Allowed

Kotak Mahindra Bank Limited v. M/S Virender Trading Company and Others

DRT20 Jun 2026OA/1557/2025

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed the bank's application for recovery of Rs. 41,23,839.60 from borrowers and guarantor. The court granted interest at 8% p.a. and issued a Recovery Certificate, permitting future execution via sale of hypothecated vehicle or personal assets.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 41,23,839.60 with interest @8% p.a.; Amount recoverable from sale of hypothecated vehicle or personal assets.

Kotak Mahindra Bank Limited versus M/S Virender Trading… — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1557/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.11.2025

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DATE OF DECISION: 20.06.2026

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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, Punjab- 141001 through its Manager, Sh. Rakesh Kumar

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……..Applicant

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Versus

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M/S Virender Trading Company through its Proprietor, Village Jewali, Near BDP Senior Secondary School, Jewali Badhra Road, Tehsil Badhra, District Bhiwani, Haryana- 127312

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Sh. Virender Singh, S/o Sh. Mahender Singh, Proprietor M/S Virender Trading Company, R/o House no. 66, Village Jewali, Tehsil Dadri, District Bhiwani, Haryana- 127312

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Sh. Mahender Singh, S/o Sh. Ram Parshad, R/o House no. 66, Village Jewali, Tehsil Dadri, District Bhiwani, Haryana- 127312

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Sh. Devender Singh, S/o Sh. Mahender Singh, R/o House no. 66, Village Jewali, Tehsil Dadri, District Bhiwani, Haryana127312

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….……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 16.06.2026)

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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. 41,23,839.60 (Rupees Forty One Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Paise Sixty Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, who is competent to institute the

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2 OA/1557/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIRENDER TRADING COMPANY AND OTHERS

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Original Application vide Resolution dated 29.11.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant nos. 1 to 3 approached the applicant for grant of Commercial Vehicle Loan of Rs.47.00 Lacs vide Non-Individual Customer Relation Form dated 04.04.2024, which is Annexure A3 to this OA.

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The applicant sanctioned Commercial Vehicle Loan of Rs.48,00,232.00 vide Loan cum Guarantee Agreement dated 08.04.2024, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 4 stood as guarantor.

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Defendant nos. 1 to 3 hypothecated their commercial vehicle namely Tata Signa 5530.S BSVI 4X2 bearing Registration no. HR846376, Chassis no. MAT828045R3C09219 and Engine no. B6.7B62300D02142C64373253 vide Tax Invoice dated 30.03.2024, which is Annexure A2 to this OA and Virtual RC filed on 16.06.2026. Documents Executed: DP Note and Power of Attorney dated 08.04.2024, which are Annexure A5 and A6 to this OA; Loan Recall Notice dated 25.09.2025, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 to this OA. 5. 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. 41,23,839.60 which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 16.06.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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3 OA/1557/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIRENDER TRADING COMPANY AND OTHERS

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From the perusal of all the Annexure A1 to A8 to this OA, it is proved that defendant nos. 1 to 3 approached the applicant for availing of the loan facility which was granted to them. Defendant no. 4 stood as guarantor. Defendants had executed all the relevant documents in favour of the applicant. 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. 41,23,839.60 (Rupees Forty One Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Paise Sixty 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%p.a. with monthly rests from 16.09.2025 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 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 @8.00% 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.41,23,839.60 (Rupees Forty One Lacs Twenty Three Thousand Eight Hundred Thirty Nine and Paise Sixty 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 vehicle of defendant nos. 1 to 3 in execution proceedings if not sold earlier under the

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4 OA/1557/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIRENDER TRADING COMPANY AND OTHERS

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.07.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 20.06.2026

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

Kotak Mahindra Bank Limited v. M/S Virender Trading Company and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Virender Trading Company and Others

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