Allowed

Axis Bank Limited v. Sh. Harjinder Singh Gill and Another

DRT8 Jun 2026OA/91/2026

Case brief

AI extract

What is this about?

The DRT allowed Axis Bank's original application for recovery of Rs.40.68 lakhs from two defaulting borrowers who had defaulted on a term loan for a commercial vehicle. The court adjusted the interest rate to 8% per annum.

What did the court decide?

Declaratory order of liability to pay Rs.40,68,302.00 with 8% simple interest; power to recover via sale of hypothecated vehicle or attachment of personal assets; recovery certificate issued.

Axis Bank Limited versus Sh. Harjinder Singh Gill and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.91/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.01.2026

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DATE OF DECISION: 08.06.2026

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AXIS BANK LTD., (earlier known as UTI Bank Ltd.), a banking company, Commercial Vehiclerying 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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........A pplicant

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Versus

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Sh. Harjinder Singh Gill S/o Sh. Daljit Singh, R/o Village Swaddi Khurd, Ludhiana, Punjab - 142026.

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Smt. Gurmeet Kaur Gill W/o Sh. Harjinder Singh Gill, R/o Village Swaddi Khurd, Ludhiana, Punjab - 142026.

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........Defendants

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Advocates:

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Argued Ms. Ashmita Goel, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 05.06.2026).

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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.40,68,302.00 (Rupees Forty Lacs Sixty Eight Thousand Three Hundred and Two Only). The Original Application has been filed through Sh. Hari Om, Manager, 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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2 OA NO.91/2026 AXIS BANK VS SH. HARJINDER SINGH GILL AND ANOTHER

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The brief facts of the OA are that the defendants approached the applicant for grant of Term Loan Facility for purchase of Commercial Vehicle of Rs.39,00,000.00 vide Application Form for Commercial/Construction Equipment Finance dated 29.05.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan Facility for purchase of Commercial Vehicle of Rs.40,20,019.00 vide Sanction Letter dated 20.06.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 hypothecated his movable asset i.e., Commercial Vehicle namely Mahindra Blazo 55 TR, bearing Registration No. PB05AS9391, Chassis No. MA1VDARGFR6D77631, Engine No. VHRZC11782 vide Tax Invoice dated 20.06.2024 along with Virtual Registration Certificate, which is Annexure A8 to this OA. Documents executed : Loan cum Hypothecation Agreement, Demand Promissory Note, D.P. Note Delivery cum waiver letter, Disbursement Request Form, all dated 20.06.2024, which are Annexures A4 to A7 to this OA; Legal Notice dated 11.08.2025 along with postal receipts, which is Annexure A9 to this OA; Statement of account along with certificate, which is Annexure A10 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.40,68,302.00, 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. 6. 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 05.06.2026. 7. In support of the OA, affidavit of Sh. Hari Om , Manager, Axis Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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3 OA NO.91/2026 AXIS BANK VS SH. HARJINDER SINGH GILL AND ANOTHER

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It was argued by learned proxy 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 A10 to this OA, it is proved that the defendants approached applicant for availing of the 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.40,68,302.00 (Rupees Forty Lacs Sixty Eight Thousand Three Hundred and 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 @24.00%p.a. with monthly rests from 10.07.2025 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 asset, undertaking of the defendants, 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 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.40,68,302.00 (Rupees Forty Lacs Sixty Eight Thousand Three Hundred and Two Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date

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OA NO.91/2026 AXIS BANK VS SH. HARJINDER SINGH GILL AND ANOTHER

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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 vehicle of the 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.

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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 01.07.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 08.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Sh. Harjinder Singh Gill and Another

Case brief

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Axis Bank Limited v. Sh. Harjinder Singh Gill and Another

Case brief

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