Allowed

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

DRT12 Jan 2026OA/1501/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an NPAs. The court held the defendants jointly and severally liable to pay the principal sum with uniform simple interest, directing the issuance of a Recovery Certificate.

What did the court decide?

Recovery certificate issued; defendants ordered to pay Rs. 58,21,042.73 with costs and interest @8% p.a.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1501/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.12.2024

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DATE OF DECISION: 12.01.2026

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Kotak Mahindra Bank Ltd. a cooperate body constituted under the Banking Companies Act-V of 1970, having its Registered Office at 27, BKC, C-27, G-Block, Bandra Kurla Complex, Bandra East, Mumbai and having one of its Branch Office at SCO No. 153-155, Sector 9-C, Chandigarh through its Authorized Officer.

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……..Applicant Versus

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Sh. Jaljit Singh S/o Sh. Jagir Singh, R/o H. No. 45, Village Alipur, Tehsil Patti and District Amritsar, Punjab-143416

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Smt. Rajwant Kaur W/o Sh. Jaljit Singh, R/o H. No.45, Village Alipur, Tehsil Patti and District Amritsar, Punjab-143416

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Sh. Jaspal Singh S/o Avtar Singh, R/o H. No.48, Village Alipur, Tehsil Patti and District Amritsar, Punjab-143416

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.……. Defendants

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Advocates:

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Argued by Sh. Shubham Pabbi, Advocate proxy for Sh. Nitin Ahluwalia, Advocate for the applicant

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Defendants already ex-parte vide order dated 06.12.2025

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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. 58,21,042.73 (Rupees Fifty

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Eight Lacs Twenty One Thousand Forty Two and Paise Seventy Three Only). The Original Application has been filed through Sh. Munish Sharma, Manager 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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OA NO. 1501/2024 KOTAK MAHINDRA BANK LIMITED VS. JALJIT SINGH AND OTHERS

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The brief facts of the OA are that the defendant no.1 and 2 approached the applicant for grant of KCC Limit of Rs. 74.00 Lacs vide loan application dated 24.02.2015. Defendant no. 3 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs. 65.00 Lacs vide Credit Arrangement Letter dated 23.03.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. Land measuring 136K-00M (17 Acres) situated at Village Alipur, Tehsil Patti, District Tarn Taran, Punjab vide Declaration u/s 4(1) dated 22.06.2015, which is Annexure A12 to this OA. Documents executed: Amalgamation Order dated 01.04.2015, which is Annexure A1 to this OA; Agreement BI, DP Note Take Delivery Letter, Hypothecation Agreement, Guarantee Bond and Deed, Consent Letter executed by Borrower, Consent Letter executed by Guarantor, Undertaking cum letter of authorization for insuring crop and other moveable assets, all dated 23.03.2015, which are Annexures A3 to A11 to this OA; Legal Notice dated 12.08.2024 along with postal receipts, which are Annexures A13 to A16 to this OA and Account Statement, which is Annexure A17 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. 58,21,042.73, 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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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 06.12.2025.

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OA NO. 1501/2024 KOTAK MAHINDRA BANK LIMITED VS. JALJIT SINGH AND OTHERS

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

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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 A17 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. 58,21,042.73 (Rupees Fifty Eight Lacs Twenty One Thousand Forty Two and Paise Seventy 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 account.

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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%p.a. with monthly rests from 09.07.2024 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 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. 1501/2024 KOTAK MAHINDRA BANK LIMITED VS. JALJIT 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. 58,21,042.73 (Rupees Fifty Eight Lacs Twenty One Thousand Forty Two and Paise Seventy Three 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/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 28.01.2026. 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: 12.01.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

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

Case brief

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