Allowed

Kotak Mahindra Bank Limited v. Sh. Ashok Kumar and Others

DRT17 Aug 2026OA/215/2026

Case brief

AI extract

What is this about?

The DRT allowed an application by Kotak Mahindra Bank for recovery of dues from three respondents. After verifying loan agreements and noting the accounts were classified as NPA, the Tribunal fixed liability, reduced interest to 8% p.a., and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declarations of liability for Rs. 11.86 lacs and Rs. 19.57 lacs with 8% p.a. interest; Recovery Certificate issued.

Kotak Mahindra Bank Limited versus Sh. Ashok Kumar and Others — Company and Corporate | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 215/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 03.02.2026

¶5

DATE OF DECISION: 17.08.2026

¶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 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

¶7

……..Applicant

¶8

Versus

¶9

Sh. Ashok Kumar, S/o Sh. Dayanand, Proprietor M/S Yes Logistics India, R/o House no. 94, Village and Post Office Petwar (92), Tehsil Narnaund, District Hisar, Haryana- 125033

¶10

Sh. Rambag, S/o Sh. Dayanand, R/o House no. 153, Village and Post Office Petwar (91), Tehsil Narnaund, District Hisar, Haryana- 125033

¶11

M/S Yes Logistics India through its Proprietor, Plot no. 486/6016, Khata no. 432/646, Hemasurapada, Angul, Orissa759122

¶12

…..Defendants

¶13

Advocates:

¶14

Argued by Sh. Rahul Garg, Advocate for applicant

¶15

Ms. Puja Sharma, Advocate for defendants (through VC)

¶16

FINAL ORDER

¶17

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 31,43,838.65 (Rupees Thirty One Lacs Forty Three Thousand Eight Hundred Thirty Eight and Paise Sixty

¶18

2 OA NO. 215/2026 KOTAK MAHINDRA BANK LIMITED VS. ASHOK KUMAR AND OTHERS

¶19

Five 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 defendant nos. 1 and 2 approached the applicant for grant of Light Commercial Vehicle Loan of Rs. 20.00 Lacs vide Individual Customer Relation Form dated 22.11.2023, which is Annexure A3 to this OA. Thereafter, defendant nos. 1 and 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 22.10 Lacs vide Individual Customer Relation Form dated 03.08.2024, which is Annexure A8 to this OA.

¶21

The applicant sanctioned Light Commercial Vehicle Loan of Rs.20,19,875.00 vide Loan cum Guarantee Agreement dated 23.11.2023, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Commercial Loan of Rs. 22,94,240.00 vide Loan cum Guarantee Agreement dated 05.08.2024, which is Annexure A9 to this OA. Defendant no. 3 stood as guarantor in Light Commercial Vehicle Loan. 4. Defendant nos. 1 and 2 hypothecated their movable assets namely: i. Tata Motors Ltd. 1616 LPT bearing Registration no. HR39F7020, Chassis no. MAT563066P7D09087 and Engine no. 3.3LNGD11DWX512040 vide Tax Invoice dated 31.10.2023 and RC, which is Annexure A2 to this OA; ii. Tata Motors Ltd. 1916 LPT bearing Registration no. OD19Z2238, Chassis no. MAT843201R7F11318 and Engine no. 3.3LNGD11FVX515010 vide Tax Invoice dated 31.07.2024 and RC, which is Annexure A7 to this OA.

¶22

3 OA NO. 215/2026 KOTAK MAHINDRA BANK LIMITED VS. ASHOK KUMAR AND OTHERS

¶23

Documents executed: DP Note and Power of Attorney, both dated 23.11.2023, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 05.08.2024, which are Annexure A10 and A11 to this OA; Loan Recall Notice dated 23.12.2025, which is Annexure A12 to this OA and Statement of Accounts, which are Annexure A13 and A14 to this OA.

¶24

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 31,43,838.65, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶25

The defendants were served summons to appear before this Tribunal and after service upon defendants, Ms. Puja Sharma, Advocate appeared on behalf of the defendants (through VC) on 14.05.2026 and filed Memo of Appearance. POA was filed on 17.06.2026. Paper book was supplied on 17.05.2026 but no WS was filed. Therefore, opportunity to file WS by defendants was closed and defense was struck off vide order dated 10.08.2026.

¶26

In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited has been filed.

¶27

Heard arguments and perused record.

¶28

It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. Learned counsel for defendants (through VC) prayed that lenient view may be taken while granting interest. No other argument was advanced.

¶29

From the perusal of all the Annexure A1 to A14 to this OA, it is proved that defendant nos. 1 and 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3

¶30

4 OA NO. 215/2026 KOTAK MAHINDRA BANK LIMITED VS. ASHOK KUMAR AND OTHERS

¶31

stood as guarantor in Light Commercial Vehicle Loan. Defendants 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 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 bank is entitled to recover a sum of Rs. 11,86,200.99 (Rupees Eleven Lacs Eighty Six Thousand Two Hundred and Paise Ninety Nine Only) from defendants and Rs. 19,57,637.66 (Rupees Nineteen Lacs Fifty Seven Thousand Six Hundred Thirty Seven and Paise Sixty Six Only) from defendant nos. 1 and 2, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

¶32

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24.00%p.a. with monthly rests from 10.12.2025 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 assets, 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 @8.00% 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.

¶34

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.11,86,200.99 (Rupees Eleven Lacs Eighty Six Thousand Two Hundred and Paise Ninety Nine Only) and defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs. 19,57,637.66 (Rupees

¶35

5 OA NO. 215/2026 KOTAK MAHINDRA BANK LIMITED VS. ASHOK KUMAR AND OTHERS

¶36

Nineteen Lacs Fifty Seven Thousand Six Hundred Thirty Seven and Paise Sixty Six Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both 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 assets of defendant nos. 1 and 2 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.

¶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 01.09.2026.

¶40

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.

¶41

Pronounced by me in the open Tribunal .

¶42

Dated: 17.08.2026

¶43

(MRIDULESH KUMAR SINGH)

¶44

Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Ashok Kumar and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Sh. Ashok Kumar 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

Indian Bank versus Smt. Anita Rani and Another

Union Bank of India versus Sh. Joga Singh @ Sh. Yoga Singh and Another

Union Bank of India versus M/S Redani Industries and Others

Kotak Mahindra Bank Limited versus M/S Jagdamba Transport and Others

Union Bank of India versus Sh. Arshdeep Singh

State Bank of India versus Sh. Kashmir Singh