Allowed

Kotak Mahindra Bank Limited v. M/S R. K. Builder and Others

DRT30 Apr 2026OA/1703/2025

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed an ex-parte Original Application filed by Kotak Mahindra Bank Ltd. for recovery of outstanding commercial vehicle loans against M/S R.K. Builder and its guarantors, fixing interest at 8% p.a. and directing issuance of Recovery Certificate.

What did the court decide?

Recovery Certificate issued; respondents liable to pay principal sums plus 8% p.a. simple interest pending realization under Section 19 RDB Act and SARFAESI Act.

Kotak Mahindra Bank Limited versus M/S R. K. Builder and… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1703/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.12.2025

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DATE OF DECISION: 30.04.2026

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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 R.K. Builder through its Proprietor, Village Behrampur Bhago Majra, Tehsil and District Mohali, Punjab- 140307

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Sh. Rajinder Singh, S/o Sh. Gurmail Singh, Proprietor M/S R.K. Builder, R/o Village Shafipur Kalan, Tehsil Sunam, District Sangrur, Punjab- 148035

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2^nd Address: House no. 307, Phase 3, Urban Estate, Tehsil and District Patiala, Punjab- 147002

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Sh. Gurmel Singh, S/o Sh. Jora Singh, R/o Village Shafipur Kalan, Tehsil Sunam, District Sangrur, Punjab- 148035

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Smt. Harpreet Kaur, W/o Sh. Rajinder Singh, R/o Village Shafipur Kalan, Tehsil Sunam, District Sangrur, Punjab- 148035

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……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for Applicant

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None for defendants (already ex-parte vide order dated 30.03.2026)

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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,

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2 OA NO. 1703/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S R.K. BUILDER AND OTHERS

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against the defendants for recovery of Rs. 57,01,769.98 (Rupees Fifty Seven Lacs One Thousand Seven Hundred Sixty Nine and Paise Ninty Eight Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager o f the applicant, who is competent to institute the 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 no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 38.70 Lacs vide Non-Individual Customer Relation cum Application Form dated 29.09.2023, which is Annexure A3 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for grant of Commercial Vehicle Loan of Rs. 46.00 Lacs vide Non-Individual Customer Relation cum Application Form dated 22.12.2023, which is Annexure A7 to this OA.

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The applicant sanctioned the Commercial Vehicle Loan of Rs.39,10,169.00 vide Loan cum Guarantee Agreement dated 05.10.2023, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. The applicant sanctioned the Commercial Vehicle Loan of Rs. 46,29,459.00 vide Loan cum Guarantee Agreement dated 25.01.2024, which is Annexure A9 to this OA. Defendant nos. 3 and 4 stood as guarantors.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their Commercial Vehicles namely:

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i. Mahindra and Mahindra Limited Blazo28 TP BS6 42 BG 16B
bearing Registration no. PB65BF3288, Engine no. PAPZE13725
and Chassis no. MA1TDARXFP6E73713 vide Tax Invoice dated
23.12.2023, which isAnnexure A2and Virtual RC filed on
28.04.2026 through diary no. 7547 to this OA;

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3 OA NO. 1703/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S R.K. BUILDER AND OTHERS

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ii. Tata Signa 3530.TK 8X4 BSVI HD 23BX bearing Registration no. PB65BG9688, Engine no. B6.7B62300D03132M64347895 and Chassis no. MAT569002P3P36451 vide Tax Invoice dated 23.12.2023, which is Annexure A8 and Virtual RC filed on 28.04.2026 through diary no. 7547 to this OA.

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Documents executed: DP Note and Power of Attorney, both dated 05.10.2023, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 25.01.2024, which are Annexure A10 and A11 to this OA; Loan Recall Notice dated 30.10.2025, which is Annexure A12 to this OA and Statements of Accounts, which are Annexure A13 and 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 loan accounts there was a debit of Rs. 57,01,769.98, 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. 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 30.03.2026. 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 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 Annexure A1 to A14 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 bank. The defendants failed to pay back the loans as per terms and conditions of

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4 OA NO. 1703/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S R.K. BUILDER AND OTHERS

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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. 26,65,593.66 (Rupees Twenty Six Lacs Sixty Five Thousand Five Hundred Ninety Three and Paise Sixty Six Only) from defendant nos. 1 to 3 and a sum of Rs. 30,36,176.32 (Rupees Thirty Lacs Thirty Six Thousand One Hundred Seventy Six and Paise Thirty Two Only) from defendant nos. 1 to 4, 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%p.a. with monthly rests w.e.f. 18.10.2025 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 vehicles, 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 @08.00% 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 defendant nos. 1 to 3 are liable to pay to the applicant a total sum of Rs.26,65,593.66 (Rupees Twenty Six Lacs Sixty Five Thousand Five Hundred Ninety Three and Paise Sixty Six Only) and defendant nos. 1 to 4 are liable to pay to the applicant Rs. 30,36,176.32 (Rupees Thirty Lacs Thirty Six Thousand One Hundred Seventy Six and Paise Thirty Two Only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in both the loan accounts from the date of filing

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5 OA NO. 1703/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S R.K. BUILDER AND OTHERS

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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.

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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 21.05.2026.

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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 . Dated: 30.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S R. K. Builder and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S R. K. Builder and Others

Case brief

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