Allowed

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

DRT2 Jan 2026OA/603/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for recovery of Rs.65,95,235.09 plus costs and simple interest at 8% p.a. The defendants failed to appear, and the case was decided ex-parte based on documentary evidence.

What did the court decide?

Recovery of Rs.65,95,235.09 plus costs and simple interest @8% p.a. allowed; issuance of Recovery Certificate ordered.

Kotak Mahindra Bank Limited versus Sh. Jagdeep Singh and… — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH CAMP COURT AT LUDHIANA

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ORIGINAL APPLICATION NO.603/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.03.2024

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DATE OF DECISION: 02.01.2026

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Kotak Mahindra Bank Limited, a banking company incorporated under Companies Act 1956 and licensed under the Banking Regulation Act, 1949, having its Registered Office, at 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vysya Bank Limited under the Amalgamation scheme dated 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 S.C.O. 153-154-155, Sector 9-C, 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. Jagdeep Singh S/o Sh. Lakhwinder Singh, House No. 1, Hayatpur, Village Haidon Bet, Tehsil Samrala, District Ludhiana, Punjab-141114.

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Sh. Lakhwinder Singh @Lakha Singh S/o Sh. Bawa Singh, Village Hayatpur, Tehsil Samrala, District Ludhiana, Punjab141114.

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Sh. Bawa Singh S/o Sh. Teja Singh, Hayatpura, Hambowal, Ludhiana, Punjab-141115

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……….Defendants

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Advocates:

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Argued by Sh. Devender Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for Applicant (through VC)

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Defendants already ex parte vide order dated 18.12.2024

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FINAL ORDER

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Present Original Application was instituted by the applicant

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under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993,

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OA NO.603/2024 KOTAK MAHINDRA BANK LIMITED VS. JAGDEEP SINGH AND OTHERS

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against the defendants for recovery of Rs.65,95,235.09 (Rupees Sixty Five Lacs Ninety Five Thousand Two Hundred Thirty Five & Paise Nine 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 are that the defendant nos. 1 and 2 approached the applicant for grant of KCC Limit of Rs. 52.00 Lacs vide loan application dated 30.12.2014. Defendant no. 3 stood as guarantor.

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The applicant sanctioned KCC Limit of Rs. 50.00 Lacs vide Sanction letter dated 14.01.2015, which are Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos. 1 & 2 mortgaged their immovable properties i.e Land measuring 78K-8M (9.8 Acres) detailed under as:

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(i) Land measuring 16K-0M (2 acres) situated at Village Hayatpur, H.B. No. 269, Tehsil Samrala, District Ludhiana (in the name of the defendant no.1)

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(ii) Land measuring 52K-0M (6.50 acres) situated at Village Habowal, H.B. No. 10, Tehsil Samrala, District Ludhiana (in the name of the defendant no.2)

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(iii) Land measuring 10K-8M (1.3 acres) situated at Village Gousgarh, H.B. No. 268, Tehsil Samrala, District Ludhiana (in the name of the defendant no.2)

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vide declaration u/s 4(1) dated 22.01.2015, which is Annexure A12 to this OA.

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Documents executed : Scheme of Amalgamation of ING Vysya Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Agreement, Demand Promissory Note (DPN), Take Delivery Letter to DPN, Hypothecation Agreement, Guarantee Bond, Consent letter by Borrower, Consent letter by Guarantor, Undertaking

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OA NO.603/2024 KOTAK MAHINDRA BANK LIMITED VS. JAGDEEP SINGH AND OTHERS

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for insuring crop and other movable assets, all dated 16.01.2015, which are Annexures A4 to A11 to this OA; Loan Recall Notice dated 11.03.2024 and Postal Receipts dated 12.03.2024, which is Annexure A13 to this OA; Statement of Account certified under Banker's Book Evidence Act, which is Annexure A14 to this ОА..

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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.65,95,235.09, 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 18.12.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, Kotak Mahindra Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A14 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.65,95,235.09 (Rupees Sixty Five Lacs Ninety Five Thousand Two Hundred Thirty Five & Paise Nine Only) along with interest from the

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OA NO.603/2024 KOTAK MAHINDRA BANK LIMITED VS. JAGDEEP 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50% p.a. with half yearly rests from 08.11.2023 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 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.65,95,235.09 (Rupees Sixty Five Lacs Ninety Five Thousand Two Hundred Thirty Five & Paise Nine 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 from the sale of hypothecated/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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OA NO.603/2024 KOTAK MAHINDRA BANK LIMITED VS. JAGDEEP SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 14.01.2026.

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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 at Camp Court, Ludhiana.

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Dated: 02.01.2026

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

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

Case brief

What is this about?

What did the court decide?

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

Case brief

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What did the court decide?

What the court decided

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