Allowed

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

DRT9 Feb 2026OA/52/2024

Case brief

AI extract

What is this about?

The Applicant filed an Original Application under the RDB Act for recovery of an NPA loan. The Tribunal, hearing the matter ex-parte, allowed the application directing defendants to pay the principal amount with reduced interest and recovery through asset sale or attachment.

What did the court decide?

Recovery of Rs.88,85,665.41 with 8% simple interest; issue of Recovery Certificate; liberty to enforce via Sarfaesi Act

Kotak Mahindra Bank Limited versus Sh. Sukhwinder Singh and Others — Money Laundering | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 52/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.11.2023

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DATE OF DECISION:09.02.2026

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Kotak Mahindra Bank Limited, a body corporate constituted under Banking Regulation Act, 1949, having its Registered Office, at 27BKC, C27,G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vyasa Bank Limited under the Amalgamation scheme on 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 Kotak Mahindra Bank Limited Commercial Banking S.C.O.153-154-155, Basement, Sector-9C, Madhya Marg Chandigarh through its Authorized Representative Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Sukhwinder Singh S/o Sh. Gurbhej Singh, R/o H. No. 84, Village Sur Singh, Tehsil Patti, District Tarn Taran, Punjab143302

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Sh. Karamjit Singh S/o Sh. Gurbhej Singh, R/o H. No. 84, Village Sur Singh, Tehsil Patti, District Tarn Taran, Punjab143302

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Sh. Rajbir Singh S/o Sh. Avtar Singh, R/o H. No. 138, Village Sur Singh, Tehsil Patti, District Tarn Taran, Punjab-143302

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Sh. Gurbhej Singh S/o Sh. Suba Singh, R/o H. No. 260, Village Sur Singh, Tehsil Patti, District Tarn Taran, Punjab-143302

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….……Defendants

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Advocates:

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Argued by, Rajan Puri, Advocate for applicant

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Defendants already ex-parte vide order dated 09.06.2025

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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.88,85,665.41 (Rupees Eighty

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2 OA/52/2024 KOTAK MAHINDRA BANK LIMITED VS. SUKHWINDER SINGH AND OTHERS

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Eight Lacs Eighty Five Thousand Six Hundred Sixty Five and Paise Forty One only). The Original Application has been filed through Sh. Munish Sharma, 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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The brief facts of the OA that the defendant nos. 1 and 2 approached the applicant for grant KCC Limit of Rs.82.00 Lacs vide Loan Application dated 05.08.2014. Defendant nos. 3 and 4 stood as guarantors.

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The applicant sanctioned KCC Limit Rs80.00 Lacs vide Credit Arrangement Letter dated 16.08.2014, which is Annexure A3 to this OA and the terms and conditions are acceptable by defendants.

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Defendant nos. 1 and 2 mortgaged their immovable property i.e. Land Measuring 160Kanal-00Marla (20.00 Acres) situated at Village Sur Singh, Tehsil Patti, District Tarn Taran, Punjab vide Mortgage Deed dated 22.08.2014, which is Annexure A10 to this OA; Letter dated 26.08.2014 of Advocate for marking of lien, which is Annexure A11 to this OA.

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Documents Executed: RBI Notification dated 01.04.2015 on Amalgamation of ING Vyasa Bank with Kotak Mahindra Bank, which is Annexure A1 to this OA; 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 Letter Executed by the defendants, Guarantee Bond, Consent Letter executed by Guarantors, all dated 27.08.2014, which are Annexures A4 to A9, A12 and A13 to this OA; Legal notice dated 21.09.2023, 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.88,85,665.41 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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3 OA/52/2024 KOTAK MAHINDRA BANK LIMITED VS. SUKHWINDER SINGH AND OTHERS

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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 09.06.2025

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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 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 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 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. 88,85,665.41 (Rupees Eighty Eight Lacs Eighty Five Thousand Six Hundred Sixty Five and Paise Forty One only) 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%p.a. penal interest from 22.06.2023 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 hypothecated assets/mortgaged properties, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill

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4 OA/52/2024 KOTAK MAHINDRA BANK LIMITED VS. SUKHWINDER SINGH AND OTHERS

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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. 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.88,85,665.41 (Rupees Eighty Eight Lacs Eighty Five Thousand Six Hundred Sixty Five and Paise Forty One 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 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 23.02.2026.

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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: 09.02.2026.

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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. Sukhwinder Singh and Others

Case brief

What is this about?

What did the court decide?

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

Case brief

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What did the court decide?

What the court decided

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