Allowed

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

DRT26 Feb 2026OA/1641/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Kotak Mahindra Bank for recovery of Rs. 34,01,132.65 from the defendants. The court exercised discretion to reduce the claimed interest rate to 8% p.a. and ordered the issuance of a Recovery Certificate and attachment of assets if dues remain unsatisfied.

What did the court decide?

Recovery of Rs. 34,01,132.65 plus 8% simple interest p.a. from filing date, with order to issue Recovery Certificate and attach assets if payment is not received.

Kotak Mahindra Bank Limited versus Sh. Harminder… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1641/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.08.2022

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DATE OF DECISION:26.02.2026

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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, C27,G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor ING Vyasa 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 representatives Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Harminder Singh S/o Sh. Garib Singh, R/o H.No.44, Khandauli, Hadbast No.68, Bhadak, Tehsil Rajpura, District Patiala-140402.

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Smt. Nimral Singh W/o Sh. Harminder Singh, R/o H.No.44, Khandauli, Hadbast No.68, Bhadak, Tehsil Rajpura, District Patiala-140402.

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Sh. Nirmal Singh S/o Sh. Mann Singh R/o H. No133, Village Bholgan, P.O. Suhron, Tehsil Rajpura, District Patiala-140402.

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….……Defendants

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Advocates:

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

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Defendants already ex-parte vide order dated 13.02.2024

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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. 34,01,132.65 (Rupees Thirty Four Lacs One Thousand One Hundred Thirty Two and Paise

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2 OA/1641/2022 KOTAK MAHINDRA BANK LIMITED VS. HARMINDER SINGH AND OTHERS

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Sixty Five 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 27.06.2022, which are Annexure A2 to this OA.

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The brief facts of the OA that the defendants approached the applicant for grant KCC Limit of Rs. 27.00 Lacs vide Loan application dated 09.01.2024. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs. 25.00 Lacs vide Credit Arrangement Letter dated 15.01.2014 and terms and conditions were duly accepted by the defendants. Credit arrangement dated 15.01.2014, along with ancillary documents i.e. Agreement-Annexure BI, Pronote, Take delivery letter to DPN, Hypothecation agreement, Guarantee Bond, Undertaking cum letter of authorization for insuring crops and other moveable assets, Consent letter executed by borrower and guarantor, all dated 23.01.2014, which are Annexure A3(Colly) to this OA.

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Defendant no. 1 mortgaged his immovable property i.e. Land Measuring 12Bighas-00Biswas Situated at Village Khadouli, Tehsil Rajpura, District Patiala, Punjab vide Mortgage Deed bearing vasika no. 3990 dated 20.01.2014 along with its translation, , which is Annexure A4 to this OA.

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Documents executed: Amalgamation order of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Recall Notice dated 29.06.2022 along with postal receipts dated 04.07.2022, which is Annexure A5 to this OA; Statement of Account, which is Annexure A6 to this OA. 5. 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. 34,01,132.65 which is recoverable and the defendants was served recall notices but he 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/1641/2022 KOTAK MAHINDRA BANK LIMITED VS. HARMINDER 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 13.02.2024

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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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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 A6 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 the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 34,01,132.65 (Rupees Thirty Four Lacs One Thousand One Hundred Thirty Two and Paise Sixty Five 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 @12.00% p.a. with 2% penal interest and half yearly rests from 09.06.2022 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

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4 OA/1641/2022 KOTAK MAHINDRA BANK LIMITED VS. HARMINDER SINGH AND OTHERS

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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.34,01,132.65(Rupees Thirty Four Lacs One Thousand One Hundred Thirty Two and Paise Sixty Five 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 mortgaged properties/ hypothecated assets 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 12.03.2026. 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: 26.02.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

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

Case brief

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