Debts Recovery Tribunal allowed Axis Bank's application for recovery of Rs.21,91,140.45 against proprietors of A.F. Cloth House. Court granted interest at 8% p.a. and ordered issuance of Recovery Certificate.
Declaration of liability to pay Rs.21,91,140.45 jointly and severally with interest at 8% p.a.; issuance of Recovery Certificate.
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.624/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 27.04.2026
DATE OF DECISION: 20.06.2026
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 380006, Gujarat and one of its Branch Offices amongst other places known as Axis Bank Ltd. situated in Axis Bank Ltd. situated in SCO 390, 2nd Floor, Sector - 20, Panchkula, Haryana through its Manager Sh. Hari Om.
……..Defendants
Advocates:
Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 16.06.2026).
FINAL ORDER
2 OA NO.624/2026 AXIS BANK LTD. VS M/S A F CLOTH HOUSE AND ANOTHER
the Original Application vide Power of Attorney dated 23.04.2025, which is Annexure A1 to this OA.
3 OA NO.624/2026 AXIS BANK LTD. VS M/S A F CLOTH HOUSE AND ANOTHER
a debit of Rs.21,91,140.45, 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.
From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,91,140.45 (Rupees Twenty One Lacs Ninety One Thousand One Hundred Forty and Paise Forty Five 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.
4 OA NO.624/2026 AXIS BANK LTD. VS M/S A F CLOTH HOUSE AND ANOTHER
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 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.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal .
Dated: 20.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
1 issue framed by the court
Whether the applicant bank is entitled to recover the decretal amount from the defendants under Section 19 of RDB Act.
1 provisions across 1 enactments
Axis Bank Ltd.
Mridulesh Kumar Singh
As recorded by the court registry
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