Allowed

Axis Bank Limited v. M/S Rattan Steel Works and Another

DRT1 Sept 2026OA/773/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed axis Banks original application filed under Section 19 RDB Act for recovery of dues. The court found defendants liable to pay the outstanding amount including costs and adjusted interest at 8% p.a. granted recovery certificate and incurred sale of hypothecated assets.

What did the court decide?

Recovery of Rs.49,97,668.62 with simple interest at 8% p.a. granted under Section 19 RDB Act.

Axis Bank Limited versus M/S Rattan Steel Works and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.773/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.05.2026

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DATE OF DECISION: 01.09.2026

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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, 3^rd 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 SCO 390, 2^nd Floor, Sector - 20, Panchkula, Haryana through its Manager, Sh. Hari Om.

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……..Applicant

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Versus

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M/s Rattan Steel Works, through its proprietor Sh. Rattandeep Singh, having its Registered Office at, Village Bangawali, Tehsil Dhuri, District Sangrur, Punjab - 148024.

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Sh. Rattandeep Singh S/o Sh. Amarjit Singh, proprietor of M/s Rattan Steel Works, R/o House No.237, Ramgarhia Gurudwara Road, Ward No.14, Arya Samaj Block, Dhuri, Sangrur, Punjab - 148024.

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…….. Defendants

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Advocates:

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Sh. Sunil Salotra, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 27.08.2026)

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.49,97,668.62 (Rupees Forty Nine Lacs Ninety Seven Thousand Six Hundred Sixty Eight and Paise

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2 OA NO.773/2026 AXIS BANK LTD. VS M/S RATTAN STEEL WORKS AND ANOTHER

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Sixty Two Only). The Original Application has been filed through Sh. Hari Om, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, 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 through its proprietor defendant no. 2 a pproached the applicant for grant of Cash Credit Limit of Rs.50,00,000.00 vide Small Business Banking Facility Application Form, dated 01.05.2023, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.50,00,000.00 vide Sanction Letter, dated 11.05.2023, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts, vide Deed of Hypothecation, dated 22.05.2023, which is Annexure A6 to this OA. Documents executed: GST Registration Certificate, dated 20.06.2020, which is Annexure A2 to this OA; Facility Agreement, dated 22.05.2023, which is Annexure A5 to this OA; Demand Promissory Note, D.P. Note Delivery cum waiver letter, both dated 22.05.2023, which are Annexures A7 & A8 to this OA; Letter of Acknowledgement of Debt, dated 23.06.2025, which is Annexure A9 to this OA; Legal Notice, dated 26.11.2025, along with postal receipts, which is Annexure A10 to this OA; Statement of Account along with certificate, 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.49,97,668.62, 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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3 OA NO.773/2026 AXIS BANK LTD. VS M/S RATTAN STEEL WORKS AND ANOTHER

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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 27.08.2026. 7. In support of the OA, affidavit of Sh. Hari Om, Manager, Axis Bank Ltd. has been filed. 8. Sh. Sunil Salotra, Advocate proxy was present but not argued. Perused record. 9. It shows from record that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A11 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 approached applicant for availing of loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.49,97,668.62 (Rupees Forty Nine Lacs Ninety Seven Thousand Six Hundred Sixty Eight and Paise Sixty Two 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 @11.00%p.a., from 20.11.2025 till the realization. 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, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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4 OA NO.773/2026 AXIS BANK LTD. VS M/S RATTAN STEEL WORKS AND ANOTHER

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%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 sum of Rs.49,97,668.62 (Rupees Forty Nine Lacs Ninety Seven Thousand Six Hundred Sixty Eight and Paise Sixty Two Only), jointly and severally, with costs, current and future simple interest @8.00%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 stocks and book debts 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 16.09.2026. 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: 01.09.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. M/S Rattan Steel Works and Another

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Axis Bank Limited v. M/S Rattan Steel Works and Another

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