Allowed

Kotak Mahindra Bank Limited v. K Priyaganth

DRT29 Jun 2026OA/200/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Kotak Mahindra Bank for recovery of dues totaling approximately Rs. 28.5 lakhs from three defendants for defaulted commercial vehicle and emergency credit line loans. The defendants were set ex-parte for non-appearance, and the bank proved its claim via documentary evidence and account statements.

What did the court decide?

Direct recovery of Rs.28,50,492.78 plus interest and penal charges; liberty to sell hypothecated vehicle; direction to issue Recovery Certificate.

Kotak Mahindra Bank Limited versus K Priyaganth — Execution and Attachment | DRT (2026)

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O.A. No.200 of 2022

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29.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 29^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.200 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- 600096 Represented by its Manager

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….Applicant

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-Vs-

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Mr. K. Priyaganth, S/o Mr. Karunakaran, Old No.41, New No.3/30, Kundrathur Main Road, Kollacheri, Sriperumbudur, Kancheepuram District,

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Chennai- 600 069

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Mrs. Karpagam, W/o Mr. Karunakaran, Old No.41, New No.3/30, Kundrathur Main Road, Kollacheri, Sriperumbudur, Kancheepuram District, Chennai- 600 069

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Also at

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Mrs. Karpagam, No.3/51, Mangadu Main Road, Kundrathur, Kollacheri, Sriperumbudur, Kancheepuram District, Chennai- 600 069

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Mrs. P. Renuga, W/o Mr. K. Priyaganth, Old No.41, New No.3/30, Kundrathur Main Road, Kollacheri, Sriperumbudur, Kancheepuram District, Chennai- 600 069

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…..Defendants

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O.A. No.200 of 2022

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29.06.2026

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Counsels on record / appeared:

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Counsel for Applicant: M/s. Ananda Gomathy

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Defendants 1 to 3 were set ex-parte on 17.02.2022

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: - FINAL ORDER- :

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This Original Application is filed on 22.03.2022 by the applicant bank 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, jointly and severally for recovery of a total sum of Rs.28,50,492.78p (Rupees Twenty Eight Lakhs Fifty Thousand Four Hundred and Ninety Two and Seventy Eight Paise only) as follows:

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(i) Directing the defendants 1 to 3, jointly and severally, to pay a sum of Rs.22,82,144.05p due in respect of Commercial Vehicle Loan (A/c No.CV3908195) repayable together with further interest @10.02% p.a. with monthly rests along with penal interest @3.00% per month from the date of Application till the date of realization in full;

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(ii) Directing the defendants 1 and 2, jointly and severally, to pay a sum of Rs.5,68,348.73p due in respect of Emergency Credit Line Guarantee Scheme Loan (A/c No. CV4290217) retogether with further interest @9.25% p.a. with monthly rests along with penal interest @3.00% per month from the date of application till the date of realization in full;

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O.A. No.200 of 2022

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29.06.2026

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for sale of schedule A mentioned hypothecated vehicle 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 defendants jointly approached the applicant bank on 26.12.2018 and applied for Commercial Vehicle Loans for purchase of Ashok Leyland Tipper vide application dated 26.12.2018.

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It is submitted that the applicant bank considered the same favourably and sanctioned Commercial Vehicle loan for purchase of Ashok Leyland tipper to the tune of Rs.31 lakhs (Rupees Thirty One Lakhs only) during January 2019.

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The applicant bank submits that for the commercial vehicle loan of Rs.31.00 lakhs availed by the defendants under the Loan cum Guarantee Agreement No.CV-3908195, the following documents were executed by the defendants on 30.01.2019:

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a) Demand Promissory Note dated 03.01.2019 for Rs.31.00 lakhs with interest at the rate of 10.20% p.a. with compounded monthly rests.

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b) Loan cum Guarantee Agreement for Rs.31.00 lakhs repayable in

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O.A. No.200 of 2022

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29.06.2026

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58 equated monthly instalments payable from 10.02.2019 till 10.11.2023 executed by the 1^st to 3^rd defendants and further hypothecating Ashok Leyland fully built tipper morefully described in schedule-A to the OA

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It is the further case of the applicant bank that the defendants 1 & 2 approached the applicant bank during 29.09.2020 and sought for sanction of loan under Emergency Credit Line Guarantee Scheme (ECGLS). ECGLS 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.

