Allowed

Kotak Mahindra Bank Limited v. Sh. Sukhwinder Singh and Another

DRT19 Nov 2025OA/773/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of a loan of Rs. 21.14 lakh treated as NPA. The court fixed interest at 8% p.a. and ordered recovery from mortgaged properties or personal assets. The application was decided ex parte.

What did the court decide?

Recovery of Rs. 21,14,579 with 8% interest ordered; Recovery Certificate issued; Recovery via sale of mortgaged or personal assets authorized.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.773/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 19.06.2025

¶5

DATE OF DECISION: 19.11.2025

¶6

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 27ВКС, С 27, G Block, Bandra Kurla Complex, Bandra (E), and branches at different places one at Sultanpur Lodhi, Distt. Kapurthala, Punjab, through Sh. Munish Sharma, Authorized Officer of Applicant .

¶7

……..Applicant Versus

¶8

Sh. Sukhwinder Singh S/o Bava Singh R/o H. No. 26, Village Sherpur Dogran, Tehsil Sultanpur, Distt. Kapurthala - 144626.

¶9

Sh. Sarabjit Singh S/o Bava Singh R/o H. No. 30, Village Sherpur Dogran, Tehsil Sultanpur, Distt. Kapurthala - 144626. ….……Defendants

¶10

Advocates:

¶11

Argued by Sh. Sumeet Sehgal, Advocate proxy for Sh. J S Sehgal, Advocate for the applicant

¶12

Defendants already ex-parte

¶13

¶14

OA NO.773/2025 KOTAK MAHINDRA BANK LIMITED VS SH. SUKHWINDWER SINGH AND ANOTHER

¶15

FINAL ORDER

¶16

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.21,14,579.00p (Rupees Twenty One Lacs Fourteen Thousand Five Hundred Seventy Nine 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 delegation of powers through resolution dated 31.08.2023, which is Annexure A1 to this OA.

¶17

The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.19.00 Lacs vide Loan application dated 29.01.2011, which is Annexure A3 to this OA. Defendant no. 2 stood as guarantor.

¶18

The applicant sanctioned the KCC Limit of Rs.19.00 Lacs vide Credit arrangement letter dated 22.03.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

¶19

Defendant no.1 had mortgaged his immovable properties i.e. land measuring 78K-01M detailed as under:

¶20

(i) Land measuring 22K-01M situated at Village Doda Saudagar, Tehsil Sultanpur, District Kapurthala, Punjab.

¶21

(ii) Land measuring 56K-00M situated at Village Alam Khan Wala, Tehsil Sultanpur, District Kapurthala, Punjab. vide Mortgage Deed bearing vasika no.3293 dated 28.02.2011, along with its translation, which are Annexures A13 & A14 to this OA. Documents executed: - Order of amalgamation issued by Reserve 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

¶22

¶23

OA NO.773/2025 KOTAK MAHINDRA BANK LIMITED VS SH. SUKHWINDWER SINGH AND ANOTHER

¶24

authorization for insuring crop and other movable assets, all dated 22.03.2011, which are Annexures A5 to A12 to this OA; Notice dated 15.05.2025, along with postal receipts, Which are Annexures A15 to A17 to this OA and statement of account, which is Annexure 18 to this OA.

¶25

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.21,14,579.00p, 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.

¶26

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 12.11.2025.

¶27

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 learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facility 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 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 bank is entitled to recover a sum of Rs.21,14,579.00p (Rupees Twenty One Lacs Fourteen Thousand Five Hundred Seventy Nine Only) along with interest from the defendants, jointly and

¶28

¶29

OA NO.773/2025 KOTAK MAHINDRA BANK LIMITED VS SH. SUKHWINDWER SINGH AND ANOTHER

¶30

severally, from the date of filing of the present Original Application till realization of the accounts.

¶31

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75%p.a. with half yearly rests from 26.04.2025 till the realization.

¶32

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, 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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,14,579.00p (Rupees Twenty One Lacs Fourteen Thousand Five Hundred Seventy Nine 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 mortgaged property/hypothecated assets of 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.

¶34

¶35

OA NO.773/2025 KOTAK MAHINDRA BANK LIMITED VS SH. SUKHWINDWER SINGH AND ANOTHER

¶36

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

¶37

Parties to appear before Learned Recovery Officer of this Tribunal on 01.12.2025

¶38

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.

¶39

Pronounced by me in the open Tribunal .

¶40

Dated: 19.11.2025

¶41

(MRIDULESH KUMAR SINGH)

¶42

Presiding Officer,

¶43

DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Sukhwinder Singh and Another

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Sh. Sukhwinder Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Messrs Rosy Hi Tech Spinning Mills and Others versus Punjab National Bank

Gaurav Chandola and Another versus Tata Capital Housing Finance Ltd. and Others

Icici Bank Limited versus M/S Jai Jeet Enterprises and Another

Canara Bank versus Sh. Malkeet Singh and Another

Central Bank of India versus M/S Paras Traders and Others

Hdfc Bank Ltd. versus Sh. Sher Singh and Another