Allowed

Axis Bank Limited v. Sh. Gurmukh Singh and Another

DRT12 Mar 2026OA/1595/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Axis Bank Ltd. against two defendants for recovery of a loan of Rs.55 lakhs. The court granted uniform simple interest at 8% per annum and ordered the issuance of a Recovery Certificate under the SARFAESI Act.

What did the court decide?

Allowed the application, declared defendants liable to pay Rs.55,29,548.00 with 8% p.a. interest, and issued a Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1595/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.11.2025

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DATE OF DECISION: 12.03.2026

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Axis Bank Ltd, having its Registered Office at Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat. Also at: Axis Bank, Loan Centre, SCO-390, Sector-20, Panchkula through Sh. Hari Om, its Authorized Representative

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……..Applicant Versus

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1. Sh. Gurmukh Singh S/o Sh. Punjab Singh, Village Chirag Shah Wala, PO Kadarwala, Tehsil and District Moga-142001.

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Sh. Joginder Singh S/o Sh. Avtar Singh, VPO Kot Sadar

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Khan, Tehsil District Moga-142001. ……….Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for applicant

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Defendants are already ex parte vide order dated 07.01.2026

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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.55,29,548.00 (Rupees Fifty Five Lacs Twenty Nine Thousand Five Hundred Forty Eight Only). The Original Application has been filed through Sh. Hari Om, Authorized Representative, 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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The brief facts of the OA are that the defendant no.1 approached the applicant for grant of KCC Limit of Rs.25.00 Lacs vide Application dated 24.12.2009, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Guarantor’s form dated

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OA NO. 1595/2025 AXIS BANK LTD VS. GURMUKH SINGH AND ANOTHER

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24.12.2009, which is Annexure A3 to this OA. Thereafter, the defendant no. 1 approached for enhancement of the limit to Rs.50.00 Lacs vide request letter dated 16.02.2013.

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs vide Sanction letter dated 11.02.2010, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of the limit to Rs.50.00 Lacs vide sanction letter dated 15.03.2013, which is Annexure A9 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no.1 mortgaged his immovable property i.e. land measuring 126K-11M, situated at Village Chirag Shah Wala, Tehsil Dharamkot, District Moga, Punjab vide Mortgage Deed bearing vasika no. 4165 dated 17.02.2010, which is Annexure A8 to this OA; Mortgage deed bearing vasika no. 3895 dated 18.03.2013, which is Annexure A13 to this OA.

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Documents executed: Loan cum Hypothecation Agreement, DP Note and Deed of Guarantee, all dated 02.03.2010 which are Annexure A5 to A7 to this OA; Loan cum Hypothecation Agreement, D.P. Note, D.P. Note delivery cum waiver letter, all dated 23.03.2013, which are Annexure A10 to A12 to this OA; Statement of Account which is Annexure A14 to this OA; Demand Notice dated 13.09.2025, with postal receipts, which are Annexures A15 to A17 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

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debit of Rs.55,29,548.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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OA NO. 1595/2025 AXIS BANK LTD VS. GURMUKH SINGH AND ANOTHER

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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 07.01.2026.

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

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel 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 A17 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.55,29,548.00 (Rupees Fifty Five Lacs Twenty Nine Thousand Five Hundred Forty 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.75%p.a. from 29.10.2024 till 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

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OA NO. 1595/2025 AXIS BANK LTD VS. GURMUKH SINGH AND ANOTHER

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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 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 a total sum of Rs.55,29,548.00 (Rupees Fifty Five Lacs Twenty Nine Thousand Five Hundred Forty 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/mortgaged 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. 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 01.04.2026. 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: 12.03.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Gurmukh Singh and Another

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Axis Bank Limited v. Sh. Gurmukh Singh and Another

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