Allowed

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

DRT6 Feb 2026OA/641/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank applicant's Original Application for recovery of Rs.21,45,524 from the defendants who failed to repay a sanctioned loan and term loan, granting a uniform simple interest rate of 8% p.a. and directing the issuance of a recovery certificate.

What did the court decide?

Declaration of joint and several liability to pay Rs. 21,45,524 with future simple interest @ 8% p.a. and issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.641/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2022

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DATE OF DECISION: 06.02.2026

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Kotak Mahindra Bank Ltd. a Banking Company incorporated under Companies Act 1956 and licensed under the Banking Regulation Act,1949, having its Registered Office at 27, BKC, C-27, G-Block, Bandra Kurla Complex, Bandra East 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 ranch at S.C.0. 153- 154- 155, Sector 9/C, Madhya Marg, Chandigarh through its Authorized Representatives Sh. Munish Sharma.

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……..Applicant

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Versus

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Sh. Jarnel Singh S/o. Sh. Habesh Singh@ Subeg Singh, H.No.83, Village Sammewali Part-2, Tehsil and District Sri Muktsar Sahib152026.

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Sh. Gurpreet Singh S/o. Sh. Jarnail Singh, H.No.83, Village Sammewali Part-2, Tehsil and District Sri Muktsar Sahib-152026.

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Smt. Surjit Kaur W/o Sh. Jarnail Singh, H.No.83, Village Sammewali Part-2, Tehsil and District Sri Muktsar Sahib-152026.

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Sh. Gurbaksh Singh S/o Sh. Vasan Singh, R/o H.No. 357, Firni Shamshan Ghat, Sammewali, Tehsil and District Sri Muktsar Sahib-152026.

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Sh. Lakhwinder Singh S/o Sh. Subeg Singh, R/o H.no.83, Village Sammewali Part-2, Tehsil and District Sri Muktsar Sahib-152026.

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…….Defendants

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2 OA NO.641/2022 KOTAK MAHINDRA BANK LIMITED VS. JARNEL SINGH AND OTHERS

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Advocates:

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Argued by: Sh. Satwinder Singh Advocate proxy for Sh. Mohit Sareen, Advocate for applicant ( Through VC )

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Defendants already ex-parte vide order dated 29.09.2023

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,45,524.00 (Rupees Twenty One Lacs Forty Five Thousand Five Hundred and Twenty Four only). The Original Application has been filed through Sh. Munish Sharma, Manager, of applicant, who is competent to institute this application vide Board Resolution dated 14.06.2021, which is Annexure A2 to this OA; 2. The brief facts of the OA are that the defendant nos. 1 to 3 approached the applicant for grant of KCC Limit of Rs.13.25 Lacs and Farm Development Term Loan (FDTL) of Rs.3.25 Lacs. Defendant nos. 4 and 5 stood as guarantors. 3. The applicant sanctioned KCC Limit of Rs.13.25 Lacs and Farm Development Term Loan (FDTL) of Rs. 3.25 Lacs vide Sanction Letter dated 19.10.2016. Sanction letter dated 19.10.2016, along with loan agreement and ancillary documents, which are Annexures A3(Colly) to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his immovable property i.e. Land Measuring 72Karnal-00Marla Situated in Village Sammewali, Tehsil and District Sri Muktsar Sahib, Punjab vide declaration u/s 4(1) dated 07.01.2017, which is Annexure A4 to this OA. Documents executed: Notification of Amalgamation of ING Vysya Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Recall Notice dated 07.03.2022 and Postal Receipts,

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3 OA NO.641/2022 KOTAK MAHINDRA BANK LIMITED VS. JARNEL SINGH AND OTHERS

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which is Annexure A5 to this OA; Statement of Account with certificate, which is Annexure A6 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 were a debit of Rs.21,45,524.00 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 on vide order dated 29.09.2023

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd. has been filed.

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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 A6 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were 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.21,45,524.00 (Rupees Twenty One Lacs Forty Five Thousand Five Hundred and Twenty Four 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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4 OA NO.641/2022 KOTAK MAHINDRA BANK LIMITED VS. JARNEL SINGH AND OTHERS

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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 @12.00%p.a. plus 2% penal interest and half yearly rests, from 01.03.2022 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 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. 21,45,524.00 (Rupees Twenty One Lacs Forty Five Thousand Five Hundred and Twenty Four 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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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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5 OA NO.641/2022 KOTAK MAHINDRA BANK LIMITED VS. JARNEL SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.02.2026.

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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. Pronounced by me in the open Tribunal .

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Dated: 06.02.2026.

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

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

Case brief

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

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