Allowed

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Sh. Shamsher Singh

DRT6 Apr 2026OA/485/2025

Case brief

AI extract

What is this about?

DRT Chandigarh decided an ex-parte application by Axis Bank against four borrowers for recovery of a loan classified as NPA. The Tribunal allowed the claim, directing joint and several liability for the principal and costs. It exercised discretion to award uniform 8% p.a. simple interest instead of the bank's claimed rates.

What did the court decide?

Ordered recovery of Rs.39,99,951.80 jointly and severally with current and future simple interest @8.00% p.a.; Recovery Certificate issued; Execution proceedings directed if dues remain unsatisfied.

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) versus Sh… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.485/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.04.2025

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DATE OF DECISION: 06.04.2026

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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, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad-380006, Gujarat, and one of its Branch Offices amongst other places known as Axis Bank Limited, situated in SCO No. 367-368, 3rd Floor, Sector 34-A, Chandigarh, through its Legal Manager, Sh. Nitish Aggarwal .

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……..Applicant

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Versus

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Sh. Shamsher Singh S/o Sh. Wassan Singh.

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Sh. Wassan Singh S/o Sh. Atma Singh.

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Smt. Sarabjit Kaur W/o Sh. Sarmukh Singh.

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Sh. Sarmukh Singh S/o Sh. Atma Singh.

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All the defendants are residents of Village Pandori Takhat Mall, District Tarn Taran, Punjab-143401.

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.……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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None for Defendants (already ex-parte vide order dated 16.03.2026)

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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.39,99,951.80 (Rupees Thirty Nine Lacs Ninety Nine Thousand Nine Hundred Fifty One & Paise Eighty only). The Original Application has been filed through Sh. Nitish Aggarwal, Manager of the applicant, who is competent to institute the Original

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2 OA/485/2025 AXIS BANK LTD. VS SH. SHAMSHER SINGH AND OTHERS

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Application vide General Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA.

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2. applica	The brief facts of the OA are that the defendants approached the nt for the grant of Kisan Samarth OD facility of Rs.33.60 lacs and
KCC fa which	cility of Rs.10.00 lacs vide Loan application dated 10.11.2022, isAnnexure A2to this OA.
3.	The applicant sanctioned the Kisan Samarth OD facility of
Rs.30.	00 lacs and KCC facility of Rs.10.00 lacs vide Sanction letter dated
23.12.	2022, which isAnnexure A3to this OA and the terms and
conditi	ons were duly accepted by the defendants.
4. Def	endant No. 2 to 4 mortgaged their immovable properties i.e.
i.	Defendant No. 3 mortgaged her Land Measuring 51 Kanal 5 Marla situated at village Sur Singh 1, Hadbast No. 139, Sub Tehsil Bhikhiwind, Tehsil Patti, District Tarn Taran, Punjab,
	vide Declaration u/s 4(1) dated 23.12.2022, with letter showing recording of charge dated 23.12.2022, which are Annexures A9 & A10to this OA;
ii.	Defendant No. 2 mortgaged his Land measuring 22 Kanal 12 Marla situated at Village Pandori Takhat Mal, Sub-Tehsil Jhabal Kalan, Tehsil and District Tarn Taran, Punjab;
	Defendant No. 4 mortgaged his land measuring 12 Kanal 4 Marla situated at Village Pandori Takhat Mal, Hadbast No. 49,
	Sub-Tehsil Jhabal Kalan, Tehsil and District Tarn Taran, Punjab;
	both vide Declaration u/s 4(1) dated 23.12.2022, with letter
	showing recording of charge dated 23.12.2022, which are
	Annexures A11 & A12to this OA;
iii.	Defendant No. 2&4 mortgaged their land measuring 74 Kanal
	0 Marla situated at Village Khanwal, Hadbast No. 43, Tehsil
	Ajnala, District Amritsar, Punjab, vide Declaration u/s 4(1)
	dated 23.12.2022, with letter showing recording of charge
	dated 23.12.2022, which areAnnexures A13 & A14to this OA.

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3 OA/485/2025 AXIS BANK LTD. VS SH. SHAMSHER SINGH AND OTHERS

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Documents executed: - Joint & Several D.P. Note, D.P. Note Delivery cum waiver letter, Joint & Several D.P. Note, D.P. Note Delivery cum waiver letter, all dated 27.12.2022, which are Annexures A4 to A8 to this OA; Legal notice dated 20.01.2025 with postal receipts, which is Annexure A15 to this OA; Statement of Accounts with certificate, which are Annexures A16 & A17 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 both the loan accounts there was a debit of Rs.39,99,951.80, 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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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 16.03.2026.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, Legal Manager, Axis Bank Limited, h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A17 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, both the 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.39,99,951.80 (Rupees Thirty Nine Lacs Ninety Nine Thousand Nine Hundred Fifty One & Paise Eighty 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.

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4 OA/485/2025 AXIS BANK LTD. VS SH. SHAMSHER SINGH AND OTHERS

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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 @24.00% p.a. in Kisan Samrath OD and @15.00% in KCC Limit, with Half Yearly rests from 11.05.2023 to 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 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 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 Rs.39,99,951.80 (Rupees Thirty Nine Lacs Ninety Nine Thousand Nine Hundred Fifty One & Paise Eighty 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 property/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.

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Parties to appear before Learned Recovery Officer of this Tribunal

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on 23.04.2026

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OA/485/2025

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AXIS BANK LTD. VS SH. SHAMSHER SINGH AND OTHERS

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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. Pronounced by me in the open Tribunal . Dated: 06.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Sh. Shamsher Singh

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Sh. Shamsher Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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