Allowed

Kotak Mahindra Bank Limited v. Rajiv

DRT7 Aug 2026OA/123/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application for recovery of loan dues and accrued interest filed by a bank against borrowers and a guarantor who did not appear. The court reduced the interest rate to 12% and directed payment from hypothecated vehicles and other assets.

What did the court decide?

Directing respondents to pay Rs. 56,53,288.21 with 12% interest; issuing recovery certificate for sale of hypothecated assets and other movable/immovable assets.

Kotak Mahindra Bank Limited versus Rajiv — Banking and Recovery | DRT (2026)

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O.A. No.123 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 123 of 2023

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Kotak Mahindra Bank Limited Plot no.7, Sectot-125 3rd Floor, Noida Lttar Pradesh-201303 Applicant Versus 1. Sh. Rajiv Dhawan R/o S-283, 3rd Floor, School Block Kali Mandir Wali Gall, Shakarpur Delhi-110092 2. Ms. Mamta Dhawan R/o S-283, 3rd Floor, School Block Kali Mandir Wali Gall, Shakarpur Delhi-110092 Defendants Present: Shri Mohan Kumar, Counsel for the applicant bank Date of Reserve: 29.07.2026 Date of Pronouncement: 07.08.2026 , FINAL ORDER

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This original application has been filed by the applicant bank on 25.11.2022 through Sh.Kumar Jyoti, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.56,53,288.21 (Rupees Fifty Six Lacs Fifty Three Thousand Two Hundred Eighty Eight & paisa Twenty One only) as on 03.11.2022 along with pendentelite and future interest @24% per annum with

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O.A. No.123 of 2023

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onthly rest from 03.11.2022 till the date of its realization and c sts.

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The brief facts of the case are that at the request of d fendants, the applicant bank sanctioned following credit f cilities for purchase of light commercial vehicles against

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h pothecation as per details given below:

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S.N.	Agreement No.	Loan Amount	Date of Agreement
L.	LCV1244609	11,23,000/-	15.03.2019
2.	LCV1244628	3,50,000/-	15.03.2019
3.	LCV1221856	9,93,000/-	04.03.2029
4.	LCV1226141	3,00,000/-	05.02.2018
5.	LCV859555	3,00,000/-	05.02.2018
6.	LCV859578	12,25,000/-	05.05.2018
7.	LCV935669	9,30,000/-	05.05.2018
8.	LCV935675	3,00,000/-	05.05.2018
9	LCV935681	3,00,000/-	05.05.2018
10	LCV935580	9,30,000/-	05.05.2018

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he defendant no.2 stood as guarantor for the loan facilities s nctioned by the applicant bank in favour of defendant no.1. urther, on the request of the defendants, the applicant bank s nctioned Term Loan-I of Rs.11,32,400/- on 21.08.2020 nder Loan Account No.LCV1624712 and Term Loan-II of 13,36,200/- on 29.10.2020 under Loan Account o.LCV1642773 under Emergency Credit Line Guarantee theme (ECLGS) as per comprehensive package announced by inistry of Finance, Govt.of India guidelines dated 13.02.2020 t. aid eligible MSME sector on account of economic distress used by Covid-19 pandemic against 100% guaranteed acked by NCGTC. These loans were to be repaid in 47 and 48 MIs.

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On the request of defendants vide letter dated 1.06.2021, the applicant bank restructured the credit facilities

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._c_p

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O.A. No.123 of 2023

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as per RBI framework for MSME sector on 30.09.2021 for light commercial vehicle sought to be bought by defendants.

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That in order to avail the credit facilities and ECLGS loans, the defendants submitted loan applications and executed Loancum-Guarantee Agreements on various dates as well as Working Capital Term Loan Agreement and Deed of Hypothecation on 19.12.2020 and 12.01.2021 in favour of the applicant bank. After the restructuring the loan facilities, the defendants executed Agreement letter on 04.10.2021 towards the applicant bank.

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That in order to secure the vehicle loan facilities, the defendants hypothecated the following 5 light commercial vehicles along with body purchased from M/s TATA Motors Ltd., out cf loan facilities in favour of the applicant bank as per

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details:

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SN	Registration No.	Chasis No.	Engine No.
1	DL1MA3043	MAT507421K0A005091	38SGI72PRY843816
2	DL1LAC1943	MAT505417J8P32512	38SGI72PRY843265
3	DL1MA0106	MBYZT54XAT0244058	SLNG1AT237547
4	DL1LAA6846	MBUWEL4XBT0245116	SLNG1BT238707
5	DL1LAA6811	MBUWEL4XBT0245115	SLNG1BT238706

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It has been submitted by the applicant bank that after availing the vehicle loan facilities, the defendants failed to comply with the terms and conditions despite several requests and defendants failed to pay the outstanding dues and monthly installments in time to the applicant bank. The applicant bank classified the accounts as NPA and issued recall notice dated 20.07.2022 to the defendants to repay the entire outstanding dues along with interest but defendants have failed to comply

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O.A. No.123 of 2023

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with the notice. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite proper service through publication in newspapers, the defendants have chosen to absent from the proceedings. As per order dated 10.11.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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The applicant bank submitted that possession of vehicle no.DL1MA3043, DL1LAA6846 and DilLAA6811 are with them and remaining vehicles are in possession of defendants having registration no.DULAC1943, DL1MA0106 along with commercial vehicle bodies Further, commercial vehicle bodies vide loan account no.LCV1820196, LCV1820162, LCV1820142 and LCV1820124 are still in possession of defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Kumar Jyoti, authorized representative of the applicant bank who has proved the documents as Board Resolution, Loan-cum-Guarantee Agreements, Sanction Letters, Request Letter, Working capital Term Loan Agreements, Deed of Hypothecation, Sanction Letter of Restructuring, Request Letter for Restructuring, Deed of Confirmation, Legal Notice, Certified copy of Statement of Accounts marked as Exhibit AB-1 to Exhibit AB-11 (colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved. Sd-

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O.A. No.123 of 2023

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

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ORDER

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al;ow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.56,53,288.21 (Rupees Fifty Six Lacs Fifty Three Thousand Two Hundred Eighty Eight & paisa Twenty One only) as on 03.11.2022 along with pendentelite and future interest @12% per annum with monthly rest from 03.11.2022 till the date of realization and costs failing which the aforesaid amount shall be recovered from sale of hypothecated Commercial Vehicles duly hypothecated along with body purchased out of

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bank finance. In case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the defendants.

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