Allowed

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

DRT18 Sept 2025OA/761/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank Ltd. against borrowers and guarantors for recovery of Rs.1.13 crore. The court confirmed liability and granted uniform simple interest at 8.00% p.a. instead of the claimed 11.85% p.a.

What did the court decide?

Recovery of Rs.1,13,71,179.38 jointly and severally with costs and simple interest at 8.00% p.a. from the date of filing.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.761/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.04.2022

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DATE OF DECISION: 18.09.2025

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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 44(A) of the banking regulations Act, 1949 having its branches all over India including its branch at SCO No.153-154-155 Sector-9C, Madhya Marg, Chandigarh through its Authorized Representative Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Manpreet Singh S/o Sh. Ranjeet Singh, R/o Village Dinapur/10, Tehsil Samana, District Patiala, Punjab.

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Sh. Ranjeet Singh S/o Sh. Sadha Singh, R/o Village Dinapur/10, Tehsil Samana, District Patiala, Punjab.

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Sh. Gurvinder Singh S/o Sh. Sukhbeer Singh, R/o House No.14, Village Kutban Pur, Hadbast No.86, Tehsil and District Patiala, Punjab.

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Smt. Gurbachan Kaur W/o Sh. Sadha Singh, R/o House No.11, Village Dinapur, Tehsil Samana, District Patiala, Punjab.

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Sh. Sadha Singh S/o Sh. Charhat Singh, R/o House No.11, Village Dinapur, Tehsil Samana, District Patiala, Punjab.

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….……Defendants Advocates: Argued by Sh. Satwinder Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for Applicant

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Defendants already ex parte

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2 OA NO.761/2022 KOTAK MAHINDRA BANK LIMITED Vs SH. MANPREET 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.1,13,71,179.38P (Rupees One Crore Thirteen Lacs Seventy One Thousand One Hundred Seventy Nine & Thirty Eight Paise only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative of 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 defendant nos. 1 and 2 had approached the applicant for the grant of KCC Limit of Rs.97.00 Lacs vide loan application dated 21.06.2014. Defendant nos. 3 to 5 stood as guarantors.

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The applicant sanctioned KCC Limit of Rs. 90.00 Lacs vide Credit Arrangement letter dated 21.06.2014, along with Annexure-B-1, Pronote, Take delivery letter to DPN, hypothecation agreement, Guarantee Bond, Consent letter to be executed by borrower and guarantor, undertaking-cum letter of authorization for ensuring crop and other moveable assets, all dated 30.06.2014, which are Annexure A3 (Colly) and the terms and conditions were duly accepted by the defendants.

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Defendant nos. 2 & 5 had mortgaged their immovable properties i.e. Total land measuring 160K-00M detailed as under:

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(i) Land measuring 144K-00M i.e. 18 acre, in the name of defendant no. 2, situated at Village Danipur, Tehsil Samana, District Patiala, Punjab, vide Mortgage deed bearing Vasika Nos. 984 dated 01.07.2014.

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(ii) Land measuring 16K-00M, in the name of defendant no. 5, situated at Village Danipur, Tehsil Samana, District Patiala, Punjab, vide Mortgage deed bearing Vasika Nos. 1025 dated 03.07.2014.

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Both the mortgage deeds are Annexure A4 (Colly) to this OA.

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3 OA NO.761/2022 KOTAK MAHINDRA BANK LIMITED Vs SH. MANPREET SINGH AND OTHERS

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Documents executed: - Amalgamation of ING Vysya Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan recall notice dated 02.03.2022 along with postal receipts, which is Annexure A5 to this OA and statement of account duly certified under the Banker’s Book 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.1,13,71,179.38P, 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. Sh. Ishmit Singh, Advocate appeared on behalf of defendant nos. 1 and 2 on 23.03.2023 and also filed Power of Attorney on their behalf. WS on behalf of defendant nos. 1 and 2 was filed on 17.11.2023. Since, the WS of defendant nos. 1 and 2 was not filed within stipulated period, therefore a cost of Rs. 6000/- was imposed on defendant nos. 1 and 2 on 14.02.2025 and WS was taken on record subject to payment of cost. Since the cost was not deposited by defendant nos. 1 and 2, WS filed by them was not taken on record on 28.08.2025, and due to non-appearance, defendant nos. 1 and 2 were proceeded ex-parte on 28.08.2025. Since, no one had appeared on behalf of defendant nos. 3 to 5, they were proceeded ex-parte on 14.02.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, 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 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

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4 OA NO.761/2022 KOTAK MAHINDRA BANK LIMITED Vs SH. MANPREET SINGH AND OTHERS

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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.1,13,71,179.38P (Rupees One Crore Thirteen Lacs Seventy One Thousand One Hundred Seventy Nine & Thirty Eight Paise 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 @11.85%p.a. with half yearly rests from 26.02.2022 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. 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.1,13,71,179.38P (Rupees One Crore Thirteen Lacs Seventy One Thousand One Hundred Seventy Nine & Thirty Eight Paise 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

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5 OA NO.761/2022

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KOTAK MAHINDRA BANK LIMITED Vs SH. MANPREET SINGH AND OTHERS

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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 on 09.10.2025.

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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: 18.09.2025

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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. Manpreet Singh and Others

Case brief

What is this about?

What did the court decide?

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

Case brief

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What did the court decide?

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