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It is submitted by that the same was considered favourably by the applicant and the applicant bank sanctioned Emergency Credit line Guarantee scheme (ECLGS) to the tune of Rs.5,33,800/- to the defendants vide credit sanction letter dated 31.10.2020.

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The applicant bank submits that for the Emergency Credit line Guarantee scheme (ECGLS) loan of Rs.5,33,800/- availed by the 1^st defendant, the following documents were executed by the defendants in favour of applicant bank:

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a) Term loan agreement No.CV4290217 for Rs.5,33,800/- with interest at the rate of 9.25% per annum repayable in 48 equated monthly instalments inclusive of moratorium period of 12 months.

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O.A. No.200 of 2022

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29.06.2026

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b) Deed of Hypothecation dated 10.11.2020 for Rs.5,33,800/creating second charge over the schedule mentioned asset executed by the 1^st defendant.

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c) Co-Borrower Letter executed by the 2^nd defendant on 17.11.2020.

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The applicant bank further submits 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 a Non Performing Asset (NPA) on 09.12.2021.

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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 08.03.2022 an aggregate amount of Rs.28,50,492.78p with future interest and penal interest from the date of application till the date of realization.

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The defendants agreed to pay the present rate of interest and it is submitted that interest has been charged as permitted by the Reserve Bank of India and it does not run counter to the directives of Reserve Bank of India. The applicant bank is entitled to claim interest at the contractual rate. Despite repeated requests and demands, as defendants did not come forward to repay the dues, the present Original Application

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O.A. No.200 of 2022

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29.06.2026

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

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After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was returned with remarks “Unclaimed”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 17.02.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 17.02.2022.

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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-13.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 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 17.02.2022, but till this day

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O.A. No.200 of 2022

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29.06.2026

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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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17. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, for recovery of a total sum of of Rs.28,50,492.78p (Rupees Twenty Eight Lakhs Fifty Thousand Four Hundred and Ninety Two and Seventy Eight Paise only) as follows:

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(i) Directing the defendants 1 to 3, jointly and severally, to pay a sum of Rs.22,82,144.05p due in respect of

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Commercial Vehicle Loan (A/c No.CV3908195) repayable together with further interest @10.02% p.a. with monthly rests along with penal interest @3.00% p.a. from the date of

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O.A. No.200 of 2022

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29.06.2026

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Application till the date of realization in full;

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(ii) Directing the defendants 1 and 2, jointly and severally, to pay a sum of Rs.5,68,348.73p due in respect of Emergency Credit Line Guarantee Scheme Loan (A/c No. CV4290217) repayable together with further interest @9.25% p.a. with monthly rests along with penal interest @3.00% p.a. from the date of application till the date of realization in full along with costs of this OA.

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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 mentioned hypotheca morefully detailed in the OA schedule.

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(d) The applicant bank shall file the latest memo of calculation of 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 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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O.A. No.200 of 2022

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29.06.2026

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(f) Recovery Certificate shall be drawn up and issued to the

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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 29^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 Docume	nts	Exhibit No.
1.	26.12.2018	Customer relation form of defendant	the 1^st	A-1
2.	26.12.2018	Customer relation form of defendant	the 2^nd	A-2
3.	26.12.2018	Customer relation form of defendant	the 3^rd	A-3
4.	26.12.2018	Application form for constructi loan	on vehicle	A-4
5.	03.01.2019	Demand promissory note for lakhs	Rs.31.00	A-5
6.	03.01.2019	Loan cum guarantee agreem with schedules executed defendants for Rs.31.00 lakhs	ent along by the	A-6
7.	29.09.2020	Application for working capital under ECGLS	term loan	A-7
8.	31.10.2020	Credit sanction advise for Rs.5,33,800/-	ECLGS of	A-8
9.	10.11.2020	Deed of hypothecation for Rs.5,	33,800/-	A-9
10.	17.11.2020	Term loan agreement for Rs.5,3	3,800/-	A-10

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O.A. No.200 of 2022

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29.06.2026

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11.	17.11.2020	Co-borrower lett defendant	er executed by 2^nd	A-11
12.	01.03.2022	Registered notice bank	issued by the applicant	A-12
13.		Statement of certificates	accounts and BBE	A-13

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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 VEHICLE

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Hypothecation of

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Ashok Leyland Ltd- AL 2518IL fully built Tipper

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Vehicle registration number: TN 85 J 7048

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Chassis No: JAPZI138720

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Engine no: MB1HTVHD3JPYF0295

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

Kotak Mahindra Bank Limited v. K Priyaganth

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. K Priyaganth

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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