Allowed

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

DRT25 Jul 2025OA/834/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993 filed by Kotak Mahindra Bank Ltd. against three respondents for recovery of Rs. 69,47,672/- against a KCC loan account classified as NPA, granting simple interest at 8% per annum.

What did the court decide?

Recovery of Rs. 69,47,672/- jointly and severally with simple interest at 8% per annum from filing date until realization of the amount.

Kotak Mahindra Bank Limited versus Sh. Ranjit Singh and… — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.834/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.07.2024

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DATE OF DECISION: 25.07.2025

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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 the Reserve Bank of India under sub section 4 of section 44A of the Banking Regulations 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 dated March 31^st ,2015 and order issued by RBI vide letter no. DBR/PSBD/14476/16.01.136/2014-2015 dated 31^st march 2015), thus the applicant is the 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 at Bhadson, District Patiala, Punjab through Sh. Munish Sharma Authorized Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Ranjit Singh S/o Sh. Nachhtar Singh R/o House No.201, Village Dittupur Jattan, Tehsil Nabha, District Patiala-140401.

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Sh. Nachhtar Singh S/o Sh. Joginder Singh R/o House No.201, Village Dittupur Jattan, Tehsil Nabha, District Patiala-140401.

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Sh. Gurinder Singh S/o Sh. Bhag Singh R/o House No.202, Village Dittupur Jattan, Tehsil Nabha, District Patiala-140401.

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….……Defendants

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Advocates:

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Argued by, Ms. Ramneek Kaur, Advocate proxy for Sh. J.S. Sehgal, Advocate for Applicant Defendants already ex parte

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2 OA NO.834/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. RANJIT 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.69,47,672.00p (Rupees Sixty Nine Lacs Forty Seven Thousand Six Hundred Seventy Two only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Copy of delegation of powers dated 31.08.2023, which is Annexure A1 to this OA. Defendant no. 3 stood as guarantor.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.34.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.33.00 Lacs vide Credit Arrangement Letter dated 21.01.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable properties i.e. total land measuring 54Kanal-9 Marla detailed as under: - i. Land measuring 40K-00M (5 acres) situated at Village Basantpura, Tehsil and District Fatehgarh Sahib, Punjab vide Declaration u/s 4(1) along with letter to Sub-Registrar for creation of charge dated 23.01.2015, which is Annexure A12 to this OA. ii. Land measuring 14K-9M situated at Village Deyagarh, Tehsil and District Patiala, Punjab vide Declaration u/s 4(1) along with letter to Sub-Registrar for creation of charge dated 28.01.2015, which is Annexure A13 to this OA. Documents executed: - Order of amalgamation 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 & Guarantor, Undertaking cum letter of authorization for

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3 OA NO.834/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. RANJIT SINGH AND OTHERS

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insuring crop and other movable assets, all dated 21.01.2015, which are Annexures A4 to A11 to this OA; Legal opinion regarding Lean mark dated 29.01.2015, which is Annexure A14 to this OA; Notice dated 31.05.2024 along with postal receipts, which are Annexures A15 to A18 to this OA and Statement of account, which is Annexure A19 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.69,47,672.00p, 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.

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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 04.01.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd., h as 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 had proved its case. From the perusal of all the Annexures A1 to A19 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 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.69,47,672.00p (Rupees Sixty Nine Lacs Forty Seven Thousand Six Hundred Seventy Two only)

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4 OA NO.834/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. RANJIT SINGH AND OTHERS

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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 @12.00%p.a. with half yearly rests from 26.04.2024 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. 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.69,47,672.00p (Rupees Sixty Nine Lacs Forty Seven Thousand Six Hundred Seventy Two 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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13. Issue Recovery	Certificate accordingly.

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5 OA NO.834/2024 KOTAK MAHINDRA BANK LIMITED VS. SH. RANJIT SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.09.2025.

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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.

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Pronounced by me in the open Tribunal . Dated: 25.07.2025

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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. Ranjit Singh and Others

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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