Allowed

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

DRT29 Jan 2026OA/947/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Kotak Mahindra Bank Ltd. to recover Rs.60,98,465.00 from three respondents as borrowers and guarantor. The Tribunal upheld the loan amount and granted uniform simple interest at 8% p.a., permitting recovery through sale of mortgaged properties or personal assets.

What did the court decide?

Declaration that respondents are liable to pay Rs.60,98,465.00 with simple interest at 8% p.a.; recovery via sale of mortgaged/attachment of personal assets; issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.947/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.01.2022

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DATE OF DECISION: 29.01.2026

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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 27BKС, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai and branches at different places one at Chotti Baradari, Patiala, Punjab, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Davinder Singh Son of Sh. Surjit Singh, R/o House No. 179, Majithia Enclave, Patiala, Punjab-147001.

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Smt. Sarabjit Kaur W/o Sh. Dharminder Singh, R/o House No. 179, Majithia Enclave, Patiala, Punjab-147001.

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Sh. Manjit Singh Son of Sh. Naranjan Singh, R/o House No. 321, Village Kamalpur, Tehsil Sunam, District Sangrur, Punjab-148035.

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……….Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for Applicant

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Defendants already ex parte vide order dated 16.11.2023.

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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.60,98,465.00 (Rupees Sixty

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OA NO.947/2022 KOTAK MAHINDRA BANK LTD. VS. DHARMINDER SINGH AND OTHERS

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Lacs Ninety Eight Thousand Four Hundred Sixty Five Only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer of the applicant, who is competent to institute the Original Application vide Delegation of Powers vide resolution dated 14.06.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 & 2 approached the applicant for grant of KCC Limit of Rs.44.00 Lacs vide Loan Application dated 12.03.2015. Defendant no.3 stood as a guarantor. 3. The applicant sanctioned the KCC Limit of Rs.43.00 Lacs vide credit arrangement letter dated 12.05.2015, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. 4. Defendant no.1 mortgaged his immoveable property i.e. land measuring 38B-08B (8 acres) situated at Village Dhadogal, Hadbast No.100, Tehsil Dhuri, District Sangrur, Punjab vide Declaration u/s 4(1) bearing vasika no.212 dated 26.05.2015, which is Annexure A12 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, Undertaking cum letter of Authorization for insuring crop and other movable assets, all dated 12.05.2015, which are Annexures A4 to A11 to this OA; Notice dated 22.10.2021 along with postal receipts, which are Annexures A13 to A16 to this OA and Statement of Account, which is Annexure A17 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.60,98,465.00, 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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OA NO.947/2022 KOTAK MAHINDRA BANK LTD. VS. DHARMINDER SINGH AND OTHERS

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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 16.11.2023.

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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 A17 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.60,98,465.00 (Rupees Sixty Lacs Ninety Eight Thousand Four Hundred Sixty Five 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 pendent lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.85% p.a. with half yearly rests from 26.11.2021 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

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OA NO.947/2022 KOTAK MAHINDRA BANK LTD. VS. DHARMINDER SINGH 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.60,98,465.00 (Rupees Sixty Lacs Ninety Eight Thousand Four Hundred Sixty Five 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. 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 11.02.2026. 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: 29.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

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

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