Allowed

Axis Bank v. Ms Chandan Enterprises and Another

DRT23 Jun 2026OA/710/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Axis Bank Limited for recovery of a loan of Rs. 2.66 crore against M/S Chandan Enterprises and Sh. Chandan Saluja. The court approved the claim and fixed a uniform simple interest rate of 8% p.a.

What did the court decide?

Debt of Rs. 2,66,91,425.00 with costs and simple interest at 8% p.a. from the date of filing till realization; Recovery Certificate issued.

Axis Bank versus Ms Chandan Enterprises and Another — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 710/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.05.2026

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DATE OF DECISION: 23.06.2026

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AXIS BANK LIMITED, 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 branches at different places throughout India including one at Mukatsar, through its Attorney, Sh. Hari Om, Senior Manager of Applicant Bank.

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……..Applicant

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Versus

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M/S Chandan Enterprises, Shop No. 152-A, M/S Chandan Traders, New Grain Market, Sri Mukatsar Sahib – 152026, and also at Jalalabad Road, Opp. Vardan Rice Mill, Mukatsar – 152026, through its Proprietor Sh. Chandan Saluja.

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Sh. Chandan Saluja S/o Sh. Sanjeev Saluja, Sole Prop. of M/S Chandan Enterprises, R/o H. No. 1242, Pipal Street, Near Cheese Stories Showroom, Kotkpura Road, Sri Mukatsar Sahib – 152026.

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.……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for applicant

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None for Defendants (already ex parte vide order dated 20.06.2026)

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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. 2,66,91,425.00 (Rupees Two Crore Sixty Six Lacs Ninety One Thousand Four Hundred Twenty Five Only). The Original Application has been filed through Sh. Hari Om, Senior

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2 OA/ 710/2026 AXIS BANK LIMITED VS M/S CHADAN ENTERPRISES AND ANOTHER

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Manager , of the applicant , who is competent to institute the Original Application vide Power of Attorney in favour of Sh. Hari Om dated 23.04.2025, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for Term Loan of Rs. 157.00 lacs vide Application Form for Credit Facility dated 04.07.2023, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for grant of OD Limit of Rs. 90.00 lacs vide Application Form for Credit Facility dated 18.10.2023, which is Annexure A9 to this OA.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for enhancement of OD Limit from Rs. 90.00 lacs to Rs. 135.00 lacs vide Application Form for Credit Facility dated 24.06.2024, which is Annexure A27 to this OA. 3. The applicant sanctioned the Term Loan of Rs. 157.00 lacs vide Sanction Letter dated 07.07.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the OD Limit of Rs. 90.00 lacs vide Sanction Letter dated 31.01.2024, which is Annexure A10 to this OA. Thereafter, the applicant sanctioned the enhancement of OD Limit of Rs. 90.00 lacs to Rs. 135.00 lacs vide Sanction Letter dated 27.07.2024, which is Annexure A28 to this OA. 4. Defendant no. 1 through its proprietor defendant no. 2, hypothecated its assets purchased out of bank finance vide Deed of Hypothecation dated 14.07.2023, which is Annexure A4 to this OA; Defendant no. 2 mortgaged his industrial property land measuring 17Kanal-17Marla situated at Village Sadarwala, Hadbast no. 111, Tehsil & District Sri Muktsar Sahib, Punjab vide deposit of Sale Deed bearing Vasika No. 2023-24/53/1/784 dated 11.05.2023, which is Annexure A15 to this OA; Punjabi to English Translation of Sale Deed bearing Vasika No. 2023-24/53/1/784, which is Annexure A16 to this OA; Sale

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3 OA/ 710/2026 AXIS BANK LIMITED VS M/S CHADAN ENTERPRISES AND ANOTHER

