Allowed

Axis Bank v. Sh. Harjinder Singh and Another

DRT23 Jan 2026OA/280/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application to recover a debt of Rs.21 lakh from defendants who defaulted on KCC and term loans. The court appointed a uniform simple interest rate of 8% p.a. and directed the issuance of a recovery certificate.

What did the court decide?

Total sum of Rs.21,00,008.49 payable jointly and severally with simple interest at 8% p.a.; issuance of Recovery Certificate

Axis Bank versus Sh. Harjinder Singh and Another — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.280/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.02.2023

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DATE OF DECISION: 23.01.2026

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Axis Bank Ltd., a company incorporated under the provisions of the companies Act and a banking company within the meaning of the section 5(c) of the Banking Regulations Act, 1949 (10 of 1949) and having its Registered Office at Trishul, Opposite Samartheswar Temple, Near law garden, Ellisbridge, Ahmedabad-380006 (Gujarat) and having its branches amongst other places at Axis Bank Ltd., Naurangabad, District Tarn Taran, Punjab through its Authorized Signatory Sh. Rohit Varun Singh Thakur.

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……..Applicant

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Versus

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Sh. Harjinder Singh, Son of Sh. Sukhchain Singh, R/o Village Vain Poin, Tehsil and District Tarn Taran, Punjab.

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Smt. Harbinder Kaur W/o Sh. Harjinder Singh, R/o Village Vain Poin, Tehsil and District Tarn Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Gurnam Singh, Advocate proxy for Sh. Rajiv Shaerma, Advocate for the applicant (through VC)

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Defendants already ex-parte vide order dated 15.12.2025

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,00,008.49 (Rupees Twenty One Lacs Eight Thousand & Paise Forty Nine Only). The Original Application has been filed through Sh. Varun Singh Thakur, Authorized Signatory, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

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OA NO.280/2023 AXIS BANK LTD. VS HARJINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of KCC Limit of Rs. 23.70 Lacs & Agriculture Term Loan of Rs.3.70 Lacs vide loan application dated 28.09.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs. 20.00 Lacs & Agriculture Term Loan of Rs.3.50 Lacs vide Sanction letter dated 01.11.2016, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his immovable properties i.e. land measuring 64k-00Marla situated at Village Vain Poin, Tehsil Khadoor Sahib, District Tarn Taran (Punjab) vide Declaration u/s 4(1) dated 21.11.2016, which is Annexure A8 to this OA and Jamabandi for the year 2018-2019, along with its translation, which is Annexure A9 to this OA. Documents executed: - Loan cum hypothecation agreement, term loan agreement, Joint and Several Demand Promissory note, DP Note delivery cum waiver letter, all dated 02.11.2016, which are Annexures A4 to A7 to this OA; Loan recall notice dated 13.07.2022, which is Annexure A10 to this OA and Statement of account, which is Annexure A11 to this OA. 5. The KCC loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.21,00,008.49, 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 15.12.2025.

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OA NO.280/2023 AXIS BANK LTD. VS HARJINDER SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Varun Singh Thakur, Authorized Signatory, Axis Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through Video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A11 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 KCC loan as per terms and conditions of the agreement between the parties. Subsequently, KCC account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,00,008.49 (Rupees Twenty One Lacs Eight Thousand & Paise Forty Nine 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.20%p.a. along with 6% penal interest with half yearly rests from 20.12.2022 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

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OA NO.280/2023 AXIS BANK LTD. VS HARJINDER SINGH AND ANOTHER

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@8.00%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.

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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.21,00,008.49 (Rupees Twenty One Lacs Eight Thousand & Paise Forty Nine Only) jointly and severally, with costs, current and future simple interest @8.00%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/mortgaged properties of 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.02.2026. 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: 23.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank v. Sh. Harjinder Singh and Another

Case brief

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Axis Bank v. Sh. Harjinder Singh and Another

Case brief

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