Allowed

Kotak Mahindra Bank Limited v. Karamjit Singh and Others

DRT18 Dec 2025OA/243/2022

Case brief

AI extract

What is this about?

This case is an Original Application under the Recovery of Debts and Bankruptcy Act, 1993, filed by Kotak Mahindra Bank Limited against multiple respondents for recovery of Rs.53,63,746.00. The defendants were absent, and the Tribunal proceeded ex-parte, allowing the application and fixing the interest rate at 8.00% p.a.

What did the court decide?

Allowed; declared defendants jointly and severally liable to pay Rs.53,63,746.00 plus costs and future simple interest @8.00% p.a.; directed issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.243/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2022

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DATE OF DECISION: 18.12.2025

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Kotak Mahindra Bank Limited, a banking company incorporated under Companies Act, 1956 and licensed under the Banking Regulation Act, 1949 having its Registered Office at 27BKC, C 27, G-Block, Bandra Kurla Complex, Bandra (E) Mumbai-400051 and the successor to ING Vyasa Bank under the Amalgamation scheme dated 01.04.2015, sanctioned by the Reserve Bank of India in exercise of 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 SCO-153-154-155, Sector-9C, Madhya Marg, Chandigarh through its Authorized Representative Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Karamjit Singh Romana, S/o Sh. Mohinder Singh Romana, R/o House No.2993/2, Sector 42-C, Chandigarh-160036.

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Sh. Rajveer Singh, S/o Sh. Jagdev Singh, R/o Flat No.3425/2, Sai Society, Sector 49D, Chandigarh-160049.

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Smt. Manjit Kaur, W/o Sh. Jagdev Singh, R/o Flat No.3425/2, Sai Society, Sector 49D, Chandigarh-160049.

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Smt. Gurbinder Kaur Romana, W/o Sh. Mohinder Singh Romana, R/o House No.2993/2, Sector 42-C, Chandigarh-160036.

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Sh. Daljit Singh Romana, S/o Sh. Mohinder Singh Romana, R/o House No.2993/2, Sector 42-C, Chandigarh-160036.

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Sh. Mohinder Singh Romana, S/o Sh. Hakam Singh, R/o House No.2993/2, Sector 42-C, Chandigarh,160036.

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….……Defendants

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Advocates:

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Argued by, Sh. Satwinder Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for Applicant

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Defendants already ex parte

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2 OA/243/2022 KOTAK MAHINDRA BANK LIMITED VS. KARAMJIT SINGH ROMANA 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.53,63,746.00 (Rupees Fifty Three Lacs Sixty Three Thousand Seven Hundred Forty Six only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative of the applicant, who is competent to institute the Original Application vide Board Resolution dated 14.06.2021, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant nos. 2 and 3 had approached the applicant for the grant of KCC Limit of Rs.40.00 Lacs vide Loan application dated 15.10.2011. Defendant nos. 1, 4, 5 and 6 stood as guarantors.

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The applicant sanctioned the KCC Limit of Rs.40.00 Lacs vide Credit Arrangement Letter dated 24.10.2011 and the terms and conditions were duly accepted by the defendants. Credit Arrangement Letter dated 24.10.2011 along with Annexure B1, DP 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 27.10.2011, which Annexure A3 (Colly) to this OA.

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Defendant no.3 had mortgaged her immovable properties i.e. land measuring 69K-12M situated at Village Banna/416, Tehsil Balachaur, District Nawanshahr, Punjab vide Mortgaged Deed bearing vasika no.3289 dated 25.10.2011, which is Annexure A4 to this OA. Documents executed: Amalgamation Notification of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan recall notice dated 11.11.2021 along with postal receipts, which is Annexure A5 to this OA and Statement of account, which is Annexure A6 to this OA. 5. The loan account became irregular and was classified as NPA

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and after adjusting debit and credit entries in loan account there was a

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3 OA/243/2022 KOTAK MAHINDRA BANK LIMITED VS. KARAMJIT SINGH ROMANA AND OTHERS

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debit of Rs.53,63,746.00, 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 16.01.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager and Authorized Representative, 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 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 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.53,63,746.00 (Rupees Fifty Three Lacs Sixty Three Thousand Seven Hundred Forty Six only) 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 [email protected]%p.a. with 2% penal interest and half yearly rests from 07.10.2021 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/hypothecated

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4 OA/243/2022 KOTAK MAHINDRA BANK LIMITED VS. KARAMJIT SINGH ROMANA AND OTHERS

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assets, 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.53,63,746.00 (Rupees Fifty Three Lacs Sixty Three Thousand Seven Hundred Forty Six 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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Parties to appear before Learned Recovery Officer of this Tribunal on 06.01.2026.

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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: 18.12.2025.

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

Kotak Mahindra Bank Limited v. Karamjit Singh and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Karamjit Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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