12.2021 & 19.06.2023, which are Annexures A4 & A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties/assets i.e. Stocks and Book Debts vide Deeds of hypothecation dated 28.12.2021 and 28.06.2023, which are Annexures A8 and A14 to this OA.

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Documents executed: -Firm registration certificate dated 26.08.2019, which is Annexure A2 to this OA; Facility agreement, Demand Promissory note, DP Delivery cum waiver letter, all dated 28.12.2021, which are Annexures A5 to A7 to this OA; Facility agreement, Demand Promissory note, DP Delivery cum waiver letter, Deed of hypothecation all dated 28.06.2023, which are Annexures A11 to A13 to this OA; Recall notice dated 07.03.2024, which is Annexure A15 to this OA and Statement of Account along with certificate under banker books evidence, which are Annexures A16 & A17 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.20,97,036.31p, 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 NO.558-2024

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AXIS BANK LIMITED VS M/S JASKIRAT KNITWEAR 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 08.07.2025.

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In support of the OA, affidavit of Sh. Nitesh Aggarwal, Authorized Signatory, Axis Bank Ltd., h as been filed.

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Heard arguments and perused record.

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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 A17 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.20,97,036.31p (Rupees Twenty Lacs Ninety Seven Thousand Thirty Six & Thirty One Paise 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 @12.65%p.a. with half yearly rests from 02.03.2024 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

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4 OA NO.558-2024

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AXIS BANK LIMITED VS M/S JASKIRAT KNITWEAR AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,97,036.31p (Rupees Twenty Lacs Ninety Seven Thousand Thirty Six & Thirty One Paise only) jointly and severally, with costs, current and future simple interest @8.00%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/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 30.07.2025. 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: 10.07.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Messrs Jaskirat Knitwear and Another

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Axis Bank Limited v. Messrs Jaskirat Knitwear and Another

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