Allowed

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

DRT16 Mar 2026OA/1228/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 48.11 lakhs principal plus interest. Defendants were present ex-parte. The order grants the relief of recovery from mortgaged assets and allows future interest at 8% p.a.

What did the court decide?

Recovery of Rs. 48,11,993.43 jointly and severally from defendants; Recovery Certificate issued; Future interest at 8% p.a.

Kotak Mahindra Bank Limited versus Sh. Kuldeep Singh and Others — Insurance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1228/2023

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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: 16.03.2026

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Kotak Mahindra Bank Limited, a banking company incorporated under Companies Act, 1956 and licensed under the Banking Regulation Act, 1949, having its Registered Office, at 27BKC, C27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vsysa Bank Limited under the Amalgamation scheme dated 01.04.2015, sanctioned by the Reserve Bank of India in exercise of the powers contained in Sub Section (4) of Section 44A of the Banking Regulation Act,1949, having its branches all over India including its branch at S.C.O.153- 154-155, Sector 9/C, 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. Kuldeep Singh S/o Sh. Kesar Singh, H.No.191, Village Mandour/0002, P.S. Bakshiwala, Tehsil Nabha, District Patiala147201.

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Sh. Jaspal Singh S/o Sh. Kesar Singh, H.No. 191, Village Mandour/0002, P.S. Bakshiwala Tehsil Nabha, District Patiala147201.

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Smt. Baljit Kaur W/o Sh. Kesar Singh, Village Mandour/0002, P.S. Bakshiwala Tehsil Nabha, District Patiala-147201.

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Sh. Inderjit Singh S/o Sh. Gurcharan Singh, Village Rakhra/0037, P.S. Patiala, Tehsil and District Patiala- 147201.

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….……Defendants

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Advocates:

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Argued by, Sh. Satwinder Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for applicant

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Defendants already ex-parte vide order dated 06.02.2026

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2 OA/1228/2023 KOTAK MAHINDRA BANK LIMITED VS. KULDEEP 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.48,11,993.43 (Rupees Forty Eight Lacs Eleven Thousand Nine Hundred Ninety Three and Paise Forty Three Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative, Kotak Mahindra Bank o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 31.08.2023, which is Annexure A2 to this OA.

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The brief facts of the OA that the defendant nos. 1 to 3 approached the applicant for grant KCC Limit of Rs 40.00 Lacs vide Loan Application dated 09.01.2012. Defendant no. 4 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs. 36.00 Lacs vide Credit Arrangement Letter dated 20.01.2012, which is Annexure A3 to this OA and the terms and conditions are duly accepted by defendants. 4. Defendant nos. 1 to 3 mortgaged their immovable property i.e. Land Measuring 19Bighas-00Biswa i.e. 3.95 Acres (10B-00B in the name of defendant no. 1, 01B-00B in the name of defendant no. 2 and 08B-00B in the name of defendant no. 3) Situated at Village Mandour, Tehsil Nabha, District Patiala, Punjab vide Mortgage Deed bearing vasika no. 5592 dated 24.01.2012 Defendant nos. 1 and mortgaged their immovable property i.e. Land Measuring 19Bighas-08Biswa (09B-00B in the name of defendant no. 1 and 10B-08B in the name of defendant no. 2) Situated at Village Mandour, Tehsil Nabha, District Patiala, Punjab vide Mortgage Deed bearing vasika no. 6090 dated 27.02.2012. Mortgage deeds, are Annexure A13 to this OA; Affidavit dated 27.01.2012, which is Annexure A12 to this OA.

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3 OA/1228/2023 KOTAK MAHINDRA BANK LIMITED VS. KULDEEP SINGH AND OTHERS

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Documents executed: Oder of Amalgamation of ING Vysya Bank Ltd. with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Agreement, Demand Promissory Note, Take Delivery Letter to DPN, Hypothecation Agreement, Guarantee Bond, Consent Letter by Borrower, Consent Letter by Guarantor, undertaking cum letter of authorization for insuring crop and other movable assets, all dated 20.01.2012, which are Annexures A4 to A11 to this OA; Loan Recall Notice dated 10.07.2023 along with postal receipts dated 12.07.2023, which are Annexure A14 to this OA; 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. 48,11,993.43 which is recoverable and the defendants was 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. 6. 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 06.02.2026.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, Kotak Mahindra Bank 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 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 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

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4 OA/1228/2023 KOTAK MAHINDRA BANK LIMITED VS. KULDEEP SINGH AND OTHERS

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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 48,11,993.43 (Rupees Forty Eight Lacs Eleven Thousand Nine Hundred Ninety Three and Paise Forty Three 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.

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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%p.a. penal interest and half yearly rests from 22.06.2023 2till 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 properties, 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.48,11,993.43 (Rupees Forty Eight Lacs Eleven Thousand Nine Hundred Ninety Three and Paise Forty Three 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 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

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5 OA/1228/2023 KOTAK MAHINDRA BANK LIMITED VS. KULDEEP SINGH AND OTHERS

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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 06.04.2026.

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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: 16.03.2026.

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

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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