Loan guarantor to a borrower

Dear Sir,
If Axis Bank was not included in the documents then they cannot attach your salary account of Axis Bank. Get certified copies of all such secured loan documents and go to local advocate and try to file a simple suit in Civil Court for a direction to remove lien on your Axis Bank Salary Account.

Dear Client,
As per law, Banks have a general lien on all the accounts and assets or the customer lying with the bank. If a loan is in default or due for repayment, the bank is within its right to keep a lien on the security charged for the other loans and can refuse to give an NOC/NDC until and unless the loan is cleared by the Loanee/Account holder under CBS. Be informed that once a security is always a security. So even though you have cleared your SBI loans in compliance with the arbitration order, if there are other dues to another bank, the bank may treat the hypothecated security for the present outstanding loan and the Bank may refuse to lift their charge of hypothecation on the pending loan lying with Axis Bank. Once all the dues are cleared Bank is bound to give a No Dues Certificate(NDC) to the Borrower failing which you may escalate your grievance before the regulatory authority RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme at https://cms.rbi.org.in for a quick resolution to the matter.

Dear Client,

Since the arbitration order was passed in 2022, and the bank has already recovered Rs. 1,30,000/- by placing a lien on your SBI salary account in February 2025, placing another lien on your Axis Bank account on the same 2022 order may be illegal and unjustified.
Basically, once the bank has recovered the dues partially or fully through one account, it cannot reattach another account for the same claim unless there is an outstanding balance explicitly mentioned in the arbitration award.

At this point file an appeal before the Debt Recovery Tribunal (DRT) challenging the repeated lien and attachment of your salary account.
You can also send a legal notice to the bank through a lawyer demanding removal of the lien and also ask compensation for mental harassment and wrongful attachment.