Allowed

Axis Bank v. Kalpana Jain

DRT5 Aug 2026OA/120/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application against two respondents who failed to appear. The tribunal confirmed the bank's documentary evidence regarding the clean merchant loan default and directed the ex-parte recovery of the principal sum and interest.

What did the court decide?

Recovery of Rs.24,37,197.38 as on 05.06.2021 plus interest at 13.85% p.a. from 05.06.2021 till realization and costs.

Axis Bank versus Kalpana Jain — Contract and Commercial Disputes | DRT (2026)

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O.A. No.120 of 2023

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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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O.A. No. 120 of 2023

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Axis Bank Ltd.

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Axis House, Jaypee Greens Wishtown Tower-2, 2nd Floor, Sector-128, Noida Expressway, Noida, UP-201301 Applicant

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Versus

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Ms Kalpana Jain w/o Ram Gopal Jain Proprietor M/s Planet Needs Shop No.56,57,58, Sector-49 Unitech Arcadia, Gurugram, Haryana-122001

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Also at:

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D-10, 3rd Floor, Rosewood City Sector-49, Sohna Road, Gurgaon-122018

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Sh.Utkarsh Jain Shop No.56,57,58, Sector-49 Unitech Arcadia, Gurugram, Haryana-122001

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Also at:

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D-10, 3rd Floor, Rosewood City Sector-49, Sohna Road, Gurgaon-122018 Defendants

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Present: Ms.Sunanda Kumari, Counsel for the applicant bank

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Date of Reserve: 17.07.2026 Date of Pronouncement: 05.08.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 18.10.2022 through Shri Anuj Gupta, authorized representative of the, applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.24,37,197.38 (Rupees Twenty Four Lacs Thirty Seven Thousand One Hundred Ninety Seven & paisa Thirty Eight only) as on 05.06.2021 along with

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O.A. No.120 of 2023

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pendentelite and future interest @11.85% and @2% penal interest w.e.f. 06.06.2021 with monthly rest till the date of realization and costs.

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The brief facts of the case are that at the request of defendant no.1 being proprietress of M/s Planet Needs and defendant no.2 being its guarantor, the applicant bank sanctioned SBB Merchant loan of Rs.25.00 lacs (Rupees Twenty Five Lacs only) under dealer finance scheme for working capital requirements on 15.02.2018 @12.25% interest per annum subject to change as per bank's guidelines against hypothecation of current assets and book debs and personal guarantee of defendants.

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That in order to avail the loan facility, the defendant no.1 submitted loan application and executed Facility Agreement, Demand Promissory Note, D.P.Note Delivery cum Waiver Letter, Deed of Guarantee, End Use Declaration, Standing Instructions, Signature Card, Self-Declaration Surrendering of EDC machine, Declarations, Confirmation of True Copies, Letter for Change in Interest rate, Letter to Card Receivable in Card Power OD Account, and Deed of Hypothecation in favour of Applicant Bank on 17.02.2018.

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That in order to secure the loan facility, the defendant no.1 hypothecated the card receivable of the firm with applicant bank on 17.02.2018.

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It has been submitted by the applicant bank that after availing the credit facility by defendant no.1 for business purposes but failed to comply with the terms and conditions and neglected to repay it back hence the account became irregular. The applicant bank classified the account as NPA on 05.06.2021 and issued legal notice dated 22.07.2022 to

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O.A. No.120 of 2023

defendant no.1 to clear the outstanding with interest but defendant no.1 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 defendants and despite of proper service, -the defendants have chosen to absent from the proceedings. As per order dated 13.01.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Anuj Gupta, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Sanction Letter, Facility Agreement, Demand Promissory Note, D.P.Note Delivery cum Waiver Letter, Deed of Guarantee, End Use letter, Standing Instruction, Signature Card, Self Declaration Surrendering of EDC Machine, Declaration, Confirmation of True Copies in case of Bulk Documents, Letter for Change in Interest Rate, Letter for Card Receivable in Card Power OD Account, Small Business Banking Card Power Overdraft, Deed of Hypothecation, Legal Notice, Certificate under Bankers Book Evidence Act and Evidence Act marked as Exhibit AW1/1 to Exhibit AW1/19 (Colly).

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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

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O.A. No.120 of 2023

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bank and the applicant bank has proved its case beyond reasonable doubts.

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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, allow this OA and direct the defendants to pay to the applicant bank within 30 days, jointly or severally, a sum of Rs.24,37,197.38 (Rupees Twenty Four Lacs Thirty Seven Thousand One Hundred Ninety Seven & paisa Thirty Eight only) as on 05.06.2021 together with interest @13.85% per annum with monthly rest from 05.06.2021 till the date of realization along with costs, failing which the aforesaid amount shall be recovered from sale of hypothecated card receivables etc. In case of shortfall, the same shall be recovered from the sale of moveable and immovable property of the defendants.

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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 05.10.2026.

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

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(Dictated & pronounced in open court) Dated: 05.08.2026

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Axis Bank v. Kalpana Jain

Case brief

What is this about?

What did the court decide?

Axis Bank v. Kalpana Jain

Case brief

What is this about?

What did the court decide?

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