The Debt Recovery Tribunal allowed an original application by Kotak Mahindra Bank Ltd. against two defendants for recovery of a loan of approximately Rs. 1.36 Crore. The court modified the requested interest rate to 8% per annum.
Recovery of Rs. 1,35,90,059.86 jointly and severally with costs and future simple interest @8% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.230/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 04.02.2026
DATE OF DECISION: 04.05.2026
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, Maharashtra400051 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, Punjab- 141001, through its Manager, Sh. Rakesh Kumar
……..Applicant Versus
……Defendants
Advocates:
Argued by Sh. Rahul Garg, Advocate for applicant
None for defendants (already ex-parte vide order dated 29.04.2026)
FINAL ORDER
2 OA NO. 230/2026 KOTAK MAHINDRA BANK LIMITED VS. RAKESH YADAV AND ANOTHER
3 OA NO. 230/2026 KOTAK MAHINDRA BANK LIMITED VS. RAKESH YADAV AND ANOTHER
i. Ashok Leyland Ltd. EA1920/66 H CO bearing Registration no. HR55AM8871, Chassis no. MB1A5EHD9NAFM6058 and Engine no. NFPZ122488 vide Tax Invoice dated 03.09.2022 and Virtual RC, which is Annexure A3 to this OA; ii. Ashok Leyland Ltd. EA1920/66 H CO bearing Registration no. HR55AM2625, Chassis no. MB1A5EHD7NAFM6477 and Engine no. NFPZ123509 vide Tax Invoice dated 03.09.2022 and Virtual RC, which is Annexure A4 to this OA; iii. Ashok Leyland Ltd. EA1920/66 H CO bearing Registration no. HR55AM9359, Chassis no. MB1A5EHD3NAFM6038 and Engine no. NFPZ122496vide Tax Invoice dated 03.09.2022 and Virtual RC, which is Annexure A5 to this OA; iv. Eicher Pro 2059 E CBC bearing Registration no. HR55AM0332, Chassis no. MC2EDERC0NC506 and Engine no. E416NCNC389105 vide Tax Invoice dated 26.09.2022 and Virtual RC, which is Annexure A10 to this OA; v. Ashok Leyland Ltd. EB 2820/66 H CO bearing Registration no. RJ32GD3455, Chassis no. MB1CWCHD2PAFP5625 and Engine no. PGPZ128552 vide Tax Invoice dated 26.08.2023 and Virtual RC, which is Annexure A15 to this OA; vi. Ashok Leyland Ltd. EB 2820/66 H CO bearing Registration no. RJ32GD3457, Chassis no. MB1CWCHD3PAFP5438 and Engine no. PGPZ128326 vide Tax Invoice dated 26.08.2023 and Virtual RC, which is Annexure A16 to this OA; vii. Ashok Leyland Ltd. EB 2820/66 H CO bearing Registration no. RJ32GD3454, Chassis no. MB1CWCHD5PAFP5618 and Engine no. PGPZ128555 vide Tax Invoice dated 26.08.2023 and Virtual RC, which is Annexure A17 to this OA; viii. Ashok Leyland Ltd. EB 2820/66 H CO bearing Registration no. RJ32GD3453, Chassis no. MB1CWCHD6PAFP5630 and Engine no. PGPZ128545 vide Tax Invoice dated 26.08.2023 and Virtual RC, which is Annexure A18 to this OA;
ix.
Ashok Leyland Ltd. EB 2820/66 H CO bearing Registration no. RJ32GD3455, Chassis no. MB1CWCHD6PAFP5630 and Engine
4 OA NO. 230/2026 KOTAK MAHINDRA BANK LIMITED VS. RAKESH YADAV AND ANOTHER
no. PGPZ128545 vide Tax Invoice dated 26.08.2023 and Virtual RC, which is Annexure A19 to this OA;
x. Tata Motors Ltd. 1109G LPT DCR49CBC 85B6M5 bearing Registration no. HR55AU7434, Chassis no. MAT812067R5E09677 and Engine no. 3.8SGI83EVX806365 vide Tax Invoice dated 10.07.2024 and Virtual RC, which is Annexure A27 to this OA; xi. Tata Motors Ltd. 1109G LPT DCR49CBC 85B6M5 bearing Registration no. HR55AU2844, Chassis no. MAT812067R5E09583 and Engine no. 3.8SGI83EVX806362 vide Tax Invoice dated 10.07.2024 and Virtual RC, which is Annexure A28 to this OA; xii. Tata Motors Ltd. 1109G LPT DCR49CBC 85B6M5 bearing Registration no. HR55AU2416, Chassis no. MAT810030R8F10786 and Engine no. 3.8SGI83EVX808344 vide Tax Invoice dated 10.07.2024 and Virtual RC, which is Annexure A29 to this OA; Documents executed: DP Note and Power of Attorney, both dated 05.09.2022, which are Annexure A7 and A8 to this OA; DP Note and Power of Attorney, both dated 29.09.2022, which are Annexure A12 and A13 to this OA; DP Note and Power of Attorney, both dated 04.09.2023, which are Annexure A21 and A22 to this OA; DP Note and Power of Attorney, both dated 21.06.2024, which are Annexure A25 and A26 to this OA; DP Note and Power of Attorney, both dated 17.07.2024, which are Annexure A32 and A33 to this OA; Loan Recall Notice dated 02.01.2026, which is Annexure A34 to this OA; Statement of Accounts, which are Annexure A35 to A55 to this OA.
5 OA NO. 230/2026 KOTAK MAHINDRA BANK LIMITED VS. RAKESH YADAV AND ANOTHER
From the perusal of all the Annexure A1 to A55 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that 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, 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. 1,35,90,059.86 (Rupees One Crore Thirty Five Lacs Ninety Thousand Fifty Nine and Paise Eighty 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 accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24%p.a. with monthly rests from 09.12.2025 till the realization.
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 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 @08.00%p.a. in all 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.
6 OA NO. 230/2026 KOTAK MAHINDRA BANK LIMITED VS. RAKESH YADAV AND ANOTHER
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the original application under Section 19 RDB Act for recovery of loan dues against hypothecated vehicles should be allowed.
Whether the rate of interest claimed by the applicant should be modified by the Tribunal.
2 provisions across 2 enactments
Kotak Mahindra Bank Ltd.
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
