Allowed

Kotak Mahindra Bank Limited v. M/S Chandu Ram Nand Lal and Others

DRT2 Mar 2026OA/1453/2022

Case brief

AI extract

What is this about?

In ex-parte proceedings, DT-III Chandigarh allowed an Original Application filed by Kotak Mahindra Bank to recover Rs. 1.42 Crore from a defaulter firm and guarantors by declaring the defendants liable to pay the principal amount with interest.

What did the court decide?

Recovery of Rs. 1.42 Crore plus interest at 8% annual simple interest. Issuance of Recovery Certificate. Appointment of officers to execute proceedings.

Kotak Mahindra Bank Limited versus M/S Chandu Ram Nand Lal and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1453/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.08.2022

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DATE OF DECISION: 02.03.2026

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Kotak Mahindra Bank Ltd, A Public Limited Company incorporated under the Companies Act, 1956, and a bank under Banking Regulation Act, 1949 having its Registered Office at 27 BKC, C27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, having its Regional Office at SCO No. 153-154, Basement, Sector 9-C, Chandigarh through its Authorized Officer, Sh. Kamal Mehtani

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……..Applicant

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Versus

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M/s Chandu Ram Nand Lal, Shop No. 152-A, New Grain Market, Rajpura-140401 through its partners namely Sh. Pawan Kumar, Sh. Parveen Kumar & Ms. Pushpa Devi

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Sh. Pawan Kumar R/o H. No. 426, Vikas Nagar, Rajpura Town, Rajpura -140401

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Ms. Pushpa Devi R/o H. No. 1474, Mahaveer Mandir Road, Rajpura Town, Rajpura-140401

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Sh. Parveen Kumar R/o H. No. 1474, Mahaveer Mandir Road, Rajpura Town, Rajpura-140401

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…….Defendants

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Advocates:

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Argued by Ms. Monika Thakur, Advocate for the applicant (through

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VC)

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Defendants already ex-parte vide order dated 17.11.2025

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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.1,42,38,493.00 (Rupees One Crore Forty Two Lacs Thirty Eight Thousand Four Hundred Ninety Three Only). The Original Application has been filed through Sh. Kamal

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2 OA/1453/2022 KOTAK MAHINDRA BANK VS. M/S CHANDU RAM NAND LAL AND OTHERS

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Mehtani , Senior Vice President (Agri. Finance) o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 07.12.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its partners defendant nos. 2 to 4 approached the applicant for the grant of Overdraft Limit of Rs.55.00 Lacs. Defendant nos. 3 & 4 stood as guarantors.

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The applicant sanctioned Overdraft Limit of Rs.55.00 Lacs vide Sanction letter dated 19.06.2013, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the limit was renewed by the applicant vide sanction letter dated 19.06.2014, 23.07.2015, 21.09.2016, 17.04.2017, 14.09.2018, which are Annexures A12 to A16 to this OA.

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Defendant no. 1 through its partners hypothecated all present and future current assets, etc. vide deed of hypothecation dated 15.07.2013, which is Annexure A4 to this OA.

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Defendant no. 3 mortgaged her immovable property i.e. Shop Bearing No. 152-A, measuring 138.88 Sq. Yards, situated at New Grain Market, Rajpura Town, Tehsil Rajpura, District Patiala, Punjab through mortgage of sale deed bearing vasika 9039 dated 17.01.2007, along with its translation, which is Annexure A10 to this OA; Affidavit dated 11.09.2013, which is Annexure A11 to this OA. Documents executed: Master Facility Agreement, DP Note, Letter of continuity security, Declaration, all dated 15.07.2013, which are Annexures A3, A5 to A7 to this OA; Undertaking dated 11.09.2013, which is Annexure A8 to this OA; Guarantee Agreement dated 15.07.2013, which is Annexure A9 to this OA; Loan Recall Notice dated 02.07.2019, with postal receipts, which is Annexure A17 to this OA; Notice dated 27.08.2019 u/s 13(2) of SARFAESI Act, which is Annexure A18 to this OA; Possession Notice dated 14.11.2019 u/s 13(4) of SARFAESI Act, with newspaper publication, which is

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3 OA/1453/2022 KOTAK MAHINDRA BANK VS. M/S CHANDU RAM NAND LAL AND OTHERS

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Annexure A19 to this OA; Statement of account with certificate, which is Annexure A20 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.1,42,38,493.00 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 17.11.2025.

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In support of the OA, affidavit of Sh. Kamal Mehtani , Senior Vice President (Agri. Finance), Kotak Mahindra Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A20 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that 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.1,42,38,493.00 (Rupees One Crore Forty Two Lacs Thirty Eight Thousand Four Hundred Ninety Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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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

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4 OA/1453/2022 KOTAK MAHINDRA BANK VS. M/S CHANDU RAM NAND LAL AND OTHERS

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@10.95%p.a. plus 2% penal interest with monthly rests from 01.05.2022 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 mortgaged property/hypothecated assets, 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 uniform simple interest @8.00%p.a. 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.1,42,38,493.00 (Rupees One Crore Forty Two Lacs Thirty Eight Thousand Four Hundred Ninety Three Only), jointly and severally, with costs, current and future simple interest @8.00%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 assets/mortgaged properties 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.

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 19.03.2026.

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OA/1453/2022 KOTAK MAHINDRA BANK VS. M/S CHANDU RAM NAND LAL AND OTHERS

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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. Dated: 02.03.2026.

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

Kotak Mahindra Bank Limited v. M/S Chandu Ram Nand Lal and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Chandu Ram Nand Lal and Others

Case brief

What is this about?

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What the court decided

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