Allowed

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

DRT28 May 2025OA/148/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a dues of Rs. 58.86 lakh. The court directed repayment of principal with 8.00% simple interest and authorized enforcement via sale of mortgaged or personal assets.

What did the court decide?

Direct the defendants to pay Rs. 58,86,403.00p plus 8.00% simple interest; authorize recovery via sale of mortgaged properties or attachment of personal assets.

Kotak Mahindra Bank Limited versus Sh. Parvinder… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.148/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2022

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DATE OF DECISION: 28.05.2025

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Kotak Mahindra Bank Ltd., (in which ING Vysya Babk Ltd stands amalgamated and the name of IVBL has been changed to Kotak Mahindra Bank Ltd. (KMBL) pursuant to the order issued by Reserve Bank of India under sub section 4 of Section 44A, of 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 31^st 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, C 27, Block Bandra Kurla Complex, Bandra (E), 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. Parvinder Singh S/o Sh. Ranjit Singh R/o House No. 85, Village Jassowal, Tehsil and District Patiala, Punjab 147001.

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Smt. Manjit Kaur W/o Sh. Ranjit Singh R/o House No.22, Village Jassowal, Tehsil and District Patiala, Punjab 147001.

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Smt. Charanjit Kaur W/o Sh. Surjit Singh R/o House No. 41,

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Village Jassowal, Tehsil and District Patiala, Punjab 147001 .

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….……Defendants

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Advocates:

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Argued by, Sh. J.S. 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 Rs.58,86,403.00p (Rupees Fifty Eight Lacs Eighty Six Thousand Four Hundred Three only). The Original Application has been filed through

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2 OA NO.148/2022 KOTAK MAHINDRA BANK LIMITED VS PARVINDER SINGH AND OTHERS

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Sh. Munish Sharma, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Copy of 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 through defendant no.2 had approached the applicant for the grant of KCC Limit of rs.80.00Lacs vide Loan application dated 21.04.2014, which is Annexure A3 to this OA.

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The applicant sanctioned the KCC Limit of Rs.65.00 Lacs vide Credit Arrangement Letter dated 24.04.2014, 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 & 2 had mortgaged their immovable properties i.e. total land measuring 88K-00M detailed as: a. land measuring 24K-00M situated at Village Jassowal, Tehsil and District Patiala Punjab b. land measuring 64K-00M situated at Village Kishanpura urf Bakshiwala, Tehsil and District Patiala Punjab vide Registered Mortgaged Deed bearing vasika no.662 dated 25.04.2014, with its Translations, which are Annexures A13 & A14 to this OA. Documents executed: - Order of amalgamation issued by RBI 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, Consent letter to be executed by Guarantor, Undertaking cum letter of authorization for insuring crop and other moveable assets all dated Annexures A5 to A12 to this OA; Notice dated 27.09.2021 along with postal receipts, which are Annexures A15 to A18 to this

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3 OA NO.148/2022 KOTAK MAHINDRA BANK LIMITED VS PARVINDER SINGH AND OTHERS

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OA and Statement of account with certificate, which is Annexure A19 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 Rs.58,86,403.00p, 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 18.11.2023.

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

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Heard arguments and perused record.

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It was argued by learned 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.58,86,403.00p (Rupees Fifty Eight Lacs Eighty Six Thousand Four Hundred 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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4 OA NO.148/2022 KOTAK MAHINDRA BANK LIMITED VS PARVINDER SINGH AND OTHERS

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.75%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 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.

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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.58,86,403.00p (Rupees Fifty Eight Lacs Eighty Six Thousand Four Hundred 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.

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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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5 OA NO.148/2022 KOTAK MAHINDRA BANK LIMITED VS PARVINDER SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2025.

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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: 28.05.2025.

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

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

Case brief

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

Case brief

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