Allowed

Axis Bank Limited v. Ashoka Distributors and Others

DRT6 Mar 2026OA/1135/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of an additional cash credit amount. It ruled that the respondents are liable to pay the outstanding sum with simple interest at 8% per annum, enforceable via asset sale or attachment.

What did the court decide?

Declaration of liability to pay Rs.50,87,996.78 plus simple interest @8% p.a.; issuance of Recovery Certificate; liberty to enforce through sale of assets.

Axis Bank Limited versus Ashoka Distributors and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1135/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.08.2025

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DATE OF DECISION: 06.03.2026

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AXIS BANK Ltd, having its Registered Office at “Trishul”, 3^rd Floor, Opposite Samartheswar Temple Law Garden, Ellis Bridge, Ahmedabad Gujrat.

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Also, at: Axis Bank, Loan Centre, SCO-390, 2^nd Floor, Sector-20, Panchkula through Sh. Hari Om, its Authorized Representative.

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……..Applicant

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Versus

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Ashoka Distributors through its Partners Sh. Rakesh Kumar & Sh. Shavi Singla, C/01, Arya Samaj, Namdarkhan Road, Patiala147001.

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Sh. Rakesh Kumar Singla S/o Sh. Sewa Ram Singla, Partner of M/S Ashoka Distributors, R/o H. No. 58, Urban Estate, Phase -1, Mehta Colony, Patiala-147001.

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Sh. Shavi Singla S/o Sh. Rakesh Kumar Singla, Partner of M/S Ashoka Distributors, R/o H. No. 58, Urban Estate, Phase -1, Mehta Colony, Patiala-147001.

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………. Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for Applicant (through VC)

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Defendants already ex parte vide order dated 27.01.2026

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.50,87,996.78 (Rupees Fifty Lacs Eighty Seven Thousand Nine Hundred and Ninety Six and Paise Seventy Eight Only). The Original Application has been filed through

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Sh. Hari Om, its Authorized Representative of the applicant, who is

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OA NO. 1135/2025 AXIS BANK LTD. VS. ASHOKA DISTRIBUTORS AND OTHERS

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competent to institute the Original Application vide Power of Attorney dated23.04.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 is partnership firm and defendants no. 2 and 3 are its partners. The defendant no.1 through its partner defendant no. 2 approached the applicant for grant Cash Credit Limit of Rs.70.00 Lacs under CGTMSE Scheme vide Loan Application dated 06.04.2022, which is Annexure A2 to this OA. Defendant nos. 2 and 3 also stood as guarantors. 3. The applicant sanctioned the Cash Credit Limit of Rs. 51.00 Lacs vide Sanction Letter dated 11.04.2022, which is Annexure A3 to this OA and the terms and conditions are accepted by defendants. 4. Defendant no. 1 through its partner defendant no. 2 hypothecated their stocks and book debts vide Deed of Hypothecation dated 10.04.2022, which is Annexure A5 to this OA. Documents executed : Partnership Deed dated 01.04.2019, which is Annexure A2 to this OA; Facility Agreement dated 23.04.2022, which is Annexure A6 to this OA; General Conditions, D.P. Note delivery cum wavier letter, Deed of Guarantee all dated 26.04.2022, which are Annexures A7 to A9 to this OA; Statement of Account, which is Annexure A10 to this OA; Legal Notice dated 19.06.2025, along with postal receipts dated 27.06.2025, which are Annexures A112 to A14 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 of Rs.50,87,996.78 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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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 27.01.2026.

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OA NO. 1135/2025 AXIS BANK LTD. VS. ASHOKA DISTRIBUTORS AND OTHERS

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In support of the OA, affidavit of Sh. Hari Om, Authorized Representative, Axis Bank Ltd., has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel 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 A14 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.50,87,996.78 (Rupees Fifty Lacs Eighty Seven Thousand Nine Hundred and Ninety Six and Paise Seventy Eight 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 lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.25% p.a. with from 03.06.2025 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/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 account from the date of filing of the OA till

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OA NO. 1135/2025 AXIS BANK LTD. VS. ASHOKA DISTRIBUTORS AND OTHERS

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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.50,87,996.78 (Rupees Fifty Lacs Eighty Seven Thousand Nine Hundred and Ninety Six and Paise Seventy Eight 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 assets 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.03.2026. 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: 06.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Ashoka Distributors and Others

Case brief

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What did the court decide?

Axis Bank Limited v. Ashoka Distributors and Others

Case brief

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