Allowed

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

DRT9 Feb 2026OA/646/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of a loan failure accrued from Rs.8874,000.00, jointly and severally, with current and future simple interest at 8% per annum, pending payment.

What did the court decide?

Directing the defendants to pay Rs.1,23,71,117.00 with costs and simple interest at 8% p.a. from the date of filing of the OA till realization. Recovery Certificate to be issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.646/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.05.2024

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DATE OF DECISION: 09.02.2026

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Kotak Mahindra Bank Ltd. (in which ING Vysya Bank Ltd amalgamated and the name of IVBL has been changed to Kotak Mahindra Bank Ltd.(KMBL) pursuant to the order issued by Reserve Bank of India under Sub Section 4 of Section 44A of Banking Regulation Act, 1949, Sanctioning the Scheme of amalgamation effective from 31.03.2015, as communicated by RBI vide its letter no. DBR No. PSBD.14527/ 16.01.136/2014-15 March 31-2015 and order issued by RBI vide letter no. DBR/PSBD/14476/16.01.136/2014-15 dated March 31^st 2015), thus applicant is a banking company, carrying on the banking business under the Companies Act,1956, and having its Registered Office at 27BKC, C27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai and branches at different places one in Samana District, Patiala, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……. Applicant Versus

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Sh. Sukhwinder Singh S/o Sh. Ram Singh, R/o Village Rampur Parta, District Patiala-140401.

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Sh. Jaswinder Singh S/o Sh. Ram Singh, R/o Village Rampur Parta, District Patiala-140401.

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Sh. Ram Singh S/o Sh. Vir Singh, R/o Village Rampur Parta, District, Patiala-140401.

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Smt. Chanan Kaur W/o Sh. Ram Singh, R/o Village Rampur Parta, District, Patiala-140401.

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Sh. Kuldip Singh S/o Sh. Joginder Singh, R/o Village Kasour, Tehsil Guhla, District Kaithal-140401.

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for Applicant Defendants already ex-parte vide order dated 20.12.2024

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2 OA No.646/2024 KOTAK MAHINDRA BANK LTD VS. SUKHWINDER SINGH AND OTHERS

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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.1,23,71,117.00 (Rupees One Crore Twenty Three Lacs Seventy One Thousand One Hundred Seventeen Only). The Original Application has been filed through Sh. Munish Sharma, Manager o f the applicant, who is competent to institute the Original Application vide Resolution dated 31.08.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 to 4 had approached the applicant grant for KCC Limit of Rs.75.00 Lacs vide Loan Application dated 28.05.2014, which is Annexure A3 to this OA. Defendant no.5 stood as Guarantor.

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The applicant Sanctioned KCC Limit of Rs.70.00 Lacs vide Credit Arrangement Letter dated 19.06.2014, which is Annexure A4 to this OA and the terms and conditions are accepted by defendants.

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Defendant nos. 1 to 4 mortgaged their immovable property i.e. Land Measuring 102Karnal-18Marla (07Kanal-09Marla in the name of defendant no. 1, 07Kanal-09Marla in the name of defendant no. 2, 56Kanal-00Marla in the name of defendant no. 3 and 32Kanal-00Marla in the name of defendant no. 4) Situated at Village Rampur Parta, Tehsil Patran, District, Patiala, Punjab Mortgage Deed bearing vasika no. 1100 dated 01.07.2014, along with its translation, which are Annexures A13 to A14 to this OA; Legal opinion dated 02.07.2014, regarding lien mark, which is Annexure A15 to this OA.

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Documents Executed: Order of Amalgamation issued by Reserve Bank of India dated 31.03.2015, which is Annexure A2 to this OA; Annexure B-1, Demand Promissory Note, Take Delivery Letter to DPN , Hypothecation Agreement, Deed of Guarantee, Consent Letter to be Executed by Borrower, Consent letter to be executed by Guarantor, Undertaking Cum Letter of Authorization for Insuring Crop and other Movable Assets, all dated 19.06.2014, which are Annexures A4 to A12 to this OA; Notice dated 01.04.2024 with Postal Receipts, which are Annexures A16 to A21 to this OA; Statement of Account, which is Annexure A22 to this OA.

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3 OA No.646/2024 KOTAK MAHINDRA BANK LTD VS. SUKHWINDER SINGH AND OTHERS

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.1,23,71,117.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amounts, 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 20.12.2024

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7.	In support of the OA, affidavit ofSh. Munish Sharma, Manager,
Kotak	Mahindra Bankhas been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 A22 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 favor 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.1,23,71,117.00 (Rupees One Crore Twenty Three Lacs Seventy One Thousand One Hundred Seventeen Only) along 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ 12.00%p.a. with half yearly rests from 07.03.2024 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

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4 OA No.646/2024 KOTAK MAHINDRA BANK LTD VS. SUKHWINDER SINGH AND OTHERS

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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.1,23,71,117.00 (Rupees One Crore Twenty Three Lacs Seventy One Thousand One Hundred Seventeen 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/mortgaged properties of 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 23.02.2026. 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. Pronounced by me in the open Tribunal . Dated: 09.02.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, 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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