Allowed

Axis Bank Limited v. Sh. Gurmukh Singh

DRT9 Feb 2026OA/859/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applicant's Original Application for recovery of a NPA loan. The Tribunal held the Defendant liable to pay the outstanding amount and ordered recovery from mortgaged properties, modifying the claimed future interest rate to 8% per annum.

What did the court decide?

Recovery of Rs. 28,71,364.99 plus interest @8% p.a. Ordered to issue Recovery Certificate; recovery from sale of hypothecated or personal assets.

Axis Bank Limited versus Sh. Gurmukh Singh — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.859/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2024

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DATE OF DECISION: 09.02.2026

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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 No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Manager Sh. Sandeep Kumar.

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……..Applicant Versus Sh. Gurmukh Singh S/o Sh. Gurbachan Singh R/o Kamalpur, Tehsil Samana, Patiala-147101.

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………. Defendant

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Advocates:

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Argued by Sh. Sukhwinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for Applicant (through VC)

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Defendant already ex-parte vide order dated 16.10.2025

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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 defendant for recovery of Rs.28,71,364.99 (Rupees Twenty Eight Lacs Seventy One Thousand Three Hundred Sixty Four and Paise Ninety Nine Only). The Original Application has been filed through Sh. Sandeep Kumar, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021 which is Annexure A1 to this OA.

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OA NO. 859/2024 AXIS BANK LTD. VS. GURMUKH SINGH

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The brief facts of the OA are that the defendant approached the applicant for grant KCC Limit of Rs.20.00 Lacs vide Loan Application dated 17.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 26.12.2014, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendant. Thereafter, the limit was renewed by the applicant vide sanction letter dated 25.11.2019, which is Annexure A8 to this OA. 4. Defendant mortgaged his immovable property i.e. Land Measuring 24Karnal-00Marla (3 Acres) Situated at Village Kamalpur, Tehsil Samana, District Patiala, Punjab vide Declaration dated 29.12.2014 under Section 4(1) of Punjab Agricultural Credit Operation and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A7 to this OA.

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Documents executed : Loan Cum Hypothecation Agreement, D.P. Note, D.P. Note Delivery cum waiver letter, all dated 30.12.2014, which is Annexure A4 to A6 to this OA; Recall Notice dated 07.05.2024, which is Annexure A9 to this OA; Foreclosure Letter and Statement of Account with certificate under Bankers Book Evidence Act, which are Annexures A10 to A12 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 loan account there was a debit of Rs. 28,71,364.99, which is recoverable and the defendant was served recall notices but he 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte vide order dated 16.10.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Signatory, Axis Bank Ltd., has been filed.

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OA NO. 859/2024 AXIS BANK LTD. VS. GURMUKH SINGH

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel through video conferencing 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 A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,71,364.99 (Rupees Twenty Eight Lacs Seventy One Thousand Three Hundred Sixty Four and Paise Ninety Nine Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12%p.a. with monthly rests from 26.11.2023 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 defendant, 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 uniform 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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OA NO. 859/2024 AXIS BANK LTD. VS. GURMUKH SINGH

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,71,364.99 (Rupees Twenty Eight Lacs Seventy One Thousand Three Hundred Sixty Four and Paise Ninety Nine Only) 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/mortgaged properties of the defendant 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 defendant. 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 23.02.2026.

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Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 09.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Gurmukh Singh

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Gurmukh Singh

Case brief

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