Allowed

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

DRT23 Jun 2026OA/387/2026

Case brief

AI extract

What is this about?

Ex-parte hearing in an Original Application for recovery of outstanding loan dues. The Tribunal decreed the claim in favor of the bank and reduced the claimed interest rate from 24% to 8% per annum, granting a recovery certificate.

What did the court decide?

Recovery of Rs. 46,41,547.24 plus costs and simple interest at 8.00% p.a. from all respondents; issue of Recovery Certificate; liberty to recover from hypothecated or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 387/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.03.2026

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DATE OF DECISION: 23.06.2026

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Kotak Mahindra Bank Ltd., a Body Corporate incorporated under the Companies Act, 1956 having its Registered Office at 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai- 400051 and having Branches all over India and one of its Branch Offices situated at SCO no. 131-132-133, 2^nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana, Punjab- 141001 through its Manager, Sh. Rakesh Kumar

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……..Applicant

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Versus

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Sh. Jagmohanpreet Singh, S/o Sh. Gurtej Singh, R/o House no. 286/1, Block no. 2, GT Road, Opposite Old Power House, Tehsil Jagroan, District Ludhiana, Punjab- 142026

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Sh. Gurtej Singh, S/o Sh. Balbir Singh, R/o House no. 286/1, Block no. 2, GT Road, Opposite Old Power House, Tehsil Jagroan, District Ludhiana, Punjab- 142026

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Sh. Karm Singh Toor, S/o Sh. Jaswant Singh, R/o Kothe Jiwa De Galib Kalan, Tehsil Jagroan, District Ludhiana, Punjab- 142036

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….……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for applicant

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None for defendants (already ex-parte vide order dated 20.06.2026)

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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. 46,72,552.17 (Rupees Forty Six Lacs Seventy Two Thousand Five Hundred Fifty Two and Paise Seventeen Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, who is competent to institute the Original Application vide Resolution dated 29.11.2024, which is Annexure A1 to this OA.

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2 OA/387/2026 KOTAK MAHINDRA BANK LIMITED VS. JAGMOHANPREET SINGH AND OTHERS

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of Term Loan of Rs. 16.00 Lacs for purchase of construction equipment vide Individual Customer Relation Form dated 20.05.2023, which is Annexure A2 to this OA. Thereafter, defendant nos. 1 and 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 54.00 Lacs vide Individual Customer Relation Form dated 27.03.2024, which is Annexure A7 to this OA.

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The applicant sanctioned Term Loan of Rs. 16.00 Lacs for purchase of construction equipment vide Loan cum Guarantee Agreement dated 02.06.2022, which is Annexure A4 to this OA. Defendant no. 2 stood as guarantor. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs. 53,58,527.00 vide Loan cum Guarantee Agreement dated 31.03.2024, which is Annexure A8 to this OA. Defendant no. 3 stood as guarantor.

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(i) Defendant no. 1 hypothecated his movable asset namely Construction Equipment Vehicle SCE15 bearing Registration no. PB10HV9339, Chassis no. 786SCE15N2C4E1193 and Engine no. S433B32322 vide Virtual RC, which is Annexure A3 to this OA;

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(ii) Defendant nos. 1 and 2 hypothecated their movable asset namely Bharat Benz 5532TT 4X2-14 bearing Registration no. PB10JL8439, Chassis no. MEC862HCCRP161544 and Engine no. 926956D0169511 vide Virtual RC, which is Annexure A11 to this OA.

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Documents Executed: DP Note and Power of Attorney, both dated 02.06.2022, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 31.03.2024, which are Annexure A9 and A10 to this OA; Loan Recall Notice dated 08.01.2026, which is Annexure A12 to this OA and Statement of Accounts, which are Annexure A13 and A14 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 46,72,552.17 which is recoverable and the defendants were served recall notice 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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3 OA/387/2026 KOTAK MAHINDRA BANK LIMITED VS. JAGMOHANPREET SINGH AND OTHERS

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 20.06.2026.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited h as 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.

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From the perusal of all the Annexure A1 to A14 to this OA, it is proved that defendant no. 1 and thereafter defendant nos. 1 and 2 approached applicant for availing of the loan facilities which were granted to them. Defendant nos. 2 and 3 stood as guarantors. Defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 31,004.93 (Rupees Thirty One Thousand Four and Paise Ninety Three Only) from defendant nos. 1 and 2 and Rs. 46,41,547.24 (Rupees Forty Six Lacs Forty One Thousand Five Hundred Forty Seven and Paise Twenty Four Only) from defendant nos. 1 to 3, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @24%p.a. with monthly rests from 28.12.2025 till the realization. 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 hypothecated assets, undertaking of the defendants, quantum of loans 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

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4 OA/387/2026 KOTAK MAHINDRA BANK LIMITED VS. JAGMOHANPREET SINGH AND OTHERS

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just and appropriate to grant simple interest @8.00% p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs.31,004.93 (Rupees Thirty One Thousand Four and Paise Ninety Three Only) and defendant nos. 1 to 3 are liable to pay to the applicant a total sum of Rs. 46,41,547.24 (Rupees Forty Six Lacs Forty One Thousand Five Hundred Forty Seven and Paise Twenty Four Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both the loan accounts 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 of defendant nos. 1 and 2 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 08.07.2026.

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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: 23.06.2026

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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. Jagmohanpreet Singh and Others

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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