Allowed

Kotak Mahindra Bank Limited v. Narvail Singh and Others

DRT10 Jul 2025OA/323/2024

Case brief

AI extract

What is this about?

Allowed the Bank's Original Application for recovery of Rs.51.93 Lacs granted under RDBFI Act 1993. Declared borrowers jointly and severally liable and fixed interest at 8 p.a. vide final order.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.51,93,752.00p with interest at 8% p.a.; Applicant at liberty to enforce claim via due process of law.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.323/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.03.2024

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DATE OF DECISION: 10.07.2025

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Kotak Mahindra Bank Ltd., (In which ING Vysya Bank 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 44 A of the 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 31-2015 and order issued by RBI vide letter No.DBR/PSBD/14476/16.01.136/20142015 dated 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, C27, G-Block, Bandra kurla complex, Bandra(E) and branches at different places one in Pandori Gola, District Tarn Taran (Punjab) through Sh. Munish Sharma Authorized officer of applicant.

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……..Applicant

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Versus

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1. Sh. Narvail Singh S/o Sh. Narinder Singh R/o Village Kang, Tehsil Khandur Sahib, District Tarn Taran-143406.

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2. Rajwinder Kaur W/o Sh. Narvail Singh R/o Village Kang, Tehsil Khandur Sahib, District Tarn Taran-143406.

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3. Harmit Kaur W/o Sh. Bikram Singh R/o Village Kang, Tehsil Khandur Sahib, District Tarn Taran-143406.

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4. Bikramjeet Singh S/o Sh. Narinder Singh R/o Village Kang, Tehsil Khandur Sahib, District Tarn Taran-143406.

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5. Bachitar Singh S/o Sh. Swaran Singh R/o Village Kang, Tehsil Khandur Sahib, District Tarn Taran-143406.

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….……Defendants

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Advocates: Argued by Ms. Ramneek Kaur, Advocate proxy for Sh. J.S. Sehgal, Advocate for the applicant Defendants are ex parte

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OA NO.323-2024

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KOTAK MAHINDRA BANK LIMITED VS NARVAIL DINGH 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 Financial Institutions Act, 1993, against the defendants for recovery of Rs.51,93,752.00p (Rupees Fifty One Lacs Ninety Three Thousand Seven Hundred Fifty Two only). The Original Application has been filed through Sh. Munish Sharma, Branch Manager, o f the applicant, who is competent to institute the Original Application vide Copy of Delegation of Powers dated 31.08.2023, which are Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 to 4 had approached the applicant for the grant of KCC Limit of Rs.50.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.48.00 Lacs vide Credit arrangement letter dated 20.06.2013, 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 & 3 had mortgaged their immovable properties i.e. total land measuring 67K-19M situated at Village Kang, Tehsil Khandur Sahib, District Tarn Taran vide Registered mortgaged deed bearing vasika no.937 dated 26.07.2013, along with translations, which are Annexures A12 & A13 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 guarantor & borrower, Undertaking cum letter of authorization all dated 27.07.2013, which are Annexures A4 to A11 to this OA; Mortgage to land report regarding dated 30.07.2013, which is Annexure A14 to this OA; Notice dated 30.09.2023 along with postal receipts, which are Annexures A15 to A20 to this OA and Statement of account with certificate, which is Annexure A21 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

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3 OA NO.323-2024

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KOTAK MAHINDRA BANK LIMITED VS NARVAIL DINGH AND OTHERS

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debit of Rs.51,93,752.00p, 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 31.12.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, branch manager, 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 A21 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.51,93,752.00p (Rupees Fifty One Lacs Ninety Three Thousand Seven Hundred Fifty Two 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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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 from 08.11.2023 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.323-2024

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KOTAK MAHINDRA BANK LIMITED VS NARVAIL DINGH AND OTHERS 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.51,93,752.00p (Rupees Fifty One Lacs Ninety Three Thousand Seven Hundred Fifty Two 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 30.07.2025.

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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: 10.07.2025.

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

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OA NO.323-2024

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KOTAK MAHINDRA BANK LIMITED VS NARVAIL DINGH AND OTHERS

Kotak Mahindra Bank Limited v. Narvail Singh and Others

Case brief

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Kotak Mahindra Bank Limited v. Narvail Singh and Others

Case brief

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