Allowed

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

DRT6 Jun 2025OA/303/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Kotak Mahindra Bank Limited against four respondents for recovery of Rs. 54.12 lakhs outstanding on a KCC loan. The defendants were absent, and the court granted a recovery certificate with adjusted interest at 8% p.a.

What did the court decide?

Recovery Certificate issued; respondents ordered to pay Rs. 54,12,780.00 p.a. with costs and simple interest at 8% p.a. interest from the date of filing of the application till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.303/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.01.2022

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DATE OF DECISION: 06.06.2025

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Kotak Mahindra Bank Limited, a body corporate constituted under banking regulations 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 on 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 regulations Act, 1949 having its branches all Over India including branch at Kotak Mahindra Bank Ltd., Commercial Banking SCO-153154-155, Basement, SEC-9C, Madhya Marg, Chandigarh through its authorized representatives Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Beant Singh S/o Sh. Baldev Singh R/o House No.207, Sahmane Pra School Wali Gali, Village Sangudhan, Tehsil Muktsar Sahib, Punjab-151203.

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Smt. Ranjit Kaur W/o Sh. Beant Singh R/o House No.207, Sahmane Pra School Wali Gali, Village Sangudhan, Tehsil Muktsar Sahib, Punjab-151203.

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Smt. Baljit Kaur W/o Sh. Baldev Singh R/o House No.185, Village Sangad Dhon Part-II, Tehsil Muktsar District Faridkot, Punjab-151203.

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Sh. Sukhmander Singh S/o Sh. Ragbir Singh R/o House No.350, Bathinda Road, Dia Dhania, Village Sangudhaun, Tehsil Muktsar, District Muktsar, Punjab-151203.

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….……Defendants

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Advocates: Argued by, Sh. Rahul Garg, Advocate proxy for Sh. Rajan Puri, 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.54,12,780.00p (Rupees Fifty Four Lacs Twelve Thousand Seven

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2 OA NO.303-2022

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KOTAK MAHINDRA BANK LIMITED VS BEANT SINGH AND OTHERS

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Hundred Eighty only). The Original Application has been filed through Sh. Munish Sharma, authorized representatives o f the applicant, who is competent to institute the Original Application vide 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 defendants had approached the applicant for the grant of KCC Limit of Rs.50.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.50.00 Lacs vide Credit arrangement letter dated 23.12.2014, which is Annexure A3 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 property i.e. total land measuring 96K-00M situated at Village Sangudhaun, Tehsil Sri Mukatsar Sahib, District Mukatsar Sahib, Punjab vide Declaration u/s 4(1) dated 19.03.2015 & Letter to Sub Registrar for Registering of change in the revenue records, which are Annexures A10 & A11 to this OA.

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Documents executed: - Amalgamation of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Pronote, Take delivery letter, Hypothecation agreement, Consent letter executed by the defendants, Undertaking cum letter of authorization for insuring crop and other immovable assets, Consent executed by all the defendants all dated 23.12.2014, which are Annexures A4 to A9 to this OA; Guarantee Bond, Consent letter executed by the guarantor both dated 23.12.2014, which are Annexures A12 & A13 to this OA; Legal notice dated 05.01.2022, which is Annexure A14 to this OA and Statement of account with certificate, which is Annexure A15 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 of Rs.54,12,780.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA NO.303-2022

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KOTAK MAHINDRA BANK LIMITED VS BEANT 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 31.03.2023.

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In support of the OA, affidavit of Sh. Munish Sharma, authorized representatives, Kotak Mahindra Bank Ltd., has been filed. 8. 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 A15 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.54,12,780.00p (Rupees Fifty Four Lacs Twelve Thousand Seven Hundred Eighty only) along with inter est 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.15%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.303-2022

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KOTAK MAHINDRA BANK LIMITED VS BEANT 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.

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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.54,12,780.00p (Rupees Fifty Four Lacs Twelve Thousand Seven Hundred Eighty 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.06.2025. 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: 06.06.2025.

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

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

Case brief

What is this about?

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

Case brief

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