Allowed

Axis Bank Ltd. v. Mk Enterprises

DRT26 Mar 2025OA/628/2024

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Axis Bank against MK Enterprises and proprietor Sh. Sahil Kapoor for recovery of Rs. 1,01,01,868.81. The court decreed payment including interest at 8% per annum and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.1,01,01,868.81 with costs and simple interest @ 8% p.a.; Issue of Recovery Certificate; Sale of hypothecated properties or attachment of personal assets.

Axis Bank Ltd. versus Mk Enterprises — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.628/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.05.2024

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DATE OF DECISION: 26.03.2025

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Axis Bank Ltd. (earlier 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’ 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006, Gujarat and one of its branch offices amongst other places known as Asix Bank Ltd. situated in SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Authorised Representative, Sh. Nitish Aggarwal, Manager Legal.

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……..Applicant

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Versus

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MK Enterprises, through its proprietor, Office:- XXIX-536/35, D/8A/5/9/2, Dhandari Kalan, Industrial area-C, Avtar Colony, Ludhiana-141014.

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Sh. Sahil Kapoor S/o Sh. Jagdish Kapoor, Proprietor MK Enterprises, R/o H.No. 6519/2A, Street No. 1, Tandon Nagar, Jassian Road, Haibowal Kalan, Ludhiana-141001.

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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.1,01,01,868.81p (Rupees One Crore One Lakh One Thousand Eight Hundred Sixty Eight And Paise Eighty One Only). The Original

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2 OA/628/2024 AXIS BANK LIMITED VS MK ENTERPRISES AND ANOTHER

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Application has been filed through Sh. Nitish Aggarwal, Manager Legal of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 11.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its Proprietor had approached the applicant for grant of CC Limit of Rs.01.00 Crore and Term Loan of Rs. 07.41 Lacs vide Loan Applications dated 05.01.2022, which are Annexures A3 & A9 to this OA. 3. The applicant sanctioned CC Limit of Rs.01.00 Crore and Term Loan of Rs. 07.41 Lacs vide Sanction Letters dated 14.03.2022 & 26.03.2022, which are Annexures A4 & A10 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had hypothecated its movable properties/Assets i.e. stock, Book Debts and Creditors vide Hypothecation Deed dated 15.03.2022, which is Annexure A6 to this OA. Documents executed:- Company registration certificate dated 09.02.2021, which is Annexure A2 to this OA; Facility Agreement, Demand Promissory Note and D.P. note Delivery cum Waiver dated 15.03.2022, which are Annexures A5, A7 & A8 to this OA; Facility Agreement, Demand Promissory Note and D.P. note Delivery cum Waiver dated 28.03.2022, which are Annexures A11 to A13 to this OA; Loan Recall Notice dated 03.04.2024, which is Annexure A14 to this OA; Statement of Account along with Certificate under Banker Books of Evidence, which are Annexures A15 to A17 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.1,01,01,868.81p, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA/628/2024 AXIS BANK LIMITED VS MK ENTERPRISES AND ANOTHER

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 25.10.2024. The OA was dismissed for default on 28.10.2024 and the same was restored on 04.02.2025 via order passed in MA/160/2024. Fresh notices regarding restoration were severed to defendants but no one appeared on behalf of defendants despite of service.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, Manager Legal has 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 facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,01,01,868.81p (Rupees One Crore One Lakh One Thousand Eight Hundred Sixty Eight And Paise Eighty One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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OA/628/2024 AXIS BANK LIMITED VS MK ENTERPRISES AND ANOTHER

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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 @15%p.a. with half yearly rests from 03.04.2024 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 appropriate to grant uniform simple interest @08.00%p.a. in both the loan accounts 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.1,01,01,868.81p (Rupees One Crore One Lakh One Thousand Eight Hundred Sixty Eight And Paise Eighty One Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 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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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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5 OA/628/2024 AXIS BANK LIMITED VS MK ENTERPRISES AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 25.04.2025.

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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: 26.03.2025

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

Axis Bank Ltd. v. Mk Enterprises

Case brief

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Axis Bank Ltd. v. Mk Enterprises

Case brief

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