Allowed

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

DRT6 Jan 2026OA/10/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Kotak Mahindra Bank Ltd. against five respondents (borrowers and guarantors) for recovery of a dues of Rs. 1,17,91,921.23 and ordered proceedings to recover the amount through sale of mortgaged assets.

What did the court decide?

Declarations of liability to pay Rs. 1,17,91,921.23 jointly and severally with simple interest at 8% per annum, and issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Sh. Chaichal Singh and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.10/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.10.2023

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DATE OF DECISION: 06.01.2026.

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Kotak Mahindra Bank Limited, a body corporate constituted under Banking Regulation Act, 1949 having its Registered Office at 27ВКС, C 27, G-Block, Bandra Kurla Complex, Bandra (E) Mumbai-400051 and the successor to ING Vyasa Bank under the Amalgamation scheme on 01.04.2015, sanctioned by the Reserve Bank of India in exercise of powers contained in sub section (4) of Section 44A of the Banking Regulations Act, 1949 having its branches all over India including branch at Kotak Mahindra Bank Ltd., Commercial Banking SCO-153154-155, Basement, 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. Chaichal Singh S/o Sh. Jasha Singh R/o House No. 234, Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab143001.

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Sh. Mohan Singh S/o Sh. Jasa Singh R/o House No. 234, Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab-143001.

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Sh. Santokh Singh S/o Sh. Jasa Singh R/o House No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab143001.

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Sh. Sukhdev Singh S/o Sh. Piara Singh R/o House No. 292, Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab143001.

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Sh. Daiya Singh S/o Sh. Jasa Singh, R/o House No. 234, Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab-143001.

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……….Defendants

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OA NO.10/2024 KOTAK MAHINDRA BANK LMITED VS. CHAICHAL SINGH AND OTHERS

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Advocates:

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Argued by Sh. Rajan Puri, Advocate for the applicant

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Defendants already ex-parte vide order dated 03.03.2025

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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.1,17,91,921.23 (Rupees One Crore Seventeen Lacs Ninety One Thousand Nine Hundred Twenty One and Paise Twenty Three 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 Resolution dated 31.08.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant nos. 1 to 3 approached the applicant for the grant of KCC Limit of Rs.90.00 Lacs vide loan application dated 05.10.2012. Defendant nos. 4 and 5 stood as guarantors.

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The applicant sanctioned the KCC Limit of Rs.85.00 Lacs vide Credit arrangement letter dated 22.10.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos.1 to 3 mortgaged their immovable property i.e. land measuring 20.46 acre i.e. 163K-14M situated at Village Chohla Sahib (A and B), Tehsil and District Tarn Taran, Punjab vide Mortgage deed dated 20.11.2012, along with its translation, which is Annexure A10 to this ОА. Letter of marking of lien dated 22.11.2012, which is Annexure A11 to this OA.

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Documents executed: Amalgamation of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Pronote, Take delivery letter, Hypothecation agreement, Consent letter executed by the borrower, Undertaking Cum Letter of Authorization for insuring crop and other moveable assets, Annexure B-I, Guarantee

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OA NO.10/2024 KOTAK MAHINDRA BANK LMITED VS. CHAICHAL SINGH AND OTHERS

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Bond, Consent letter executed by the guarantor, all dated 22.10.2012, which are Annexures A4 to A9 & A12 to A13 to this OA; Legal notice dated 21.09.2023, which is Annexure A14 to this OA and Statement of account with certificate, which is Annexure A15 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.1,17,91,921.23, 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 vide order dated 03.03.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager and Authorized Representative, Kotak Mahindra Bank Ltd., has been filed.

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Heard ex-parte 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 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.1,17,91,921.23 (Rupees One Crore Seventeen Lacs Ninety One Thousand Nine Hundred Twenty One and Paise Twenty Three Only) along with interest from the

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OA NO.10/2024 KOTAK MAHINDRA BANK LMITED VS. CHAICHAL SINGH AND OTHERS

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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 2% penal interest with monthly rests from 22.06.2023 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/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 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.1,17,91,921.23 (Rupees One Crore Seventeen Lacs Ninety One Thousand Nine Hundred Twenty One and Paise Twenty Three Only) jointly and severally, with costs, current and future simple interest @08.00%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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OA NO.10/2024 KOTAK MAHINDRA BANK LMITED VS. CHAICHAL SINGH AND OTHERS

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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 19.01.2026.

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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: 06.01.2026.

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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. Chaichal Singh and Others

Case brief

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

Case brief

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