Allowed

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

DRT1 Sept 2025OA/405/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan defaulted by borrowers and a guarantor. The court fixed interest at 8% per annum and directed recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs.93,33,209.67 plus 8% simple interest jointly and severally; recovery from sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.405/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.10.2021

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DATE OF DECISION: 01.09.2025

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Kotak Mahindra Bank Ltd. a cooperate Body constituted under the Banking Companies Act-V of 1970, having its registered office at 27, BKC, C-27, G-Block, Bandra Kurla Complex, Bandra East Mumbai and having one its Branch office at SCO No. 153-155, Sector 9-C, Chandigarh through its Authorized Officer.

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……..Applicant Versus

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Sh. Amamrinder Singh S/o Sh. Harinder Singh R/o H. No. 82, Bhupinder Nagar, Tehsil & District Patiala - 147001.

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Smt. Rajinder Kaur W/o Sh. Harinder Singh R/o H. No. 82, Bhupinder Nagar, Tehsil & District Patiala - 147001.

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Sh. Surjit Singh S/o Sh. Gurdit Singh R/o H. No. 311, Village Tohra, Tehsil Nabha District, Patiala – 147201.

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…….Defendants

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Advocates:

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Argued by Sh. Soarabh Sihota, Advocate proxy for Sh. Paras Money Goyal, Advocate for Applicant (through VC) Defendants already 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.93,33,209.67p (Rupees Ninety Three Lacs Thirty Three Thousand Two Hundred Nine and Paise Sixty Seven Only). The Original Application has been filed through Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd., 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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2 OA NO.405/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMAMRINDER SINGH AND OTHERS

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The brief facts of the OA are that the defendant no.1 and 2 had approached the applicant for grant of KCC Limit of Rs.80.00 Lacs vide loan application dated 12.03.2015. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs.72.00 Lacs vide Credit Arrangement Letter dated 21.03.2015, 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 properties i.e. Total Land measuring 48-0B i.e. 10 acres detailed as under:

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(a) Land measuring 14B-08B, situated at Village Tohra, Tehsil Nabha, District Patiala

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(b) Land measuring 33B-12B, situated at Village Shahpur, Tehsil Nabha, District Patiala Vide Mortgage Deed bearing Serial no. 320 d ated 25.03.2015 and letter to Sub-Registrar dated 25.03.2015, along with its translation, which is Annexure A12 to this OA.

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Documents executed : - Amalgamation Order dated 31.03.2015, which is Annexure A1 to this OA; Agreement BI, DPN, Take Delivery Letter, Hypothecation Agreement, Guarantee Bond, Consent Letter Borrower, Consent Letter Guarantor and Undertaking, all dated 21.03.2015, which are Annexures A4 to A11 to this OA; Legal Notice dated 15.09.2021, along with Postal Receipts, which are Annexures A13 to A16 to this OA; Account Statement, Certificate and Interest Chart, which are Annexures A17 to A19 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.93,33,209.67p, 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

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but no one appeared on behalf of defendants and were proceeded ex-

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3 OA NO.405/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMAMRINDER SINGH AND OTHERS

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parte on 02.04.2024. Later, an IA no. 711/2021 was filed by defendant no.1 for setting aside ex-parte order. This IA was dismissed on 09.01.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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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 A19 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.93,33,209.67p (Rupees Ninety Three Lacs Thirty Three Thousand Two Hundred Nine and Paise Sixty 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. with monthly rests from 08.09.2021 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 interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and

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4 OA NO.405/2022 KOTAK MAHINDRA BANK LIMITED VS. SH. AMAMRINDER SINGH AND OTHERS

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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.

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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.93,33,209.67p (Rupees Ninety Three Lacs Thirty Three Thousand Two Hundred Nine and Paise Sixty Seven 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 25.09.2025. 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. Pronounced by me in the open Tribunal . Dated: 01.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

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

Case brief

What is this about?

What did the court decide?

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

Case brief

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What did the court decide?

What the court decided

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