Allowed

Kotak Mahindra Bank Limited v. Deepak Kumar

DRT28 May 2025OA/621/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's recovery application against six defendants for an outstanding loan of Rs.47,91,290. The court decreed joint and several liability and reduced interest to 8% p.a. under its equitable discretion. A recovery certificate was issued.

What did the court decide?

Recovery of Rs.47,91,290 jointly and severally with 8% p.a. simple interest and issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Deepak Kumar — Contract and Commercial Disputes | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.621/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.04.2022

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DATE OF DECISION: 28.05.2025

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Kotak Mahindra Bank Ltd., a banking company incorporated under companies Act, 1956 and licensed under the 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 Vysya Bank Limited under the amalgamation scheme dated 01.04.2015 sanctioned by the Reserve Bank of India in exercise of the powers contained in Sub Section(4) of Section 44A, of the banking regulations act, 1949 having its branches all Over India Including its branch at S.C.O.153-154-155, Sector-9/C, Madhya Marg, Chandigarh through its authorized representatives Sh. Munish Sharma.

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……..Applicant Versus 1. Sh. Deepak Kumar S/o Ramesh Kumar, Cinema Road, Samana, District Patiala, Punjab.

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Sh. Ramesh Kumar S/o Sh. Ram Lal, Cinema Road, Samana, District Patiala, Punjab.

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Sh. Amit Kumar S/o Sh. Ramesh Kumar R/o House No.54, Ward No.5, Ghrhama Patti, Samana, Tehsil Samana District Patiala Punjab.

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Smt. Saroj Bala W/o Sh. Ramesh Kumar R/o House No.54, Ward No.5, Ghrhama Patti, Samana, Tehsil Samana, District Patiala Punjab.

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Smt. Manish Rani @ Manisha Aggarwal W/o Sh. Amit Kumar R/o House No.54, Ward No.5, Ghrhama Patti, Samana, Tehsil Samana, District Patiala, Punjab.

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Mrs. Payal @ Payal Aggarwal W/o Sh. Deepak Kumar R/o House No.54, Ward No.5, Ghrhama Patti, Samana, Tehsil Samana District Patiala Punjab.

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….……Defendants

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2 OA NO.621/2022 KOTAK MAHINDRA BANK LIMITED VS DEEPAK KUMAR AND OTHERS

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Advocates: Argued by, Sh. Satwinder Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for applicant Defendant 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.47,91,290.00p (Rupees Forty Seven Lacs Ninety One Thousand Two Hundred Ninety 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 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 defendants had approached the applicant for the grant of KCC Limit of Rs.41.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.38.00 Lacs vide Loan agreement and ancillary documents dated 13.11.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant nos.1 to 3 had mortgaged their immovable properties i.e. total land measuring 56K-0M detailed as: a. land measuring 44K-0M situated at Retgarh urf Fatehgarh/76, Tehsil Samana District Patiala Punjab b. l and measuring 12K-0M situated at Sehajpur Khurad/65, Tehsil Samana District Patiala Punjab vide Declaration u/s4(1) bearing deed no.299/A dated 17.11.2014 and Letter to Sub Registrar for Registering of charge, which is Annexure A4 this OA. Documents executed: -Amalgamation of ING Vysya Bank with kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan recall notice & postal receipts dated 02.03.2022 & 04.03.2022, which is Annexure A5 to this OA and Statement of account duly

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3 OA NO.621/2022 KOTAK MAHINDRA BANK LIMITED VS DEEPAK KUMAR AND OTHERS

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certified under the Banker’s Books Evidence Act, which is Annexure A6 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.47,91,290.00p, 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.

¶21

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 18.11.2023.

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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 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.47,91,290.00p (Rupees Forty Seven Lacs Ninety One Thousand Two Hundred Ninety only) rest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest

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4 OA NO.621/2022 KOTAK MAHINDRA BANK LIMITED VS DEEPAK KUMAR AND OTHERS

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@12.25%p.a. with half yearly rests from 01.03.2022 till the realization.

¶28

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 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.

¶29

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,91,290.00p (Rupees Forty Seven Lacs Ninety One Thousand Two Hundred Ninety 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.

¶30

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶31

Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2025.

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5 OA NO.621/2022 KOTAK MAHINDRA BANK LIMITED VS DEEPAK KUMAR AND OTHERS

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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. Pronounced by me in the open Tribunal . Dated: 28.05.2025.

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

Kotak Mahindra Bank Limited v. Deepak Kumar

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Deepak Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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