Allowed

Kotak Mahindra Bank Limited v. M/S Kiyaan Renovations and Developers Pvt. Ltd. and Others

DRT9 Jul 2026OA/1089/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Kotak Mahindra Bank Ltd. for recovery of Rs. 33,39,055.38 outstanding from a term loan facility granted to the respondents. The ex-parte respondents failed to repay the loan, and the Tribunal decreed the amount along with the principal. While the bank claimed 24% interest, the Tribunal exercised discretion to award simple interest at

What did the court decide?

Relief granted: Defendants liable to pay Rs. 33,39,055.38 plus simple interest at 8% p.a. from the date of filing till realization. Recovery Certificate issued.

Kotak Mahindra Bank Limited versus M/S Kiyaan… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1089/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2025

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DATE OF DECISION: 09.07.2026

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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

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Versus

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M/s Kiyaan Renovations & Developers Pvt. Ltd. though its Directors, 1711, 10, Ram Gopal Colony, Rohtak Sonipat Road,

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Gali No.4, District Rohtak, Haryana - 124001.

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Sh. Hitesh S/o Sh. Suraj Bhan, R/o H. No.1711, Ram Gopal Colony, District Rohtak, Haryana - 124001.

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Sh. Ashish S/o Sh. Suraj Bhan, R/o H. No.1711, 29, Ram Gopal Colony, District Rohtak, Haryana - 124001.

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2nd Address:-

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199, Village Tajpur Tihara Khurd (191), District Sonipat, Haryana - 131022.

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Sh. Suraj Bhan S/o Sh. Shiv Narayan, R/o H. No.1711, Ram Gopal Colony, District Rohtak, Haryana - 124001.

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……..Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 07.07.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.33,39,055.38 (Rupees Thirty

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2 OA NO.1089/2025 KOTAK MAHINDRA BANK LTD. VS M/S KIYAAN RENOVATIONS AND DEVELOPERS PVT. LTD. AND OTHERS

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Three Lacs Thirty Nine Thousand Fifty Five and Paise Thirty Eight Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the 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 director defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facility for purchase of commercial vehicle of Rs.42,00,000.00 vide Non Individual Customer Relation Form dated 06.03.2024, which is Annexure A3 to this OA. 3. The applicant sanctioned the Term Loan Facility for purchase of commercial vehicle of Rs.42,34,597.00 and the terms and conditions were duly accepted by the defendants vide Loan-Cum-Guarantee Agreement dated 29.03.2024, which is Annexure A6 to this OA. Defendant nos. 3 & 4 stood as guarantors. 4. Defendant no. 1 through its director defendant no. 2 hypothecated its commercial vehicle i.e., namely TATA SIGNA 5530 bearing Registration No. HR62A1411, Engine No. 42C95459477, Chassis No. MAT828045RAC04488 vide Tax Invoice dated 20.03.2024, which is Annexure A4 to this OA and Registration Certificate filed vide dairy no. 12237 on 07.07.2026. Documents executed: Certificate of Incorporation dated 03.10.2022, which is Annexure A2 to this OA; Board Resolution dated 20.03.2024, which is Annexure A5 to this OA; Demand Promissory Note, Power of Attorney, both dated 29.03.2024 which are Annexures A7 & A8 to this OA; Legal Notice dated 23.06.2025, along with postal receipts, which is Annexure A9 to this OA; Statement of Account along with certificate, which is Annexure A10 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 the loan account there was a debit of Rs.33,39,055.38, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.1089/2025 KOTAK MAHINDRA BANK LTD. VS M/S KIYAAN RENOVATIONS AND DEVELOPERS PVT. LTD. AND OTHERS

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 07.07.2026.

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In support of the OA, affidavit of Sh. Rakesh Kumar , Manager, Kotak Mahindra Bank Limited has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant no.1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached applicant for availing of loan facility which was granted to them, defendant nos. 3 & 4 stood as guarantors 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, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.33,39,055.38 (Rupees Thirty Three Lacs Thirty Nine Thousand Fifty Five and Paise Thirty Eight Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @24.00% p.a. with monthly rests from 12.06.2025 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 hypothecated vehicle, undertaking of the defendants, quantum of loan and prevalent market rates of

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4 OA NO.1089/2025 KOTAK MAHINDRA BANK LTD. VS M/S KIYAAN RENOVATIONS AND DEVELOPERS PVT. LTD. AND OTHERS

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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 simple interest @8.00%p.a. in 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.33,39,055.38 (Rupees Thirty Three Lacs Thirty Nine Thousand Fifty Five and Paise Thirty Eight Only), along with interest, jointly and severally, 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 amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated vehicle of defendant no. 1 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.

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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 Tribunal on 24.07.2026.

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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: 09.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Kiyaan Renovations and Developers Pvt. Ltd. and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Kiyaan Renovations and Developers Pvt. Ltd. and Others

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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