Allowed

Kotak Mahindra Bank Limited v. Smt. Saranjit Kaur and Others

DRT13 Apr 2026OA/122/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Kotak Mahindra Bank Limited against five borrowers and two guarantors for recovery of Rs. 60,97,753.24 sanctioned as a Kisan Cash Credit limit. The order declared joint and several liability and directed recovery from mortgaged assets.

What did the court decide?

Recovery of Rs. 60,97,753.24 along with simple interest @ 8% p.a. from filing date till realization; issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Smt. Saranjit Kaur and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.122/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.01.2025

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DATE OF DECISION: 13.04.2026

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Kotak Mahindra Bank Limited, a body corporate, constituted under the Banking Regulation Act, 1949, having its Head Office at 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and its Branch Office at Kotak Mahindra Bank, 49, JK Tower, Mall Road, Amritsar-143001 and Kotak Mahindra Bank Limited, Landran Road, Khasra No. 678, Sohana, Mohali-140308, through its Authorized Representative Sh. Munish Sharma, Senior Manager.

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……..Applicant

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Versus

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Smt. Saranjit Kaur W/o Sh. Chaichal Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Smt. Paramjit Kaur W/o Sh. Mohan Singh, R/o H. No. 234, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Smt. Sukhwinder Kaur W/o Sh. Santokh Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Smt. Rajbir Kaur W/o Sh. Daya Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Smt. Rupinder Kaur W/o Sh. Kartar Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Sh. Chaichal Singh S/o Sh. Jasa Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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Sh. Daiya Singh S/o Sh. Jasa Singh, R/o H. No. 293, Village Chohla Sahib, Tehsil and District Tarn Taran-143408.

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……. .Defendants

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for the applicant ( through VC)

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None for Defendants (Already ex-parte vide order dated 28.07.2025)

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OA NO. 122/2025 KOTAK MAHINDRA BANK VS SMT. SARANJIT KAUR 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.60,97,753.24 (Rupees Sixty Lacs Ninety Seven Thousand Seven Hundred Fifty Three and Paise Twenty Four Only). The Original Application has been filed through Sh. Munish Sharma, Senior Manager 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 5 approached the applicant for grant of Kisan Cash Credit Limit of Rs.55.00 lacs. 3. The applicant sanctioned the Kisan Cash Credit Limit of Rs.49.00 lacs vide sanction letter dated 08.03.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Defendant nos. 6 and 7 stood as guarantor. 4. Defendant nos. 1 to 5 mortgaged their immovable properties i.e. Total Land measuring 87 Kanals situated at Village Chohla Sahib, Tehsil and District Tarn Taran, Punjab as per Jamabandi of year 200506, vide mortgage deed bearing vasika no. 1389 dated 08.03.2013 along with translation, which is Annexure A6 to this OA. Documents executed: Order of Amalgamation issued by Reserve Bank of India dated 01.04.2015, which is Annexure A1 to this OA; Hypothecation Agreement, Guarantee Bond, both dated 09.03.2013, which are Annexures A4 & A5 to this OA; Legal notice dated 11.11.2024 along with postal receipts, which is Annexure A7 to this OA; State of account along with certificate, which is Annexure A8 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.60,97,753.24, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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OA NO. 122/2025 KOTAK MAHINDRA BANK VS SMT. SARANJIT KAUR AND OTHERS

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 28.07.2025. 7. In support of the OA, affidavit of Sh. Munish Sharma, Senior Manager, Kotak Mahindra Bank Ltd., h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 A8 to this OA, it is proved that the defendant nos. 1 to 5 approached applicant for availing of the loan facility which was granted to them, defendant nos. 6 & 7 stood as guarantors 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.60,97,753.24 (Rupees Sixty Lacs Ninety Seven Thousand Seven Hundred Fifty Three and Paise Twenty Four 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. with 2% penal interest from 23.11.2024 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 properties/hypothecated assets, undertaking of the defendants,

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OA NO. 122/2025

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KOTAK MAHINDRA BANK VS SMT. SARANJIT KAUR AND OTHERS

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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 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.60,97,753.24 (Rupees Sixty Lacs Ninety Seven Thousand Seven Hundred Fifty Three and Paise Twenty Four 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 defendant nos. 1 to 5 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 04.05.2026.

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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: 13.04.2026

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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. Smt. Saranjit Kaur and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Smt. Saranjit Kaur and Others

Case brief

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