Allowed

Axis Bank Limited v. Sh. Malkeet Singh and Another

DRT28 Jul 2026OA/44/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank applicant's application for recovery of Rs. 61.43 lakhs from defendants who defaulted on commercial vehicle loans. The tribunal reduced the claimed interest rate to 8% p.a. and directed recovery via sale of hypothecated assets or attachment of personal assets.

What did the court decide?

Order for recovery of Rs. 61,43,786.00 jointly and severally with costs and simple interest @8.00% p.a. entitling applicant to sale of hypothecated assets or attachment of personal assets.

Axis Bank Limited versus Sh. Malkeet Singh and… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 44/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.01.2026

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DATE OF DECISION: 28.07.2026

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Axis Bank Limited, Registered Office at Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat380006 and Branch Office at Axis Bank Ltd. Loan Centre, SCO 390, Sector 20, Panchkula through its Authorized Representative, Sh. Hari Om

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……..Applicant

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Versus

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Sh. Malkeet Singh, S/o Sh. Satwinder Singh, R/o Village Jalbehri, District Fatehgarh- 140406

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Smt. Kulwant Kaur, W/o Late Sh. Satwinder Singh, R/o Village Jalbehri, District Fatehgarh- 140406

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….……Defendants

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Advocates:

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Argued by Ms. Pinki, Advocate proxy for Ms. Dipti Toni, Advocate for applicant

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None for defendants (already ex-parte vide order dated 24.07.2026)

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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. 61,43,786.00 (Rupees Sixty One Lacs Forty Three Thousand Seven Hundred Eighty Six Only). The Original Application has been filed through Sh. Hari Om, Authorized Representative 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 defendants approached the applicant for grant of Commercial Vehicle Loan of Rs. 21.08 Lacs vide

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OA/44/2026 AXIS BANK LIMITED VS. MALKEET SINGH AND ANOTHER

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Loan Application Form dated 07.07.2022, which is Annexure A2 to this OA. Thereafter, defendants approached the applicant for grant of Commercial Vehicle Loan of Rs. 32,70,034.00 vide Loan Application Form dated 23.07.2023, which is Annexure A6 to this OA.

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The applicant sanctioned Commercial Vehicle Loan of Rs.20,69,329.00. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs. 29,73,200.00.

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Defendants hypothecated their movable assets namely: i. Ashok Leyland Ltd. CA1615 bearing Registration no. PB11DA9095, Engine no. NGPZ120454 and Chassis no. MB1A3HCD3NAGM5747 vide RC filed on 28.07.2026;

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ii. Mahindra and Mahindra Limited Blazo28 bearing Registration no. PB11DE0795, Engine no. PJNZL16553 and Chassis no. MA1PCARHFN6M74787 vide RC filed on 28.07.2026.

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Documents Executed: Loan cum Hypothecation Agreement, Addendum and DP Note, all dated 20.07.2022, which are Annexure A3 to A5 to this OA; Loan cum Hypothecation Agreement, Irrevocable Power of Attorney, Addendum and DP Note, all dated 28.07.2023, which are Annexure A7 to A11 to this OA; Statement of Accounts, which are Annexure A12 and A13 to this OA; Legal Notice dated 16.08.2025 along with postal receipts, which are Annexure A14 to A16 to this OA.

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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. 61,43,786.00 which is recoverable and the defendants were served recall notice 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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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.07.2026.

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3 OA/44/2026 AXIS BANK LIMITED VS. MALKEET SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Hari Om, Authorized Representative, Axis Bank Limited h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A16 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 applicant. 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. 61,43,786.00 (Rupees Sixty One Lacs Forty Three Thousand Seven Hundred Eighty Six Only), along with interest from defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @12.5%p.a. from the date of filing of the application 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 hypothecated assets, undertaking of the defendants, quantum of loans 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 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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OA/44/2026 AXIS BANK LIMITED VS. MALKEET 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.61,43,786.00 (Rupees Sixty One Lacs Forty Three Thousand Seven Hundred Eighty Six 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 hypothecated assets 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.08.2026. 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: 28.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Malkeet Singh and Another

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Axis Bank Limited v. Sh. Malkeet Singh and Another

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