Allowed

Kotak Mahindra Bank Limited v. M/S S. L. & Sons and Others

DRT6 Mar 2026OA/1581/2025

Case brief

AI extract

What is this about?

The DRT admitted the bank's application under the RDB Act against borrowers and guarantors for a term loan. The court declared the defendants jointly and severally liable to pay dues with future interest rates fixed at 8% p.a.

What did the court decide?

Recovery of Rs.82,64,445.11 jointly and severally with future interest @8% p.a. via sale of hypothecated vehicles or attachment of personal assets.

Kotak Mahindra Bank Limited versus M/S S. L. & Sons and… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1581/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.11.2025

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DATE OF DECISION: 06.03.2026

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Kotak Mahindra Bank Limited, a body corporate incorporated under the Companies Act, 1956 having its Registered Office at 27BKC, C27, G Block, Bandra Kurla Complex, Bandra (E), Mumabi-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 S.L. & Sons, through its proprietor, near Balaur Mor, Najafgarh, Tehsil Bahadurgarh, District Jhajjar, Haryana-124507

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Sh. Ram Rattan S/o Sh. Dharam Singh, Proprietor M/s S.L. & Sons, Resident of Village Balaur (64), Tehsil Bahadurgarh, District Jhajjar, Haryana-124507.

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Sh. Sombir S/o Sh. Dharam Singh, Proprietor M/s S.L. & Sons, Resident of Village Balaur (64), Tehsil Bahadurgarh, District Jhajjar, Haryana-124507

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Sh. Jagbir S/o Sh. Dharam Singh, Proprietor M/s S.L. & Sons, Resident of Village Balaur (64), Tehsil Bahadurgarh, District Jhajjar, Haryana-124507

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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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Defendants already ex-parte vide order dated 27.01.2026

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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.82,64,445.11 (Rupees Eighty Two Lacs Sixty Four Thousand Four Hundred Forty Five and Paise Eleven Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, who is competent to institute

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2 OA/1581/2025 KOTAK MAHINDRA BANK VS. M/S S.L. & SONS AND OTHERS

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the Original Application vide Board Resolution dated 29.11.2014, 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 approached the applicant for the grant of Term Loan of Rs.1,07,80,000.00 for purchase of three units of Commercial Vehicle i.e. Ashok Leyland 5525 vide individual customer relationship form dated 22.01.2024, which is Annexure A2 to this OA. Defendant nos. 3 and 4 stood as guarantors.

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The applicant Term Loan of Rs.1,07,80,000.00 (three loan accounts of Rs.36.00 Lacs each) for purchase of three units of Commercial Vehicle i.e. Ashok Leyland 5525 and terms and conditions were duly accepted by the defendants. Loan cum guarantee agreement dated 03.02.2024, which is Annexure A6 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated Commercial Vehicles detailed as under: (i) Ashok Leyland 5525/34 TT CC bearing registration no. HR-74B7318, Engine No. PCPZ145435, Chasis No. MB1T2VHD0RPPZ1283. Tax Invoice of Vehicle dated 31.01.2024, is Annexure A3 to this OA. (ii) Ashok Leyland 5525/34 TT CC bearing registration no. HR-74B8118, Engine No. PCPZ145814, Chasis No. MB1T2VHD1RPPZ1177. Tax Invoice of Vehicle dated 31.01.2024, is Annexure A4 to this OA. (iii) Ashok Leyland 5525/34 TT CC bearing registration no. HR-74B7418, Engine No. PCPZ145292, Chasis No. MB1T2VHD1RPPZ1227. Tax Invoice of Vehicle dated 31.01.2024, is Annexure A5 to this OA. Virtual Registration Certificates/details of Vehicles filed on 12.02.2026 vide diary no. 2955. Documents executed: D.P. Note dated 03.02.2024, which is Annexure A7 to this OA; Power of Attorney, which is Annexure A8 to this OA; Legal Notice dated 25.09.2025, along with postal receipts, which is Annexure A9 to this OA; Statement of Accounts, which are Annexures A10 to A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was

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3 OA/1581/2025 KOTAK MAHINDRA BANK VS. M/S S.L. & SONS AND OTHERS

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a debit of Rs.82,64,445.11, 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 27.01.2026.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Ltd. has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 A12 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.82,64,445.11 (Rupees Eighty Two Lacs Sixty Four Thousand Four Hundred Forty Five and Paise Eleven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 from 16.09.2025 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 mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent

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OA/1581/2025

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KOTAK MAHINDRA BANK VS. M/S S.L. & SONS AND OTHERS

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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. in all 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 a total sum of Rs.82,64,445.11 (Rupees Eighty Two Lacs Sixty Four Thousand Four Hundred Forty Five and Paise Eleven Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 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 24.03.2026. 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: 06.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S S. L. & Sons and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S S. L. & Sons and Others

Case brief

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What did the court decide?

What the court decided

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