Allowed

Kotak Mahindra Bank Limited v. M/S Yash Construction Company and Others

DRT21 Jul 2026OA/1406/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application filed under Section 19 RDB Act. The bank recovered Rs. 75.88 Lakhs from a term loan disbursed for commercial vehicles. The Tribunal reduced the claimed 24% interest to 8% simple interest and directed issuance of a Recovery Certificate.

What did the court decide?

Directing recovery of Rs. 75,88,512.91 plus simple interest at 8% p.a. from the date of filing, issuing a Recovery Certificate, and permitting recovery from hypothecated/sale of assets.

Kotak Mahindra Bank Limited versus M/S Yash Construction… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1406/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.09.2025

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DATE OF DECISION: 21.07.2026

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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

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Versus

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M/s Yash Construction Company, through its Proprietor Sh. Sandeep, Village Dawala, Near Chopal Dawala, Tehsil & District Jhajjar, Haryana - 124103.

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Sh. Sandeep S/o Sh. Ram Chander, Proprietor M/s Yash Construction Company, R/o Village & Post Office Dawala, Tehsil & District Jhajjar, Haryana - 124103.

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Sh. Jagdip S/o Sh. Ramphal, R/o Village Kheri Asra (18), Tehsil & District Jhajjar, Haryana - 124103.

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……..Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 11.02.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.75,88,512.91 (Rupees Seventy Five Lacs Eighty Eight Thousand Five Hundred Twelve and Paise Ninety One Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, 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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2 OA NO.1406/2025 KOTAK MAHINDRA BANK LTD. VS M/S YASH CONSTRUCTION COMPANY AND OTHERS

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facilities for purchase three units of commercial vehicles of Rs.93,53,000.00 vide Non Individual Customer Relation Form dated 26.07.2024, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan Facilities for purchase of three units of commercial vehicles of Rs.94,63,782.00 and the terms and conditions were duly accepted by the defendants vide Loan-CumGuarantee Agreement dated 13.08.2024, which is Annexure A6 to this OA. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its moveable assets i.e., (i) Hyundai R215L Smart Plus Hydraulic Excavator 68780 bearing Engine No. 42G84568681, Chassis No. HYNDN635HE0068780 vide Tax Invoice dated 03.08.2024, which is Annexure A3 to this OA. (ii) Mahindra Bolero Camper bearing Registration No. HR63F7283, Engine No. TTR4F27539, Chassis No. MA1RY2TTKR5F45691 vide Tax Invoice dated 10.08.2024, which is Annexure A4 to this OA and Virtual Registration Certificate filed vide dairy no. 13161 on 20.07.2026.

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(iii) JCB CB Loader XTRA 3DX bearing Registration No. HR14V7452, Engine No. H00436480, Chassis No. HAR3DXX4J03071940 vide Tax Invoice dated 12.08.2024, which is Annexure A5 to this OA and Virtual Registration Certificate filed vide dairy no. 13161 on 20.07.2026.

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Documents executed: Demand Promissory Note, Power of Attorney, both dated 13.08.2024, which are Annexures A7 & A8 to this OA; Legal Notice dated 29.08.2025, along with postal receipts, which is Annexure A9 to this OA; Statement of Accounts along with certificates, which are Annexures A10 to A12 to this OA; Inventory and police intimation, which are Annexure A13(Colly) to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.75,88,512.91, which is recoverable and the

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3 OA NO.1406/2025 KOTAK MAHINDRA BANK LTD. VS M/S YASH CONSTRUCTION COMPANY AND OTHERS

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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 summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 11.02.2026.

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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 for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendant no.1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached applicant for availing of loan facilities which were granted to them, defendant no. 3 stood as guarantor 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 parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.75,88,512.91 (Rupees Seventy Five Lacs Eighty Eight Thousand Five Hundred Twelve and Paise Ninety One 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 @24.00% p.a. with monthly rests from 16.08.2025 till the realization. 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 and construction equipment, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone

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4 OA NO.1406/2025 KOTAK MAHINDRA BANK LTD. VS M/S YASH CONSTRUCTION COMPANY AND OTHERS

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drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%p.a. in 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 sum of Rs.75,88,512.91 (Rupees Seventy Five Lacs Eighty Eight Thousand Five Hundred Twelve and Paise Ninety One Only), along with interest, jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 and construction equipment of 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.

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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 05.08.2026. 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: 21.07.2026

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

Kotak Mahindra Bank Limited v. M/S Yash Construction Company and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Yash Construction Company and Others

Case brief

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