Allowed

Kotak Mahindra Bank Limited v. Messrs Pilwan Earth Movers and Others

DRT29 May 2026OA/229/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank for recovery of dues totaling Rs.32,77,201.66 from the borrowers and guarantor. The Tribunal reduced the claimed interest rate from 24% to 8% p.a.

What did the court decide?

Recovery of principal amount Rs.32,77,201.66 jointly and severally with simple interest @8.00% p.a., costs, and future interest; issuance of Recovery Certificate and liberty to enforce claim via SARFA

Kotak Mahindra Bank Limited versus Messrs Pilwan Earth Movers… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 229/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.02.2026

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DATE OF DECISION: 29.05.2026

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Kotak Mahindra Bank Limited, 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.131-132-133, 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 Pilwan Earth Movers, Through its Proprietor, Shop No.2, Plot No.11, Opposite Plot No.1 Krishan Colony, Tehsil & District Faridabad, Haryana-121004.

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Sh. Harvir Singh S/o Sh. Hari Singh, Proprietor M/s Pilwan Earth Movers R/o Village Mehmoodpur Tigaon, Tehsil & District Faridabad, Haryana-121101.

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Smt. Suman W/o Sh. Harvir Singh R/o Village Mehmoodpur Tigaon (95), Tehsil & District Faridabad, Haryana-121101.

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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 26.05.2026)

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.32,77,201.66 (Rupees Thirty Two Lacs Seventy Seven Thousand Two Hundred One and Paise Sixty Six Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager, of the applicant, who is competent to institute the Original

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2 OA/229/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S PILWAN EARTH MOVERS AND OTHERS

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Application vide Copy of Resolution dated 29.11.2024, which is Annexure A-1 to this OA.

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The brief facts of the OA are that the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan of Rs.18.00 Lacs for purchase of JCB 3DX Machine vide NonIndividual Customer Relation Form dated 16.02.2018, which is Annexure A-3 to this OA. Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan of Rs.16.86 Lacs for purchase of JCB 2DX Machine vide Non-Individual Customer Relation Form dated 26.02.2024, which is Annexure A-7 to this OA.

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Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of Term Loan of Rs.29,52,688.00 for purchase of construction equipment machinery vide Non-Individual Customer Relation Form dated 27.06.2024, which is Annexure A-12 to this OA. Defendant no.3 stood as guarantor in all the loan accounts. 3. The applicant sanctioned Term Loan of Rs.18.00 Lacs for purchase of JCB 3DX Machine vide Loan-cum-Guarantee Agreement along with Schedules dated 03.03.2018, which is Annexure A-4 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan of Rs.16.86 Lacs for purchase of JCB 2DX Machine vide Loan-cum-Guarantee Agreement along with Schedules dated 03.03.2024, which is Annexure A-9 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs.29,52,688.00 for purchase of construction equipment machinery vide Loan-cum-Guarantee Agreement along with Schedules dated 10.07.2024, which is Annexure A-14 to this OA. 4. Defendant no. 1, through its proprietor defendant no. 2, hypothecated its Construction vehicles and other equipment machinery as under:

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3 OA/229/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S PILWAN EARTH MOVERS AND OTHERS

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i.	JCB 3DX bearing Registration no. HR51BS1075, Engine no.
	H00172502, Chassis no. HAR3DXSSK02597480, vide
	Performa Invoice and Virtual Registration Certificate dated
	15.02.2018, which areAnnexure A-2to this OA;
ii.	JCB 2DX bearing Registration no. HR29BC0805, Engine no. T4.1041/2420005, Chassis no. HAR2DXSSE03362769,
	videTax Invoice and Virtual Registration Certificate dated
	28.02.2024, which areAnnexure A-8to this OA;
iii.	Vibratory Soil Compactor 1107EX bearing Engine no.
	RMHM108068, Chassis no. NKJ1107ECRKT08342 videTax Invoice dated 02.07.2024, which isAnnexure A-13to this OA.

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Documents executed: Demand Promissory Note dated 03.03.2018,

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which is Annexure A-5 to this OA; Power of Attorney dated 03.03.2018, which is Annexure A-6 to this OA; Demand Promissory Note dated 03.03.2024, which is Annexure A-10 to this OA; Power of Attorney dated 03.03.2024, which is Annexure A-11 to this OA; Demand Promissory Note dated 10.07.2024, which is Annexure A- 15 to this OA; Power of Attorney dated 10.07.2024, which is Annexure A-16 to this OA; Loan Recall Notice dated 02.01.2026, which is Annexure A-17 to this OA; Statements of Accounts, which are Annexures A-18 to A-20 to this OA.

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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.32,77,201.66 (Rupees Thirty Two Lacs Seventy Seven Thousand Two Hundred One and Paise Sixty Six Only), which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 26.05.2026.

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

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4 OA/229/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S PILWAN EARTH MOVERS AND OTHERS

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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From the perusal of all the Annexures A-1 to A-20 to this OA, it is proved that the defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. Defendant no.3 stood as guarantor. They 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, all the 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.32,77,201.66 (Rupees Thirty Two Lacs Seventy Seven Thousand Two Hundred One and Paise Sixty Six 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.

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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 09.12.2025 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 assets, undertaking of the defendants, quantum of loan 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 all the accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.32,77,201.66 (Rupees Thirty Two Lacs Seventy Seven Thousand Two Hundred One and Paise Sixty Six Only), jointly and severally, with costs,

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5 OA/229/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S PILWAN EARTH MOVERS AND OTHERS

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current and future simple interest @8.00% p.a. in all the 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 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 19.06.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 29.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Messrs Pilwan Earth Movers and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Messrs Pilwan Earth Movers and Others

Case brief

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What did the court decide?

What the court decided

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