Allowed

Kotak Mahindra Bank Limited v. Sh. Chaman Lal and Others

DRT12 Jan 2026OA/223/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's Original Application under the SARFAESI Act, declaring the borrowers liable to repay the outstanding loan amount jointly and severally. It approved a Recovery Certificate and fixed the interest rate at 8% p.a.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay Rs. 3.50 Crore with interest at 8% p.a.; Applicant entitled to attach and sell personal assets.

Kotak Mahindra Bank Limited versus Sh. Chaman Lal and Others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.223/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2021

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DATE OF DECISION: 12.01.2026

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Kotak Mahindra Bank Ltd. a body corporate, incorporate under the Companies Act, 1956 having its Registered Office at 27 BKC, C27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and having branches all over India and one of its Branch Offices situated at Kotak Mahindra Bank Limited, SCO No. 153-154-155, 2^nd Floor, Sector 9-C, Madhya Marg, Chandigarh-160009 through its Deputy Manager, Sh. Neeraj Kumar.

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……..Applicant Versus

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Sh. Chaman Lal S/o Sh. Chander Bhan, C/o Jatin Ispat Pvt. Ltd., Ambey Mazra Road, Village Wazir Nagar, Sirhind Side, Mandi Gobindgarh, Punjab-147301. 2^nd Address: House No. 200/12, Peer Gouri, Mohalla Samana, District Patiala, Punjab.

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Sh. Puneet Tuteja S/o Sh. Chaman Lal, C/o Jatin Ispat Pvt. Ltd., Ambey Mazra Road, Village Wazir Nagar, Sirhind Side, Mandi Gobindgarh, Punjab-147301. 2^nd Address: House No. 200/12, Peer Gouri, Mohalla Samana, District Patiala, Punjab.

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Smt. Usha Rani W/o Sh. Chaman Lal, R/o House No. 200/12, Peer Gouri, Mohalla Samana, District Patiala, Punjab.

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M/s Jatin Ispat Pvt. Ltd. through its Directors, Registered Office Punjabi Bagh, Near Civil Hospital, Patran Road, Samana, District Patiala, Punajb-147101 2^nd Address: Ambey Mazra Road, Village Wazir Nagar, Sirhind Side, Mandi Gobindgarh, Punjab-147301.

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.…….Defendants

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OA NO. 223/2022 KOTAK MAHINDRA BANK LIMITED VS. CHAMAN LAL AND OTHERS

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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Defendants already ex-parte vide order dated 26.05.2025

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FINAL ORDER

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Present Original Application was instituted by the applicant under Sub Section 10 of Section 13 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 against the defendants for recovery of Rs. 3,50,36,490.00 (Rupees Three Crore Fifty Lacs Thirty Six Thousand Four Hundred Ninety 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 12.02.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants approached the Capital First Limited, a Company incorporated under Companies, Act 1956 for availing loan against property of Rs.2.66 Crore vide loan application dated 27.12.2013, which is Annexure A2 to this OA.

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M/s Capital First Limited, sanctioned mortgage loan of Rs.2,65,70,103.00 vide sanction letter dated 27.01.2014, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the debt due and payable by defendants along with the security interest created was assigned by M/s Capital First Limited, to the applicant vide deed of assignment dated 21.07.2016, which is Annexure A6 to this OA.

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Defendant no. 2 mortgaged her immovable property i.e. Residential property bearing House No. 142, situated at Village Jassran, Locality known as Dalip Nagar, Mandi Gobindgarh, District Fatehgarh Sahib, Punjab.

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Defendant no. 1 mortgaged his immovable property i.e. Residential property bearing House No. 143, situated at Village

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OA NO. 223/2022 KOTAK MAHINDRA BANK LIMITED VS. CHAMAN LAL AND OTHERS

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Jassran, Locality known as Dalip Nagar, Mandi Gobindgarh, District Fatehgarh Sahib, Punjab.

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The above properties already sold by the applicant under SARFAESI Act, vide sale certificate dated 15.01.2019, which is Annexure A7 to this OA.

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Documents executed: Board Resolution dated 03.01.2014, which is Annexure A3 to this OA; Mortgage loan agreement dated 03.01.2014, which is Annexure A4 to this OA; Legal Notice dated 06.02.2019, which is Annexure A8 to this OA; Statement of Account, which is Annexure A9 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. 3,50,36,490.00, 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 26.05.2025.

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In support of the OA, affidavit of Sh. Neeraj Kumar , Deputy Manager, Kotak Mahindra Bank has been filed.

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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 A9 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

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OA NO. 223/2022 KOTAK MAHINDRA BANK LIMITED VS. CHAMAN LAL AND OTHERS

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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 3,50,36,490.00 (Rupees Three Crore Fifty Lacs Thirty Six Thousand Four Hundred Ninety 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 @10.13%p.a. with monthly rests from 01.11.2021 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs. 3,50,36,490.00 (Rupees Three Crore Fifty Lacs Thirty Six Thousand Four Hundred Ninety 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 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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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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OA NO. 223/2022 KOTAK MAHINDRA BANK LIMITED VS. CHAMAN LAL AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.01.2026.

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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 .

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Dated: 12.01.2026

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

Kotak Mahindra Bank Limited v. Sh. Chaman Lal and Others

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Sh. Chaman Lal and Others

Case brief

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