Debts Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.56.12 lakh against defaulting borrowers and guarantor, ordering 8% simple interest and issuance of recovery certificate.
Recovery of Rs.56,12,570/- with 8% p.a. interest; issuance of Recovery Certificate; liberty to enforce claim via sale of assets.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 789/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 25.06.2024
DATE OF DECISION: 08.05.2026
Kotak Mahindra Bank Ltd a cooperate Body constituted under the Banking Companies Act-V of 1970, having its Registered Office at 27, BKC, C-27, G-Block, Bandra Kurla Complex, Bandra East Mumbai and having one of its Branch Office at SCO No. 153-155, Sector 9-C, Chandigarh through its Senior Manager, Sh. Munish Sharma.
..……..Applicant
Versus
Argued by Sh. Sukhvinder Singh, Advocate for applicant
None for Defendants (already ex parte vide order dated 04.05.2026)
FINAL ORDER
2 OA/789/2024 KOTAK MAHINDRA BANK LTD VS SH. NISHAN SINGH AND ANOTHER
competent to institute the Original Application vide Bank Board Resolution dated 31.08.2023, which is Annexure A2 to this OA.
ii. Total Land Measuring 40Kanal-0Marla, situated at Village Verowal, Tehsil Khandur Sahib, District Tarn Taran, Punjab vide Mortgaged Deed with Vasika No. 999 dated 20.08.2014, with English Translation, which are Annexures A11 & A12 to this OA. Documents executed: Amalgamation Scheme dated 01.04.2015, which is Annexure A1 to this OA; DP Note, Take Delivery Letter, Hypothecation Agreement, Consent Letter by Borrower, Consent Letter by Guarantor, Undertaking cum Authorization Letter, Undertaking, all dated 21.07.2014, which are Annexures A4 to A10 to this OA; Bank Guarantee dated 21.07.2014, which is Annexure A13 to this OA; Legal Notice dated 08.05.2024 with Postal Receipts, which is Annexure A14 to this OA; Statement of Account with Certificate, which are Annexures A15 & A16 to this OA.
3 OA/789/2024 KOTAK MAHINDRA BANK LTD VS SH. NISHAN SINGH AND ANOTHER
From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as Guarantor. Defendants 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.56,12,570.00 (Rupees Fifty Six Lacs Twelve Thousand Five Hundred Seventy Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.
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 property, 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
4 OA/789/2024 KOTAK MAHINDRA BANK LTD VS SH. NISHAN SINGH AND ANOTHER
Tribunal deems it just and appropriate to grant 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.56,12,570.00 (Rupees Fifty Six Lacs Twelve Thousand Five Hundred Seventy 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 assets/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 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.
DRT-III, Chandigarh
1 issue framed by the court
Whether respondents are liable to repay the outstanding loan amount of Rs.56,12,570.00 with interest.
1 provisions across 1 enactments
Kotak Mahindra Bank Ltd
Sh. Nishan Singh
Smt. Amandeep Kaur
Sh. Prem Singh
Mridulesh Kumar Singh
As recorded by the court registry
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