The DRT allowed an Original Application filed by a bank against a defaulting borrower for recovery of outstanding loan dues. The court reduced the claimed interest rate to 8% p.a. and directed the issuance of a recovery certificate for the judgment debt.
Decree for recovery of Rs.21,28,347.67 plus costs and simple interest @08.00%p.a.; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT DISTRICT TARN TARAN, PUNJAB
ORIGINAL APPLICATION NO.160/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 14.01.2026
DATE OF DECISION: 01.08.2026
AXIS Bank Ltd. (earlier known as UTI Bank Ltd.), a banking company, Commercial carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at "Trishul', 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad - 380006, Gujarat and one of its Branch Offices amongst other places known as Axis Bank Ltd. situated in SCO 390, 2ND Floor, Sector - 20, Panchkula, Haryana through its Manager, Sh. Hari Om.
……..Applicant
Versus
Sh. Gurpal Singh S/o Sh. Charnam Singh, R/o Thathi Jaimal Singh, Kalia Sanktra, Tarn Taran, Punjab - 143419.
……..Defendant
Advocates:
Argued by Sh. Ashutosh Bajpai, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant (through VC)
None for Defendant (Already ex-parte vide order dated 08.07.2026)
FINAL ORDER
2 OA NO.160/2026 AXIS BANK LTD. VS SH. GURPAL SINGH
| Small Business Banking Facility Application Form dated 20.10.2022, which isAnnexure A2to this OA. |
|---|
| 3. The applicant sanctioned the Business Loan Facility of |
| Rs.15,00,000.00 and terms and conditions were duly accepted by the |
| defendant vide Most Important Information – Business Power |
| Agreement dated 20.10.2022, which isAnnexure A3to this OA. |
| 4. Documents executed:Demand Promissory Note, Undertaking, |
| both dated 20.10.2022, which areAnnexures A4 & A5to this OA; |
| Legal Notice dated 11.08.2025, along with postal receipt, which is |
| Annexure A6to this OA; Statement of account along with foreclosure letter and certificate, which areAnnexures A7 & A8to this OA. |
| 5. 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.21,28,347.67, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, |
| therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. |
| 6. The defendant was served summons to appear before this |
| Tribunal, but no one appeared on behalf of the defendant and he was proceeded ex-parte vide order dated 08.07.2026. |
| 7. In support of the OA, affidavit ofSh. Hari Om, Manager, Axis |
| Bank Ltd. has been filed. |
| 8. Heard ex-parte arguments and perused record. |
| 9. It was argued by learned proxy 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 theAnnexures A1 to A8to this OA, it is |
| proved that the defendant approached applicant for availing of the loan facility, which was granted to him and for that he had executed all the |
| relevant documents in favour of the bank. The defendant failed to pay |
| back the loan as per terms and conditions of the agreement between |
| the parties. Subsequently, loan account was classified as NPA. From |
3 OA NO.160/2026 AXIS BANK LTD. VS SH. GURPAL SINGH
the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,28,347.67 (Rupees Twenty One Lacs Twenty Eight Thousand Three Hundred Forty Seven and Paise Sixty Seven Only), along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount.
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 undertaking of the defendant, 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 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.
12. Any other application pending stands disposed of.
4 OA NO.160/2026
AXIS BANK LTD. VS SH. GURPAL SINGH
Pronounced by me in the open Tribunal at Camp Court District Tarn Taran, Punjab .
Dated: 01.08.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the defendant is liable to repay the outstanding loan amount due under the Business Loan Agreement.
Whether Simple Interest @08.00%p.a. should be granted pendent lite considering market rates instead of the claimed 24.00%p.a.
Issuance of Recovery Certificate and attachment of assets to recover the dues.
AXIS Bank Ltd.
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
