Allowed

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

DRT16 Apr 2026OA/671/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Applicant's plea for recovery of Rs. 29,81,953.01 from Defendants who failed to repay a Kisan Credit Card loan. The Debt was secured by mortgage and hypothecation. The Tribunal ordered recovery via sale of properties and fixed simple interest at 8% p.a.

What did the court decide?

Recovery of Rs. 29,81,953.01 plus simple interest at 8% p.a. to be enforced by sale of mortgaged properties or attachment of personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.671/2024

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 01.04.2024

¶5

DATE OF DECISION: 16.04.2026

¶6

Kotak Mahindra Bank Ltd. a Body Corporate, incorporated under the Companies Act, 1956 and licensed under the Banking Regulation Act, 1949, having its Registered Office at 27 ВКС, С 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.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Tarsem Singh S/o Sh. Rulda Singh, R/o House No. 7, Village Jhandi/200, Tehsil & District Patiala, Punjab-147001.

¶10

Sh. Avtar Singh S/o Sh. Rulda Singh, R/o House No. 100, Village Jhandi/200, Tehsil & District Patiala, Punjab-147001.

¶11

Sh. Rulda Singh S/o Sh. Narata Singh, R/o House No. 7, Village Jhandi/200, Tehsil & District Patiala, Punjab-147001.

¶12

Sh. Mishra Singh S/o Sh. Roop Singh, R/o House No. 56, Village Jhandi/200, Tehsil & District Patiala, Punjab-147001.

¶13

….……Defendants

¶14

Advocates:

¶15

Argued by Ms. Harpreet Kaur, Advocate proxy for Sh. Devinder Singh, Advocate for the applicant None for defendants (Already ex-parte vide order dated 08.04.2026)

¶16

¶17

OA NO.671/2024 KOTAK MAHINDRA BANK LTD. VS SH. TARSEM SINGH AND OTHERS

¶18

FINAL ORDER

¶19

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.29,81,953.01 (Rupees Twenty Nine Lacs Eighty One Thousand Nine Hundred Fifty Three and Paisa One Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Representative of the applicant, who is competent to institute the Original Application vide resolution dated 31.08.2023, which is Annexure A2 to this OA.

¶20

The brief facts of the OA are that the defendant nos. 1 to 3 approached the applicant for grant of Kisan Credit Card Limit of Rs.26,00,000.00 vide application dated 13.02.2015.

¶21

The applicant sanctioned the Kisan Credit Card Limit of Rs.25,00,000.00 vide Credit Arrangement Letter dated 23.02.2015, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 4 stood as guarantor.

¶22

Defendant nos. 1 & 2 mortgaged their immovable properties i.e.,

¶23

Total Agriculture Land measuring 14B-8B, situated at Village Jhandi, Tehsil and District Patiala as per Jamabandi for year 2010-11, comprising Khewat Khatauni no. 67/121, Khasra no. 48(6-6), 49(6-5), total land 12B-11B to the extent of 155/2008 share i.e. 0B-19B ownership of defendant no.1 and to the extent of 155/2008 share i.e. 0B-19B ownership of defendant no.2. Khewat Khatauni no.61/115, Khasra no. 900(0-4), 53(3-14), 54(4-4), 55(7-8), 419(0-2), 242(5-9), 243(5-13), 244(5-10), 245(6-5), 51(4-19), 52(3-3), 257(8-15), 259(6-5), 260(6-5), 246(4-19), 261(5-18), 262(5-18), total land 93B6B to the extent of 149/1866 share i.e. 7B-9B, ownership of defendant no.1 and to the extent of 101/1866 share i.e. 5B-1B, ownership of defendant no.2. Mortgage Deed no. 1746 dated 24.02.2015 vide declaration under Section 4(1) along with Request letter for registering

¶24

¶25

OA NO.671/2024 KOTAK MAHINDRA BANK LTD. VS SH. TARSEM SINGH AND OTHERS

¶26

of charge in the revenue records on mortgaged property dated 24.02.2015, which is Annexure A12 to this OA.

¶27

Documents executed: Amalgamation of ING Vysya Bank with Kotak Mahindra Bank Ltd. dated 01.04.2015 which is Annexure A1 to this OA; Loan Agreement, Demand Promissory Note, Take Delivery Letter to DPN, Hypothecation Agreement, Guarantee Bond, Consent letter to be executed by the Borrower, Consent letter to be executed by the Guarantor, Undertaking cum letter of Authorization for insuring crop and other movable assets, all dated 23.02.2015, which are Annexures A4 to A11 to this OA; Statutory Loan Recall Notice dated 11.03.2024 along with postal receipts, which is Annexure A13 to this OA and Statement of account along with certificate, which is Annexure A14 to this OA. 5. 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.29,81,953.01, 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. 6. 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 08.04.2026. 7. 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 for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank 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

¶28

¶29

OA NO.671/2024 KOTAK MAHINDRA BANK LTD. VS SH. TARSEM SINGH AND OTHERS

¶30

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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.29,81,953.01 (Rupees Twenty Nine Lacs Eighty One Thousand Nine Hundred Fifty Three and Paisa One 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.

¶31

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12%p.a. with half yearly rests with penal interest @2%p.a. from 08.11.2023 till the realization.

¶32

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 in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant 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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.29,81,953.01 (Rupees Twenty Nine Lacs Eighty One Thousand Nine Hundred Fifty Three and Paisa One Only) along with interest, 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

¶34

¶35

OA NO.671/2024 KOTAK MAHINDRA BANK LTD. VS SH. TARSEM SINGH AND OTHERS

¶36

aforesaid amount from the sale of immovable properties of defendant nos. 1 & 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. 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 06.05.2026. 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: 16.04.2026

¶37

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

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank (Erstwhile Oriental Bank of Commerce) versus Sh. Jasvir Singh through His Legal Heirs and Others

Icici Bank Limited versus Sh. Karnail Singh and Others

Hdfc Bank Ltd. versus Sh. Parwinder Singh and Others

Bank of Maharashtra versus Sh. Deepak Yadav and Another

Punjab National Bank versus Sh. Bikkar Singh and Others

Punjab and Sind Bank versus Sh. Arshdeep Singh and Others