Allowed

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

DRT5 Jan 2026OA/855/2024

Case brief

AI extract

What is this about?

DRT-III, Chandigarh disposed of an original application filed by Kotak Mahindra Bank for recovery of a loan of Rs.1.02 crore. The bank proved its claim as respondents appeared ex-parte. The Tribunal allowed the application, fixed interest at 8%p.a., and issued a recovery certificate.

What did the court decide?

Recovery Certificate issued; defendants liable to pay Rs.1.02 crore plus 8% p.a. simple interest; recovery from sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.855/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2024

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DATE OF DECISION: 05.01.2026

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Kotak Mahindra Bank Ltd. (in which ING Vysya Bank Ltd stands 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 the applicant is a banking company, carrying on the banking business under the Companies Act, 1956, and having its Registered Office at 27ВКС, С 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai and branches at different places one in Pandori Gola, District Tarn Taran, Punjab, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Gurcharan Singh S/o Sh. Jagir Singh, R/o H. No. 140, Village Bugha, Tehsil and District Tarn Taran - 143416.

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Sh. Gurmehar Singh S/o Sh. Jagir Singh, R/o H. No. 335, Village Bugha, Tehsil and District Tarn Taran - 143416.

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Sh. Jagir Singh S/o Sh. Gurdit Singh, R/o H. No. 335, Village Bugha, Tehsil and District Tarn Taran - 143416.

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Smt. Daljit Kaur W/o Sh. Gurmehar Singh, R/o H. No. 335, Village Bugha, Tehsil and District Tarn Taran – 143416.

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……….Defendants

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OA NO.855/2024 KOTAK MAHINDRA BANK LTD. VS. GURCHARAN SINGH AND OTHERS

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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 09.06.2025

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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.1,02,07,551.00 (Rupees One Crore Two Lacs Seven Thousand Five Hundred Fifty One Only). The Original Application has been filed through Sh. Munish Sharma, Manager, of the applicant, who is competent to institute the Original Application vide Delegation of Powers 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 & 2 had approached the applicant for grant of KCC Limit of Rs.1.05 Crore vide loan application dated 10.06.2014. Defendant no.4 stood as guarantor. 3. The applicant sanctioned the KCC Limit of Rs.90.00 Lacs vide Credit arrangement letter dated 26.06.2014, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. 4. Defendant nos. 1 & 2 had mortgaged their immoveable properties i.e. land measuring 146K-00M detailed as under: (i) Land measuring 134K-10M situated at Village Bugha, Tehsil and District Tarn Taran, Punjab (ii) Land measuring 11K-10M situated at Village Palasur, Tehsil and District Tarn Taran, Punjab vide Mortgage Deed bearing vasika no.1524 dated 26.06.2014, along with its translation, which are Annexures A12 & A13 to this OA. 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, Guarantee bond, Consent Letter to be executed by Borrower, Consent Letter to be executed by Guarantor,

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OA NO.855/2024 KOTAK MAHINDRA BANK LTD. VS. GURCHARAN SINGH AND OTHERS

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Undertaking cum letter of Authorization for insuring crop and other movable assets, all dated 26.06.2014, Which are Annexures A4 to A11 to this OA; Notice dated 28.05.2024, along with postal receipts, which are Annexures A14 to A18 to this OA and Statement of Account, which is Annexure A19 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.1,02,07,551.00, 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.

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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 09.06.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Ltd., has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A19 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.1,02,07,551.00 (Rupees

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One Crore Two Lacs Seven Thousand Five Hundred Fifty One Only) along with interest from the defendants, jointly and severally, from the

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OA NO.855/2024 KOTAK MAHINDRA BANK LTD. VS. GURCHARAN SINGH AND OTHERS

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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 26.04.2024 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 years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform 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.

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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.1,02,07,551.00 (Rupees One Crore Two Lacs Seven Thousand Five Hundred Fifty One 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/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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OA NO.855/2024 KOTAK MAHINDRA BANK LTD. VS. GURCHARAN SINGH AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.01.2026.

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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: 05.01.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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