Allowed

Kotak Mahindra Bank Limited v. Ms Vijay Enterprises and Others

DRT15 Apr 2026OA/1663/2025

Case brief

AI extract

What is this about?

The DRT allowed a recovery claim against borrowers and guarantors for outstanding loans classified as NPA. The court reduced the rate of interest to 8% per annum and ordered issuance of a Recovery Certificate and subsequent enforcement proceedings.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay principal amounts plus interest at 8% per annum; Applicant entitled to recover sums from sale of hypothecated vehicles and equipment.

Kotak Mahindra Bank Limited versus Ms Vijay Enterprises… — Execution and Attachment | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1663/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 29.11.2025

¶5

DATE OF DECISION: 15.04.2026

¶6

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.

¶7

……..Applicant Versus

¶8

M/s Vijay Enterprises, through its Proprietor, Plot No.1095, Sector 4 Extension, Rohtak, Tehsil & District Rohtak, Haryana-124001.

¶9

Sh. Vijay S/o Sh. Randhir Singh, Proprietor M/s Vijay Enterprises, R/o Village & Post Office Mokhra Khas (101), Tehsil Maham, District Rohtak, Haryana- 124022.

¶10

Sh. Ajit Singh S/o Sh. Hanumant Singh, R/o Village & Post Office Madina Kaursan (101), Tehsil Maham, District Rohtak, Haryana124022.

¶11

Smt. Munni W/o Sh. Vijay, R/o H.No.1095, Sector 4 Extension, Rohtak, Tehsil & District Rohtak, Haryana-124001.

¶12

2^nd Address: Village and Post Office Mokhra Khas (101), Tehsil Maham, District Rohtak, Haryana-124022.

¶13

………Defendants

¶14

Advocates:

¶15

Argued by Ms. Harpreet Kaur, Advocate proxy for Sh. Rahul Garg, Advocate for Applicant

¶16

None for Defendants (already ex-parte vide order dated 08.04.2026).

¶17

2 OA NO.1663/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIJAY ENTERPRISES AND OTHERS

¶18

FINAL ORDER

¶19

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.39,15,338.84 (Rupees Thirty Nine Lacs Fifteen Thousand Three Hundred Thirty Eight and Paise Eighty Four 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.

¶20

The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 approached the applicant for grant of Term Loan of Rs.1.60 Crore for purchase of four units of commercial vehicles i.e. MAHINDRA BLAZO 55 and for fabrication of their bodies vide NonIndividual Customer Relation Form dated 01.12.2021, which is Annexure A6 to this OA. Defendant no. 3 stood as guarantor.

¶21

Thereafter, defendant no.1 through its proprietor defendant no.2 approached the applicant for grant of Term Loan of Rs.36.00 Lacs for purchase of Construction Equipment vide Non-Individual Customer Relation Form dated 24.09.2024, which is Annexure A11 to this OA. Defendant no. 4 stood as guarantor.

¶22

The applicant sanctioned Term Loan of Rs.1.60 Crore (four Term Loans of Rs.30.00 Lacs each for purchase of four units of commercial vehicles i.e. MAHINDRA BLAZO 55 and four Term Loans of Rs.10.00 Lacs each for fabrication of their bodies) and terms and conditions were duly accepted by defendant nos. 1, 2 and 3. Loan cum Guarantee Agreement along with Schedules date 03.12.2021, which is Annexure A7 to this OA.

¶23

Thereafter, the applicant sanctioned the Term Loan of Rs.36.00 Lacs for purchase of Construction Equipment and terms and conditions were duly accepted by defendant nos. 1, 2 and 4. Loan cum Guarantee

