Allowed

Kotak Mahindra Bank Limited v. Avtar Singh @ Balkar Singh and Others

DRT15 Jul 2025OA/156/2022

Case brief

AI extract

What is this about?

The DRT-III allowed the bank's application for recovery of Rs. 88.88 lakhs as a declared loan default. The court granted a lower than claimed uniform simple interest of 8% p.a. authorized recovery from mortgaged assets via SARFAESI Act and attached personal assets if unsatisfied.

What did the court decide?

Recovery of Rs. 88,88,721.00 with costs and uniform simple interest @08.00% p.a. permitted from sale of mortgaged or attached personal assets.

Kotak Mahindra Bank Limited versus Avtar Singh @… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.156/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.10.2021

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DATE OF DECISION: 15.07.2025

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Kotak Mahindra Bank Ltd, a banking company incor porated under Companies Act 1956 and licensed under the Banking Regulation Act, 1949, having its Registered Office, at 27BKC, C 27, G Block, Bandr a Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vysya Bank Limited under the Amalgamation scheme dated 01/04/2015, sanctioned by the Reser ve Bank of India in exercise of the powers contained in Sub Section (4) of Section 44A of the Banking Regulation Act, 1949, having its branches all over India including its branch at S.C.O. 153-154-155, Sector 9/C, Madhya Ma r g, Chandigar h, through its authorized representative Sh. Munish Sharma.

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……..Applicant Versus

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Sh. Avtar Singh, @ Balka r Singh, S/o Sh. Gur diyal Singh R/o House no. 229, Village Sidhuwal, Tehsil Patiala, District Patiala-

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Sh. Bhagwant Singh S/o Sh. Avtar Singh R/o House no. 229, Village Sidhuwal, Tehsil Patiala, District Patiala-147202.

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Sh. Harbhajan Singh S/o Sh. Avtar Singh R/o House no. 229, Village Sidhuwal, Tehsil Patiala, Distr ict Patiala-147202.

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Smt. Manpreet Kaur W/o Bhagwant Singh, Village Sidhuwal, District Patiala.

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Sh. Nirmaljit Singh S/o Sh. Bachan Singh R/o House no. 117, Village Sidhuwal, Tehsil Patiala, District Patiala.

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………. Defendants

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Advocates:

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Argued by Sh. Devinder Singh, Proxy for Sh. Mohit Sareen, Advocate for the applicant (though VC)

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Defendants are ex-parte

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2 OA/156/2022

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KOTAK MAHINDRA BANK LTD VS SH. AVTAR SINGH AND OTHERS

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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 Bankruptcy Act, 1993, against the defendants for recovery of Rs.88,88,721.00 (Rupees Eighty Eight Lacs Eighty Eight Thousand Seven Hundred Twenty One Only). The Original Application has been filed through Sh. Munish Sha rma, Authorized Representative o f the applicant, who is competent to institute the Original Application vide Board Resolution, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs. 72.00 Lacs

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The applicant sanctioned KCC Limit of Rs. 65.00 Lacs vide loan arrangement letter dated 27.06.2013 and ancillary documents dated 28.06.2013 which are Annexure A3 (Colly) to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 1 had mortgaged their immovable properties i.e. Agricultural Land measuring 24 B-0B i.e. 5 Acre situated at Village Sidhuwal, Tehsil and District Patiala, vide Mortgage deed bearing Vasika No. 4045 dated 28.06.2013 along with its translation which is Annexure A4 to this OA.

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Documents executed: - Notification regarding Amalgamation of ING Vysya Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Recall Notice dated 09.09.2021 and Postal Receipts dated 11.09.2021&, which are Annexu re A5 to this OA; Statement of Account duly certified under Banker’s Book Evidence Act, which is Annexure A6 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.88,88,721.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA/156/2022 KOTAK MAHINDRA BANK LTD VS SH. AVTAR 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 14.03.2024. 7. In support of the OA, affidavit of Sh. Munish Sha rma, Authorized Representative, Kotak Mahindra Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 A6 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 bank. 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.88,88,721.00 (Rupees Eighty Eight Lacs Eighty Eight Thousand Seven Hundred Twenty One Only) along with interest 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 plus penal interest @2%p.a. from 08.09.2021 for 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

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4 OA/156/2022

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KOTAK MAHINDRA BANK LTD VS SH. AVTAR SINGH AND OTHERS

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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 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.88,88,721.00 (Rupees Eighty Eight Lacs Eighty Eight Thousand Seven Hundred Twenty One Only) jointly and severally, with costs, current and future simple interest @08.00%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 13.08.2025. 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 . Dated: 15.07.2025

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

Kotak Mahindra Bank Limited v. Avtar Singh @ Balkar Singh and Others

Case brief

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Kotak Mahindra Bank Limited v. Avtar Singh @ Balkar Singh and Others

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