Allowed

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

DRT23 Feb 2026OA/374/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Kotak Mahindra Bank Ltd. against the borrowers and guarantors. The court decreed the recovery of the outstanding loan amount along with costs and adjusted simple interest.

What did the court decide?

Recovery of Rs. 46,16,206.00 plus costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to execute through SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.374/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2024

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DATE OF DECISION: 23.02.2026

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Kotak Mahindra Bank Ltd. a corporate 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 Senior Manager Sh. Munish Sharma

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……..Applicant

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Versus

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Sh. Kesar Singh, R/o H. No. 7, Village Jasrhan, Tehsil Amloh, District Fatehgarh Sahib, Punjab

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Sh. Major Singh S/o Sh. Surjan Singh, R/o H. No. 120, Village Jasrhan, Tehsil Amloh, District Fatehgarh Sahib, Punjab

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Sh. Bahadur Singh S/o Sh. Surjan Singh R/o H. No. 120, Village Jasrhan, Tehsil Amloh, District Fatehgarh Sahib, Punjab

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…….Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh, Advocate for the applicant

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Defendants already ex-parte vide order dated 06.12.2024

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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.46,16,206.00 (Rupees Forty Six Lacs Sixteen Thousand Two Hundred Six Only). The Original Application has been filed through Sh. Munish Sharma, Senior Manager of 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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2 OA/374/2024 KOTAK MAHINDRA BANK LIMITED VS. KESAR SINGH AND OTHERS

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The brief facts of the OA are that the defendant no.1 approached the applicant for the grant of KCC limit of Rs.25.00 Lacs vide loan application dated 25.04.2011, which is Annexure A3 to this OA. Defendant nos. 2 and 3 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs.25.00 Lacs vide Sanction letter dated 29.04.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 mortgaged his immovable property i.e. land 19Bhiga-04Biswa situated at Village Jasrhan, Tehsil Amloh, District Fatehgarh Sahib, Punjab vide mortgage deed bearing vasika no. 573 dated 26.05.2011, along with its translation, which are Annexures A12 and A13 to this OA.

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Documents executed: Amalgamation scheme of amalgamation of ING Vysya Bank sanctioned by RBI dated 01.04.2015 which is Annexure A1 to this OA; DP Note, Take Delivery Letter to DPN, Hypothecation Agreement, Consent Letter Executed by the borrower, Consent Letter executed by the guarantor, Undertaking cum letter of authorization for insuring crop and other movable assets, Undertaking, all dated 06.05.2011, which are Annexures A5 to A11 to this OA; Guarantee bond dated 06.05.2015, which is Annexure A14 to this OA; Legal Notice dated 20.02.2024 with postal receipts, which is Annexure 15 to this OA; Statement of Account with Interest Chart, which are Annexures A16 and 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.46,16,206.00 which is recoverable and the defendants were 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/374/2024 KOTAK MAHINDRA BANK LIMITED VS. KESAR 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 06.12.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Senior Manager, Kotak Mahindra Bank Limited has 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.46,16,206.00 (Rupees Forty Six Lacs Sixteen Thousand Two Hundred Six Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 2% penal interest from 06.03.2024 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

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4 OA/374/2024 KOTAK MAHINDRA BANK LIMITED VS. KESAR SINGH AND OTHERS

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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.46,16,206.00 (Rupees Forty Six Lacs Sixteen Thousand Two Hundred Six Only) 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 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 09.03.2026. 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.

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Pronounced by me in the open Tribunal. Dated: 23.02.2026.

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

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

Case brief

What is this about?

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

Case brief

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