¶24

3 OA NO.1663/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIJAY ENTERPRISES AND OTHERS

¶25

Agreement along with Schedules date 10.10.2024, which is Annexure A12 to this OA. 4. Defendant no.1 through its proprietor defendant no. 2 hypothecated movable properties detailed as under: (i) Commercial Vehicle MAHINDRA BLAZO 55 bearing Registration No. HR46F7596, Engine No. PAMZJ14189, Chassis No. MA1UAARXFM6J73887. Tax Invoice of Vehicle dated 29.11.2021, which is Annexure A2 to this OA. (ii) Commercial Vehicle MAHINDRA BLAZO 55 bearing Registration No.HR46F-4151, Engine No. PAMZJ14622, Chassis No. MA1UAARXFM6K74402 Tax Invoice of Vehicle dated 29.11.2021, which is Annexure A3 to this OA. (iii) Commercial Vehicle MAHINDRA BLAZO 55 bearing Registration No. HR46F8523, Engine No. PAMZK14658, Chassis No. MA1UAARXFM6K74403 Tax Invoice of Vehicle dated 29.11.2021, which is Annexure A4 to this OA. (iv) Commercial Vehicle MAHINDRA BLAZO 55 bearing Registration No. HR46F5065, Engine No. PAMZK14877, Chassis No. MA1UAARXFM6K74727. Tax Invoice of Vehicle dated 03.12.2021, which is Annexure A5 to this OA. Virtual Registration Certificate of Vehicles filed today vide diary no. 6508. (V) Construction Equipment TATA HITACHI CB HYDRAULIC EXCAVATOR bearing Serial No. SP2057367. Tax Invoice dated 09.01.2021, which is Annexure A10 to this OA. Documents executed : Demand Promissory Note dated 03.12.2021, which is Annexure A8 to this OA; Power of Attorney, which is Annexure A9 to this OA; Demand Promissory Note dated 10.10.2024, which is Annexure A13 to this OA; Power of Attorney, which is Annexure A14 to this OA; Loan Recall Notice dated 17.10.2025,

¶26

4 OA NO.1663/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIJAY ENTERPRISES AND OTHERS

¶27

which is Annexure A15 to this OA; Statement of Accounts, which are Annexures A16 to A24 to this OA.

¶28

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there were a debit Rs.39,15,338.84, which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶29

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 08.04.2026. 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. No one appeared on behalf of defendants for arguments. 9. It was argued by learned proxy counsel for applicant 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 A24 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they 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, 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.11,48,040.74 (Rupees Eleven Lacs Forty Eight Thousand Forty and Paise Seventy Four Only), along with interest from the defendant nos. 1 to 3, jointly and severally and a sum of Rs.27,67,298.10 (Rupees Twenty Seven Lacs Sixty Seven Thousand Two Hundred Ninety Eight and Paise Ten only), along with interest from the defendant nos. 1, 2 and 4, jointly

¶30

5 OA NO.1663/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIJAY ENTERPRISES AND OTHERS

¶31

and severally, from the date of filing of the present Original Application till realization of the accounts.

¶32

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 11.10.2025 till the realization.

¶33

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 equipment, 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 uniform simple interest @08.00%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.

¶34

In the result, the application is allowed declaring that the defendant nos. 1 to 3 are liable to pay to the applicant a total sum of Rs.11,48,040.74 (Rupees Eleven Lacs Forty Eight Thousand Forty and Paise Seventy Four Only) and defendant nos. 1, 2 and 4 are liable to pay to the applicant a total sum of Rs.27,67,298.10 (Rupees Twenty Seven Lacs Sixty Seven Thousand Two Hundred Ninety Eight and Paise Ten 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 and equipment 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

¶35

6 OA NO.1663/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S VIJAY ENTERPRISES AND OTHERS

¶36

assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶37

12. Any other application pending stands disposed of .

¶38

Issue Recovery Certificate accordingly.

¶39

Parties to appear before Learned Recovery Officer of this Tribunal on 05.05.2026.

¶40

Copy of this order be given dasti to the applicant and be sent to

¶41

defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶42

Pronounced by me in the open Tribunal .

¶43

Dated: 15.04.2026.

¶44

(MRIDULESH KUMAR SINGH)

¶45

Presiding Officer,

¶46

DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Ms Vijay Enterprises and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Ms Vijay Enterprises and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Sh. Bakhshish Singh And Another

Kotak Mahindra Bank Limited versus Smt. Saranjit Kaur and Others

Bank of India versus Sh. Surinder Singh and Another

Bank of India versus M/s Estofers Enterprises LLP and Others

Hdfc Bank versus Sh. Nirbhay Singh and Others

State Bank of India versus M/S R S Engg Works and Another