Allowed

Kotak Mahindra Bank Limited v. M/S Devender Constructions and Others

DRT27 Aug 2026OA/1565/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Kotak Mahindra Bank Ltd. against M/s Devendra Constructions and others for recovery of a loan. The Tribunal fixed the simple interest rate at 8% p.a. and ordered the defendants to pay the principal sum along with costs and interest.

What did the court decide?

Recovery of Rs.42,50,668.51 jointly and severally with simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI or attachment/sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1565/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.11.2025

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DATE OF DECISION: 27.08.2026

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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 Devendra Constructions, through its Proprietor Sh. Ashish Kumar, Village Siwah, Panipat, Tehsil & District Panipat, Haryana - 132103.

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Sh. Ashish Kumar S/o Sh. Delel Singh, Proprietor M/s Devendra Constructions, R/o Near Police Line, Village Sewah (32), Tehsil & District Panipat, Haryana - 132103.

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Sh. Devender S/o Sh. Delel Singh, R/o Near Police Line, Village Sewah (32), Tehsil & District Panipat, Haryana - 132103.

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……. .Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 24.08.2026).

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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.42,50,668.51 (Rupees Forty Two Lacs Fifty Thousand Six Hundred Sixty Eight and Paise Fifty One 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 NO.1565/2025 KOTAK MAHINDRA BANK LTD. VS M/S DEVENDRA CONSTRUCTIONS AND OTHERS

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Original Application vide Board Resolution dated 29.11.2024, 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 proprietor defendant no. 2 and defendant no. 2 in his individual capacity a pproached the applicant for grant of Term Loan Facility for purchase of construction equipment of Rs.24,48,000.00 vide Non Individual Customer Relation Form dated 21.04.2022, which is Annexure A2 to this OA.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity a pproached the applicant for grant of Term Loan Facility for purchase of construction equipment of Rs.54,45,000.00 vide Non Individual Customer Relation Form dated 30.08.2023, which is Annexure A7 to this OA. 3. The applicant sanctioned the Term Loan Facility for purchase of construction equipment of Rs.24,90,227.00 and the terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 02.05.2022, which is Annexure A4 to this O A. Defendant no. 3 stood as guarantor.

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Thereafter, the applicant sanctioned the Term Loan Facility for purchase of construction equipment of Rs.54,85,914.00 and the terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 03.10.2023, which is Annexure A9 to this O A. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its movable assets i.e., (i) Construction Equipment machinery namely JCB New 3DX bearing Chassis No. RAJ3DXINP03227861, Engine No. H00334807, Registration No. HR06BA2293 vide Tax Invoice dated 26.04.2022, which is Annexure A3 to this OA and Virtual Registration Certificate filed vide dairy no. 15756 on 19.08.2026.

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3 OA NO.1565/2025 KOTAK MAHINDRA BANK LTD. VS M/S DEVENDRA CONSTRUCTIONS AND OTHERS

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(ii) Construction Equipment machinery namely JCB 215LC bearing Chassis No. PUNJD21APP3275122, Engine No. 84552862, vide Tax Invoice dated 31.08.2023, which is Annexure A8 to this OA. Documents executed: Demand Promissory Notes, Powers of Attorney, dated 02.05.2022, 02.10.2023, which are Annexures A5, A6, A10 & A11 to this OA; Legal Notice dated 26.09.2025, along with postal receipts, which is Annexure A12 to this OA; Statement of Accounts along with certificates, which are Annexures A13 & A14 to this OA.

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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.42,50,668.51, 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. 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 24.08.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Ltd. 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 had proved its case. From the perusal of all the Annexures A1 to A14 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

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4 OA NO.1565/2025 KOTAK MAHINDRA BANK LTD. VS M/S DEVENDRA CONSTRUCTIONS AND OTHERS

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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.42,50,668.51 (Rupees Forty Two Lacs Fifty Thousand Six Hundred Sixty Eight and Paise Fifty 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.

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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, in both the loan accounts 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 assets, undertaking of the defendants, quantum of loans 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 both 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 Rs.42,50,668.51 (Rupees Forty Two Lacs Fifty Thousand Six Hundred Sixty Eight and Paise Fifty One Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 construction equipment machineries 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

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OA NO.1565/2025 KOTAK MAHINDRA BANK LTD. VS M/S DEVENDRA CONSTRUCTIONS AND OTHERS

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attachment and sale of personal assets of the defendants. The

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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 11.09.2026.

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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: 27.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Devender Constructions and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Devender Constructions and Others

Case brief

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