KOTAK MAHINDRA BANK LIMITED vs SH. AVTAR SINGH AND OTHERS on 4 February 2026

FINAL ORDER

1. Present 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.62,18,040.00 (Rupees Sixty Two Lacs Eighteen Thousand and Forty Only). The Application has been filed through Sh. Munish Sharma, Senior Manager of the applicant who is competent to institute this application vide Board Resolution dated 31.08.2023, which is Annexure A2 to this OA.

2. The brief facts of the OA are that the defendant nos. 1 and 2 approached the applicant for the grant of KCC Limit Rs.40.00 Lacs vide loan application dated 24.04.2013.

3. The applicant sanctioned KCC Limit of Rs.37.00 Lacs vide credit arrangement letter dated 15.05.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

4. Defendant nos. 1 & 2 mortgaged their immovable property i.e. Land measuring 64Kanal-01Marla situated at Village Raitgarh, Tehsil & District Sangrur, Punjab vide mortgage deed bearing vasika no. 415 dated 22.05.2013, along with its translation, which are Annexures A11 and A12 to this OA. Documents executed: Amalgamation Scheme sanctioned by RBI dated 01.04.2015, which is Annexure A1 to this OA; D.P Note, Take Delivery Letter to DPN, Hypothecation Agreement, Consent Letter Executed by the Borrower, Consent Letter Executed by the Guarantor, Undertaking-cum-letter of Authorization for Insuring Crop and other Movable Assets, Undertaking, Guarantee Bond, all dated 21.05.2013, which are Annexures A4 to A10 and 13 to this OA; Legal Notice dated 30.09.2023, which is Annexure A14 to this OA; Statement of Account with interest chart, which are Annexure A15 and A16 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.62,18,040.00 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.

6. 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 22.05.2025.

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

8. Heard ex-parte arguments and perused record.

9. It was argued by learned proxy 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 A16 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.62,18,040.00 (Rupees Sixty Two Lacs Eighteen Thousand and Forty 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.

10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12% p.a. plus 2% penal interest with half yearly rests from 07.11.2023 till the realization.

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 @8.00%p.a. 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.62,18,040.00 (Rupees Sixty Two Lacs Eighteen Thousand and Forty Only) with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amounts. 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 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 16.02.2026.

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: 04.02.2026.

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