Allowed

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

DRT26 Feb 2026OA/75/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an NPA loan of approximately Rs. 39 lakhs. The court granted the principal amount with interest at 8% p.a. based on market conditions.

What did the court decide?

Recovery of Rs. 38,96,319.03 with simple interest at 8% p.a.; issue of Recovery Certificate; liberty to enforce through execution proceedings.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 75/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.01.2023

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DATE OF DECISION: 26.02.2026

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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, C27,G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and the successor to ING Vyasa 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. Kesar Singh S/o Sh. Mewa Singh, R/o H.No.33, Village Khalaspur, Hadbast 132, Gadapur B.O., P.S. Shambhu, Tehsil Rajpura, District Patiala-140417.

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Sh. Sahib Singh S/o Sh. Mewa Singh, R/o H.No.33, Village Khalaspur, Hadbast 132, Gadapur B.O., P.S. Shambhu, Tehsil Rajpura, District Patiala-140417.

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Smt. Karamjit Kaur W/o Sh. Sahib Singh, R/o H.No.33, Village Khalaspur, Had Bast 132, Gadapur B.O., P.S. Shambhu, Tehsil Rajpura, District Patiala-140417.

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Smt. Baljit Kaur W/o Sh. Kesar Singh, R/o H.No.33, Village Khalaspur, Had Bast 132, Gadapur B.O., P.S. Shambhu, Tehsil Rajpura, District Patiala-140417.

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….……Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh, Advocate proxy for Sh. Mohit Sareen, Advocate for applicant

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Defendants already ex-parte vide order dated 31.01.2024

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2 OA/75/2023 KOTAK MAHINDRA BANK LIMITED VS. KESAR 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.38,96,319.03 (Rupees Thirty Eight Lacs Ninety Six Thousand Three Hundred Nineteen and Paise Three Only). The Original Application has been filed through Sh. Munish Sharma, Senior Manager o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 27.06.2022, which is Annexure A2 to this OA.

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The brief facts of the OA that the defendants approached the applicant for grant of KCC Limit of Rs.30.00 Lacs vide Loan Application dated 18.11.2014.

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The applicant sanctioned KCC Limit Rs.25.00 Lacs vide Credit Arrangement Letter dated 20.11.2014. Credit arrangement letter dated 20.11.2014, along with ancillary documents i.e. Agreement-Annexure B-I, Pronote, Take delivery letter to DPN, Hypothecation agreement, all dated 25.11.2014, which are Annexure A3(colly) to this OA.

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Defendant nos.1 & 2 mortgaged their immovable property i.e. Land Measuirng 16Bighas-0Biswa (08Bigha-00Biswa in the name of defendant no. 1 and 08Bigha-00Biswa in the name of defendant no. 2) situated at Village Bapraur, Hadbast no. 143, Tehsil Rajpura, District Patiala vide Declaration dated 10.12.2014 u/s 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A4 to this OA.

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Documents executed: Amalgamation order of ING Vysya Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Loan Recall Notice dated 21.10.2022 & along with postal receipts, 29.10.2022, which is Annexure A5 to his OA; Statement of Account which is Annexure A6 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 38,96,319.03 which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA/75/2023 KOTAK MAHINDRA BANK LIMITED VS. KESAR SINGH AND OTHERS

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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 31.01.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Senior Manager, Kotak Mahindra Bank h as been filed.

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Heard ex-parte arguments and perused record.

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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 A6 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 applicant. 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.38,96,319.03 (Rupees Thirty Eight Lacs Ninety Six Thousand Three Hundred Nineteen and Paise Three 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 @12.35%p.a. with 2% penal interest and half yearly rests from 08.10.2022 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/75/2023 KOTAK MAHINDRA BANK LIMITED VS. KESAR 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.38,96,319.03 (Rupees Thirty Eight Lacs Ninety Six Thousand Three Hundred Nineteen and Paise Three Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan accounts 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 mortgage properties/ hypothecated assets 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 16.03.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 26.02.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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