Allowed

Kotak Mahindra Bank Limited v. M/S Shamshad Traders and Others

DRT19 Dec 2025OA/1398/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal disposed of an original application filed by Kotak Mahindra Bank Ltd. for recovery of dues against M/s Shamshad Traders. The Tribunal allowed the application, ordered recovery of the claimed amount with simple interest at 8% p.a., and granted a Recovery Certificate.

What did the court decide?

Recovery of Rs.2,38,68,024.36 jointly and severally with simple interest @8% p.a.; issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus M/S Shamshad Traders and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1398/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.09.2025

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DATE OF DECISION: 19.12.2025

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Kotak Mahindra Bank Ltd. a Body Corporate, incorporated under the Companies Act, 1956 having its registered office at 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051 and having branches all over India and one of its branch offices situated at SCO No.131-132-133, 2^nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana-141001 through its Manager Sh. Rakesh Kumar.

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……..Applicant Versus 1. M/s Shamshad Traders, Through its Proprietor, Laxmi Nagar Camp, Yamunanagar, Tehsil & District Yamunanagar, Haryana. 2. Sh. Shamshad Ali s/o Sh. Iqbal, Proprietor M/s Shamshad Traders, R/o Ward No.19, Laxmi Nagar Camp, Near Masjid, Yamunanagar, District Yamunanagar, Haryana-135001.

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Sh. Nisar s/o Sh. Iqbal, R/o Village Burai Cha, Ward No.8, Tehsil Jagadhari, District Yamunanagar, Haryana-135001. 2^nd Address: H.No.32, Ward No.17/26, Laxmi Nagar Camp, Ekminar Masjid, Yamunagar, District Yamunanagar, Haryana-135001. 4. Smt. Momina w/o Md. Shamshad Ali R/o Ward No.19, Laxmi Nagar Camp, Near Masjid, Yamunanagar, District Yamunanagar, Haryana135001. 2^nd Address: Ward No.27, Laxmi Nagar Camp, Yamunanagar, District Yamunanagar, Haryana-135001.

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3^rd Address: H.No.17/19, Laxmi Nagar Camp, Yamunanagar, District Yamunanagar, Haryana-135001.

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4^th Address: Ward No.17, Laxmi Nagar Camp, Yamunanagar, District Yamunanagar, Haryana-135001.

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………. Defendants Advocates:

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Argued by Sh. Manav Singal, Advocate for Applicant Defendants already ex-parte

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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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.2,38,68,024.36 (Rupees Two Crore Thirty Eight Lacs Sixty Eight Thousand Twenty Four & Paise Thirty Six Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of applicant who is competent to institute the Original Application vide Resolution dated 29.11.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 90.00 Lacs for purchase of two commercial vehicles i.e. TATA SIGNA 5525 along with their bodies vide non individual customer relation form dated 02.08.2022, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 again approached the applicant for grant of Commercial Vehicle Loan of Rs.48,62,500/for purchase of Commercial Vehicle TATA SIGNA 5530 vide non individual customer relation form dated 23.10.2023, which is Annexure A11 to this OA and for grant of Commercial Vehicle Loan of Rs.97,00,000/- for purchase of Commercial Vehicle TATA SIGNA 5530 vide non individual customer relation form dated 30.11.2023, which is Annexure A17 to this OA and for grant of Commercial Vehicle Loan of Rs.48,00,000/- for purchase of Commercial Vehicle TATA SIGNA 5530 vide non individual customer relation form dated 20.12.2023, which is Annexure A22 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 again approached the applicant for grant of Commercial Vehicle Loan of Rs.93,00,000/- for purchase of two Commercial Vehicle TATA SIGNA 5530 along with bodies of commercial vehicles vide non individual customer relation form dated 17.01.2025, which is Annexure A26 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 again approached the applicant for grant of Commercial Vehicle Loan of Rs.10,20,000/- for use Commercial Vehicles TATA LPT 3118 vide non individual customer

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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relation form dated 28.01.2025, which is Annexure A35 to this OA. Defendant nos. 3 and 4 stood as guarantors.

