AXIS BANK LTD vs SH. MANJEET SINGH AND ANOTHER on 1 October 2025

FINAL ORDER

1. Present 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.36,72,858.38p (Rupees Thirty Six Lacs Seventy Two Thousand Eight Hundred Fifty Eight & Thirty Eight Paise Only). The Application has been filed through Sh. Nitish Aggarwal, Authorized Representative, who is competent to institute the Transfer Application vide Power of attorney dated 11.08.2023, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendants had approached the applicant for the grant of i.e. KCC Limit of Rs.8.50 Lacs and Overdraft of Rs. 25.50 Lacs vide loan application dated 06.10.2020, which is Annexure A2 to this OA.

3. The applicant sanctioned KCC Limit of Rs. 6.10 Lacs and Overdraft Limit of Rs. 18.30 Lacs vide Sanction letter dated 14.10.2020, which is Annexures A3 to this TA and the terms and conditions were duly accepted by the defendants. Thereafter, the KCC Limit was enhanced to Rs. 11.60 Lacs and Overdraft was enhanced to Rs. 22.40 Lacs vide sanction letter dated 23.02.2022, which is Annexure A11 to this TA and terms and conditions were duly accepted by the defendants.

4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 97K-12M situated at Village Jaura/239, Tehsil Naushera Pannauan, District Tarn Taran, Punjab vide declaration u/s 4(1) dated 14.10.2020, which is Annexure A9 to this TA; letter to Sub-Registrar dated 14.10.2020 for creation of charge, which is Annexure A10 to this TA; declaration u/s 4(1) dated 23.02.2022, which is Annexure A17 to this TA; letter to Sub-Registrar dated 23.02.2022 for creation of charge, which is Annexure A18 to this TA. Documents executed:- Loan cum hypothecation agreement, Joint and Several Demand Promissory Notes, D.P. Note delivery-cum-waiver letter, all dated 21.10.2020, which are Annexures A4 to A7 to this TA; Loan cum hypothecation agreement, Joint and Several Demand Promissory Notes, D.P. Note delivery-cum-waiver letter, all dated 24.02.2022, which are Annexures A12 to A16 to this TA; Statement of accounts, which are Annexures A19 & A20 to this TA; Demand Notice dated 22.01.2025, along with Posting receipts, which are Annexures A21 to A23 to this TA.

5. 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.36,72,858.38p, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 24.09.2025.

7. In support of the OA, affidavit of Sh. Nitish Aggarwal, Authorized Representative, Axis Bank Ltd., has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned 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 A23 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 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.36,72,858.38p (Rupees Thirty Six Lacs Seventy Two Thousand Eight Hundred Fifty Eight & Thirty Eight Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the accounts.

10. 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 10.01.2025 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 mortgaged property, 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 uniform simple interest @08.00%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.

11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,72,858.38p (Rupees Thirty Six Lacs Seventy Two Thousand Eight Hundred Fifty Eight & Thirty Eight Paise Only) jointly and severally, with costs, current and future simple interest @08.00%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/mortgaged properties of the defendants 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 18.10.2025.

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: 01.10.2025

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh