Allowed

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

DRT14 Jul 2025OA/729/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal-III, Chandigarh allowed an Original Application filed by Kotak Mahindra Bank Ltd. for recovery of Rs. 23,35,892.39p from three respondents who defaulted on term loans and working capital limits for commercial vehicles. The court ex-parte hearing granted a uniform simple interest of 8% per annum instead of the claimed 24% and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 23,35,892.39p with 8% simple interest from the date of filing via sale of hypothecated assets or attachment of personal assets. Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.729/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2022

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DATE OF DECISION: 14.07.2025

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Kotak Mahindra Bank Ltd. having its Regional Office at SCO No.153155, Sector 9-C, Madhya Marg, Chandigarh -160009 and Registered Office at Kotak Mahindra Bank Ltd., 27 BKC, C-27, G-Block, Bandra Kurla Complex, Bandra East Mumbai-400051 through its Authorized Representative Sh. Samrat Singh Bedi.

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……. Applicant

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Versus

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Sh. Satbir Singh, S/o Sh. Sajjan Singh R/o Ward no.7, Tehsil Moonak Khanauri Mandi, Sangrur, Punjab-148027.

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Sh. Amrik Singh Lotey S/o Sh. Jagjit Singh R/o H.No. 11 12, New Professor Colony, Awana Tehsil & District Ludhiana, Punjab.

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Akal Educational Society R/o Khanouri Mandi, Sangrur, Punjab148027.

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………. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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Defendants 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.23,35,892.39p (Rupees Twenty Three Lacs Thirty Five Thousand Eight Hundred Ninety Two and Paise Thirty Nine Only). The Original Application has been filed through Sh. Samrat Singh Bedi , Authorized

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Representative o f the applicant, who is competent to institute the

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OA 729/2022 KOTAK MAHINDRA BANK LTD. SH. SATBIR SINGH AND OTHERS

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Original Application vide Board Resolution, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 & 2 had approached the applicant from time to time for grant of Credit Facilities (Term Loan) of Rs.6.93 Lacs, Rs.7.00 Lacs, Rs. 6,45,500.00 and Rs. 8,55,500.00 for purchase of Four Light Commercial Vehicles. Defendant no. 3 stood as guarantor. Further, the defendant nos. 1 & 2 approached the applicant for grant of WCTL of Rs. 4,19,300.00 vide request Letter for WCTL under GECL dated 21.08.2020, which is Annexure A9 to this OA;

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The applicant sanctioned Term Loan of Rs.6.93 Rs.7.00 Lacs, Rs.6,45,500.00 and Rs.8,55,500.00 for purchase of Four Light Commercial Vehicles. Further, the applicant sanctioned the WCTL of Rs. 4,19,300.00 under GECL vide sanction Letter dated 26.08.2020, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 1 & 2 had hypothecated their movable properties i.e. Commercial Vehicles namely:

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(i) TATA Motors Ltd. CB TATA LP 912/49 School Bus bearing Registration no. PB13AV2525.

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(ii) TATA Motors Ltd. CB TATA LP 407 (Bus) bearing Registration no. PB13AP4848.

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(iii). TATA Motors Ltd. CB TATA LP 712 (Bus) bearing Registration no. PB13AN2424.

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(iv). SWARAJ MAZDA LTD. CB SML ISUZU FRI1318 41 Seater (Bus) bearing Registration no. PB13AR2761. Particulars of vehicles filed vide dairy no. 8833 dated 06.06.2025 and 8916 dated 09.06.2025 in compliance to order dated 09.05.2025. Documents executed:- Loan Cum Guarantee Agreement dated 14.12.2017, 03.05.2019, 18.10.2019 & 31.12.2019, which are Annexures A2 to A5 to this OA; D P Note dated 03.05.2019,

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3 OA 729/2022 KOTAK MAHINDRA BANK LTD. SH. SATBIR SINGH AND OTHERS

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18.10.2019 & 31.12.2019 which are Annexures A6 to A8 to this OA; Deed of hypothecation dated 04.09.2020, which is Annexure A11 to this OA; Term Loan Agreement, which is Annexure A12 to this OA; Co-borrower Letter dated 02.09.2020, which is Annexure A13 to this OA; Legal Notice dated 02.12.2021, which is Annexure A14(Colly) to this OA; Account Statement, which is Annexure A15(Colly) to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.23,35,892.39p, 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 26.09.2024.

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In support of the OA, affidavit of Sh. Samrat Singh Bedi, Authorized Representative, Kotak Mahindra Bank h as been filed. 8. Heard 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 the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,35,892.39p (Rupees Twenty Three Lacs Thirty Five Thousand Eight Hundred Ninety

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4 OA 729/2022 KOTAK MAHINDRA BANK LTD. SH. SATBIR SINGH AND OTHERS

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Two And Paise Thirty Nine 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 @24%p.a. with monthly rests from 03.12.2021 for till the realization. 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 hypothecated assets, 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 accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,35,892.39p (Rupees Twenty Three Lacs Thirty Five Thousand Eight Hundred Ninety Two And Paise Thirty Nine Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan accounts 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 commercial vehicles of the defendants in execution proceedings if not sold earlier. 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. 12. Any other application pending stands disposed of.

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5 OA 729/2022

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KOTAK MAHINDRA BANK LTD. SH. SATBIR SINGH AND OTHERS

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.08.2025.

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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: 14.07.2025

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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. Satbir Singh and Others

Case brief

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

Case brief

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