Allowed

Axis Bank Limited v. Sh. Santokh Singh and another

DRT27 Aug 2026OA/1005/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Axis Bank Ltd. against two borrowers for recovery of an outstanding loan amount of Rs.34,50,233.00. The court reduced the claimed interest rate from 10.65% to 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.34,50,233.00 with 8% p.a. interest; Order to issue Recovery Certificate; Authority to sell mortgaged properties.

Axis Bank Limited versus Sh. Santokh Singh and another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1005/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.07.2026

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DATE OF DECISION: 27.08.2026

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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 - 380006, Gujarat and branch at Axis Bank Ltd. Ground Floor, Near Hero Honda Showroom, Jakhal through its Attorney Sh. Hari Om Sharma working as Senior Manager with the applicant Bank.

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……..Applicant

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Versus

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Sh. Santokh Singh, R/o Gulaharah Patiala, City Patran, Punjab - 147105.

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Smt. Akvinder Kaur W/o Sh. Santokh Singh, R/o Gulaharah Patiala, City Patran, Punjab - 147105.

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…….. Defendants

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Advocates:

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Argued by Sh. Deepak Jain, Advocate for the applicant (through VC) None for defendants (Already ex-parte vide order dated 24.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.34,50,233.00 (Rupees Thirty Four Lacs Fifty Thousand Two Hundred and Thirty Three Only). The Original Application has been filed through Sh. Hari Om Sharma, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 23.04.2025, which is Annexure A1 to this OA.

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2 OA NO.1005/2026 AXIS BANK LTD. VS SH. SANTOKH SINGH AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Overdraft Limit of Rs.30,00,000.00 and Production Credit Limit of Rs.85,000.00 vide Loan Application Form for Agriculture Credit, dated 01.02.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the Overdraft Limit of Rs.30,00,000.00 and Production Credit Limit of Rs.85,000.00 vide Sanction Letter, dated 04.03.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants mortgaged their Immovable Properties i.e., (i) Land measuring 00K 10M as per Jamabandi for the year 20172018, situated at Village Gulhar, Tehsil Patran, District Patiala, in the name of defendant no. 2 (ii) Land measuring 06K 10M as per Jamabandi for the year 20172018, situated at Village Gulhar, Tehsil Patran, District Patiala, in the name of defendant no. 1,

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Vide declarations u/s 4(1) along with Request Letters for charge creation of equitable mortgage in revenue records in favour of bank, dated 10.03.2023, which is Annexure A5 to this OA and Title Deed deposited by executing Declaration cum Confirmation Deed dated 10.05.2023, which is Annexure A6 to this OA. Documents executed: Loan cum Hypothecation Agreement, dated 04.05.2023, which is Annexure A4 to this OA; Legal Notice, dated 15.07.2025, along with postal receipts, which is Annexure A7 to this OA; Statement of Accounts, along with certificates, which are Annexures A8 to A10 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.34,50,233.00, 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.

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3 OA NO.1005/2026 AXIS BANK LTD. VS SH. SANTOKH SINGH AND ANOTHER

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The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants and they were proceeded ex-parte vide order dated 24.08.2026. 7. In support of the OA, affidavit of Sh. Hari Om Sharma, Senior Manager, Axis Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing 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 loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,50,233.00 (Rupees Thirty Four Lacs Fifty Thousand Two Hundred and Thirty Three Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.65%p.a. with half yearly rests, with penal interest @6%p.a. in both the loan accounts 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 properties, undertaking of the defendants, quantum of loans 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

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4 OA NO.1005/2026 AXIS BANK LTD. VS SH. SANTOKH SINGH AND ANOTHER

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just and appropriate to grant simple interest @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.34,50,233.00 (Rupees Thirty Four Lacs Fifty Thousand Two Hundred and Thirty Three Only), jointly and severally, with costs, current and future simple interest @8.00%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 mortgaged properties of defendants i n 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.

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 11.09.2026.

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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 . Dated: 27.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Santokh Singh and another

Case brief

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Axis Bank Limited v. Sh. Santokh Singh and another

Case brief

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