Allowed

Axis Bank Ltd. v. Chand Singh and Others

DRT23 Oct 2025OA/56/2025

Case brief

AI extract

What is this about?

This is a final order in an Original Application under Section 19 of the RDB Act granted ex-parte. The Tribunal allowed the application, declaring the defendants liable to repay the loan amount with reduced interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Defendants declared liable to pay Rs. 27,62,353.90 plus interest at 8% p.a. Recovery Certificate issued. Applicant to recover amount via sale of hypothecated properties or attachment of personal asset

Axis Bank Ltd. versus Chand Singh and Others — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.56/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.01.2025

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DATE OF DECISION: 23.10.2025

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AXIS BANK LTD. (earlier known as UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered office at 'Trishul', 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006, Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd. situated in SCO No.367-368, 3rd Floor, Sector 34-A, Chandigarh through its Manager, Sh. Sandeep Kumar.

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……..Applicant Versus

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Sh. Chand Singh s/o Sh. Mahinder Singh r/o Village Ganeshpura Alias Siuna, Tehsil Patra, District Patiala, Punjab.

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Sh. Sandeep Singh s/o Sh. Harmel Singh r/o Village Ganeshpura Alias Siuna, Tehsl Patra, District Patiala, Punjab

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Sh. Gurwinder Singh s/o Sh. Harmel Singh r/o Village Ganeshpura Alias Siuna, Tehsil Patra, District Patiala, Punjab

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………. Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.27,62,353.90p (Rupees Twenty Seven Lacs Sixty Two Thousand Three Hundred Fifty Three & Ninety Paise Only). The Original Application has been filed through Sh. Sandeep Kumar, Manager of the applicant, who is competent to

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OA NO. 56/2025 AXIS BANK LTD. VS SH.CHAND SINGH AND OTHERS

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institute the Original Application vide Power of Attorney dated 06.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants were availing the facility of KCC Limit of Rs. 12.00 Lacs and approached the applicant for enhancement of the same to Rs.50.00 Lacs vide Loan Application dated 20.02.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the the KCC Limit to Rs. 12.00 Lacs of Rs.50.00 Lacs vide Sanction letter dated 08.03.2014, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. land measuring 80K-00Marla situated at Village Ganeshpur Alias Siuna, Tehisl Patran, Dstrict Patiala, Punjab vide Registered Mortgaged Deed bearing vasika no.4145 dated 26.03.2014, along with its translation, which is Annexures A7 to this OA and post mutation confirmation dated 26.03.2014, which is Annexure A8 to this OA. Documents executed : -Loan cum hypothecation agreement, Joint and Several DP Note, DP Note delivery cum wavier letter, all dated 26.03.2014, which are Annexures A4 to A6 to this OA; Acknowledgement of debt letter dated 29.09.2016, which is Annexure A9 to this OA; Recall notice dated 02.12.2024, along with postal receipts which is Annexure A10 to this OA and Statement of Account along with certificate under Banker’s Book Evidence Act, which is Annexure A11 t o 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.27,62,353.90P, 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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OA NO. 56/2025 AXIS BANK LTD. VS SH.CHAND SINGH AND OTHERS

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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 17.10.2025.

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In support of the OA, affidavit of Shri Sandeep Kumar, Authorized Signatory, Axis Bank Ltd., has been filed.

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Heard ex-parte 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 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 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.27,62,353.90p (Rupees Twenty Seven Lacs Sixty Two Thousand Three Hundred Fifty Three Ninety 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.

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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 @11.75% p.a. with half yearly rests from 30.11.2024 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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OA NO. 56/2025 AXIS BANK LTD. VS SH.CHAND SINGH AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,62,353.90P (Rupees Twenty Seven Lacs Sixty Two Thousand Three Hundred Fifty Three & Ninety 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/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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2025

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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 .

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Dated: 23.10.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarhp

Axis Bank Ltd. v. Chand Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Chand Singh and Others

Case brief

What is this about?

What did the court decide?

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