Allowed

Axis Bank Ltd. v. Sh. Ranjit Singh and Others

DRT1 Jan 2026OA/351/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Axis Bank Ltd. against four defendants for recovery of Rs.21,89,960.00. The court granted uniform simple interest at 8% per annum and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.21,89,960.00 with costs and simple interest at 8% p.a. from the date of filing until realization; issuance of Recovery Certificate.

Axis Bank Ltd. versus Sh. Ranjit Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.351/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2025

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DATE OF DECISION: 01.01.2026

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Axis Bank Ltd. (earlier UTI 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 Patti, District Tarn Taran, Punjab, through its Attorney Sh. Nitish Aggarwal, Manager of Applicant

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……..Applicant

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Versus

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Sh. Ranjit Singh S/o Sh. Hajara Singh, R/o Village Sabhra, Tehsil Patti, District Tarn Taran-143416.

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Sh. Gurjit Singh S/o Hajara Singh, R/o Village Sabhra, Tehsil

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Patti, District Tarn Taran-143416.

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Smt. Sukhwinder Kaur Wd/o Sh. Hajara Singh, R/o Village Sabhra, Tehsil Patti, District Tarn Taran-143416.

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Sh. Gurmail Singh S/o Sh. Piara Singh, R/o Village Sabhra, Tehsil Patti, District Tarn Taran-143416.

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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 18.12.2025

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,89,960.00 (Rupees Twenty One Lacs Eighty Nine Thousand Nine Hundred Sixty Only). The Original Application has been filed through Sh. Nitish Aggarwal,

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OA NO.351/2025 AXIS BANK LTD. VS. RANJIT SINGH AND OTHERS

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Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 to 3 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide loan application form dated 27.02.2009, which is Annexure A2 to this OA. Defendant no. 4 stood as guarantor. Guarantor form dated 27.02.2009, which is Annexure A3 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs & vide Sanction letter dated 05.03.2009, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant nos.1 to 3 had mortgaged their immovable property i.e. land measuring 86K-0M situated at Village Sabhra-II, Tehsil Patti, District Tarn Taran, Punjab vide Mortgage Deed bearing vasika no.3939 dated 06.03.2009, along with its translation, which are Annexures A9 & A10 to this OA.

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Documents executed : Loan cum hypothecation agreement, Joint and Several Demand Promissory Note, DP Note delivery cum waiver letter & Deed of guarantee, all dated 06.03.2009, which are Annexures A5 to A9 to this OA; Legal opinion regarding lean mark dated 14.03.2009, which is Annexure A11 to this OA; Notice dated 27.01.2025, along with postal receipts, which are Annexures A12 to A15 to this OA and Statement of Account along with certificate under Banker’s Book Evidence Act, which is Annexure A16 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 debit of Rs.21,89,960.00, 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.

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OA NO.351/2025 AXIS BANK LTD. VS. RANJIT SINGH AND OTHERS

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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 15.12.2025.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, Manager, Axis Bank Ltd., 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 Annexures A1 to A16 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.21,89,960.00 (Rupees Twenty One Lacs Eighty Nine Thousand Nine Hundred Sixty 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @15.75% p.a. along with @2% penal interest with half yearly rests from 03.05.2024 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

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OA NO.351/2025 AXIS BANK LTD. VS. RANJIT SINGH AND OTHERS

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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 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.21,89,960.00 (Rupees Twenty One Lacs Eighty Nine Thousand Nine Hundred Sixty 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.

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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 14.01.2026.

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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 .

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Dated: 01.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Ranjit Singh and Others

Case brief

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Axis Bank Ltd. v. Sh. Ranjit Singh and Others

Case brief

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