Allowed

Kotak Mahindra Bank Limited v. Sh. Resham Singh Alias Resham Mahal and Others

DRT17 Apr 2026OA/894/2024

Case brief

AI extract

What is this about?

The DRT allowed an ex-parte application by Kotak Mahindra Bank Ltd. against guarantors for recovery of Rs. 73,90,732.15 against a KCC limit. The recovery certificate was issued, and recovery is ordered from mortgaged/hypothecated assets.

What did the court decide?

Recovery Certificate issued. Defendants liable to pay Rs.73,90,732.15 plus costs and simple interest @08% p.a. Recovery from sale of mortgaged/hypothecated assets or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.894/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.07.2024

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DATE OF DECISION: 17.04.2026

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Kotak Mahindra Bank Limited, a Body Corporate constituted under Banking Regulation Act, 1949 having its Registered Office at 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbal- 400051 and the successor to ING Vyasa Bank under the Amalgamation Scheme on 01.04.2015, sanctioned by the Reserve Bank of India in exercise of powers contained in Sub-Section (4) of Section 44A of the Banking Regulation Act, 1949, having its Branches all over India including Branch at Kotak Mahindra Bank Limited Commercial Banking, SCO 153-154-155, Basement, Sector 9C, 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. Resham Singh alias Sh. Resham Mahal, S/o Sh. Laimber Singh, R/o Village Kahlon, Tehsil and District Nawanshahr, Punjab- 144514

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Sh. Kewal Mahal, S/o Sh. Laimber Singh, R/o Village Kahlon, Tehsil and District Nawanshahr, Punjab- 144514

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Sh. Gurpal Singh, S/o Sh. Laimber Singh, R/o Village Kahlon, Tehsil and District Nawanshahr, Punjab- 144514

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………. Defendants

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Advocates:

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Argued by Sh. Rajan Puri, Advocate for applicant

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None for defendants (already ex-parte vide order dated 08.01.2025)

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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. 73,90,732.15 (Rupees Seventy Three Lacs Ninety Thousand Seven Hundred Thirty Two and Paise Fifteen Only). The Original Application has been filed through Sh. Munish Sharma, Manager of the applicant, who is competent to

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2 OA NO.894/2024 KOTAK MAHINDRA BANK LIMITED VS. RESHAM SINGH ALIAS RESHAM MAHAL AND OTHERS

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institute the Original Application vide Resolution dated 31.08.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that defendant no. 1 approached the applicant for grant of KCC Limit of Rs. 40.00 Lacs vide Application dated 20.03.2012. Thereafter, defendant no. 1 approached the applicant for renewal of KCC Limit of Rs. 40.00 Lacs.

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The applicant sanctioned the KCC Limit of Rs. 40.00 Lacs vide Credit Arrangement Letter dated 13.04.2012, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the renewal of KCC Limit of Rs.40.00 Lacs vide Credit Sanction Advice dated 27.01.2021, which is Annexure A14 to this OA. Defendant nos. 2 and 3 stood as guarantors.

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Defendant no. 1 mortgaged his immovable property i.e. Land measuring 48K 00M situated at Village Kahlon, Tehsil and District S.B.S Nagar, Punjab vide Mortgage Deed dated 12.06.2012, which is Annexure A10 to this OA and Letter for Marking of Lien dated 23.06.2012, which is Annexure A11 to this OA. Documents executed : Amalgamation of ING Vyasa Bank with Kotak Mahindra Bank dated 01.04.2015, which is Annexure A1 to this OA; Pronote, Take Delivery Letter, Hypothecation Agreement, Consent Letter executed by the defendant, Undertaking cum Letter of Authorization, Consent executed by all the defendants, Guarantee Bond and Consent Letter executed by guarantor, all dated 24.04.2012, which are Annexure A4 to A9 and A12 and A13 to this OA; DP Note, Take Delivery Letter, Deed of Hypothecation and Master Facility Agreement, all dated 03.02.2021, which are Annexure A15 to A18 to this OA; Legal Notice dated 03.07.2024, which is Annexure A19 to this OA and Account Statement, which is Annexure A20 to this OA. 5. 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. 73,90,732.15, which is recoverable and the defendants were served recall notice 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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3 OA NO.894/2024 KOTAK MAHINDRA BANK LIMITED VS. RESHAM SINGH ALIAS RESHAM MAHAL AND OTHERS

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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 08.01.2025.

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In support of the OA, affidavit of Sh. Munish Sharma, Manager, Kotak Mahindra Bank Limited, 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 Annexure A1 to A20 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. 73,90,732.15 (Rupees Seventy Three Lacs Ninety Thousand Seven Hundred Thirty Two and Paise Fifteen 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.

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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. along with @2% penal interest with monthly/half yearly rests from the date of institution of this Original Application 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 asstes, 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 @08.00%p.a. in the loan account from the date of filing of the OA till

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4 OA NO.894/2024 KOTAK MAHINDRA BANK LIMITED VS. RESHAM SINGH ALIAS RESHAM MAHAL AND OTHERS

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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.73,90,732.15 (Rupees Seventy Three Lacs Ninety Thousand Seven Hundred Thirty Two and Paise Fifteen 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 property 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. 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 07.05.2026. 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: 17.04.2026

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

Kotak Mahindra Bank Limited v. Sh. Resham Singh Alias Resham Mahal and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Sh. Resham Singh Alias Resham Mahal and Others

Case brief

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What did the court decide?

What the court decided

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