Allowed

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

DRT27 Mar 2026OA/1291/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Kotak Mahindra Bank Ltd. against borrowers and guarantors. The court decreed repayment of the outstanding loan amount of Rs. 41,09,792/-. The tribunal adjusted the future interest rate to uniform simple interest at 08% p.a. from the date of filing.

What did the court decide?

Recovery of Rs. 41,09,792/- jointly and severally with costs and simple interest @08% p.a. from date of filing till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1291/2024

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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: 27.03.2026

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Kotak Mahindra Bank Ltd. (in which ING Vysya Bank Ltd. stands amalgamated and the name of IVBL has been changed to Kotak Mahindra Bank Ltd. (KMBL) pursuant to the order issued by Reserve Bank of India under sub-section 4 of Section 44A of Banking Regulation Act, 1949, sanctioning the scheme of amalgamation effective from 31.03.2015, as communicated by RBI vide its letter no. DBR.No.PSBD.14527/16.01.136/2014-15 March 31-2015 and order issued by RBI vide Letter no. DBR/PSBD/14476/16.01.136/2014-15 dated 31.03.2015), thus the applicant is 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 Sh. Munish Sharma, Authorized Officer of Applicant

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……..Applicant Versus

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Sh. Kulwant Singh, S/o Sh. Hari Singh, R/o H. no. 26, Village Dull, Tehsil Patti, District Tarn Taran, Punjab- 143416

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Sh. Amritpal Singh, S/o Sh. Kulwant Singh, R/o H. no. 61, Village Dull, Tehsil Patti, District Tarn Taran, Punjab- 143416

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Sh. Makhan Singh, S/o Sh. Sardul Singh, R/o H. no. 119, Village Dhala, Tehsil Patti, District Tarn Taran, Punjab- 143402

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Sh. Rajwant Singh, S/o Sh. Hari Singh, R/o H. no.26, Village Dull, Tehsil Patti, Distt Tarn Taran, Punjab- 143416

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…. Defendants

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Advocate:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Sumeet Sehgal, Advocate for applicant

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Defendants already ex-parte vide order dated 10.03.2026

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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,

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2 OA NO. 1291/2024 KOTAK MAHINDRA BANK LTD. VS. KULWANT SINGH AND OTHERS

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against the defendants for recovery of Rs.41,09,792/- (Rupees Forty One Lacs Nine Thousand Seven Hundred Ninety Two Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer 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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The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for grant of KCC Limit of Rs.30.00 Lacs vide Application Form dated 14.09.2011, which is Annexure A3 to this OA. Defendant nos. 3 and 4 stood as guarantors. 3. The applicant sanctioned the amount of Rs. 23.00 Lacs vide Credit Arrangement Letter dated 21.10.2011 which is Annexure A4 to this OA and terms and conditions were accepted by defendants. 4. Defendant no. 1 mortgaged his immovable property i.e. Land measuring 80K 0M situated at Village Dall, Tehsil Patti, District Tarn Taran, Punjab vide Mortgage Deed bearing vasika no. 1693 dated 08.11.2011, along with its translation, which is Annexure A13 and A14 to this OA.

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Documents executed: - Order of Amalgamation issued by Reserve Bank of India dated 31.03.2015, which is Annexure A2 to this OA; Annexure B-1, DP Note, Take Delivery Letter to DPN, Hypothecation Agreement, Deed of Guarantee, Consent Letter to be executed by Borrower, Consent Letter to be executed by Guarantor, Undertaking cum Letter of Authorization and Legal Opinion regarding Lean Mark, all dated 23.11.2011 which are Annexure A5 to A12 and A15 to this OA; Notice dated 01.04.2024 along with postal receipts which is Annexure A16 to A20 to this OA and Statement of Account with certificate, which is Annexure A21 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 accounts there was a debit of Rs.41,09,792/- (Rupees Forty One Lacs Nine Thousand Seven Hundred Ninety Two Only) 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. 1291/2024 KOTAK MAHINDRA BANK LTD. VS. KULWANT 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 on 10.03.2026.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank h as been filed.

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8. Heard	ex-parte arguments and perused record.

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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 A21 to this OA, it is proved that the defendants approached applicant for availing of the KCC Limit which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.41,09,792/- (Rupees Forty One Lacs Nine Thousand Seven Hundred Ninety Two 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest calculated up to 06.03.2024 @11.95%p.a. with half yearly rests from 07.03.2024 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 mortgaged property/hypothecated 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 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. 1291/2024 KOTAK MAHINDRA BANK LTD. VS. KULWANT 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.41,09,792/- (Rupees Forty One Lacs Nine Thousand Seven Hundred Ninety Two 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 property 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 17.04.2026.

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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 . Dated: 27.03.2026

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

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

Case brief

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

Case brief

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