Allowed

Kotak Mahindra Bank Limited v. M/S Jagdamba Transport and Others

DRT17 Aug 2026OA/217/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's Original Application. It held the respondents liable to repay the outstanding loan sum with interest. The application is allowed.

What did the court decide?

Declaring respondents liable to pay Rs.75,51,040.32 with costs and 8% p.a. interest; issue Recovery Certificate; attachment of assets if dues remain unsatisfied.

Kotak Mahindra Bank Limited versus M/S Jagdamba… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 217/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.02.2026

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DATE OF DECISION: 17.08.2026

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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. 131-132133, 2nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana-141001 through its Manager, Sh. Rakesh Kumar.

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……..Applicant

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Versus

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M/s Jagdamba Transport, through its Partners, H.No. 70/2, Block No. 1, Village Assan Kalan, Tehsil & District Panipat, Haryana-132105.

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Sh. Kamal S/o Sh. Mahabir Singh, Partner M/s Jagdamba Transport, R/o H.No. 70/2, Block No. 1, Village Assan Kalan, Tehsil & District Jind, Haryana-132105.

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Sh. Manjeet S/o Sh. Rishi Ram, Partner M/s Jagdamba Transport, R/o H.No. 4148, Defence Colony, Jind, Tehsil & District Jind, Haryana126102.

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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 11.08.2026)

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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 and Bankruptcy Act 1993, against the defendants for recovery of Rs.75,51,040.32 (Rupees Seventy Five Lac Fifty One Thousand Forty and Paise Thirty Two Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager , of the applicant , who

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2 OA/ 217/2026 KOTAK MAHINDRA BANK LIMITED VS M/S JAGDAMBA TRANSPORT AND OTHERS

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is competent to institute the Original Application vide Copy of Resolution dated 29.11.2024, which is Annexure A1 to this OA.

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2. The brief facts of the OA are that the defendant no. 1, through its partners defendant nos. 2 & 3, approached the applicant for grant of Term Loan of Rs.45.00 lacs vide Non-Individual Customer Relation Form dated 03.05.2024, which isAnnexure A3to this OA. Thereafter, the defendant no. 1, through its partners defendant nos.
2 & 3, approached the applicant for grant of Term Loan of Rs.40,81,714.00 vide Non-Individual Customer Relation Form dated 04.03.2025, which is Annexure A8to this OA.
3. The applicant sanctioned the Term Loan of Rs.45.00 lacs vide Loan- cum-Guarantee Agreement along with Schedules dated 21.05.2024, which isAnnexure A5to this OA and the terms and conditions were duly accepted by the defendants.
Thereafter, the applicant sanctioned the Term Loan of
Rs.40,81,714.00 vide Loan-cum-Guarantee Agreement along with
Schedules dated 05.03.2025, which isAnnexure A9to this OA.
4. Defendant no. 1, through its partners defendant nos. 2 & 3,
hypothecated its vehicles with details given as under:
i. TATA Signa 5530, bearing Registration No. HR58D3591, Engine No. 42D95465095, Chassis No. MAT828045RAE07008, vide Tax Invoice
& Virtual Registration Certificate dated 15.05.2024, which is
Annexure A4to this OA;
ii. Eicher Pro 6028, bearing Registration No. HR58E2232, Engine No. VEDX8690105K6P, Chassis No. MC2BAGRC0RL20725, vide Virtual Registration Certificate, which isAnnexure A12to this OA;
Documents executed: Partnership Deed dated 14.12.2021, which is
Annexure A2to this OA; Demand Promissory Note dated 21.05.2024,
which isAnnexure A6to this OA; Power of Attorney dated 21.05.2024,
which isAnnexure A7to this OA; Demand Promissory Note dated
05.03.2025, which isAnnexure A10to this OA; Power of Attorney dated
05.03.2025, which isAnnexure A11to this OA; Loan Recall Notice along with its postal receipts dated 23.12.2025, which isAnnexure A13to this
OA; Statements of Accounts, which areAnnexures A14 & A15to this OA.

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3 OA/ 217/2026 KOTAK MAHINDRA BANK LIMITED VS M/S JAGDAMBA TRANSPORT AND OTHERS

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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.75,51,040.32 (Rupees Seventy Five Lac Fifty One Thousand Forty and Paise Thirty Two Only), 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. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded exparte vide order dated 11.08.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager , Kotak Mahindra Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

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From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the Defendant no. 1, through its partners defendant nos. 2 & 3, approached applicant for availing of the loan facilities, which were granted to them. Defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the 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.75,51,040.32 (Rupees Seventy Five Lac Fifty One Thousand Forty and Paise Thirty Two Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @24.00%p.a. with monthly rests from 10.12.2025 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

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4 OA/ 217/2026 KOTAK MAHINDRA BANK LIMITED VS M/S JAGDAMBA TRANSPORT AND OTHERS

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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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.75,51,040.32 (Rupees Seventy Five Lac Fifty One Thousand Forty and Paise Thirty Two 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 vehicles of the defendant no. 1 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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12. 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 01.09.2026

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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 .

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Dated: 17.08.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Jagdamba Transport and Others

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. M/S Jagdamba Transport and Others

Case brief

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