Allowed

Axis Bank Limited v. Sh. Pritpal Singh and Another

DRT12 Feb 2026OA/1665/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Axis Bank's application for recovery of Rs. 37,62,324.00 from two borrowers who failed to repay sanctioned KCC and Agriculture Overdraft limits. The Tribunal reduced the claimed interest rate to 8% per annum.

What did the court decide?

Recovery of Rs. 37,62,324.00 at 8% p.a. simple interest from filing date; recovery certificate issued; attachment of personal assets if hypothecated properties are insufficient.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1665/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.11.2025

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DATE OF DECISION: 12.02.2026

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AXIS 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 branches at different places throughout India including one at Tarn Taran, through its Attorney Sh. Hari Om, Senior Manager of Applicant.

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……..Applicant

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Versus

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Sh. Pritpal Singh S/o Sh. Gian Singh, R/o Village Kambo Dhaiwala, Tehsil Chola Sahib, District Tarn Taran- 143408.

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Sh. Gurpreet Singh S/o Sh. Pritpal Singh R/o Village Kambo Dhaiwala, Tehsil Chola Sahib, District Tarn Taran-143408.

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……….Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for Applicant

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Defendants already ex parte vide order dated 20.01.2026

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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.37,62,324.00 (Rupees Thirty Seven Lacs Sixty Two Thousand Three Hundred Twenty Four Only). The Original Application has been filed through Sh. Hari Om, 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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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of KCC Limit of Rs.15.50 Lacs and

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OA NO. 1665/2025 AXIS BANK LTD VS. PRITPAL SINGH AND ANOTHER

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Agriculture Overdraft Limit of Rs.20.00 Lacs vide Application form dated 19.07.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.14.85 Lacs and Agriculture Overdraft Limit of Rs.20.00 Lacs vide sanction letter dated 10.08.2023, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. 4. Defendant no.1 mortgaged his immoveable properties i.e. total land measuring 57K-02M situated at Village Kambo Dhaiwala, Hadbast No.355, Tehsil Chohla Sahib, District Tarn Taran, Punjab vide declaration dated 18.08.2023 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A9 to this OA. Documents executed : Loan cum Hypothecation agreement, Joint and Several Demand Promissory Notes, DP Note delivery cum waiver letters, all dated 19.08.2023, which are Annexures A4 to A8 to this OA; Notice dated 28.07.2025, along with postal receipts, which are Annexures A10 to A12 to this OA and Statement of Account, which are Annexures A13 and A14 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.37,62,324.00, 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. 6. 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 20.01.2026. 7. In support of the OA, affidavit of Sh. Hari Om, Manager, Axis Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record.

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OA NO. 1665/2025 AXIS BANK LTD VS. PRITPAL SINGH AND ANOTHER

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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 Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,62,324.00 (Rupees Thirty Seven Lacs Sixty Two Thousand Three Hundred Twenty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @11.85% p.a. plus 2% penal interest with half yearly rests from 02.05.2025 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 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.

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OA NO. 1665/2025 AXIS BANK LTD VS. PRITPAL SINGH AND ANOTHER

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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.37,62,324.00 (Rupees Thirty Seven Lacs Sixty Two Thousand Three Hundred Twenty Four Only) jointly and severally, with costs, current and future simple interest @08.00%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 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 26.02.2026.

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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: 12.02.2026.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Pritpal Singh and Another

Case brief

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Axis Bank Limited v. Sh. Pritpal Singh and Another

Case brief

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