Allowed

Kotak Mahindra Bank Limited v. Rs Freight Carrier and Others

DRT14 Jul 2026OA/1302/2025

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of Rs. 31.10 lakhs and directed a Recovery Certificate. The Tribunal reduced the claimed 24% p.a. interest rate to 8% simple p.a., permitting enforcement via hypothecated vehicle sale or attachment of personal assets.

What did the court decide?

Recovery of Rs.31,10,932.00 with 8% p.a. simple interest; Recovery Certificate issued; Enforcement via sale of hypothecated vehicle or personal assets.

Kotak Mahindra Bank Limited versus Rs Freight Carrier and… — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1302/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.09.2025

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DATE OF DECISION: 14.07.2026

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Kotak Mahindra Bank Limited, having its Regional Office at SCO-131132-133, 2nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana141001 and Registered Office at Kotak Mahindra Bank Limited, 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400051, through its Authorized Representative, Sh. Rakesh Kumar.

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……..Applicant

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Versus

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M/s R.S Freight Carrier, Address: Plot No-27, Sabzi Mandi Road, Industrial Area, Yamuna Nagar, Yamuna Nagar-135001, Haryana, India.

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Sh. Manpreet Singh, Address: H. No. 1719/8, Ward No. 02, Vishnu Garden, Jagadhari, Yamuna Nagar, Yamuna Nagar-135001, Haryana, India

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3. Smt. Jasbir Kaur, Address: H. No. 1719/8, Ward No. 02, Vishnu Garden, Jagadhari, Yamuna Nagar, Yamuna Nagar-135001, Haryana, India.

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…….Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammad, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 11.05.2026)

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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.31,10,932.00 (Rupees Thirty One Lac

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Ten Thousand Nine Hundred Thirty Two Only). The Original Application

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OA/1302/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S RS FREIGHT CARRIER AND OTHERS

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has been filed through Sh. Rakesh Kumar , Manager, of the Applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.08.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the Defendant no.1, through its proprietor defendant no.2, approached the applicant for sanction of Term Loan of Rs.36,86,700.00 for purchase of a commercial vehicle. Defendant no.3 stood as guarantor. 3. The applicant sanctioned the Term Loan of Rs.36,86,700.00 for purchase of a commercial vehicle vide Loan Cum Guarantee Agreement dated 05.04.2024, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no.1, through its proprietor defendant no.2, hypothecated its vehicle that’s Ashok Layland 4620, bearing Registration no. HR58D1698, Engine no. PEHZ427134, Chassis no. MB1TSKHDXPREN6809 Virtual Registration Certificate was filed on 10.07.2026 vide Dairy no. 12523 in compliance of order dated 16.05.2026. Documents executed: Demand Promissory Note dated 05.04.2024, which is Annexure A3 to this OA; Agreement dated 05.04.2024, which is Annexure A4 to this OA; Request for Disbursement dated 05.04.2024, which is Annexure A5 to this OA; Addendum Agreement dated 05.04.2024, which is Annexure A6 to this OA; Power of Attorney dated 05.04.2024, which is Annexure A7 to this OA; Legal Notice dated 12.08.2025, which is Annexure A8 to this OA; Statement of Account dated 31.07.2025, which is Annexure A9 to this OA; Bank Certificate dated 09.09.2025, which is Annexure A10 to this OA. 5. 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.31,10,932.00 (Rupees Thirty One Lac Ten Thousand Nine Hundred Thirty Two Only), which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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OA/1302/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S RS FREIGHT CARRIER AND OTHERS

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 11.05.2026.

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

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Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant 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 proprietor defendant no.2, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,10,932.00 (Rupees Thirty One Lac Ten Thousand Nine Hundred Thirty Two 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 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 hypothecated vehicle, undertaking of the defendants, quantum of loan and prevalent market rates of

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OA/1302/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S RS FREIGHT CARRIER 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 @08.00% 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 a total sum of Rs.31,10,932.00 (Rupees Thirty One Lac Ten Thousand Nine Hundred Thirty Two Only), jointly and severally, with costs, current and future simple interest @08.00%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 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 personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.07.2026 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. Pronounced by me in the open Tribunal . Dated: 14.07.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Rs Freight Carrier and Others

Case brief

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Kotak Mahindra Bank Limited v. Rs Freight Carrier and Others

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