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The applicant sanctioned Commercial Vehicle Loans of Rs. 32,02,500/-, 32,02,500/-, 10,00,000/- and 10,00,000/- for purchase of two commercial vehicles i.e. TATA SIGNA 5525 along with their bodies. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreements dated 23.09.2022, which is Annexure 5 and A8 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs.48,62,500/- for purchase of Commercial Vehicle TATA SIGNA 5530. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreement dated 07.11.2023, which is Annexure A13 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs.48,62,500/- for purchase of Commercial Vehicle TATA SIGNA 5530. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreement dated 20.12.2023, which is Annexure A18 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs.47,57,500/for purchase of Commercial Vehicle TATA SIGNA 5530. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreement dated 02.01.2024, which is Annexure A23 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loans of Rs.37,01,750/-, Rs.9,50,000/-, Rs.9,50,000/- and for purchase of Commercial Vehicle TATA SIGNA 5530 and bodies of commercial vehicles and also a Loan of Rs. 37,09,350/- for purchase of TATA SIGNA 5530. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreements dated 24.01.2025, which is Annexure A27, A31 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs.10,26,100/- for purchase of used Commercial Vehicle TATA LPT 3118. The term and the terms and conditions were duly accepted by the defendants. Loan cum guarantee agreement dated 12.05.2025, which is Annexure A36 to this OA.

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated following commercial vehicles:

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(i) TATA SIGNA 5525, bearing Registration No. HR58C0099, Engine No. 22H84986547, Chasis No. MAT828022NAH08934. Tax Invoice of the vehicle dated 15.09.2022 is Annexure 3 to this OA.

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(ii) TATA SIGNA 5525, bearing Registration No. HR58C0999, Engine No. 22G84984608, Chasis No. MAT828022NAH08648. Tax Invoice of the vehicle dated 15.09.2022 is Annexure 4 to this OA.

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(iii) TATA SIGNA 5530, bearing Registration No. HR58D6107, Engine No. 32H95432612, Chasis No. MAT828048PAJ10646. Tax Invoice of the vehicle dated 31.10.2023 is Annexure 12 to this OA.

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(iv) TATA SIGNA 5530, bearing Registration No. HR58D3366, Engine No. B6.7B62300D02132K64337678, Chasis No. MAT828045P2K28430. Tax Invoice of the vehicle dated 14.12.2023 is Annexure 16 to this

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(v) TATA SIGNA 5530, bearing Registration No. HR58D2605, Engine No. 32G64309068, Chasis No. MAT828048PAG08686. Tax Invoice of the vehicle dated 19.12.2023 is Annexure 21 to this OA.

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(vi) TATA SIGNA 5530, bearing Registration No. HR58E7426, Engine No. 42L95492987, Chasis No. MAT828045RAP19601. Virtual Registration Certificate of the vehicle is Annexure A30 to this OA.

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(vii) TATA SIGNA 5530, bearing Registration No. HR58E7342, Engine No. 42L64429083, Chasis No. MAT828045RAP19602. Virtual Registration Certificate of the vehicle is Annexure A34 to this OA. (viii) TATA LPT 3118, bearing Registration No. HR58B8125, Engine No. 81K84830310, Chasis No. MAT466457J5K27197. Virtual Registration Certificate of the vehicle is Annexure A39 to this OA.

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Virtual Registration Certificates of vehicles at S. No. (i) to (v)

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filed on 15.12.2025 vide diary no. 20722 in compliance to order dated 14.11.2025.

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Documents executed : D.P. Notes, Power of Attorney dated 23.09.2022, which are Annexures A6, A7, A9 and A10 to this OA; D.P. Note, Power of Attorney dated 02.11.2023, which are Annexures

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A14 and A15 to this OA; D.P. Note, Power of Attorney dated

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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20.12.2023, which are Annexures A19 and A20 to this OA; D.P. Note, Power of Attorney dated 02.01.2024, which are Annexures A24 and A25 to this OA; D.P. Notes, Power of Attorney dated 24.01.2025, which are Annexures A28, A29, A32 and A33 to this OA; D.P. Note, Power of Attorney dated 12.05.2025, which are Annexures A37 and A38 to this OA; Loan recall notice dated 22.08.2025, which is Annexure A40 to this OA; Statements of accounts, which are Annexures A41 to A52 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.2,38,68,024.36, 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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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 12.11.2025.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank, has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 A52 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.2,38,68,024.36 (Rupees Two Crore Thirty Eight Lacs Sixty Eight Thousand Twenty Four & Paise Thirty Six Only) along with interest from the defendants,

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @24.00%p.a. with monthly rests from 01.08.2025 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 loans 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 all the loan accounts from the date of filing of the OA till 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.2,38,68,024.36 (Rupees Two Crore Thirty Eight Lacs Sixty Eight Thousand Twenty Four & Paise Thirty Six Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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 vehicles 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

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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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 07.01.2026.

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OA/1398/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S SHAMSHAD TRADERS AND OTHERS

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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.

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Pronounced by me in the open Tribunal .

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Dated: 19.12.2025.

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

Kotak Mahindra Bank Limited v. M/S Shamshad Traders and Others

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Kotak Mahindra Bank Limited v. M/S Shamshad Traders and Others

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