Allowed

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

DRT5 Jan 2026OA/951/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank against four defendants for recovery of a loan of Rs. 51.79 Lakhs. The court reduced the claimed interest rate to 8% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 51,79,182.00 with interest at 8% p.a.; Issuance of Recovery Certificate; Permission for execution proceedings.

Kotak Mahindra Bank Limited versus Sh. Kuldeep Singh and Others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.951/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.07.2024

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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 at Sultanpur Lodhi, Distt. Kapurthala, Punjab, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Kuldeep Singh S/o Sh. Jaswant Singh, R/o H. No. 45, Village Baharwali, Tehsil Zira, District Ferozepur - 142044.

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Sh. Jaswant Singh S/o Sh. Angrej Singh, R/o H. No. 45, Village Baharwali, Tehsil Zira, District Ferozepur - 142044.

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Sh. Daljit Singh S/o Sh. Jaswant Singh R/o H. No. 45, Village Baharwali, Tehsil Zira, District Ferozepur -142044.

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Smt. Surjit Kaur W/o Sh. Daljit Singh R/o Village Baharwali, Tehsil Zira, District Ferozepur 142044.

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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 29.05.2025

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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.51,79,182.00 (Rupees Fifty

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OA NO.951/2024 KOTAK MAHINDRA BANK LTD. VS. KULDEEP SINGH AND OTHERS

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One Lacs Seventy Nine Thousand One Hundred Eighty Two 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 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.45.00 Lacs vide loan application dated 08.10.2013. Defendant nos. 3 and 4 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.40.00 Lacs vide Credit arrangement letter dated 23.10.2023, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants. 4. Defendant no.2 mortgaged his immoveable property i.e. land measuring 72K-00M situated at Village Baharwali, Tehsil Zira, District Ferozepur, Punjab vide Mortgage Deed bearing vasika no.3005 dated 08.11.2013, along with its translation, which are Annexures A12 & A13 to this OA. Legal opinion regarding lien mark dated 08.11.2013, which is Annexure A14 to this OA.

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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 23.10.2013, which are Annexures A4 to A11 to this OA; Notice dated 01.04.2024 along with postal receipts, which are Annexures A15 to A19 to this OA and Statement of Account, which is Annexure A20 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.51,79,182.00, 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.951/2024 KOTAK MAHINDRA BANK LTD. VS. KULDEEP 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 29.05.2025.

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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 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.51,79,182.00 (Rupees Fifty One Lacs Seventy Nine Thousand One Hundred Eighty Two 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. with half yearly rests from 07.03.2024 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

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OA NO.951/2024 KOTAK MAHINDRA BANK LTD. VS. KULDEEP SINGH AND OTHERS

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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.51,79,182.00 (Rupees Fifty One Lacs Seventy Nine Thousand One Hundred Eighty Two 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 15.01.2026. 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: 05.01.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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

Case brief

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

Case brief

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