Allowed

Kotak Mahindra Bank Limited v. Sh. Mohinder Singh and Another

DRT27 Mar 2026OA/1159/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte appeal filed by Kotak Mahindra Bank for recovery of a vehicle loan of over Rs. 21 lacs along with interest at 8% p.a., declaring defendants jointly and severally liable.

What did the court decide?

Recovery of Rs.21,53,860.77 with 8% p.a. interest, costs, and authority to enforce sale of hypothecated vehicles or personal assets.

Kotak Mahindra Bank Limited versus Sh. Mohinder Singh and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1159/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.08.2025

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DATE OF DECISION: 27.03.2026

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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 Versus

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Sh. Mohinder Singh, S/o Sh. Jaipal Singh, R/o H. no. 130, Village Shamlo Kalan, District Jind, Haryana- 126114

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Smt. Pooja, W/o Mahender Singh, R/o H. no. 130, Village Shamlo Kalan, District Jind, Haryana- 126114

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…. Defendants

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Advocate:

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Argued by Sh. Manav Singal, Advocate for applicant

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Defendants already ex-parte vide order dated 12.03.2026

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FINAL ORDER

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Present Original Application was instituted by the applicant u/s 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,53,860.77 (Rupees Twenty One Lacs Fifty Three Thousand Eight Hundred Sixty and Paise Seventy Seven Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager, 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 defendants approached the applicant for grant of Vehicle Loan of Rs. 42.00 Lacs for purchase of 2 Light Commercial Vehicles vide Individual Customer Relation Form dated 01.02.2023, which is Annexure A4 to this OA.

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The applicant sanctioned the Vehicle Loan of Rs.42,67,070/vide Loan cum Guarantee Agreement dated 04.02.2023, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendants.

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2 OA NO. 1159/2025 KOTAK MAHINDRA BANK LIMITED VS. MOHINDER SINGH AND ANOTHER

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Defendants hypothecated the Light Commercial Vehicles namely Eicher Pro 3015XP M HSD BSVI bearing Engine no.E426CDNM416105, Chassis no.MC2GLMRC0PA222144 and Registration no.HR67E3333 and Eicher Pro 2114XP P L CBC B6 C bearing Engine no.E426CCND390949, Chassis no.MC2ESLRC0ND206970 and Registration no. HR67D3433 with the applicant vide RC filed on 26.03.2026 through diary no. 5582/2026. Tax invoice dated 30.01.2023 and 31.01.2023 which are Annexure A2 and A3 to this OA.

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Documents executed: DP Note and Power of Attorney, both dated 04.02.2023, which are Annexure A6 and A7 to this OA; Loan Recall Notice along with postal receipts dated 23.06.2025, which is Annexure A8 to this OA and Statements of Accounts, which are Annexure A9 and A10 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 accounts there was a debit of Rs.21,53,860.77 (Rupees Twenty One Lacs Fifty Three Thousand Eight Hundred Sixty and Paise Seventy Seven Only), 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 on 12.03.2026.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 Annexure A1 to A10 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

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3 OA NO. 1159/2025

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KOTAK MAHINDRA BANK LIMITED VS. MOHINDER SINGH AND ANOTHER

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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.21,53,860.77 (Rupees Twenty One Lacs Fifty Three Thousand Eight Hundred Sixty and Paise Seventy Seven Only) along with interest from the defendants, 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 elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24%p.a. with monthly rests from 13.06.2025 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 vehicles, 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 both 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.21,53,860.77 (Rupees Twenty One Lacs Fifty Three Thousand Eight Hundred Sixty and Paise Seventy Seven Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 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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4 OA NO. 1159/2025 KOTAK MAHINDRA BANK LIMITED VS. MOHINDER SINGH AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.04.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 27.03.2026

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

Kotak Mahindra Bank Limited v. Sh. Mohinder Singh and Another

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Sh. Mohinder Singh and Another

Case brief

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