Allowed

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

DRT2 Sept 2025OA/643/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.49.64 lakhs along with modified interest at 8% p.a. against the defendants who failed to repay a KCC loan, and issued a Recovery Certificate. The tribunal reduced the claimed interest based on market rates.

What did the court decide?

Direction to pay Rs.49,64,078/- jointly and severally with interest at 8% p.a. and issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.643/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.05.2024

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DATE OF DECISION: 02.09.2025

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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 44A of Banking Regulation Act, 1949, sanctioning the scheme of amalgamation effective from 31.03.2015, as communicated by RBI vide its letter no.DBR.No.PSBD.14527/16.01.136/2014-15 March 31-2015 and order issued by RBI vide letter no. DBR/PSBD/14476/16.01.136/2014-15 dated 31^st march 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 Muktsar, Punjab, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Avtar Singh S/o Sh. Baldev Singh R/o House No. 9, Bhutiwala Road, Ate Firania, Village Khirkhian Wala, Tehsil Gidarbaha, District Sri Muktsar Sahib - 152031.

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Sh. Baldev Singh S/o Sh. Mohna Singh R/o House No. 9, Bhutiwala Road, Ate Firania, Village Khirkhian Wala, Tehsil Gidarbaha, District Sri Muktsar Sahib - 152031.

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Smt. Gurwinder Kaur W/o Sh. Avtar Singh R/o House No. 9, Bhutiwala Road, Ate Firania, Village Khirkhian Wala, Tehsil Gidarbaha, District Sri Muktsar Sahib - 152031.

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Sh. Charanjit Singh S/o Sh. Tej Singh R/o H. No. 30, Bhutiwala Road, Ate Firania, Village Khirhkian Wala, Tehsil Gidarbaha, District Sri Muktsar Sahib – 152031.

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….……Defendants

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2 OA NO. 643/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. AVTAR SINGH AND OTHERS

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Advocates:

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Argued by Sh. Sumeet Sehgal, Advocate for Applicant 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.49,64,078.00p (Rupees Forty Nine Lacs Sixty Four Thousand Seventy Eight Only). The Original Application has been filed through Sh. Munish Sharma, Manager o f the applicant, who is competent to institute the Original Application vide delegation of powers dated 31.08.2023, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 to 3 had approached the applicant for the grant of KCC Limit of Rs.46.00 Lacs vide Application Form dated 09.03.2015, which is Annexure A3 to this OA. Defendant no. 4 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.42.00 Lacs vide Credit Arrangement Letter dated 19.03.2015, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 & 3 had mortgaged his immovable properties i.e. Total Land measuring 96K-00M detailed as under: - (i) Land measuring 36K-16M, in the name of defendant no.2, situated at Village Bhutiwala, Hadbast No. 72, Tehsil Giddarbaha, District Sri Muktsar Sahib, Punjab (ii) Land measuring 49K-12M, in the name of defendant no.2, and situated at Village Khirhkian Wala, Hadbast No. 73, Tehsil Giddarbaha, District Sri Muktsar Sahib, Punjab (iii) Land measuring 9K-12M, in the name of defendant no.3, and situated at Village Khirhkian Wala, Hadbast No. 73, Tehsil Giddarbaha, District Sri Muktsar Sahib, Punjab, vide Declaration under Section 4(1) dated 23.03.2015, which is Annexure A13 to this OA.

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3 OA NO. 643/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. AVTAR SINGH AND OTHERS

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Documents executed :- Order of Amalgamation issued by Reserved Bank of India dated 31.03.2015, which is Annexure A2 to this OA; Annexure B-1, Demand Promissory Note, Take Delivery Letter to DPN, Hypothecation Agreement, Deed of Guarantee, Consent letter to be executed by Borrower & Guarantor, Undertaking-cum-letter of authorization for insuring crop and other movable assets, all dated 23.03.2015, which are Annexures A5 to A12 to this OA; Legal opinion regarding Lien mark dated 25.03.2015, which is Annexure A14 to this OA; Notice dated 01.04.2024, along with postal receipts, which are Annexures A15 to A19 to this OA; Statement of account along with Certificate regarding the Computer System and the genuineness of the statement of account being prepared through Computer System, which is Annexure A20 to this OA.

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5. 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.49,64,078.00p, 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.
6. 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 17.01.2025.
7. In support of the OA, affidavit ofSh. Munish Sharma, Manager,
Kotak Mahindra Bank Ltd.,has been filed.
8. Heard ex-parte arguments and perused record.
9. It was argued by learned 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 theAnnexures A1 to A20
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

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4 OA NO. 643/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. AVTAR SINGH AND OTHERS

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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.49,64,078.00p (Rupees Forty Nine Lacs Sixty Four Thousand Seventy Eight 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 @12.35% p.a. with half yearly rests from 07.03.2024 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 appropriate to grant uniform simple interest @8.00%p.a. along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.49,64,078.00p (Rupees Forty Nine Lacs Sixty Four Thousand Seventy Eight 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

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5 OA NO. 643/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. AVTAR SINGH AND OTHERS

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of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 26.09.2025.

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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. Pronounced by me in the open Tribunal . Dated: 02.09.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

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

Case brief

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