Allowed

Axis Bank Limited v. M/S Gs Electricals

DRT25 May 2026OA/896/2025

Case brief

AI extract

What is this about?

The DRT allowed Axis Bank's Original Application filed under Section 19 RDB Act for recovery of loan dues. The Tribunal held defendants liable to pay principal amounts and directed uniform simple interest at 7.65% p.a., granting the bank permission to realize dues through hypothecated/sold assets.

What did the court decide?

Directing defendants to pay Rs. 1.14 Cr to Defendant 1 and Rs. 2.98 Cr to Defendants 1, 2, and 4 with simple interest at 7.65% p.a.; permitting recovery via sale of mortgaged/hypothecated properties.

Axis Bank Limited versus M/S Gs Electricals — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 896/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.07.2025

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DATE OF DECISION: 25.05.2026

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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, Gujarat- 380006 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. Nitish Aggarwal

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.....Applicant

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Versus

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M/S GS Electricals through its Proprietor having its Registered Office at D1, Industrial Area, Phase 1, S.A.S. Nagar, Mohali, Punjab- 160055

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Sh. Gurmeet Singh, S/o Sh. Gurnek Singh, Proprietor of M/S GS Electricals, R/o House no. 100, Sector 38A, Chandigarh- 160036

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Smt. Kamaljeet Kaur, W/o Sh. Gurmeet Singh R/o House no. 100, Sector 38A, Chandigarh- 160036

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Smt. Balwinder Kaur, W/o Sh. Gurnek Singh, R/o House no. 100, Sector 38A, Chandigarh- 160036

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……….Defendants

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Advocates:

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Argued by Sh. Sukhvinder Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for applicant (through VC)

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None for defendants (already ex-parte vide order dated 21.05.2026)

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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. 4,13,13,552.20 (Rupees Four Crores Thirteen Lacs Thirteen Thousand Five Hundred Fifty Two and Paise Twenty Only). The Original Application has been filed

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2 OA NO. 896/2025 AXIS BANK LTD. VS. M/S GS ELECTRICALS AND OTHERS

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through Sh. Nitish Aggarwal, Manager of the applicant, who is competent to institute the Original Application vide GPA dated 24.08.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant no. 1 approached the applicant for grant of Secured Term Loan Limit of Rs. 150.00 Lacs vide Loan Application dated 01.09.2021, which is Annexure A3 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of CC Limit of Rs. 250.00 Lacs vide Loan Application dated 06.06.2023, which is Annexure A10 to this OA. Thereafter, defendant no. 1 approached the applicant for renewal of CC Limit of Rs. 300.00 Lacs. 3. The applicant sanctioned Secured Term Loan of Rs. 150.00 Lacs vide Sanction Letter dated 24.09.2021, which is Annexure A4 to this OA and terms and conditions duly accepted by the defendants. Defendant nos. 2 to 4 stood as guarantors. Thereafter, the applicant sanctioned CC Limit of Rs. 300.00 Lavs vide Sanction Letter dated 21.07.2023, which is Annexure A11 to this OA. Defendant nos. 2 and 4 stood as guarantors. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 300.00 Lacs vide Sanction Letter dated 18.07.2024, which is Annexure A26 to this OA. 4. Defendant no. 4 mortgaged her immovable properties which are: i. House measuring 126.75 Sq. Yards situated at House no. 100, Sector 38A, Chandigarh vide Declaration cum Confirmation Deed dated 29.10.2021, which is Annexure A20 to this OA. ii. Flat measuring 60 Sq. Yards situated at Flat no. F03, 6^th Floor, Village Fatehullapur, Punjab vide Sale Deed dated 27.10.2021 along with its translation and Declaration cum Confirmation Deed dated 28.07.2023, which are Annexure A23 and A25 to this OA. Defendant no. 1 hypothecated its current assets vide Deed of Hypothecation dated 27.07.2023, which is Annexure A13 to this OA. Documents executed: Firm Registration Certificate dated 16.01.2019, which is Annexure A2 to this OA; Facility Agreement, DP Note and Waiver Letter, all dated 25.09.2021, which are Annexure A5 to A7 to this OA; Indemnity Bond dated 28.10.2021, which is

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3 OA NO. 896/2025 AXIS BANK LTD. VS. M/S GS ELECTRICALS AND OTHERS

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Annexure A8 to this OA; Deed of Guarantee, which is Annexure A9 to this OA; Facility Agreement, DP Note, Waiver Letter and Deed of Guarantee, all dated 27.07.2023, which are Annexure A12, A14 to A16 to this OA; Allotment Letter dated 20.11.1975, which is Annexure A17 to this OA; Transfer Letter dated 15.07.2009, which is Annexure A18 to this OA; Memorandums of Entry and Declaration cum Deed, which are Annexure A19, A21, A22 and A24 to this OA; Letter of Acknowledgement dated 06.08.2024, which is Annexure A27 to this OA; Recall Notice dated 09.06.2025, which is Annexure A28 to this OA and Statement of Accounts with certificate, which are Annexure A29 and A30 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. 4,13,13,552.20 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.

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The defendants were served summons to appear before this Tribunal and after service upon defendants, WS was filed on behalf of defendant no. 1 on 18.08.2025 by post. WS was not filed as per procedure without uploading the documents. No one appeared on behalf of defendants before tribunal either in person or through counsel. Therefore, defendants were proceeded ex-parte vide order dated 21.05.2026.

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In support of the OA, affidavit of Sh. Nitish Aggarwal, Manager Axis Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel (through VC) that in view of the documentary evidence brought on record, the applicant had proved its case.

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From the perusal of all the Annexure A1 to A30 to this OA, it is proved that defendant no. 1 approached the applicant for availing of the loan facilities which were granted to defendant no. 1. Defendant nos. 2 to 4 stood as guarantors. Defendants had executed all the relevant documents in favour of the bank. The defendants failed to pay

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4 OA NO. 896/2025 AXIS BANK LTD. VS. M/S GS ELECTRICALS AND OTHERS

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back the loans as per terms and conditions of the agreement between the parties. Subsequently, 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.1,14,22,754.93 (Rupees One Crore Fourteen Lacs Twenty Two Thousand Seven Hundred Fifty Four and Paise Ninety Three Only) from defendants and Rs. 2,98,90,797.27 (Rupees Two Crores Ninety Eight Lacs Ninety Thousand Seven Hundred Ninety Seven and Paise Twenty Seven Only) from defendant nos. 1, 2 and 4, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in clause 5 para (iii) has claimed interest @7.65% p.a. in Term Loan Account and in clause 5 para (xi) has claimed interest @12.25% p.a. in CC Limit Account with half yearly rests w.e.f. 04.06.2025 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/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 @07.65%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.1,14,22,754.93 (Rupees One Crore Fourteen Lacs Twenty Two Thousand Seven Hundred Fifty Four and Paise Ninety Three Only) and defendant nos. 1, 2 and 4 are liable to pay to the applicant a total sum of Rs. 2,98,90,797.27 (Rupees Two Crores Ninety Eight Lacs Ninety Thousand Seven Hundred Ninety Seven and Paise Twenty Seven Only), jointly and severally, with costs, current and future simple interest @07.65%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

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5 OA NO. 896/2025 AXIS BANK LTD. VS. M/S GS ELECTRICALS AND OTHERS

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be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties of the defendant nos. 1 and 4 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.

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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 16.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 25.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarhp

Axis Bank Limited v. M/S Gs Electricals

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. M/S Gs Electricals

Case brief

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What did the court decide?

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