Authority: Supreme Court of India
Order Date: 29-09-2026
Case Overview
- Petitioner: Kotak Mahindra Bank Limited.
- Respondents: Chairperson Debts Recovery Appellate Tribunal & others.
- Origin: Petition for Special Leave to Appeal (C) No.34034/2026 arising from High Court of Uttarakhand order dated 20-08-2026 in WPMB No.144/2026, which directed the bank to file a supplementary affidavit showing how a loan of Rs 32 lakhs grew to Rs 19 crore and to deposit title deeds with the Debts Recovery Tribunal (DRT).
- Bank’s contention: The direction prejudices its rights; interest should be computed per the loan agreement with penalty clauses; title deeds mortgaged to the bank should not be returned.
- Respondents’ contention: The entire amount as decreed by the DRT has been paid by borrowers Nos.3‑6, therefore title deeds should be returned.
Final Outcome
- The Court held it premature to order release of title deeds to the borrowers but did not interfere with the High Court’s direction to file a supplementary affidavit detailing the outstanding amount.
- The bank must deposit the title deeds with the DRT; on deposit, the deeds shall not be returned to the borrowers.
- The DRT shall await further order of the High Court and, if the order is prejudicial to the bank, shall refrain from returning the deeds during the bank’s challenge period.
- The Special Leave Petition is disposed of without any observation on the merits.
- Any pending applications, if any, are rejected.
Topics: Debt Recovery, Banking Litigation, Title Deeds