Allowed

Kotak Mahindra Bank Limited v. Sh. Amarjit Singh and Others

DRT20 Sept 2025OA/147/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 76 lakhs plus interest. The court exercised discretion to award 8% simple interest instead of the claimed 12% and directed issuance of a Recovery Certificate for execution. Disposal order.

What did the court decide?

Recovery Certificate issued; Defendants direct to pay Rs. 76,51,583 plus 8% simple interest; Application disposed of.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.147/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.01.2022

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DATE OF DECISION: 20.09.2025

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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. pursuant to the order issued by the Reserve Bank of India under sub section 4 of Section 44A of the Banking Regulation Act, 1949, sanctioning the scheme of amalgamation effective from 31.03.2015 as communicated by RBI vide its letter no.DBR.No.PSBD.14527/16.01.136/2014-15 March 31-2015 and order issued by RBI vide letter no. DBR/PSBD/14476/16.01.136/2014-15 dated 31^st March 2015), thus the applicant is a 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), Mumbai and branches at different places one in Nabha Road, Bhadson, District Patiala, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Amarjit Singh S/o Sh. Hardeep Singh R/o House No. 17, Village Hariao, Tehsil Rajpura, District Patiala.

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Sh. Varinder Singh S/o Sh. Amarjit Singh R/o House No. 17, Village Hariao, Tehsil Rajpura, District Patiala.

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Smt. Sukhminder Kaur W/o Sh. Amarjit Singh R/o House No. 17, Village Hariao, Tehsil Rajpura, District Patiala.

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….……Defendants

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Advocates:

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Argued by Ms. Ramneek Kaur, Advocate proxy for Sh. J.S. Sehgal, Advocate for Applicant

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Defendants already ex parte

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FINAL ORDER

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2 OA NO. 147/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMARJIT SINGH AND OTHERS

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.76,51,583.00p (Rupees Seventy Six Lacs Fifty One Thousand Five Hundred Eighty Three Only). The Original Application has been filed through Sh. Munish Sharma, Manager o f the applicant, who is competent to institute the Original Application vide delegation of powers vide resolution dated 27.06.2020, which is Annexure A1 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.80.00 Lacs vide Loan Application dated 20.02.2014, which is Annexure A3 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.60.00 Lacs vide Credit Arrangement Letter dated 24.02.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 38Bighas-09Biswas-6-2/3 Biswasi situated at Village Hariao, Tehsil Rajpura, District Patiala, Punjab vide Mortgage Deed dated 25.02.2014, registered vide vasika no. 4472 dated 26.02.2014, along with its translation, which are Annexures A13 & A14 to this OA. Documents executed:- Order of amalgamation issued by Reserve Bank of India dated 31.03.2015, which is Annexure A2 to this OA; 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 of authorization for insuring crop and other movable assets, all dated 25.02.2014, which are Annexures A5 to A12 to this OA; Notice dated 27.09.2021, along with postal receipts, which is Annexure A15 to A18 to this OA and Statement of account dated 25.11.2021, which is Annexure A19 to this OA.

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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

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3 OA NO. 147/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMARJIT SINGH AND OTHERS

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of Rs.76,51,583.00p, 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.

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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 23.04.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd., has been filed.

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Heard ex-parte 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 A19 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.76,51,583.00p (Rupees Seventy Six Lacs Fifty One Thousand Five Hundred Eighty Three Only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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 @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 interest which have gone drastically downhill in yester years, while exercising

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4 OA NO. 147/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMARJIT SINGH AND OTHERS

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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 along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.76,51,583.00p (Rupees Seventy Six Lacs Fifty One Thousand Five Hundred Eighty Three 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. 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 13.10.2025. 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: 20.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Amarjit Singh and Others

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Kotak Mahindra Bank Limited v. Sh. Amarjit Singh and Others

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