Allowed

Kotak Mahindra Bank Limited v. Kamal and another

DRT15 Jun 2026OA/199/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application filed under Section 19 of the RDB Act. Relying on evidence of default and defendant's non-appearance, the Tribunal adjudicated the recovery of dues amounting to Rs.38,82,893.38 with interest and authorized sale of hypothecated assets.

What did the court decide?

Allowed recovery of Rs.38,82,893.38 with future interest and penal interest; authorized sale of hypothecated vehicle to recover dues; directed issuance of Recovery Certificate.

Kotak Mahindra Bank Limited versus Kamal and another — Banking and Recovery | DRT (2026)

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O.A. No.199 of 2022

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15.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 15^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.199 of 2022

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M/s Kotak Mahindra Bank limited, No.141, 8^th floor, Zone-2, TVH Agnitio Park, Old Mahabalipuram Road, Kandhanchavadi, Chennai- 600 096 Represented by its Senior Manager ….Applicant

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-Vs-

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Mr.M.Kamal

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S/o Mr.Markandan, No.1/8, Ambethkar Street, Kalaetti Pettai, Sirukalathur, Kancheepuram District- 600 069

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Mr.A.Dhayalan, S/o Mr.Appavoo, No.3/154, Ambethkar Street, Kalaetti Pettai, Sirukalathur, Kancheepuram District- 600 069 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Ananda Gomathy Murugesan

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Defendants 1 and 2 were set ex-parte on 27.10.2022

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: - FINAL ORDER- :

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This Original Application is filed on 01.06.2022 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.38,82,893.38p (Rupees Thirty Eight Lakhs Eighty

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Two Thousand Eight Hundred Ninety Three and Thirty Eight Paise

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O.A. No.199 of 2022

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15.06.2026

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only) as follows:

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(i) A sum of Rs.30,58,481.01p due in respect of Commercial Equipment Loan (A/c.No.CE838446) repayable together with further interest @ 11.12% p.a. with monthly rests along with penal interest at the rate of 3% per month from the date of Application till the date of realization in full;

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(ii) A sum of Rs.8,24,412.37p due in respect of Emergemcy Credit Line Guarantee Scheme Loan (A/c.No.CE888360) repayable together with further interest @ 9.25% p.a. with monthly rests along with penal interest at the rate of 3% per month from the date of Application till the date of realization in full;

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for sale of hypothecated vehicle morefully detailed in Schedule A and for costs of this OA.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the 1^st and 2^nd defendants jointly approached the applicant bank on 30.01.2020 and applied for Construction Equipment Loan for purchase of Construction Equipment Excavator. The applicant bank considered the same favourably and sanctioned the credit facility to the 1^st and 2^nd defendant during February

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O.A. No.199 of 2022

15.06.2026

The applicant bank submits that for the Construction Equipment Loan of Rs.50,23,500/- availed by the 1^st and 2^nd defendants under the Loan cum Guarantee Agreement No.CE838446, the following documents were executed by the defendants on 03.02.2020:

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a) Demand Promissory Note for Rs.50,23,500/-, agreeing to repay the said amount with interest at the rate of 11.12% per annum with compounded monthly rests.

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b) Loan cum Guarantee Agreement for Rs.50,23,500/- agreeing to repay the borrowed amount in 35 Equated Monthly Instalments of Rs.1,68,820/- each, payable from 05.03.2020 till 05.01.2023 executed by the 1^st and 2^nd defendants and further hypothecating Excavator Telcon Ltd morefully described in schedule ‘A’ to the OA.

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c) Deed of Hypothecation executed by the first defendant in favour of the applicant bank.

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It is submitted by the applicant bank that the defendants jointly approached the applicant bank on 07.09.2020 and sought for sanction of loan under Emergency Credit Line Guarantee Scheme (ECLGS). ECLGS is a part of comprehensive package announced by the Ministry of Finance, Government of India on 13.05.2020 to aid eligible business enterprises/ Micro, Small and Medium Enterprises sector in view of the economic distress caused by the COVID-19 pandemic. The same was considered favorably by the applicant and the applicant bank sanctioned the credit

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O.A. No.199 of 2022

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15.06.2026

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limit to the defendants vide Credit Sanction Letter dated 08.09.2020.

