Allowed

Kotak Mahindra Bank Limited v. M/S Baba Haridas Earthmovers

DRT15 Apr 2026OA/7/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank for a recovery certificate. The court granted the bank's claim for outstanding dues and assets sale against three jointly liable defendants based on uncontroverted documentary evidence.

What did the court decide?

Recovery certificate issued for Rs. 89,43,735.03/- plus interest at 24% p.a. payable within 30 days; recovery via sale of hypothecated and other assets in case of default.

Kotak Mahindra Bank Limited versus M/S Baba Haridas Earthmovers — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH 0A/7/2025

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Kotak Mahindra Bank Vs M/s Baba Haridas Earthmovers and others

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15.04.2026

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Item No. 278

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Present: Mr. Rahul Garg,Ld. Counsel for applicant bank.

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This matter is taken up by this Tribunal through Video Conferencing.

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Today, Captioned OA is listed for pronouncement of final order. Accordingly, final order prepared in separate sheets, signed and pronounced.

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File be closed and consigned to record room.

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15.04.2026

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(SHIV KUMAR-I) PRESIDING OFFICER DRT-III, Delhi (Additional Charge) DRT-II, CHANDIGARH

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DEBTS RECOVERY TRIBUNAL-H, CHANDIGARH PRESIDING OFFICER: SH. SHIV KUMAR - I (0.A. No. : 07/2025)

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Kotak Mahindra Bank,

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A body corporate Address:

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27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai

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One of its Branches at:

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SCO No. 153-154-155, 2nd Floor,Sector 9C, Madhya Marg,

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Chandigarh

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Through its Manager,

Mr. Rakesh Kumar

....Applicant Bank

Versus

M/s Baba Haridas Earthmovers Through its Proprietor,

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Plot No. 1/822/8277, Turang Jungle,

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Similipada, Angul, Odisha

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2. Mr. Rajesh

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Proprietor M/s Baba Haridas Earthmovers,

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r/o Village and Post Office Kharman(55),

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Tehsil Bahadurgarh, District Jhajjar,

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Haryana

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3. Mr. Manoj Kumar

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r/o Village and Post Office Kharman(55),

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Tehsil Bahadurgarh, District Jhajjar,

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Haryana

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....Defendants

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Date of Institution: 21.12.2024 Date of Reserve: 30.03.2026

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-- MIN" I 1 I

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Date of Pronouncement: 15.04.2026

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Counsel: Mr. Rahul Gar, Counsel for the Applicant Bank.

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FINAL ORDER

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The present Original Application has been filed by the Applicant Bank for issuance of a Recovery Certificate for a sum of Rs.89,43,735.03/- along with pendente lite and future interest @ 24% per annum. The Applicant, Kotak Mahindra Bank, is a banking company incorporated under the provisions of the Banking Companies Act, having its registered office at 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai, and one of its branches at SCO No. 153-154-155, 2nd Floor, Sector 9C, Madhya Marg, Chandigarh. The present application has been instituted through its Manager, Mr. Rakesh Kumar, under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of the aforesaid amount by way of sale of the hypothecated assets, vehicles, and other movable and immovable properties of Defendant Nos. 1 to 3, who are jointly and severally liable, along with costs of the proceedings.

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The defendants in the present matter are M/s Baba Haridas Earthmovers (Defendant No.1), Mr. Rajesh (Defendant No.2) and Mr. Manoj Kumar (Defendant No.3). Defendant No.1 is a Proprietorship firm of defendant No.2. Defendant No. 1 through defendant No.2 approached the applicant bank at its branch located at Rewari, Haryana,for financial assistance and submitted loan applications seeking grant of financial assistance in the form of term loan facility for purchase of two units commercial vehicles, i.e. TATA Signa 4825. Upon consideration of the request of the defendants and evaluation of their credentials, the applicant bank sanctioned credit facilities in favour of the defendants to the tune of Rs.1,08,73,538/- for purchase of abovementioned commercial vehicles. In consideration of the sanction of the aforesaid loan facilities, Defendant No.1 through defendant No.2 executed and delivered various loan and security documents in favour of the applicant bank on 27.03.2023, including demand promissory note acknowledging their liability to repay the loan amount together with interest and other charges in accordance with the agreed terms and conditions. The loan amount was agreed to be repaid in accordance with the repayment schedule and subject to payment of interest as stipulated by the bank. To secure

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the repayment of the aforesaid credit facilities, Defendant No.3 stood as guarantor for Defendant Nos.1 and 2 and thereby bound himself jointly and severally liable along with Defendant Nos.1 and 2 for repayment of the entire loan amount along with interest and other charges

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Further, to secure the loan facilities, the said commercial vehicles had been hypothecated in favour of applicant bank bearing Registration No. OD-19-W-2908, Engine No. B6.7B6A250D02132B64269110, �Chassis �No. MAT808015P3B04419 and Registration No. OD-19-W-2995, Engine No. B 6.7B 6A25 0D02132B 64269831, Chassis No. MAT808015P3B04765.

