Allowed

Kotak Mahindra Bank Limited v. Smt. Balwinder Kaur and Others

DRT7 May 2026OA/139/2025

Case brief

AI extract

What is this about?

The DRT allowed the Bank's application for recovery of a vehicle loan debt of Rs.21.39 lakhs. The Tribunal discharged the defendants from penal interest claims and awarded simple interest at 08% p.a., directing issuance of a Recovery Certificate and liberty to enforce against hypothecated or other assets.

What did the court decide?

Liability declared for Rs.21,39,139.00 with 08% p.a. simple interest; Recovery Certificate issued; liberty to enforce via asset sale or attachment.

Kotak Mahindra Bank Limited versus Smt. Balwinder Kaur and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 139/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.02.2025

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DATE OF DECISION: 07.05.2026

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Kotak Mahindra Bank Ltd., the applicant is a banking company, carrying on the banking business under the companies Act, 1956, and having its Registered Office at 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), and branches at different places one at Sangrur, through Sh. Rakesh Kumar, Manager of Applicant Bank.

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……..Applicant Versus

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Smt. Balwinder Kaur W/o Sh. Surinder Singh R/o H. No. 390, Part 2, Village Thuha, Tehsil Rajpura, Distt. Patiala - 147001.

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Sh. Surinder Singh S/o Sh. Hakam Singh R/o Village Thuha, Tehsil Rajpura, Distt. Patiala - 147001.

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Sh. Pargat Singh S/o Sh. Jagir Singh R/o Gharama Kalan, Kheri Gurna, Patiala - 140417.

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for the applicant

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None for Defendants (already ex parte vide order dated 02.04.2026)

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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.21,39,139.00 (Rupees Twenty One Lacs Thirty Nine Thousand One Hundred Thirty Nine Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager, of the applicant , who is competent to institute the Original Application vide Board Resolution dated 07.08.2024, which is Annexure A1 to this OA.

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2 OA/139/2025 KOTAK MAHINDRA BANK LIMITED Vs BALWINDER KAUR AND OTHERS

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The brief facts of the OA that the defendant no.1 & 2 approached the applicant for grant of Vehicle Loan of Rs.22,07,200.00 vide Individual Customer Form for Borrower dated 16.03.2024, which are Annexures A2 & A3 to this OA. Defendant no.3 stood as Guarantor, vide Individual Customer Form for Guarantor dated 16.03.2024, which is Annexure A4 to this OA.

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The applicant sanctioned the Vehicle Loan of Rs.22,07,200.00 vide Loan cum Guarantee Agreement dated 10.05.2018, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 hypothecated her commercial vehicle i.e. ASHOK LEYLAND Model 3718 BS IV, bearing Registration No. PB13BB6651, Engine No. JHPZ101602, Chassis No. MB1NACHD8JPHB4955, vide Tax Invoice with Registration Details, which is Annexure A8 to this OA.

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Documents executed: Demand Promissory Note, Power of Attorney, both dated 30.04.2024, which are Annexures A6 to A7 to this OA; Statement of Account with certificate, which are Annexures A9 & A10 to this OA. Legal Notice dated 26.12.2024 with Postal Receipts, which are Annexures A11 to A14 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 loan account, there was a debit of Rs.21,39,139.00 (Rupees Twenty One Lacs Thirty Nine Thousand One Hundred Thirty Nine Only), which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant requested to accept the application and

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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 02.04.2026.

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3 OA/139/2025 KOTAK MAHINDRA BANK LIMITED Vs BALWINDER KAUR AND OTHERS

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited, h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant nos. 1 & 2 approached 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.21,39,139.00 (Rupees Twenty One Lacs Thirty Nine Thousand One Hundred Thirty Nine 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.65% p.a. plus @2.00% p.a. penal interest with monthly rests from 14.12.2024 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 asset, undertaking of the defendants, quantum of loan 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 the loan account

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4 OA/139/2025 KOTAK MAHINDRA BANK LIMITED Vs BALWINDER KAUR AND OTHERS

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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 defendant is liable to pay to the applicant a total sum of Rs.21,39,139.00 (Rupees Twenty One Lacs Thirty Nine Thousand One Hundred Thirty Nine 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 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. 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 29.05.2026 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: 07.05.2026

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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. Smt. Balwinder Kaur and Others

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Smt. Balwinder Kaur and Others

Case brief

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