Allowed

Axis Bank v. Jitender Kumar

DRT6 Jun 2026OA/678/2024

Case brief

AI extract

What is this about?

In an ex-parte proceeding, the Debts Recovery Tribunal allowed the bank's original application. The Tribunal ratified the bank's documentation proving default and directed joint and several recovery of the principal, interest, and costs from the borrowers' assets.

What did the court decide?

Direct the defendants to pay Rs. 22,87,396.43, interest, and costs within 30 days; issue recovery certificate; recover from hypothecated and other assets in case of shortfall.

Axis Bank versus Jitender Kumar — Contract and Commercial Disputes | DRT (2026)

¶1

O.A. No. 678 of 2024

¶2

Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

O.A. No.678 of 2024

¶5

Axis Bank Ltd. Retail Lending — Collections & FCU Axis Bank Limited, Axis House, Jaypee greens Wish Town, 1-14, Tower 2, 2nd Floor, Sector-128 Noida Expressway, Noida, UP

¶6

Applicant

¶7

Versus

¶8

Sh.Jitender Kumar s/o Sh.Manohar Lal Proprietor of M/s Sodhi Traders First Floor, Shop No.679, Old Lajpat Rai Market, Chandni Chowk Delhi-110006

¶9

Also at:

¶10

Sh.Jitender Kumar s/o Sh.Manohar Lal A-21, Tagore Garden Extension New Delhi-110027 Defendant

¶11

Present: Shri Dharam Dev, Counsel for the applicant bank

¶12

Date of Reserve: 20.05.2026

¶13

Date of Pronouncement: 06.06.2026

¶14

ORDER

¶15

This original application has been filed by the applicant on 27.08.2024 through Shri Anuj Gupta, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.22,87,396.43 (Rupees Twenty Two Lacs Eighty Seven Thousand Three Hundred

¶16

O.A. No. 678 of 2024

¶17

Ninety Six & paisa Forty Three only) as on 25.06.2024 out of which Rs.14,99,972/- in Cash Credit Account and Rs.7,87,424.43 in Term Loan account along with pendentelite and future interest together with interest @24% per annum with monthly rests from the date of the application till its realization and costs.

¶18

The brief facts of the case are that on the request of defendant no. 1 being proprietor of M/s Maya Steps, the applicant bank sanctioned Cash Credit limit of Rs.15.00 lacs (Rupees Fifteen Lacs only) @12.50% interest per annum under SBB CGTMSE scheme on 16.11.2022 and Term Loan facility of Rs.17.00 lacs (Rupees Seventeen lacs only) @17% interest per annum on 10.06.2022 to be repayable in 36 EMIs of Rs.60,610/- against hypothecation of current assets, stock and book debts etc. covered under CGTMSE scheme.

¶19

In order to avail both the loan facilities, the defendants submitted loan application and executed Sanction Letters, Facility Agreements, Demand Promissory Notes, DP Note Delivery cum Waiver Letters for both facilities, Standing Instructions, Declaration for IPO/ESOP Subscription, Confirmation of True Copy in case of Bulk Documents, Consent Letters, Authorization to approach IT Department, Deeds of Hypothecation creating charge on all Moveable Assets and Current assets, End Use Declaration, Disbursement Requests, Debit Authorization Letter, Addendum IRAC Norms and Deed of Guarantees along with other documents on 10.06.2022 and 16.11.2022.

¶20

It has been submitted by the applicant that after availing the aforesaid loan facilities, the defendants failed to comply

¶21

O.A. No. 678 of 2024

¶22

with the terms and conditions and despite of several requests and reminders, the defendants failed to regularize the account with applicant Bank. Both the accounts of defendants became irregular and applicant bank classified the accounts as NPA on 15.05.2024 and issued recall notice dated 26.06.2024 invoking personal guarantees of defendant calling upon the defendants to pay the entire outstanding dues but the defendants not responded, hence the applicant bank approached this tribunal for recovery of its dues.

¶23

Notices of this O.A. were issued to the defendants and despite proper service including publication in newspaper, the defendants have chosen to absent from the proceedings. As per order dated 25.02.2026, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

¶24

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Anuj Gupta, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Loan Application Forms, Sanction Letters, Facility Agreements, Demand Promissory Notes and DP Notes' Delivery cum Waiver Letter, Standing Instructions, Declaration of Borrower for IPO/ESOP, Confirmation of True Copy, Consent Letters, Authorization, Property Sale Deed, Letter for Disbursement of Credit Facility, Letters of Rate of Interest, Deed of Hypothecation, Deed of Guarantees, Stock Statement, Debit Authorization Letters, Undertaking for Sole Banking, Addendum IRAC Norms, Legal Notice, Statement of Account under Bankers' Book of Evidence Act marked as Exhibit AW1/1 & Exhibit AW1/29(Colly).

¶25

sd-

¶26

O.A. No. 678 of 2024

¶27

The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

¶28

The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank has proved its case beyond reasonable doubts.

¶29

In the light of the above discussions, the Original Application deserves to be allowed.

¶30

FINAL ORDER

¶31

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally within a period of 30 days, a sum of Rs.22,87,396.43 (Rupees Twenty Two Lacs Eighty Seven Thousand Three Hundred Ninety Six & paisa Forty Three only) as on 25.06.2024, out of which Rs.14,99,972/- in Cash Credit Account and Rs.7,87,424.43 in Term Loan account along with pendentelite future interest @24% interest per annum from 25.06.2024 till the date of realization with costs failing which the aforesaid amount shall be recovered from hypothecated stock, book debts and current assets etc. of defendant no.1. In case of shortfall, the same shall be recovered from sale of the moveable and immovable properties of defendants.

¶32

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

¶33

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 05.08.2026.

¶34

sd--

¶35

O.A. No. 678 of 2024

¶36

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

¶37

Ste- 1 (GOVIND BALLAT - H - SHARMA) PRESIDING OFFICER DRT-I, DELHI

¶38

(Dictated and pronounced in open court) Dated: 06.06.2026

Axis Bank v. Jitender Kumar

Case brief

What is this about?

What did the court decide?

Axis Bank v. Jitender Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Ujjivan Small Finance Bank Limited versus Ms Urban Whiz

Canara Bank versus Muttappa Bagennavar

Karnataka Gramin Bank versus Hanumatharaju S and Others

Central Bank of India versus M/S Shoppers Stop

Balbir Singh versus Bank of Baroda

Hdfc Bank versus Priyanka Mishra