Allowed

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

DRT17 Dec 2025OA/706/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of an outstanding NPA loan of Rs.34.31 Lakhs against borrowers and guarantor. The order confirms liability and grants uniform simple interest at 8% p.a. pending realization.

What did the court decide?

Debtors declared liable to pay Rs.34,31,358.00 with costs and simple interest @8.00%p.a. from filing date. Recovery Certificate issued.

Kotak Mahindra Bank Limited versus Sh. Khushwinder… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.706 /2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.04.2022

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DATE OF DECISION: 17.12.2025

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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 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, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai and branches at different places one in Bhadson, District Patiala, through Sh. Munish Sharma, Authorized Officer of the Applicant.

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……..Applicant
Versus
1. Sh. Khushwinder Singh S/o Sh. Prem Singh R/o House no. 37, Village Takhtu Majra, Tehsil Rajpura, District Patiala-140701
2. Smt. Jaswinder Kaur W/o Sh. Khushwinder Singh R/o House no. 37, Village Takhtu Majra, Tehsil Rajpura, District Patiala-140701
3. Smt. Nachhattar Kaur W/o Sh. Prem Singh R/o House no. 35,
Village Takhtu Majra, Tehsil Rajpura, District Patiala-140701 ……Defendants
Advocates:
Argued by Sh. J.S. Sehgal, Advocate for Applicant
Defendants already ex parte

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OA/706/2022 KOTAK MAHINDRA BANK LTD. VS. KHUSHWINDER SINGH 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.34,31,358.00 (Rupees Thirty Four Lacs Thirty One Thousand Three Hundred Fifty Eight Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer of the Applicant, who is competent to institute the Original Application vide Resolution dated 27.06.2020 which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant nos. 1 and 2 approached the applicant for the grant of KCC Limit of Rs.32.00 Lacs vide loan application dated 23.02.2015, which is Annexure A3 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.28.00 Lacs vide Credit Arrangement Letter dated 24.02.2015, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 had mortgaged his immovable property i.e. land measuring 28B-16B i.e. 6.0 Acres situated at Village Takhtu Majra, Tehsil Rajpura, District Patiala, Punjab vide Declaration u/s 4(1) dated 12.03.2015 which is Annexure A13 to this OA.

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Documents executed : Order of amalgamation dated 31.03.2015 issued by Reserve Bank of India, 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 Borrower, Consent Letter to be executed by Guarantor, Undertaking cum Letter of Authorization for insuring crop and other movable assets, all dated 24.02.2015 which are Annexures A5 to A12 to this OA; Legal Notice dated 03.03.2022, along with postal receipts dated 07.03.2022, which are Annexures A14 to A17 to this OA; Statement of Account with certificate, which is Annexure A18 to this OA.

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OA/706/2022 KOTAK MAHINDRA BANK LTD. VS. KHUSHWINDER SINGH AND OTHERS

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.34,31,358.00, 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 05.10.2023.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by the learned counsel for applicant 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 Annexure A1 to A18 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.34,31,358.00 (Rupees Thirty Four Lacs Thirty One Thousand Three Hundred Fifty Eight 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00% p.a. with half yearly rests from 01.03.2022 till the realization.

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OA/706/2022 KOTAK MAHINDRA BANK LTD. VS. KHUSHWINDER SINGH AND OTHERS

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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/hypothecated assets, including 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 @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.34,31,358.00 (Rupees Thirty Four Lacs Thirty One Thousand Three Hundred Fifty 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal

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on 30.12.2025.

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OA/706/2022 KOTAK MAHINDRA BANK LTD. VS. KHUSHWINDER SINGH 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 .

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Dated: 17.12.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

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

Case brief

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

Case brief

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