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Deed bearing Vasika No. 2023-24/53/1/785 dated 11.05.2023, which is Annexure A17 to this OA; Punjabi to English Translation of Sale Deed bearing Vasika No. 2023-24/53/1/785, which is Annexure A18 to this OA; Sale Deed bearing Vasika No. 2023-24/53/1/915 dated 15.05.2023, which is Annexure A19 to this OA; Punjabi to English Translation of Sale Deed bearing Vasika No. 2023-24/53/1/915, which is Annexure A20 to this OA; Transfer Deed bearing Vasika No. 2023-24/53/1/3642 dated 26.10.2023, which is Annexure A21 to this OA; Punjabi to English Translation of Sale Deed bearing Vasika No. 202324/53/1/3642, which is Annexure A22 to this OA; Record of Mortgage by Deposit of Title Deeds dated 13.02.2024, which is Annexure A24 to this OA; Copy of Jamabandi dated 06.02.2024, which is Annexure A25 to this OA; Translation of Jamabandi, which is Annexure A26 to this OA.

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Documents executed: Term Loan Agreement dated 14.07.2023, which is Annexure A5 to this OA; Demand Promissory Note dated 14.07.2023, which is Annexure A6 to this OA; D.P. Note Delivery Cum Waiver Letter dated 14.07.2023, which is Annexure A7 to this OA; Deed of Guarantee dated 14.07.2023, which is Annexure A8 to this OA; Working Capital Loan Agreement dated 02.02.2024, which is Annexure A11 to this OA; Demand Promissory Note dated 02.02.2024, which is Annexure A12 to this OA; D.P. Note Delivery Cum Waiver Letter dated 02.02.2024, which is Annexure A13 to this OA; Deed of Guarantee dated 02.02.2024, which is Annexure A14 to this OA; Declaration Cum Confirmation Deed dated 13.02.2024, which is Annexure A23 to this OA; Working Capital Loan Agreement dated 30.07.2024, which is Annexure A29 to this OA; Undertaking dated 30.07.2024, which is Annexure A30 to this OA; Demand Promissory Note dated 30.07.2024, which is Annexure A31 to this OA; D.P. Note Delivery Cum Waiver Letter dated 30.07.2024, which is Annexure A32 to this OA; Deed of Guarantee dated 30.07.2024, which is Annexure A33 to this OA; Declaration Cum Deed of Confirmation for Extension of Mortgage dated 30.07.2024, which is Annexure A34 to this OA;

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4 OA/ 710/2026 AXIS BANK LIMITED VS M/S CHADAN ENTERPRISES AND ANOTHER

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Extension Record of Mortgage by Deposit of Title Deeds dated 31.07.2024, which is Annexure A35 to this OA; Copy of Jamabandi dated 01.08.2024, which is Annexure A36 to this OA; Translation of Jamabandi, which is Annexure A37 to this OA; Notice and Postal Receipts dated 24.11.2024, which are Annexure A38 to A43 to this OA; Statement of Accounts with certificate, which are Annexures A44 to A46 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 loan accounts, there was a debit of Rs. 2,66,91,425.00 (Rupees Two Crore Sixty Six Lacs Ninety One Thousand Four Hundred Twenty Five 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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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 20.06.2026. 7. In support of the OA, affidavit of Sh. Hari Om, Senior Manager, AXIS Bank Limited, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 A46 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. 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. 2,66,91,425.00 (Rupees

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5 OA/ 710/2026 AXIS BANK LIMITED VS M/S CHADAN ENTERPRISES AND ANOTHER

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Two Crore Sixty Six Lacs Ninety One Thousand Four Hundred Twenty 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @9.00%p.a. in Term Loan plus penal interest @2.00% p.a. with monthly rests from 27.09.2025 and @10.00% p.a. in OD Limit, plus penal interest @2.00% p.a. with monthly rests from 25.11.2025, 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 assets and mortgaged property, 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.2,66,91,425.00 (Rupees Two Crore Sixty Six Lacs Ninety One Thousand Four Hundred Twenty Five 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 hypothecated assets of defendant no.1 and mortgaged property of the defendant no. 2 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

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6 OA/ 710/2026 AXIS BANK LIMITED VS M/S CHADAN ENTERPRISES AND ANOTHER

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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 on 08.07.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 23.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank v. Ms Chandan Enterprises and Another

Case brief

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Axis Bank v. Ms Chandan Enterprises and Another

Case brief

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