Allowed

Axis Bank Ltd. v. Sh. Harnek Singh and Ors.

DRT12 Jun 2026OA/666/2025

Case brief

AI extract

What is this about?

In an ex-parte original application under Section 19 of the RDB Act, the Delhi Bench allowed Axis Bank Ltd.'s claim for Rs. 24.13 Lakhs against borrowers and a guarantor. The Tribunal reduced the claimed interest rate to 8% p.a. and directed issue of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 24,13,833.96 with simple interest at 8% p.a.; Issue of Recovery Certificate; Parties to appear before Recovery Officer.

Axis Bank Ltd. versus Sh. Harnek Singh and Ors. — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.666/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.05.2025

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DATE OF DECISION: 12.06.2026

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Axis Bank Ltd. having its Registered Office at Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat and also at Axis Bank Loan Centre, SCO 367-368, Sector 34A, Chandigarh- 160022 through Sh. Nitish Aggarwal, Authorized Representative

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……..Applicant

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Versus

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Sh. Harnek Singh, S/o Sh. Naranjan Singh, R/o VPO Jhanner, Tehsil Malerkotla, District Sangrur, Punjab- 148020

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Sh. Amarjeet Singh, S/o Sh. Harnek Singh, R/o VPO Jhanner, Tehsil Malerkotla, District Sangrur, Punjab- 148020

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Sh. Sukhwinder Singh, S/o Sh. Bachan Singh, R/o VPO Jhanner, Tehsil Malerkotla, District Sangrur, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Arpit Chawla, Advocate proxy for Sh. Gagandeep Toni, Advocate for applicant

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None for defendants (already ex-parte vide order dated 10.06.2026)

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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. 24,13,833.96 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred Thirty Three and Paise Ninety Six Only). The Original Application has been filed through Sh. Nitish Aggarwal, Authorized Representative of the applicant who is competent to institute the Original Application vide Power of Attorney dated 24.08.2023, which is Annexure A1 to this OA.

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2 OA/666/2025 AXIS BANK LTD. VS. HARNEK SINGH AND OTHERS

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The brief facts of the OA are that defendant nos. 1 and 2 approached the applicant for grant of CC Limit of Rs. 20.00 Lacs vide Application Form dated 15.06.2009, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs. 20.00 Lacs vide Sanction Letter dated 31.07.2009, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 6.75 Acres situated at Village Jhanner, Tehsil Malerkotla, District Sangrur, Punjab vide Mortgage Deed bearing vasika no. 820 dated 10.08.2009, which is Annexure A8 to this OA. Defendant nos. 1 and 2 hypothecated their standing crops and crops to be grown vide Loan cum Hypothecation Agreement dated 01.09.2009, which is Annexure A5 to this OA. Documents executed: Guarantor Form dated 15.06.2009, which is Annexure A3 to this OA; Deed of Guarantee dated 01.09.2009, which is Annexure A6 to this OA; Balance Confirmation dated 20.03.2010, which is Annexure A7 to this OA; Statement of Account, which is Annexure A9 to this OA and Demand Notice dated 16.11.2024 along with postal receipts, which are Annexure A10 to A13 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 24,13,833.96 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. 6. 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 10.06.2026. 7. In support of the OA, affidavit of Sh. Nitish Aggarwal, Authorized Representative, Axis Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA/666/2025 AXIS BANK LTD. VS. HARNEK SINGH AND OTHERS

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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 A13 to this OA, it is proved that the defendant nos. 1 and 2 approached applicant for availing of the loan facility which was granted to them. Defendant no. 3 stood as guarantor. Defendants 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. 24,13,833.96 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred Thirty Three and Paise Ninety 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.

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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 @14.75%p.a. w.e.f. 29.10.2024 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 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.24,13,833.96 (Rupees Twenty Four Lacs Thirteen Thousand Eight Hundred Thirty Three and Paise Ninety Six Only) jointly and severally

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OA/666/2025

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AXIS BANK LTD. VS. HARNEK SINGH AND OTHERS

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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 assets of defendant nos. 1 and 2 and mortgaged property of 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 defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.06.2026. 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: 12.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. v. Sh. Harnek Singh and Ors.

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Harnek Singh and Ors.

Case brief

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