Allowed

Kotak Mahindra Bank Limited v. Sh. Rajesh Chander and Others

DRT5 Feb 2026OA/1170/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of dues aggregating to Rs. 50,78,398.89 from defendants who defaulted on loan accounts. The court ordered payment of principal and reduced simple interest, noting the assurance of imminent repayment.

What did the court decide?

Recovery Certificate issued for Rs. 50,78,398.89 with 8% simple interest; order to enforce claim through sale of hypothecated/mortgaged properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1170/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.09.2024

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DATE OF DECISION: 05.02.2026

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Kotak Mahindra Bank Limited, a body corporate constituted under Banking Regulations 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, SEC-9C, Madhya Marg, Chandigarh through its Authorized Representatives Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Rajesh Chander S/o Sh. Hans Raj, R/o Village Dhaktana, Tehsil Balachaur, District Shaheed Bhagat Singh Nagar (Nawanshahr), Punjab-144521.

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Smt. Rachna W/o Sh. Rajesh Chander, R/o Village Dhaktana, Tehsil Balachaur, District Shaheed Bhagat Singh Nagar (Nawanshahr), Punjab-144521.

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Sh. Telu Ram R/o Sh. Shenkar Dass, R/o Village Chuharpur Mallewal, District Nawanshahr, Punjab-144525.

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Smt. Mehar D/o Sh. Rajesh Chander, R/o Village Dhaktana, Tehsil Balachaur, District Shaheed Bhagat Singh Nagar (Nawanshahr), Punjab-144521.

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………. Defendants

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Advocates:

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Argued by Sh. Rajan Puri, Advocate for the applicant

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Defendants are ex-parte vide order dated 21.04.2025.

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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. 50,78,398.89 (Rupees Fifty Lacs

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Seventy Eight Thousand Three Hundred Ninety Eight & Paise Eighty Nine

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OA NO. 1170/2024 KOTAK MAHINDRA BANK LTD . VS. RAJESH CHANDER AND OTHERS

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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 Board Resolution dated 31.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for the grant of KCC Limit of Rs.38,74,728.00, Term Loan-I (Farm Development Loan FDL) of Rs.9.00 Lacs & Term Loan-II (Agriculture Term Loan) of Rs.4.00 Lacs. Defendant nos. 3 and 4 stood as guarantors. 3. The applicant sanctioned the KCC Limit of Rs.38,74,728.00, Term Loan-I (Farm Development Loan FDL) of Rs.9.00 Lacs & Term Loan-II (Agriculture Term Loan) of Rs.4.00 Lacs vide Credit arrangement letter dated 26.06.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his immovable properties i.e. total land measuring 95K-17M detailed as under: (i) Land measuring 83K-15M situated at Village Bhaddi/385, Tehsil Balachaur, District SBS Nagar, Punjab (ii) Land measuring 07K-07M situated at Village Adoana/387, Tehsil Balachaur, District SBS Nagar, Punjab (iii) Land measuring 04K-15M situated at Village Dhaktana/210, Tehsil Balachaur, District SBS Nagar, Punjab Defendant no. 1 mortgaged her immovable properties i.e. land measuring 07K-15M at Village Bhaddi/385, Tehsil Balachaur, District SBS Nagar, Punjab vide Declarations u/s4(1) dated 02.07.2018, which are Annexure A11 to this OA; Letters dated 02.07.2018 to Sub-Registrar for lien marking, which is Annexure A12 to this OA. Documents executed: DP Notes, Take Delivery Letter to DPN, Deed of Hypothecation Master facility agreement, lien marking, guarantee agreement all dated 02.07.2018, which are Annexures A3 to A10 to this OA; Legal notice dated 22.08.2024, which is Annexure A14 to this OA and Statement of account with certificate, which are Annexures A16 & A17 to this OA.

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OA NO. 1170/2024 KOTAK MAHINDRA BANK LTD . VS. RAJESH CHANDER AND OTHERS

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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. 50,78,398.89, 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 21.04.2025. 7. In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank h as been filed. 8. 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 A17 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. 50,78,398.89 (Rupees Fifty Lacs Seventy Eight Thousand Three Hundred Ninety Eight & Paise Eighty 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 accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50%p.a. in KCC Limit and interest @11.00%p.a. Term Loans, with 2% penal interest and half yearly rests from 20.07.2024 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 mortgaged property/hypothecated

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OA NO. 1170/2024 KOTAK MAHINDRA BANK LTD . VS. RAJESH CHANDER AND OTHERS

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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 all 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.

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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.50,78,398.89 (Rupees Fifty Lacs Seventy Eight Thousand Three Hundred Ninety Eight & Paise Eighty Nine Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all 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/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 17.02.2026.

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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. Pronounced by me in the open Tribunal .

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Dated: 05.02.2026.

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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. Rajesh Chander and Others

Case brief

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Kotak Mahindra Bank Limited v. Sh. Rajesh Chander and Others

Case brief

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