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Notices were issued to the defendants and served effectively against the defendants. Despite sufficient service defendants neither chose to appear nor filed any written statement within the statutory period. Consequently, matter proceeded ex-parte vide order dated 08.05.2025.

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It has been further stated that as per the statement of accounts maintained by the applicant bank in the ordinary course of its banking business, a sum of Rs.89,43,735.03/-was due and payable by the defendants as on 18.10.2024, inclusive of interest and other charges. The said amount has been duly certified under the Bankers' Books Evidence Act. According to the applicant bank, the cause of action for filing the present Original Application first arose on 23.06.2023, when the loan documents were executed by the defendants, and subsequently on various dates when the defendants committed defaults in repayment of the loan amount and failed to comply with the demand and recall notices issued by the bank. The cause of action continues to subsist till the filing of the present application as the defendants have failed to discharge their liability.

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In these circumstances, the applicant bank has filed the present Original Application before this Tribunal seeking issuance of a Recovery Certificate for a sum of Rs.89,43,735.03/- along with pendente lite and future interest @24% per annum and for recovery of the said amount through sale of the hypothecated vehicles and other movable or immovable assets of the defendants, along with costs of the proceedings.

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Ld. Counsel for the Applicant has filed the evidence in addition to documentary evidence by way of affidavit and supported the Applicant's pleading. Considering the evidence of Applicant.

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To substantiate its case, the Applicant Bank has filed the affidavit of Mr. Rakesh Kumar, presently serving as Managerat Kotak Mahindra Bank Ltd., SCO No. 153-154-155, 2nd Floor, Sector 9C, Madhya Marg, Chandigarh, who solemnly affirms and states as follows: He is fully aware of the facts of the present case based on the records maintained by the Applicant Bank and is duly authorized and competent to depose to this affidavit, the Power of Attorney, Resolution, Tax Invoices, Non-Individual Customer elation-cum-Application Form, Loan-cum-Guarantee Agreement alongwith Schedules, Demand Promissory note, Loan recall notice and Statement of Accounts.

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i. Resolution, dated 07.08.2024 exhibit A/1.

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ii. Tax Invoices, dated 22.03.2023 exhibits A/2 and A/3.

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iii. Non-Individual Customer Relation-cum-Application Form, dated 24.03.2023 exhibit A/4.

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iv. Loan-cum-Guarantee Agreement alongwith Schedules, dated 27.03.2023, exhibit A/5.

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v. Demand Promissory Note, dated 27.03.2023 exhibit A/6.

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vi. Power of Attorney, dated 27.03.2023 exhibit A/7.

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vii. Loan Recall Notice, dated 02.11.2024 exhibit A/8.

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viii. Statement of Accounts, exhibits A/9 and A/10.

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The witness produced by the Applicant Bank has fully corroborated the averments made in the present OA. In any event, the Applicant Bank's case is primarily documentbased, and the witness has duly authenticated all such documents. The evidence presented by the Applicant Bank remains unrebutted, leaving no ground to disbelieve the same. The Applicant Bank has, therefore, established its claim beyond reasonable doubt. In view of the foregoing, the Applicant Bank is entitled to recover the entire outstanding amount along with pendentelite interest and future costs as agreed between the parties. Accordingly, this OA is allowed, as the Applicant Bank has successfully proven its claim beyond any doubt.

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Consequently, OA No.7 of 2025 is hereby allowed in favour of the Applicant Bank and against Defendant Nos. 1 to3, who are held jointly and severally liable to pay the dues of the Applicant Bank, along with costs and pendentelite and future

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interest 24% per annum, as claimed in the OA, from the date of filing of the present OA. until full and final payment.

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ORDER

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OA No.7 of 2025 stands allowed in favour of the Applicant Bank and against Defendant Nos. 1 to 3 who are held jointly and severally liable to pay the outstanding dues a sum of Rs. 89,43,735.03/- (Rupees Eighty Nine Lacs Forty Three Thousand Seven Hundred Thirty Five and Three Paisa Only) of the Applicant Bank. Defendant Nos. 1 to 3 are directed to pay the outstanding dues, within 30 days, along with costs and pendente lite and future interest at the rate of 24% per annum, as claimed in the OA, from the date of filing till realization.

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In case of default, the aforesaid amount shall be recovered by sale of the hypothecated vehicles, tangible movables, and the available properties.

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It is also directed that the Applicant Bank shall adjust the amount(s), if any, received from the defendants during the pendency of this case.

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Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendant Nos. 1 to 3.

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i. The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debts Recovery Tribunal-II, Chandigarh.

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ii. Parties are directed to appear before the Recovery Officer, DRT-II, Chandigarh on 25.05.2026.

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iii. Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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File be closed and consigned to records.

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(Pronounced in open court)

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(SHIV KUMAR-I) 15.04.2026 PRESIDING OFFICER DRT-III, DELHI (ADDITIONAL CHARGE) DRT-II, CHANDIGARH

Kotak Mahindra Bank Limited v. M/S Baba Haridas Earthmovers

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Baba Haridas Earthmovers

Case brief

What is this about?

What did the court decide?

What the court decided

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