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The applicant bank submits that the Emergency Credit Line Guarantee Scheme (ECLGS) loan of Rs.10,04,700/- was availed by the defendants and the following documents were executed by the defendants on 11.09.2020 in favour of applicant bank:

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a) Term loan agreement for Rs.10,04,700/- with interest at the rate of 9.25% per annum repayable in 48 Equated Monthly Installments inclusive of moratorium period of 12 months.

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b) Deed of Hypothecation for Rs.10,04,700/- creating second charge over the schedule mentioned asset.

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c) Co Borrower letter executed by the 2^nd defendant in favour of the applicant bank.

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It is submitted by the applicant bank that after availing the above facility, the defendants did not repay the amounts to the applicant bank inspite of repeated demands and incessant requests. The defendants did not keep their payment schedule. The interest and installments were not serviced. The operation of the accounts by the defendants was far from satisfactory. Hence the loan accounts were classified as Non Performing Assets (NPA) on 03.02.2022.

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The applicant bank issued Recall Notice dated 16.03.2022 demanding the defendants to repay the above loans. Inspite of repeated demands incessant requests and registered notice the defendants did not make any attempt to discharge the loan. Hence, the present Original

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O.A. No.199 of 2022

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15.06.2026

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Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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The applicant bank submits that as per the books of accounts maintained by the applicant bank in regular course and conduct of business, the defendants have to pay as on 25.05.2022 an aggregate amount of Rs.38,82,893.38p with future interest and penal interest from the date of application till the date of realization.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due. Service of summons to defendants was awaited and could not be reported by applicant bank despite availing three opportunities. Hence the applicant was directed to cause substituted service. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 27.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 27.10.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. P. Thiyagarajan, Chief Manager – Legal of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-12.

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A careful examination of the pleadings in the Proof Affidavit and

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O.A. No.199 of 2022

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15.06.2026

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documents Exhibits A-1 to A-12 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 27.10.2022 but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

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With regard to the amount advanced, the interest applied the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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15. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants

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1 and 2 jointly and severally, for recovery of a total sum of Rs.38,82,893.38p (Rupees Thirty Eight Lakhs Eighty Two

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O.A. No.199 of 2022

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15.06.2026

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Thousand Eight Hundred Ninety Three and Thirty Eight Paise

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only) as follows:

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(i) A sum of Rs.30,58,481.01p due in respect of Commercial Equipment Loan (A/c.No.CE838446)

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repayable together with further interest @ 11.12% p.a. with monthly rests along with penal interest at the rate of 3% per month from the date of Application till the date of realization in full;

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(ii) A sum of Rs.8,24,412.37p due in respect of Emergency Credit Line Guarantee Scheme Loan

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(A/c.No.CE888360) repayable together with further interest @ 9.25% p.a. with monthly rests along with penal interest at the rate of 3% per month from the date of Application till the date of realization in full; along with costs of this application.

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(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule A mentioned hypothecated vehicle property morefully detailed in the OA schedule.

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(d) The applicant bank shall file the latest memo of calculation of

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OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the

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O.A. No.199 of 2022

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intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 15^th day of June, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Thiyagarajan, Chief Manager – Legal of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents		Exhibit No.
1.	30.01.2020	Customer relation form of the defendant	1^st	A-1
2.	30.01.2020	Customer relation form of the defendant	2^nd	A-2
3.	02.02.2020	Linkages of product form with CRF form		A-3
4.	03.02.2020	Demand promissory note Rs.50,23,500/-	for	A-4
5.	03.02.2020	Loan cum guarantee agreement along schedules executed by the defendants Rs.50,23,500/-	with for	A-5

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O.A. No.199 of 2022

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6.	04.02.2020	Deed of hypothecation executed by the first defendant	A-6
7.	08.09.2020	Credit sanction letter for emergency credit line guarantee scheme for Rs.10,04,700/-	A-7
8.	11.09.2020	Term loan agreement for Rs. 10,04,700/-	A-8
9	11.09.2020	Deed of hypothecation for Rs. 10,04,700/-	A-9
10	11.09.2020	CO-Borrower letter executed by the 2^nd defendant	A-10
11.	16.03.2022	Recall notice issued by the applicant bank	A-11

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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SCHEDULE OF HYPOTHECATED PROPERTY

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Hypothecation of

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1. Excavator-Telecon ltd- Excavator model ZX220LC

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Chassis no.THEDCRL0J00002014

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Engine no: THEDCRL0J00002014

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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Uploaded on 15.06.2026 at 17:00 hours

Kotak Mahindra Bank Limited v. Kamal and another

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Kamal and another

Case brief

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