Allowed

Axis Bank v. M/S Mama Moters and Others

DRT16 Sept 2025OA/901/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application under Section 19 RDB Act acknowledged by the applicant to recover Rs.49,82,507 from defendants who were an NPA account. Defendants appeared ex-parte. Court decreed debt with modified interest.

What did the court decide?

Recovery of Rs.49,82,507 plus costs and simple interest at 8% p.a. from date of filing via hypothecated/personal assets; Recovery Certificate issued; Ex-parte appearance set aside.

Axis Bank versus M/S Mama Moters and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.901/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.07.2025

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DATE OF DECISION: 16.09.2025

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Axis Bank Ltd., (earlier 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 Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006, Gujarat and branches at different places throughout India including one at Phase-II, Dugri, Ludhiana, through its Attorney Sh. Hari Om, Senior Manager of the applicant.

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……..Applicant

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Versus

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M/s Mama Motors, B18-1061, Plot No.576, Link Road, Model Town, Ludhiana-141002, through its partners Barun Arora and Tarun Arora.

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2^nd address: Shop NO.3-4, Gill Road, Sector Market, Ludhiana, Punjab.

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Sh. Barun Arora S/o Sh. Satish Arora, Partner in Mama Motors, R/o Plot No.1, Royal Mint Villas, Dhandra Road, Satjot Nagar, Basant Avenue, Ludhiana-141116

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Sh. Tarun Arora S/o Sh. Satish Arora, Partner in Mama Motors, R/o Plot No.1, Royal Mint Villas, Dhandra Road, Satjot Nagar, Basant Avenue, Ludhiana-141116

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, 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.49,82,507.00P (Rupees Forty

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2 OA NO.901/2025 AXIS BANK LTD. Vs M/S MAMA MOTORS AND OTHERS

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Nine Lacs Eighty Two thousand Five Hundred Seven Only). The Original Application has been filed through Sh. Hari Om, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 25.04.2025, 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 partners defendant nos. 2 & 3 had approached the applicant for the grant of CC Limit of Rs.1.25 Crore vide application form for credit facility dated 20.06.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs.50.00 Lacs vide Sanction letter dated 19.07.2024, which is Annexure A4 to this OA. and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 through its partners defendant nos. 2 & 3 hypothecated movable assets i.e. stock and book debts vide deed of hypothecation dated 20.07.2024, which is Annexure A4 to this OA. However, in the OA it is stated that there is NIL primary and collateral security in the account. Documents executed:- Working Capital Loan agreement, Undertaking, Undertaking by borrower, Joint and Several Demand Promissory Note, D.P. Note Delivery cum waiver letter, Deed of Guarantee all dated 20.07.2024, which are Annexures A4 to A10 to this OA; Partnership Deed dated 17.07.2019, which is Annexure A11 to this OA; Retirement cum partnership deed dated 11.03.2022, which is Annexure A12 to this OA; Supplementary Partnership deed dated 22.07.2024, which is Annexure A13 to this OA; Notice dated 14.06.2025 along with Postal receipts, which are Annexures A14 to A18 to this OA and Statement of account, which is Annexure A19 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 Rs.49,82,507.00P, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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3 OA NO.901/2025 AXIS BANK LTD. Vs M/S MAMA MOTORS AND OTHERS

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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 28.08.2025.

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In support of the OA, affidavit of Sh. Hari Om, Senior Manager, Axis Bank Ltd., h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 A19 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.49,82,507.00P (Rupees Forty Nine Lacs Eighty Two thousand Five Hundred Seven 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. with penal interest along with 2% penal interest with monthly rests from 29.05.2025 till the realization. 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 hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.901/2025 AXIS BANK LTD. Vs M/S MAMA MOTORS 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 @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.

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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.49,82,507.00P (Rupees Forty Nine Lacs Eighty Two thousand Five Hundred Seven 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 assets and 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 07.10.2025.

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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: 16.09.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank v. M/S Mama Moters and Others

Case brief

What is this about?

What did the court decide?

Axis Bank v. M/S Mama Moters and Others

Case brief

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What did the court decide?

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