Allowed

Kotak Mahindra Bank Limited v. Sh. Vishkarma Roadways and Others

DRT2 Jun 2026OA/121/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 84,05,997.20 from a vehicle dealership proprietor and owner, including a guarantor. The tribunal granted simple interest at 8% p.a. instead of the claimed 24% and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 84,05,997.20 with 8% p.a. simple interest from the date of filing; issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Sh. Vishkarma… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 121/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2026

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DATE OF DECISION: 02.06.2026

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Kotak Mahindra Bank Limited, 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 Vishkarma Roadways, through its proprietor, Shop No. 455, Motor Market Manimajra, Chandigarh – 160101.

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Sh. Swarn Singh S/o Sh. Charan Singh, proprietor M/s Vishkarma Roadways, R/o H.No. 825, Sector-17, Panchkula, Haryana134109.

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Smt. Baljit Kaur D/o Sh. Gurdial Singh, R/o H.No. 825, Sector17, Panchkula, Haryana-134109.

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……….Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for applicant

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None for defendants (already ex-parte vide order dated 30.05.2026)

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.84,05,997.20 (Rupees Eighty Four Lacs Five Thousand Nine Hundred Ninety Seven and Paise Twenty Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager, o f the applicant, who is competent to institute the Original

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2 OA/121/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S VISHKARMA ROADWAYS AND OTHERS

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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 defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan Rs.54,86,232.00 for purchase of two units of commercial vehicles vide Non-Individual Customer Relation Form dated 22.05.2023, which is Annexure A2 to this OA.

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Thereafter, defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan Rs.25,40,423.00 for purchase of a Commercial Vehicle vide Non-Individual Customer Relation Form dated 26.07.2023, which is Annexure A9 to this OA.

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Thereafter, defendant nos. 1, through its proprietor defendant no. 2 approached the applicant for grant of Term Loan Rs.45,54,551.00 for purchase of a commercial vehicle and a term loan of Rs.3,00,000.00 for purchase of body of the said vehicle vide Non-Individual Customer Relation Form dated 04.01.2024, which is Annexure A14 to this OA.

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Thereafter, defendant nos. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan Rs.26,34,690.00 for purchase of commercial vehicle vide Non-Individual Customer Relation Form dated 22.08.2024, which is Annexure A19 to this OA.

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Defendant nos. 3 stood as guarantor in all loan accounts. 3. The applicant sanctioned the Term Loan of Rs.54,86,232.00 for purchase of two units of commercial vehicle i.e. TATA LPT 1815 vide Loan cum Guarantee Agreement along with Schedules dated 22.06.2023, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Thereafter, the applicant sanctioned the Term Loan Rs.25,40,423.00 for purchase of Commercial Vehicle ie. TATA LPT 1815 vide Loan-cum-Guarantee Agreement dated 01.05.2024, which is Annexure A10 to this OA.

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3 OA/121/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S VISHKARMA ROADWAYS AND OTHERS

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Thereafter, the applicant sanctioned Term Loan Rs.45,54,551.00
for purchase of commercial vehicle ie. TATA LPT 4830 and a term loan
of Rs. 3,00,000.00 for purchase of body of the said vehicle vide Loan-
cum-Guarantee Agreement dated 05.01.2024, which isAnnexure A15
to this OA.

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for p cum-	Thereafter, the applicant sanctioned Term Loan Rs.26,34,690.00 urchase of commercial vehicle ie. ASHOK LEYLAND 1415 vide Loan- Guarantee Agreement dated 22.08.2024, which isAnnexure A20
to th	is OA.
4.	Defendant No. 1, through its proprietor defendant no. 2,
hypo	thecated its Commercial Vehicles as under:
i.	TATA LPT 1815, bearing Registration No. HR68C2970, Engine No.
	3.3LNGD05CWX509335, Chasis No. MAT843003P7C07162; Tax
	Invoice dated 31.05.2023 and Virtual Registration Certificate of
	vehicle, isAnnexure A3to this OA.
ii.	TATA LPT 1815, bearing Registration No. HR68C2458, Engine No. 3.3LNGD05CWX509317, Chasis No. MAT843003P7C07095; Tax Invoice dated 31.05.2023 and Virtual Registration Certificate of
	vehicle, isAnnexure A4to this OA.
iii.	TATA LPT 1815, bearing Registration No. HR68C9701, Engine No.
	3.3LNGD05CWX509293, Chasis No. MAT843003P7C07197; Tax
	Invoice dated 30.05.2023 and Virtual Registration Certificate of
	vehicle, isAnnexure A8to this OA.
iv.	TATA LPT 4830, bearing Registration No.HR68C1625, Engine No.
	B6.7B62300D02132K64331683, Chasis No.
	MAT566013P1K29607; Tax Invoice dated 31.12.2023 and Virtual
	Registration Certificate of vehicle, isAnnexure A13to this OA.
v.	ASHOK LEYLAND 1415, bearing Registration No.HR68C7954, Engine No. RKHZ414995, Chasis No. MB1AYHCD8RRHY2434; Tax
	Invoice dated 09.08.2024 and Virtual Registration Certificate of vehicle, isAnnexure A18to this OA

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4 OA/121/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S VISHKARMA ROADWAYS AND OTHERS

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Documents executed: DP Note dated 22.06.2023, which is Annexure A6 to this OA; Power of Attorney, which is Annexure A7 to this OA; DP Note dated 26.07.2023, which is Annexure A11 to this OA; Power of Attorney, which is Annexure A12 to this OA; DP Note dated 05.01.2024, which is Annexure A16 to this OA; Power of Attorney, which is Annexure A17 to this OA; DP Note dated 22.08.2024, which is Annexure A21 to this OA; Power of Attorney, which is Annexure A22 to this OA; Loan Recall Notice dated 19.12.2025, along with postal receipts, which is Annexure A23 to this OA; Statement of Accounts, which are Annexures A24 to A29 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.84,05,997.20, 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. 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 30.05.2026. 7. 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 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 A29 to this OA, it is proved that the defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. Defendant no.3 stood as guarantor. Defendants 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

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5 OA/121/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S VISHKARMA ROADWAYS AND OTHERS

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the agreement between the parties. Subsequently, all the 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.84,05,997.20 (Rupees Eighty Four Lacs Five Thousand Nine Hundred Ninety Seven and Paise Twenty Only 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24%p.a. with monthly rests from 13.12.2025 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 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.84,05,997.20 (Rupees Eighty Four Lacs Five Thousand Nine Hundred Ninety Seven and Paise Twenty Only 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 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

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6 OA/121/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S VISHKARMA ROADWAYS AND OTHERS

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personal assets of the defendants. The applicant is at liberty to enforce

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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 23.06.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 02.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Vishkarma Roadways and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Sh. Vishkarma Roadways and Others

Case brief

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