Allowed

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

DRT11 Mar 2026OA/72/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application against borrowers and guarantors for recovery. The court declared the defendants liable to pay the principal amount along with reduced interest from the date of the application and ordered the issuance of a recovery certificate.

What did the court decide?

Direct recovery of Rs.41,92,109.32 with interest at 8% p.a. from sale of mortgaged/hypothecated properties or attachment of personal assets; Recovery Certificate issued.

Kotak Mahindra Bank Limited versus Sh. Balwinder Singh and Others — Cheque Dishonour | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.72/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.12.2023

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DATE OF DECISION: 11.03.2026

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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 Authorised representative Sh. Munish Sharma.

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……..Applicant Versus

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Sh. Balwinder Singh S/o Sh. Kabal Singh, House No. 138, Village Gandiwind/0298, P.S. Sarai Amanat Khan, Tehsil Tarn Taran, District Tarn Taran-143401, Punjab.

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Sh. Kinder Bir Singh S/o Sh. Balwinder Singh, House No. 131, Village Gandiwind/0298, P.S. Sarai Amanat Khan, Tehsil Tarn Taran, District Tarn Taran-143401, Punjab

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Sh. Ramandeep Singh S/o Sh. Rasal Singh, House No. 491, Part3, Village Marhi Megha, Tehsil Patti, District Tarn Taran

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Sh. Nachhatar Singh S/o Sh. Kabal Singh, House No. 138, Village Gandiwind/0298, P.S. Sarai Amanat Khan, Tehsil Tarn Taran, District Tarn Taran-143401, Punjab

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Sh. Gurdev Singh S/o Sh. Kabal Singh, House No. 131, Village Gandiwind/0298, P.S. Sarai Amanat Khan, Tehsil Tarn Taran, District Tarn Taran-143401, Punjab

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……….Defendants

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Advocates:

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Argued by Sh. Satwinder Singh, Advocate proxy for Sh. Devinder Singh, Advocate for the applicant

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Defendants already ex-parte vide order dated 06.06.2025

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OA NO. 72/2024 KOTAK MAHINDRA BANK LTD VS. BALWINDER 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.41,92,109.32 (Rupees Forty One Lacs Ninety Two Thousand One Hundred Nine and Paise Thirty Two 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 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 KCC Limit of Rs.37.00 Lacs vide loan application dated 21.06.2014, which is Annexure A3 to this OA. Defendant nos. 3 to 5 stood as guarantors.

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The applicant sanctioned KCC Limit of Rs.32.00 Lacs vide Sanction Letter dated 22.07.2014, which is Annexure A4 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 36K-02M situated at Village Gindiwind, Tehsil Tarn Taran District Tarn Taran, Punjab vide mortgage deed bearing vasika no. 949 dated 22.08.2014, along with its translation, which is Annexure A13 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 cum letter of authorization for insuring crop and other movable assets, all dated 22.07.2014, which are Annexures A5 to A12 to this OA; Loan recall notice dated 10.07.2023, along with postal receipts which are Annexure A14 to this OA and 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.41,92,109.32, which is recoverable and the defendants were

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OA NO. 72/2024 KOTAK MAHINDRA BANK LTD VS. BALWINDER SINGH AND OTHERS

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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 06.06.2025. 7. In support of the OA, affidavit of Sh. Munish Sharma, Authorized Representative, Kotak Mahindra Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 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.41,92,109.32 (Rupees Forty One Lacs Ninety Two Thousand One Hundred Nine and Paise Thirty Two 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. 10. 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% penal interest and half yearly rests from 22.06.2023 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

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OA NO. 72/2024 KOTAK MAHINDRA BANK LTD VS. BALWINDER SINGH AND OTHERS

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@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.41,92,109.32 (Rupees Forty One Lacs Ninety Two Thousand One Hundred Nine and Paise Thirty Two Only), 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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Parties to appear before Learned Recovery Officer of this Tribunal on 30.03.2026.

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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: 11.03.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

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

Case brief

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

Case brief

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