Allowed

Kotak Mahindra Bank Limited v. St.Xavier Public School

DRT8 Dec 2025OA/1036/2022

Case brief

AI extract

What is this about?

The DRT allowed an application for the recovery of loan dues of Rs. 22,15,949.49 with interest against a school, school principal, society, and two guarantors. The court directed the issuance of a Recovery Certificate and distribution of proceeds from hypothecated vehicles.

What did the court decide?

Allowed recovery of Rs.22,15,949.49 with interest; directed issuance of Recovery Certificate and distribution of sale proceeds.

Kotak Mahindra Bank Limited versus St.Xavier Public School — Insolvency and Bankruptcy | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1036/2022 Date of Institution: 25.05.2022 Date of Decision: 08.12.2025 Kotak Mahindra Bank Limited having its branches all over India and a ……..Applicant Vs.

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Kotak Mahindra Bank Limited having its branches all over India and a branch at S.C.O. No.153-155, Sector 9-C, Chandigarh.

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St. Xavier Public School, through its Principal having address Bohan Jawalamukhi, District Kangra, Himachal Pradesh.

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Vivek Chowdhary having address Tehsil Jawalamukhi Darang 376, Jawalamukhi Dera Gopipur, District Kangra, Himachal Pradesh.

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Bal Vikas Sabha, through its president having address Bohan Jawalamukhi, District Kangra, Himachal Pradesh.

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Mela Ram Chowdhary having address Tehsil Jawalamukhi Darang 376, Jawalamukhi Dera Gopipur, District Kangra, Himachal Pradesh.

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……….Defendants

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Advocates Ms. Seerat Sharma proxy counsel for Ms. Puja Chopra, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 21.08.2024 .

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OA for the Recovery of Rs.22,15,949.49p with interest @9.62% per annum with monthly rests from 25.05.2022.

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ORDER

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Kotak Mahindra Bank Limited has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,15,949.49p with interest against St. Xavier Public School and others (defendants).

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Bank’s case is that on 05.05.2018, it had granted a loan of Rs.23.05 Lacs to defendant Nos.1 and 2 in the form of C.C Limit for Vehicle purpose. To secure the loan, Defendant nos.1 and 2 had hypothecated vehicles (fully detailed in para No.5.4 of the application). Defendant Nos.3

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and 4 stood as guarantors. Again on 25.08.2020, at the request of the defendants, bank granted a loan of Rs.3,25,300/- in the form of E.C.L.G.S. Facility to defendant Nos.1 and 2. The loans was chargeable to interest @9.62% per annum with monthly rests. On 02.12.2021, a sum of Rs.22,15,949.49p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 14.06.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 21.08.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Samrat Singh Bedi, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-8.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loans under various schemes and on 02.12.2021, a sum of Rs.22,15,949.49p was due.

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Accordingly, the application of the bank for the recovery of Rs.22,15,949.49p (Rupees Twenty Two Lacs Fifteen Thousand Nine Hundred Forty Nine and Paise Forty Nine Only) with interest @9.62% per annum with monthly rests from 25.05.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated vehicles fully detailed in para No.5.4 of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on

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12.01.2026, who is directed to distribute the sale proceeds of the

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hypothecated vehicles as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 08.12.2025 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Kotak Mahindra Bank Limited v. St.Xavier Public School

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. St.Xavier Public School

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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