Allowed

Axis Bank Ltd. v. Sh. Davinder Singh and Another

DRT28 Jan 2026OA/389/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Axis Bank's original application for recovery of Rs. 31.27 Lakhs against two borrowers. The court found the loan documents valid but modified the claimed interest rate to 8% per annum while rejecting the ex parte defense.

What did the court decide?

Directed defendants to pay Rs. 31,27,247.00 along with costs and simple interest at 8% p.a. and ordered issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.389/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.03.2025

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DATE OF DECISION: 28.01.2026

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AXIS BANK LTD. (earlier known as 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 one of its branch offices amongst other places known as Axis Bank Ltd. situated in SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Manager Sh. Nitish Aggarwal.

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…….. Applicant

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Versus

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Sh. Davinder Singh s/o Sh. Najar Singh, R/o House No. 86, Village Gandu Kalan, Maghnia, District Mansa, Punjab-151503.

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Smt. Navjot Kaur W/o Sh. Davinder Singh R/o House No.86, Village Gandu Kalan, Maghnia, District Mansa, Punjab-151503.

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….……Defendants

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Advocates:

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Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for Applicant (through VC)

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Defendants already ex parte vide order dated 05.01.2026

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.31,27,247.00 (Rupees Thirty One Lacs Twenty Seven Thousand Two Hundred Forty Seven Only). The Original Application has been filed through Sh. Nitish Aggarwal, 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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OA/389/2025 AXIS BANK LTD VS. DAVINDER SINGH AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Agriculture Overdraft Limit of Rs.27.00 Lacs and Agriculture CC Limit of Rs.9.00 Lacs vide loan application dated 06.03.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned the Agriculture Overdraft Limit of Rs.21.64 Lacs and Agriculture CC Limit of Rs.7.21 Lacs vide Sanction letter dated 14.03.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. land measuring 115K-09M (14.43 Acre) situated at village Gandu Kalan, Tehsil Budhlada, District Mansa, Punjab vide Declaration u/s 4(1) dated 21.03.2023, which is Annexure A9 to this OA. Documents executed: - Loan cum hypothecation agreement, Joint & Several DP Notes, DP Note delivery cum waiver letters, all dated 22.03.2023, which are Annexures A4 to A8 to this OA; Recall notice dated 24.01.2025, which is Annexure A10 to this OA and Statement of accounts with certificate under Banker’s Book Evidence, which are Annexures A11 & A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.31,27,247.00, 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 05.01.2026. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal, Authorized Signatory, Axis Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record.

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OA/389/2025 AXIS BANK LTD VS. DAVINDER SINGH AND ANOTHER

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It was argued by learned counsel 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 the Annexures A1 to A12 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 bank is entitled to recover a sum of Rs.31,27,247.00 (Rupees Thirty One Lacs Twenty Seven Thousand Two Hundred Forty Seven 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@24% p.a. in Overdraft and @15%p.a. in CC Limit from 18.01.2025 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 @8.00%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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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OA/389/2025 AXIS BANK LTD VS. DAVINDER SINGH AND ANOTHER

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Rs.31,27,247.00 (Rupees Thirty One Lacs Twenty Seven Thousand Two Hundred Forty Seven Only) jointly and severally, with costs, current and future simple interest @8.00%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 mortgaged properties/hypothecated assets 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.02.2026. 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: 28.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Davinder Singh and Another

Case brief

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Axis Bank Ltd. v. Sh. Davinder Singh and Another

Case brief

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