Allowed

Axis Bank Limited v. Sh. Bara Singh and Another

DRT27 Aug 2026OA/52/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Axis Bank Ltd. against deceased borrower's legal heirs and guarantor for recovery of Rs. 25.80 Lakhs. The court sanctioned simple interest at 8% p.a. and ordered recovery from the sale of the hypothecated vehicle and personal assets.

What did the court decide?

Recovery of Rs. 25,80,783 with costs and simple interest at 8% p.a.; order to sell hypothecated vehicle and attach personal assets of guarantor and heirs.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 52/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.01.2026

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DATE OF DECISION: 27.08.2026

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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 380 006, Gujarat and one of its branch offices amongst other places known as Axis Bank Ltd. situated in SCO No. 390, 2nd Floor, Sector 20, Panchkula, Haryana through its Manager, Sh. Hari Om Sharma.

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……..Applicant Versus

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Sh. Bara Singh S/o Sh. Mukhtiar Singh R/o Village Pupana Near Government Boys School, Shri Muktsar Sahib, Punjab-152032. Now deceased through its following LRs:

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(a) Smt. Jaspal Kaur W/o Late Sh. Bara Singh R/o Village Pupana Near Government Boys School, Shri Muktsar Sahib, Punjab-152032.

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(b) Sh. Arshdeep Singh S/o Late Sh. Bara Singh R/o Village Pupana Near Government Boys School, Shri Muktsar Sahib, Punjab-152032.

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Sh. Arshdeep Singh S/o Sh. Bara Singh R/o Village Pupana Near Government Boys School, Shri Muktsar Sahib, Punjab-152032.

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…….Defendants

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Advocates:

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Argued by Sh. Prerit Thakur, Advocate proxy for Sh. Gaurav Gupta, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 18.08.2026)

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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

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OA/52/2026 AXIS BANK LIMITED VS. SH. BARA SINGH AND ANOTHER

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defendants for recovery of Rs.25,80,783.00 (Rupees Twenty Five Lac Eighty Thousand Seven Hundred Eighty Three Only). The Original Application has been filed through Sh. Hari Om Sharma, Manager, of the Applicant, who is competent to institute the Original Application vide GPA of Bank Official dated 23.04.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 (since deceased) approached the applicant for grant of Term Loan of Rs.18,36,500.00 for purchase of commercial vehicle vide Loan Application dated 04.11.2022, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor.

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The applicant sanctioned the Term Loan of Rs.18,36,500.00 vide Sanction Letter dated 09.11.2022, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants.

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Defendant no. 1 (since deceased) hypothecated his vehicle that’s Mahindra Furo 11 bearing Regn. No. PB-04-RE-7925, Engine No. CMN4994021, Chassis No. MA1EACMWFN637366, vide Loan-cumHypothecation Agreement dated 09.11.2022, which is Annexure A4 to this OA; Registration Certificate, which is Annexure A8 to this OA; Documents executed: D.P. Note dated 09.11.2022, which is Annexure A5 to this OA; D.P. cum Waiver dated 09.11.2022, which is Annexure A6 to this OA; Disbursement Request dated 09.11.2022, which is Annexure A7 to this OA; Recall Notice dated 29.07.2025, which is Annexure A9 to this OA; Foreclosure dated 10.07.2025, which is Annexure A10 to this OA; Statement of Account Certificate under Bankers Books of Evidence, which is Annexure A11 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 the loan account, there was a debit of Rs.25,80,783.00 (Rupees Twenty Five Lac Eighty Thousand Seven Hundred Eighty Three Only), 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/52/2026 AXIS BANK LIMITED VS. SH. BARA SINGH AND ANOTHER

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The defendants were served summons to appear before this Tribunal and after the service of summons, Defendant no.1 reported expired. IA No. 1188/2026 was filed to implead Legal Heirs of deceased defendant no.1 by the applicant. Notices were served to Legal Heirs of deceased defendant no.1. None appeared despite of service and IA No. 1188/2026 was allowed vide order dated 18.08.2026. Thereafter, LRs were impleaded as defendant nos. 1(a) to 1(b). No one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 18.08.2026. 7. In support of the OA, affidavit of Sh. Hari Om Sharma, Manager, AXIS Bank Limited , has been filed. 8. Heard 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 Annexures A1 to A11 to this OA, it is proved that the defendant no.1 (since deceased) approached the applicant for availing of the loan facility, which was granted to them. Defendant no.2 stood as guarantor. 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.25,80,783.00 (Rupees Twenty Five Lac Eighty Thousand Seven Hundred Eighty Three 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.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24.00% p.a. with monthly rests from 11.07.2025 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 hypothecated vehicle, undertaking of

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OA/52/2026

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AXIS BANK LIMITED VS. SH. BARA SINGH AND ANOTHER

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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 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.25,80,783.00 (Rupees Twenty Five Lac Eighty Thousand Seven Hundred Eighty Three 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 vehicle of the deceased defendant no.1 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 defendant no.2 and personal assets of the defendant no. 1(a) up to the extent, she inherited the property of deceased defendant no.1. Defendant no. 1(b) & defendant no. 2 are one and the same person. 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 11.09.2026

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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: 27.08.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Axis Bank Limited v. Sh. Bara Singh and Another

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Bara Singh and Another

Case brief

What is this about?

What did the court decide?

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