Allowed

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

DRT10 Jun 2025OA/306/2022

Case brief

AI extract

What is this about?

In an Original Application under Section 19 of the RDBFI Act, 1993, the Debts Recovery Tribunal allowed the applicant bank's claim for recovery of Rs. 53,80,357. The Tribunal awarded simple interest at 8% p.a. instead of the claimed rate. The order also directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 53,80,357 jointly and severally with costs and simple interest at 8% p.a.; Issue of Recovery Certificate; Liberty to recover remaining dues by attachment and sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.306/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.01.2022

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DATE OF DECISION: 10.06.2025

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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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1. Sh. Gurvel Singh S/o Sh. Tarlok Singh R/o H.No.92, Village Dugal Wala, Tehsil Tarn Taran and District Tarn Taran, Punjab143401.

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Sh. Ravisher Singh S/o Sh. Tarlok Singh R/o H.No.92, Village Dugal Wala, Tehsil Tarn Taran and District Tarn Taran, Punjab143401.

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Sh. Manjit Singh S/o Sh. Swaran Singh R/o House No.86, Village Dugal Wala, Tehsil Tarn Taran, District Tarn Taran, Punjab143401.

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….……Defendants

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Advocates:

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Argued by, Sh. R.K. Bansal, 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.53,80,357.00p (Rupees Fifty Three Lacs Eighty Thousand Three Hundred Fifty Seven only). The Original Application has been filed

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2 OA NO.306-2022 KOTAK MAHINDRA BANK LIMITED VS GURVEL SINGH AND OTHERS

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through Sh. Munish Sharma, authorized representatives o f the applicant, who is competent to institute the Original Application vide Amalgamation of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 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.45.00 Lacs vide Loan application to this OA.

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The applicant sanctioned the KCC Limit of Rs.45.00 Lacs vide Credit arrangement letter dated 20.06.2014, 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 & 2 had mortgaged their immovable properties i.e. total land measuring 12 Acre situated at Village Dugalwala, Tehsil and District Tarn Taran Punjab vide Registered Mortgaged Deed dated 27.06.2014, which is Annexure A10 to this OA.

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Documents executed: - Resolution dated 14.06.2021, which is Annexure A2 to this OA; Pronote, Take delivery letter, Hypothecation agreement, Consent letter executed by the defendant, Undertaking cum letter of authorization for insuring crop and other immovable assets, Consent executed by all the defendants, Letter of Marking of Lien, Guarantee bond, Consent letter executed by the guarantor all dated 28.06.2014, which are Annexures A4 to A9, A11 to 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.53,80,357.00p, 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

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and to issue Recovery Certificate accordingly.

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3 OA NO.306-2022 KOTAK MAHINDRA BANK LIMITED VS GURVEL SINGH AND OTHERS

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The defendants were served notices to appear before this Tribunal. Sh. Manvendra Chauhan, Advocate appeared on behalf of defendants and filed his Power of Attorney on 13.09.2023. But Since 12.06.2024 no one appeared on behalf of defendants and they were proceeded ex-parte on 28.10.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representatives, Kotak Mahindra Bank Ltd., h as been filed.

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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.53,80,357.00p (Rupees Fifty Three Lacs Eighty Thousand Three Hundred Fifty Seven 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.

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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 @12.00%p.a. along with penal interest @2.00%p.a. with monthly/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

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4 OA NO.306-2022 KOTAK MAHINDRA BANK LIMITED VS GURVEL 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 @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.53,80,357.00p (Rupees Fifty Three Lacs Eighty Thousand Three Hundred Fifty Seven 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 01.07.2025.

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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: 10.06.2025.

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

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5 OA NO.306-2022 KOTAK MAHINDRA BANK LIMITED VS GURVEL SINGH AND OTHERS

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

Case brief

What is this about?

What did the court decide?

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

Case brief

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What did the court decide?

What the court decided

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