Allowed

Kotak Mahindra Bank Limited v. Smt. Amarjit Kaur

DRT22 May 2026OA/1287/2024

Case brief

AI extract

What is this about?

A banking company filed an original application before the Debt Recovery Tribunal for recovery of dues from borrowers and a guarantor. The tribunal allowed the application ex-parte and decreed the recovery of principal amount along with modified interest.

What did the court decide?

Recovery of Rs. 33,85,498 along with simple interest @ 8% p.a. until realization; issue of Recovery Certificate.

Kotak Mahindra Bank Limited versus Smt. Amarjit Kaur — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1287/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.11.2024

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DATE OF DECISION: 22.05.2026

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Kotak Mahindra Bank Ltd. a banking company, carrying on the banking business under the Companies Act, 1956, and having its Registered Office at 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) and Branches at different places one at Mari Gaurh Singh, District Tarn Taran, Punjab, through its Authorized Officer Sh. Munish Sharma.

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……..Applicant

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Versus

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Smt. Amarjit Kaur W/o Sh. Baldev Singh, R/o H. No. 187,

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Village Kalsian Kalan (Abadi Bhai Ladhu), Tehsil Patti, District Tarn Taran – 143304.

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Sh. Chanan Singh S/o Sh. Baldev Singh, R/o H. No. 187, Village Kalsian Kalan (Abadi Bhai Ladhu), Tehsil Patti, District Tarn Taran – 143304.

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Sh. Harjit Singh S/o Sh. Baldev Singh, R/o Village Kalsian Kalan (Abadi Bhai Ladhu), Tehsil Patti, District Tarn Taran – 143304.

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……..Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for Applicant

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None for Defendants (Already ex-parte vide order dated 20.05.2026).

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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.33,85,498.00 (Rupees Thirty Three Lacs Eighty Five Thousand Four Hundred and Ninety Eight Only). The Original Application has been filed through Sh. Munish Sharma , Authorized Officer of the applicant who is competent to institute the Original Application vide Resolution dated 31.08.2023, which is Annexure A1 to this OA.

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2 OA/1287/2024 KOTAK MAHINDRA BANK LTD. VS SMT. AMARJIT KAUR AND OTHERS

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The brief facts of the OA are that the defendant nos. 1 & 2 approached the applicant for grant of Cash Credit Limit of Rs.14,14,000.00 and Term Loan of Rs. 3,51,000.00. 3. The applicant sanctioned the Cash Credit Limit of Rs.14,14,000.00 and Term Loan of Rs.3,51,000.00 vide Sanction Letter dated 12.05.2017, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant nos. 1 & 2 mortgaged their immovable properties i.e., total Agricultural Land measuring 60K-0M situated at Village Kalsian Kalan(I), (II), Tehsil Patti, District Tarn Taran, as per Jamabandi for year 2010-2011 vide Request for entering the mutation in the revenue records and Declaration under Section 4(1) dated 22.05.2017, which is Annexure A10 to this OA.

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Documents executed: Master Facility Agreement, Deed of

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Hypothecation, Demand Promissory Note(Floating Rate), Demand Promissory Note(Fixed Rate), Take Delivery Letter to Demand Promissory Notes, Guarantee Deed, all dated 26.05.2017, which are Annexures A3 to A9 to this OA; Legal Opinion regarding lien mark dated 24.05.2017, which is Annexure A11 to this OA; Legal Notice dated 30.09.2024, along with postal receipts which are Annexures A12 to A15 to this OA; Statement of Accounts along with certificate, which are Annexures A16 to A17 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.33,85,498.00, 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. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 20.05.2026.

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3 OA/1287/2024 KOTAK MAHINDRA BANK LTD. VS SMT. AMARJIT KAUR AND OTHERS

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Officer, Kotak Mahindra Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facilities which were granted to them, defendant no. 3 stood as guarantor 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 accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,85,498.00 (Rupees Thirty Three Lacs Eighty Five Thousand Four Hundred and Ninety Eight Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. with half yearly rests in KCC Limit Account and [email protected]%p.a. with half yearly rests in Term Loan Account from 20.07.2024 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 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 @08.00% p.a. in both the loan accounts from the date of filing

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4 OA/1287/2024 KOTAK MAHINDRA BANK LTD. VS SMT. AMARJIT KAUR AND OTHERS

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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.33,85,498.00 (Rupees Thirty Three Lacs Eighty Five Thousand Four Hundred and Ninety Eight Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 immovable properties of the defendant nos. 1 & 2 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 15.06.2026.

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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: 22.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Smt. Amarjit Kaur

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Smt. Amarjit Kaur

Case brief

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What did the court decide?

What the court decided

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