Allowed

Kotak Mahindra Bank Limited v. Sh. Parminder Pal Singh and Others

DRT17 Mar 2026OA/1171/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan defaulting amount. The court fixed simple interest at 8% per annum and directed the issuance of a Recovery Certificate for execution proceedings.

What did the court decide?

Directed defendants to pay Rs. 37,45,550.77 plus simple interest @ 8% p.a.; directed issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Sh. Parminder Pal Singh… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1171/2024

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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: 17.03.2026

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Kotak Mahindra Bank Limited, a body corporate constituted under Banking Regulation Act, 1949 having its Registered Office at 27 ВКС, С 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 Regulation Act, 1949, having its branches all over India including branch at Kotak Mahindra Bank Limited Commercial Banking, SCO 153-154-155, Basement, SEC- 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. Parminder Pal Singh S/o Sh. Gurdev Singh, R/o H no. 3, School Wali and Tarkhanan Bast Bam, Tehsil Malout, District Mukatsar, Punjab-152127.

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Smt. Raminderjeet Kaur W/o Sh. Parinder Pal Singh, R/o H no. 3, School Wali and Tarkhanan Bast Bam, Tehsil Malout, District Mukatsar, Punjab-152127.

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Sh. Manpreet Singh S/o Sh. Parminder Pal Singh, R/o H No. 3, School Wali and Tarkhanan Bast Bam, Tehsil Malout, District Mukatsar, Punjab-152127.

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……….Defendants

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Advocates:

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Argued by Sh. Rajan Puri, Advocate for Applicant (through VC) Defendants already 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.37,45,550.77 (Rupees Thirty Seven Lacs Forty Five Thousand Five Hundred Fifty & Paise Seventy Seven Only). The Original Application has been filed through Sh. Munish Sharma, Manager of the applicant, who is competent to

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2 OA NO. 1171/2024 KOTAK MAHINDRA BANK LIMITED. VS. PARMINDER PAL SINGH AND OTHERS

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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 and 2 approached the applicant for grant of KCC Limit of Rs.28.00 Lacs and Agriculture Term Loan Facility of Rs. 3.50 Lacs vide loan application dated 11.12.2015.

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The applicant sanctioned the KCC Limit of Rs.28.00 Lacs and Agriculture Term Loan of Rs.3.50 Lacs vide Credit Arrangement Letter dated 23.12.2015, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendant nos. 1 and 2.

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Defendant nos.1 & defendant no. 3 (through his GPA Holder defendant no. 1) mortgaged their immoveable property i.e. land measuring 80K-00M (45K-15M in the name of defendant no. 1 and 34K-05M in the name of defendant no.3) situated at Village Bam, Tehsil Malout, District Muktsar, Punjab vide Declaration dated 22.01.2016 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A10 to this OA; Letter dated 22.01.2016 to Sub-Registrar for Marking of Lien, which is Annexure A11 to this OA.

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Documents executed : Order of 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 borrowers, Undertaking cum Letter of Authorization for insuring crop and other moveable assets, Consent executed by the defendants, all dated 24.12.2015, which are Annexures A4 to A9 to this OA; Legal Notice dated 28.08.2024, which is Annexure A12 to this OA and Statement of Account, which is Annexure A13 to this OA.

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The KCC 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.37,45,550.77, which is recoverable and the defendants were served recall notice 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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3 OA NO. 1171/2024 KOTAK MAHINDRA BANK LIMITED. VS. PARMINDER PAL SINGH AND OTHERS

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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 Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A13 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, KCC 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.37,45,550.77 (Rupees Thirty Seven Lacs Forty Five Thousand Five Hundred Fifty & Paise Seventy Seven 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. 10. In so far as pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00% p.a. along with 2% penal interest from 06.03.2024 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 hypothecated assets/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 @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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4 OA NO. 1171/2024 KOTAK MAHINDRA BANK LIMITED. VS. PARMINDER PAL SINGH AND OTHERS

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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.37,45,550.77 (Rupees Thirty Seven Lacs Forty Five Thousand Five Hundred Fifty & Paise Seventy Seven 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 assets/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 07.04.2026.

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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: 17.03.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Parminder Pal Singh and Others

Case brief

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Kotak Mahindra Bank Limited v. Sh. Parminder Pal Singh and Others

Case brief

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