Allowed

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

DRT25 Feb 2026OA/204/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal denied a request for benchmark plus penal interest but granted uniform simple interest at 8% p.a. on an outstanding loan of Rs.1.18 crore against borrowers and a guarantor who failed to appear. The application was allowed under RDBA Section 19.

What did the court decide?

Application allowed declaring defendants liable to pay Rs.1,18,83,626.48 with costs and simple interest at 8% p.a.; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.204/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2023

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DATE OF DECISION: 25.02.2026

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Kotak Mahindra Bank Limited, a body corporate constituted under Banking Regulation Act, 1949 having its Registered Office, at 27BKC, C27G, Block, Bandra Kurla Complex, Bandra (E) Mumbai-400051 and the successor to ING Vyasa Bank under the Amalgamation Scheme on 01.04.2015, sanctioned by the Reserved Bank of India in exercise of powers contained in Sub Section (4) of Section 44A of the Banking Regulation Act, 1949, having its branches all over India including branch at Kotak Mahindra Bank Ltd, Commercial Banking, SCO-153154-155, Basement, Sec-9C, 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. Harjinder Singh S/o Sh. Jarnail Singh, R/o Village Ballar Patti, Dirba, Tehsil Sunam, District Sangrur, Punjab-148024

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Sh. Jarnail Singh S/o Sh. Chuhar Singh, R/o Village Ballar Patti, Dirba, Tehsil Sunam, District Sangrur, Punjab-148024

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Sh. Sukhwinder Singh S/o Sh. Jarnail Singh, R/o Village Ballar Patti, Dirba, Tehsil Sunam, District Sangrur, Punjab-148024

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Smt. Hardev Kaur W/o Sh. Jarnail Singh, R/o Village Ballar Patti, Dirba, Tehsil Sunam, District Sangrur, Punjab-148024

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Sh. Satgur Singh S/o Sh. Naib Singh, R/o Village Dirba, Tehsil Sunam, District Sangrur, Punjab-148024

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…….Defendants

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Advocates:

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Argued by Sh. Rajan Puri, Advocate for the applicant (through VC) Defendants already ex-parte vide order dated 21.12.2023

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2 OA/204/2023 KOTAK MAHINDRA BANK LIMITED VS. HARJINDER SINGH AND OTHERS

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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.1,18,83,626.48 (Rupees One Crore Eighteen Lacs Eighty Three Thousand Six Hundred Twenty Six and Paise Forty Eight 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 Resolution dated 27.06.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos. 1 to 4 approached the applicant for the grant of KCC limit of Rs.118.00 Lacs vide loan application dated 19.02.2014. Defendant no. 5 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.98.00 Lacs vide Credit Arrangement letter dated 28.02.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos. 1 and 2 mortgaged their immovable property i.e. Total Land measuring 160Kanal-00Marla (16Kanal-00Marla in the name of defendant no. 1 and 144Kanal-00Marla in the name of defendant no. 2) situated at Village Dirba-B, District Sangrur, Punjab vide mortgaged deed dated 03.04.2014, which is Annexure A10 to this OA; Advocate Letter dated 21.05.2014 for marking of Lien, which is Annexure A11 to this OA.

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Documents executed: Pronote, Take Delivery Letter to DPN, Hypothecation Agreement, Consent letter executed by the borrower, Undertaking cum letter of authorization for insuring crop and other movable assets, Consent executed by all the defendants, all dated 28.02.2014, which are Annexures A4 to A9 to this OA; Guarantee

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3 OA/204/2023 KOTAK MAHINDRA BANK LIMITED VS. HARJINDER SINGH AND OTHERS

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Bond, Consent letter executed by the guarantor, both dated 28.02.2014, which is Annexures A12 and A13 to this OA; Legal Notice dated 25.01.2023, along with postal receipts, which is Annexure A14 to this OA; Statement of account, which is Annexure A15 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.1,18,83,626.48 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 21.12.2023.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A15 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.1,18,83,626.48 (Rupees One Crore Eighteen Lacs Eighty Three Thousand Six Hundred Twenty Six and Paise Forty Eight Only) along with interest from the

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4 OA/204/2023 KOTAK MAHINDRA BANK LIMITED VS. HARJINDER SINGH AND OTHERS

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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 @11.75% p.a. plus 2% penal interest from 31.12.2022 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 simple interest @8.00%p.a. 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.1,18,83,626.48 (Rupees One Crore Eighteen Lacs Eighty Three Thousand Six Hundred Twenty Six and Paise Forty Eight 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 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

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5 OA/204/2023 KOTAK MAHINDRA BANK LIMITED VS. HARJINDER SINGH AND OTHERS

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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 12.03.2026.

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Copy of this order be given dasti to the applicant and be sent to

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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: 25.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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