Allowed

Axis Bank Limited v. Sh. Baghel Singh and Others

DRT1 May 2025OA/885/2022

Case brief

AI extract

What is this about?

The DRT allowed Axis Bank’s application for recovery of a loan defaulted by three defendants. The court declared the defendants liable for principal and interest, granting reduced rates in the interest of justice.

What did the court decide?

Recovery Certificate issued; respondents directed to pay Rs. 23,70,040.89 plus costs and simple interest at 8% p.a.; recovery via sale of properties allowed.

Axis Bank Limited versus Sh. Baghel Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.885/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2022

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DATE OF DECISION: 01.05.2025

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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’ 3^rd Floor, Opposite Samartheshwar 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, Above Akash Education Institute, Sector 34-A, Chandigarh through its Deputy Manager, Mr. Rohit Varun Singh Thakur.

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……..Applicant

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Versus

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Sh. Baghel Singh S/O Sh. Vasan Singh R/o House no. 64, Village Atari, Tehsil & District Muktsar, Punjab-152026.

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Mrs. Bikramjit Nagi W/o Sh. Satnam Singh Bhular R/o House no. 60, Ganda Singh Colony, Tarn Taran Road, MPL Corporation, Ward no. 23, Tehsil & District Amritsar, Punjab-143022.

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Sh. Chanan Singh S/o Sh. Itbar Singh R/o House no. 89, Village Atari, Tehsil & District Muktsar, Punjab -152026.

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………. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, 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.23,70,040.89p (Rupees Twenty Three Lacs Seventy Thousand

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2 OA NO. 885/2022 AXIS BANK LIMITED VS BAGHEL SINGH AND OTHERS

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Fourty And Paise Eighty Nine Only). The Original Application has been filed through Mr. Rohit Varun Singh Thakur, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 & 2 had approached the applicant for grant of CC Limit of Rs.22.00 Lacs vide Loan Application dated 10.04.2014, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.22.00 Lacs vide Sanction Letter dated 23.05.2014, 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 mortgaged his immovable properties i.e. total land measuring 35K-07M situated at Village Atari, Habdbast No.129, Tehsil & District Sri Muktsar Sahib, Punjab vide Mortgage Deed bearing vasika no. 875 dated 2 7.05.2014, which is Annexure A8 to this OA.

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Documents executed:- Loan-cum-Hypothecation Agreement, D.P. Note, D.P. Note Delivery-Cum-Waiver Letter, Deed of Guarantee all dated 31.05.2014, which are Annexures A4 to A7 to this OA; Legal Notice along with Postal receipts dated 16.04.2022, which is Annexure A9 to this OA and Statement of Accounts which is Annexure A10 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 adebit of Rs.23,70,040.89p, which is recoverable and the defendants was 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. 885/2022 AXIS BANK LIMITED VS BAGHEL 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 29.04.2025.

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In support of the OA, affidavit of Mr. Rohit Varun Singh Thakur, Deputy Manager, Axis Bank h as been filed.

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Heard arguments and perused record.

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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 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.23,70,040.89p (Rupees Twenty Three Lacs Seventy Thousand Fourty And Paise Eighty Nine 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 @17.00%p.a. with half yearly rests from 03.11.2021 till the date of application 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

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4 OA NO. 885/2022 AXIS BANK LIMITED VS BAGHEL SINGH AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,70,040.89p (Rupees Twenty Three Lacs Seventy Thousand Fourty And Paise Eighty Nine 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 23.05.2025. 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: 01.05.2025

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

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5 OA NO. 885/2022

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AXIS BANK LIMITED VS BAGHEL SINGH AND OTHERS

Axis Bank Limited v. Sh. Baghel Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Baghel Singh and Others

Case brief

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