The Debt Recovery Tribunal allowed the bank's application for recovery of a defaulted agricultural loan. The court set a future interest rate at 08% p.a. instead of the claimed 17% and directed issuance of a Recovery Certificate.
The application allowed; defendants restored to pay Rs. 68,49,156.00 with interest at 08% 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
ORIGINAL APPLICATION NO.395/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.03.2025
DATE OF DECISION: 29.06.2026
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, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat- 380006 and one of its Branch Offices amongst other places known as Axis Bank Ltd. situated at SCO no. 367-368, 3rd Floor, Above Akash Education Institute, Sector 34A, Chandigarh through its Area Legal Manager, Sh. Sandeep Kumar
……..Applicant
Versus
……….Defendants
Advocates:
Argued by Sh. Rakshit Gupta, Advocate proxy for Sh. Rahul Garg, Advocate for applicant
None for defendants (already ex-parte vide order dated 24.06.2026)
FINAL ORDER
2 OA NO. 395/2025 AXIS BANK LIMITED VS. SARABJIT SINGH AND ANOTHER
Original Application has been filed through Sh. Sandeep Kumar, Area Legal Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.
Defendants hypothecated their crops grown or to be grown and harvested crops vide Loan cum Hypothecation Agreement dated 24.03.2015, which is Annexure A4 to this OA. Documents executed: Joint and Several DP Note and Waiver Letter, both dated 24.03.2015, which are Annexure A5 and A6 to this OA; Letter of Acknowledgement dated 11.09.2017, which is Annexure A8 to this OA; Legal Notice dated 05.12.2024 along with postal receipts, which is Annexure A9 to this OA and Statement of Account, which is Annexure A10 to this OA.
3 OA NO. 395/2025 AXIS BANK LIMITED VS. SARABJIT SINGH AND ANOTHER
From the perusal of all the Annexure A1 to A10 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.68,49,156.00 (Rupees Sixty Eight Lacs Forty Nine Thousand One Hundred Fifty Six Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @17.00%p.a. with half yearly rests w.e.f. 27.11.2024 till the realization.
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 hypothecated assets/mortgaged property, 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,
4 OA NO. 395/2025 AXIS BANK LIMITED VS. SARABJIT SINGH AND ANOTHER
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.
Pronounced by me in the open Tribunal . Dated: 29.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank was entitled to recover the outstanding loan amount from the defaulting defendants.
Whether the interest rate claimed by the applicant on pendency and future should be allowed.
2 provisions across 2 enactments
Axis Bank Ltd.
Sarabjit Singh
Kuljit Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
