Allowed

Kotak Mahindra Bank Limited v. Harjinder Singh and Others

DRT3 Jul 2025OA/143/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the appellants application for recovery of dues amounting to Rs.67.04 lacs against respondents who failed to repay a secured loan. The Tribunal declared respondents liable for the principal amount with simple interest at 8% per annum and entitled the bank to recover dues through sale of mortgaged or personal assets.

What did the court decide?

The total sum of Rs.67,04,692.00 along with costs and simple interest @8.00%p.a. from the date of filing till realization was declared recoverable. A Recovery Certificate was issued.

Kotak Mahindra Bank Limited versus Harjinder Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.143/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2022

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DATE OF DECISION: 03.07.2025

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Kotak Mahindra Bank Ltd., (in which ING Vysya Bank Ltd. stands amalgamated and the name of IVBL has been changed to Kotak Mahindra Bank Ltd.(KMBL) pursuant to the order issued by the Reserve Bank of India under sub section 4 of section 44A of the banking Regulations Act, 1949 sanctioning the scheme of amalgamation effective from 31.03.2015 as communicated by RBI vide its letter no.DBR.No.PSBD.14527/16.01.136/2014/2015 March 312015 and order issued by RBI vide letter no. DBR/PSBD/14476/16.01.136/2014-2015 dated 31^st march 2015) thus the applicant is the banking company carrying on the banking business under the companies act, 1956 and having its registered office at 27BKC, C27 G Block, Bandra Kurla Complex, Bandra(E) and branches at Different places one in Bath road, Pandori, Gola District Tarn Taran through Sh. Munish Sharma, Authorized Officer of the applicant.

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……..Applicant

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Versus

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1. Harjinder Singh S/o SH. Major Singh R/o House No.86, Village Chambal, Tehsil and District Tarn Taran, Punjab 143411.

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Major Singh S/o Sh. Mohan Singh R/o House No.86, Village Chambal, Tehsil and District Tarn Taran, Punjab 143411.

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Manpreet Singh S/o Sh. Kunan Singh R/o House NO.77, Bachrhe, Tehsil and District Tarn Taran, Punjab 143411.

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate proxy for Sh. Sumeet Sehgal, Advocate for Applicant Defendants are ex parte

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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2 OA NO.143-2022 KOTAK MAHINDRA BANK LIMITED VS HARJINDER SINGH AND OTHERS

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Rs.67,04,692.00p (Rupees Sixty Seven Lacs Four Thousand Six Hundred Ninety Two only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer of the applicant, who is competent to institute the Original Application vide Copy of delegation of powers & Order of amalgamation issued by Reserve Bank of India dated 27.06.2020 & 31.03.2025, which are Annexures A1 & A2 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.53.00 Lacs vide Loan application dated 07.10.2014, which is Annexure A3 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.50.00 Lacs vide Credit arrangement dated 26.11.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable property i.e. total land measuring 88k-00M situated at Village Chambal, Tehsil and District Tarn Taran, Punjab vide Declaration u/s 4(1) dated 12.12.2014 & Letter to Sub registrar for Creation of charge, which is Annexure A13 to this OA. Documents executed: - Annexure B-1, Demand Promissory Note, Take delivery letter to DPN, Hypothecation agreement, Guarantee bond, Consent letter to be executed by borrower & Guarantor, Undertaking cum letter all dated 26.11.2014, which are Annexures A5 to A12 to this OA; Notice dated 27.09.2021 along with postal receipts, which are Annexures A14 to A17 to this OA and Statement of account along with Interest chart and certificate, which is Annexure A18 to this OA. 5. 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.67,04,692.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA NO.143-2022 KOTAK MAHINDRA BANK LIMITED VS HARJINDER SINGH AND OTHERS

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 23.12.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Officer, Kotak Mahindra Bank Ltd., h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel 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 A18 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.67,04,692.00p (Rupees Sixty Seven Lacs Four Thousand Six Hundred Ninety Two only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with half yearly rests from 26.11.2021 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, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.143-2022 KOTAK MAHINDRA BANK LIMITED VS HARJINDER SINGH AND OTHERS

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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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.67,04,692.00p (Rupees Sixty Seven Lacs Four Thousand Six Hundred Ninety Two only) jointly and severally, with costs, current and future simple interest @8.00%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 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.

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Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 21.07.2025. 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.

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Pronounced by me in the open Tribunal .

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Dated: 03.07.2025

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

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5 OA NO.143-2022 KOTAK MAHINDRA BANK LIMITED VS HARJINDER SINGH AND OTHERS

Kotak Mahindra Bank Limited v. Harjinder Singh and Others

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Harjinder Singh and Others

Case brief

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What did the court decide?

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