Allowed

Axis Bank Ltd. v. Shree Mahavir Ji Creation and Others

DRT18 Oct 2025OA/990/2025

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed an original application filed by Axis Bank Ltd. for recovery of a loan of Rs.45,65,672.78 p against a bank and two individuals. The tribunal proceeded ex-parte against the non-appearance of respondents, granted the recovery claim, and ordered interest at 8% p.a. from the filing date, authorizing recovery under the SARFAESI Act, 2002.

What did the court decide?

Declaratory order making defendants liable to pay Rs.45,65,672.78 p with costs and simple interest at 8% p.a.; direction to issue Recovery Certificate.

Axis Bank Ltd. versus Shree Mahavir Ji Creation and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.990/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 09.07.2025

¶5

DATE OF DECISION: 18.10.2025

¶6

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 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.390, 2nd Floor, Sector 20, Panchkula, Haryana through its Legal Manager Sh. Nitish Aggarwal .

¶7

……..Applicant

¶8

Versus

¶9

M/s Shree Mahavir Ji Creation through its proprietor, Plot No.110, Near K.P. Singh School, Dashmesh Colony, District Ludhiana, Punjab-141008.

¶10

Ms. Mamta Jain C/o Sh. Harish Jain, Proprietor, M/s Shree Mahavir Ji Creation R/o House No. S-172, Street No.4, Basant Vihar, Noor Wala Road, Basti Jodhewal, District Ludhiana, Punjab.

¶11

Sh. Harish Jain, S/o Sh. Suresh Kumar Jain, R/o House No. S- 172, Street No.4, Basant Vihar, Noor Wala Road, Basti Jodhewal, District Ludhiana, Punjab.

¶12

….……Defendants

¶13

Advocates:

¶14

Argued by Sh. Rahul Garg, Advocate for Applicant

¶15

Defendants already ex parte

¶16

FINAL ORDER

¶17

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.45,65,672.78p (Rupees Forty Five Lacs Sixty Five Thousand Six Hundred Seventy Two &

¶18

2 OA NO. 990/2025 AXIS BANK LTD VS M/S SHREE MAHAVIR JI CREATION AND OTHERS

¶19

Seventy Eight Paise Only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager of the applicant, who are competent to institute the Original Application vide Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 approached the applicant for the grant of CC Limit of Rs.55.00 Lacs under CGTMSE Scheme vide loan application dated 26.07.2023, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor.

¶21

The applicant sanctioned CC Limit of Rs.44.00 Lacs under CGTMSE Scheme vide Sanction Letter dated 03.08.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated stock and book debts, vide Deed of hypothecation dated 21.08.2023, which is Annexure A5 to this OA.

¶22

Documents executed : - Facility agreement, DP Note delivery, DP Note delivery cum waiver letter, Deed of guarantee all dated 21.08.2023, which are Annexures A4, A6 to A8 to this OA; Legal notice dated 14.06.2025 along with postal receipts, which is Annexure A9 to this OA and Statement of Account, which is Annexure A10 to this OA.

¶23

The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.45,65,672.78p, 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.

¶24

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 22.09.2025.

¶25

3 OA NO. 990/2025 AXIS BANK LTD VS M/S SHREE MAHAVIR JI CREATION AND OTHERS

¶26

In support of the OA, affidavit of Sh. Nitish Aggarwal, Lega; Manager, Axis Bank Ltd., has been filed.

¶27

Heard ex-parte arguments and perused record.

¶28

It was argued by the 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 Annexure 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.45,65,672.78p (Rupees Forty Five Lacs Sixty Five Thousand Six Hundred Seventy Two & Seventy Eight 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.

¶29

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00% p.a. with monthly rests from 06.04.2025 till the realization.

¶30

The Tribunal is of the considered opinion that sometimes inappropriate 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/hypothecated assets, 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 the loan

¶31

¶32

OA NO. 990/2025 AXIS BANK LTD VS M/S SHREE MAHAVIR JI CREATION AND OTHERS

¶33

account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶34

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,65,672.78P (Rupees Forty Five Lacs Sixty Five Thousand Six Hundred Seventy Two & Seventy Eight 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 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.

¶35

12. Any other application pending stands disposed of.

¶36

Issue Recovery Certificate accordingly.

¶37

Parties to appear before Learned Recovery Officer of this Tribunal on 30.10.2025

¶38

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.

¶39

Pronounced by me in the open Tribunal . Dated: 18.10.2025

¶40

(MRIDULESH KUMAR SINGH) Presiding Officer,

¶41

DRT-III, Chandigarh

Axis Bank Ltd. v. Shree Mahavir Ji Creation and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Shree Mahavir Ji Creation and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Omkara Assets Reconstruction Pvt. Ltd. versus M/S Ludhiana Kolkata Transport Co. and Others

Hdfc Bank Limited versus Sh. Sukhminder Singh Rattan

Union Bank of India versus Sh. Lakhbir Khan

Icici Bank Limited versus Gujri Industries International Pvt. Ltd. and Another

Icici Bank Limited versus Messrs Jai Mata Durga Transport Co. and Another

Kotak Mahindra Bank Limited versus Kulwant Singh and Another