Allowed

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

DRT12 Feb 2026OA/1304/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of dues totaling Rs. 85,65,248.11 from four defendants who were borrowers and a guarantor. The court granted a uniform simple interest rate of 8% p.a. and ordered recovery from mortgaged assets.

What did the court decide?

Declaratory order that defendants are liable to pay Rs. 85,65,248.11 plus costs and interest at 8% p.a.; issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1304/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.10.2023

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DATE OF DECISION: 12.02.2026

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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, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vysya 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. Satnam Singh S/o Sh. Sewa Singh, H. No. 384, Village Valtoha, Tehsil Patti, District Tarn Taran-143416, Punjab

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Sh. Gurjant Singh S/o Sh. Bohar Singh, H. No. 384, Village Valtoha, Tehsil Patti, District Tarn Taran-143416, Punjab

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Sh. Bohar Singh S/o Sh. Jaginder Singh, H. No. 384, Village Valtoha, Tehsil Patti, District Tarn Taran-143416, Punjab

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Sh. Rajbir Singh S/o Sh. Sukhdev Singh, House No. 4, Part-1, Village Valtoha, Tehsil Patti, District Tarn Taran-143416, Punjab

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……… . Defendants

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Advocates:

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Argued by Sh. Devinder Singh, Advocate for Applicant

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Defendants are ex-parte vide order dated 29.04.2025.

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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.85,65,248.11 (Rupees Eighty Five Lacs Sixty Five Thousand Two Hundred Forty Eight & Paise Eleven Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative of the applicant, who is competent

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OA NO. 1304/2023 KOTAK MAHINDRA BANK LTD. VS SH.SATNAM SINGH AND OTHERS

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to institute the Original Application vide Board Resolution dated 31.08.2023, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant nos. 1 to 3 approached the applicant for the grant of KCC Limit of Rs.65.00 Lacs vide loan application dated 05.06.2013. Defendant no. 4 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.65.00 Lacs vide Credit Arrangement letter dated 12.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant nos.1 & 3 mortgage their immovable property i.e. Land measuring 160Kanal detailed as under:

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(i) Land measuring 77Kanal-02Marla situate at Village Valtoha, Tehsil Patti, District Tarn Taran, Punjab

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(ii) Land measuring 82Kanal-18Marla situate at Village Valtoha-III, Tehsil Patti, District Tarn Taran, Punjab Vide mortgage deed bearing vasika no.442 dated 24.06.2013, along with its translation, which is Annexure A12 to this OA. Documents executed : Scheme of Amalgamation of ING Vysya Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Agreement, Demand Promissory Note (DPN), 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 21.06.2013, which are Annexures A4 to A11 to this OA; Loan recall notice dated 10.07.2023 along with postal receipt dated 12.07.2023, which are AnnexureA13 to this OA and Statement of account, which is Annexure A14 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.85,65,248.11, 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.

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OA NO. 1304/2023 KOTAK MAHINDRA BANK LTD. VS SH.SATNAM 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 29.04.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, Kotak Mahindra Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned 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 A14 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 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.85,65,248.11 (Rupees Eighty Five Lacs Sixty Five Thousand Two Hundred Forty Eight & Paise Eleven 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.

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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 22.06.2023 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

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OA NO. 1304/2023 KOTAK MAHINDRA BANK LTD. VS SH.SATNAM SINGH AND OTHERS

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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.85,65,248.11 (Rupees Eighty Five Lacs Sixty Five Thousand Two Hundred Forty Eight & Paise Eleven 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 26.02.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 12.02.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

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

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