Allowed

Axis Bank Ltd. v. Sh. Vallabh Gandhi

DRT12 Feb 2025TA/1489/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an ex-parte application by Axis Bank Ltd. against Vallabh Gandhi for recovery of loan dues. The court reduced the awarded interest rate from 24% to 12% per annum. A recovery certificate was issued.

What did the court decide?

Defendant directed to pay Rs. 12,08,710.81 with 12% per annum interest and costs within 30 days. Recovery certificate issued for enforcement through sale of assets.

Axis Bank Ltd. versus Sh. Vallabh Gandhi — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1489 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 1489 of 2022

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Axis Bank Ltd.

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Retail Asset Centre 416B, Asaf Ali Road Darya Ganj, New Delhi-110002

Applicant

Versus

Sh.Vallabh Gandhi

B-9/21, Krishna Nagar, Near Raghunath Mandir Delhi-110051

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Also at:

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Sh.Vallabh Gandhi B-9/21, Ground Floor, Krishna Nagar, Near Lal Quarters, Delhi-110051

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Defendant

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Present: Ms. Shruti Balyan, Counsel for the applicant bank

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Date of institution: 17.02.2015 Date of Pronouncement: 12.02.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 17.02.2015 through Shri Shrayansh Rastogi, authorized representative of the applicant bank, under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of Rs.12,08,710.81 (Rupees Twelve Lacs Eight Thousand Seven Hundred Ten & Paisa Eighty One only) along with pendentelite and future interest @24% per annum with monthly rest from the date of filing of this O.A. till the date of realization

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T.A. No. 1489 of 2022

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and costs. Further, the name of Shri Abhinav Pandey was substituted as Authorized Representative in place of Shri Shrayansh Rastogi erstwhile AR for the applicant bank.

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The brief facts of the case are that at the reruest of defendant, the applicant bank sanctioned Personal Loan of Rs.9,29,000/- (Rupees Nine Lacs Twenty Nine Thousand only) on 26.07.2007 @14.50% interest per annum to be repaid in 48 equated monthly installments of Rs.25,620/- w.e.f August 2007 till July'2011.

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That in order to avail the said Personal loan facility, the defendant executed Personal Loan Application, Sanction Letter dated 26.07.2007 along with Terms and Conditions, Personal Loan Agreement and Demand Promissory Note and D.P. Note Delivery cum Waiver Letter dated 28.07.2007 with Applicant Bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions and cheques /ECS issued for timely payment of monthly installments were returned dishonored time and again, willfully neglected to maintain sufficient balance in his account. The applicant bank terminated the agreement and issued legal notice dated 23.09.2013 to adjust the outstanding amount along with interest but defendant did not clear the dues and failed to comply. Hence, the applicant bank has approached this Tribunal for recovery of their dues

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 24.09.2024, the defendant has been proceeded ex-parte as not appeared

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T.A. No. 1489 of 2022

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before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Abhinav Pandey, authorized representative of the applicant bank who has proved the documents as Special Power of Attorney ExhibitAW1/1, Personal Loan application Exhibit-AW1/2, Sanction Letter Exhibit-AW1/3, Loan Agreement and Other Documents Exhibit-AW1/4(colly), Demand Promissory Note ExhibitAW1/5(colly), Repayment Schedule Exhibit-AW1/6, Legal Demand Notice Exhibit-AW1/7, Postal Receipts ExhibitAW1/8, Statement of Account Exhibit-AW1/9 (Colly) and Loan Pay Off Details Exhibit AW-1/10, Certificate under 2A under Banker Book Evidence Act and 65B of Evidence Act Exhibit AW1/11.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank

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T.A. No. 1489 of 2022

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of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.12,0E,710.81 (Rupees Twelve Lacs Eight Thousand Seven Hundred Ten & Paisa Eighty One only) along with pendentelite and future interest @12% per annum with monthly rest and costs from the date of filing of this O.A. till the date of realization, failing which the aforesaid amount shall be recovered from sale of moveable and immovable property of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III)^{Parties are directed to appear before the Recovery} Officer, DRT I, Delhi on 15.04.2025.

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(IV)^{Copies of final order as well as Recovery Certificate be} sent to all concerned free of cost.

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5,d

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated & pronounced in open court) Dated: 12.02.2025

Axis Bank Ltd. v. Sh. Vallabh Gandhi

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Vallabh Gandhi

Case brief

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