Allowed

Kotak Mahindra Bank Limited v. M/S Shri Ram Cargo Movers and Others

DRT4 Jul 2026OA/290/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application, directing respondents to pay the outstanding principal along with simple interest at 8% p.a., enabling recovery via hypothecated vehicles or personal assets.

What did the court decide?

Applicant allowed; respondents directed to pay Rs. 28,85,632.87 with interest at 8% p.a.; recovery permitted via sale of hypothecated vehicles or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.290/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.02.2026

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DATE OF DECISION: 04.07.2026

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Kotak Mahindra Bank Limited, having its Registered Office at Kotak Mahindra Bank Limited, 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai - 400051, and Branch Office at Kotak Mahindra Bank SCO.131-132-133, Second Floor, Apra Tower, Feroze Gandhi Market, Ludhiana - 141001 through its Authorized Representative Sh. Rakesh Kumar.

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……..Applicant

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Versus

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M/s Shri Ram Cargo Movers through its Proprietor Sh. Rampal, SCO 26, 27, Rajan Market, Transport Nagar, Ludhiana – 141001.

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Sh. Ram Pal, C/o Shri Ram Cargo Movers, SCO 26-27, Rajan Market, Transport Nagar, Ludhiana – 141001.

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Sh. Sanjeev Singh, R/o Village Jhangrian, PO Jhaj, Tehsil Anandpur Sahib Rupna – 140117, Punjab.

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Sh. Kuldeep Singh, R/o Katta, Tehsil Anandpur Sahib, District Rupna, Rupnagar- 140117.

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……..Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the applicant (through VC) None for defendants (Already ex-parte vide order dated 02.04.2026).

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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.28,84,700.87 (Rupees Twenty Eight Lacs Eighty Four Thousand Seven Hundred and Paise Eighty Seven Only). The Original Application has been filed through Sh.

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2 OA NO.290/2026 KOTAK MAHINDRA BANK LTD. VS M/S SHRI RAM CARGO MOVERS AND OTHERS

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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.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 and defendant nos. 2 & 3 in their individual capacities approached the applicant for grant of Term Loan Facility for purchase of commercial vehicle of Rs.15,00,000.00 vide Non Individual Customer Relation Form dated 29.03.2022, which is Annexure A2 to this OA. Defendant no. 4 stood as guarantor.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facility for purchase of commercial vehicle of Rs.18,00,000.00 vide Non Individual Customer Relation Form dated 30.03.2023, which is Annexure A5 to this OA. Defendant no. 3 stood as guarantor.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facilities for purchase of two units of commercial vehicles of Rs.21,00,000.00 vide Non Individual Customer Relation Form dated 13.02.2024, which is Annexure A8 to this OA. Defendant no. 3 stood as guarantor.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Overdraft Limit of Rs.7,00,000.00 vide Non Individual Customer Relation Form dated 17.07.2024, which is Annexure A11 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the Term Loan Facility I for purchase of commercial vehicle of Rs.14,98,436.00 and the terms and conditions were duly accepted by the defendants vide Loan-Cum-Guarantee Agreement dated 29.03.2022, which is Annexure A3 to this OA.

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Thereafter, the applicant sanctioned the Term Loan Facility II for purchase of commercial vehicle of Rs.15,85,474.00 and the terms and

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3 OA NO.290/2026 KOTAK MAHINDRA BANK LTD. VS M/S SHRI RAM CARGO MOVERS AND OTHERS

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conditions were duly accepted by the defendant nos. 1 to 3 vide LoanCum-Guarantee Agreement dated 30.03.2023, which is Annexure A6 to this OA.

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Thereafter, the applicant sanctioned the Term Loan Facilities III & IV for purchase two units of commercial vehicles of Rs.20,41,776.00 and the terms and conditions were duly accepted by the defendant nos. 1 to 3 vide Loan-Cum-Guarantee Agreement dated 05.03.2024, which is Annexure A9 to this OA.

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Thereafter, the applicant sanctioned the Overdraft Limit of Rs.6,11,207.00 and the terms and conditions were duly accepted by the defendant nos. 1 to 3 vide Overdraft Agreement dated 09.08.2024, which is Annexure A12 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated its commercial vehicles i.e.,

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(i). ISUZU CB SML SARTAJ bearing Registration No. PB10HU2295, Engine No. SLT6AN274100, Chassis No. MBUWEL4AAN0280588 vide Virtual Registration Certificate filed on 23.06.2026, in compliance of order dated 07.04.2026. (ii). ISUZU CB SML SARTAJ bearing Registration No. PB10JB5895, Engine No. SLT8LN283211, Chassis No. MBUWEL4AAM0292279 vide Virtual Registration Certificate filed on 23.06.2026, in compliance of order dated 07.04.2026. (iii). ISUZU CB SML SARTAJ bearing Registration No. PB10HT0976, Engine No. SLTNG6AN27375, Chassis No. MBUWEL4HAN0280493 vide Virtual Registration Certificate filed on 03.07.2026, in compliance of order dated 24.06.2026. (iv). ISUZU CB SML SARTAJ bearing Registration No. PB10HU4529, Engine No. 273498, Chassis No. 80744 vide Virtual Registration Certificate filed on 03.07.2026, in compliance of order dated 24.06.2026. Documents executed: Demand Promissory Notes, dated 29.03.2022, 30.03.2023, 05.03.2024, 09.08.2024, which are

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4 OA NO.290/2026 KOTAK MAHINDRA BANK LTD. VS M/S SHRI RAM CARGO MOVERS AND OTHERS

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Annexures A4, A7, A10 & A13 to this OA; Statement of Accounts along with certificate, which are Annexures A14 to A18 to this OA; Legal Notice dated 10.01.2026, along with postal receipts, which are Annexures A19 to A23 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.28,84,700.87, 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.

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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 02.04.2026.

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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 through video
confer	encing 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 A1 to A23 to this OA, it is proved that the defendant no.1 through its proprietor defendant no. 2 and defendant nos. 2 & 3 in their individual capacities approached applicant for availing of Term Loan facility I which was granted to them, defendant no. 4 stood as guarantor. Thereafter, the defendant no.1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity approached applicant for availing of Term Loan Facilities II to IV and Overdraft Limit which were granted to them, defendant no. 3 stood as guarantor 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, loan accounts were classified as

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5 OA NO.290/2026 KOTAK MAHINDRA BANK LTD. VS M/S SHRI RAM CARGO MOVERS AND OTHERS

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NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.28,84,700.87 (Rupees Twenty Eight Lacs Eighty Four Thousand Seven Hundred and Paise Eighty Seven 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 in all the loan accounts from 28.12.2025 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 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 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 sum of Rs.2,66,632.88 (Rupees Two Lacs Sixty Six Thousand Six Hundred Thirty Two and Paise Eighty Eight Only) and the defendant nos. 1 to 3 are liable to pay to the applicant sum of Rs.26,18,067.99 (Rupees Twenty Six Lacs Eighteen Thousand Sixty Seven and Paise Ninety Nine Only), along with interest, jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 defendant no. 1 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the

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6 OA NO.290/2026 KOTAK MAHINDRA BANK LTD. VS M/S SHRI RAM CARGO MOVERS AND OTHERS

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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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 20.07.2026. 15. 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 . Dated: 04.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Shri Ram Cargo Movers and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Shri Ram Cargo Movers and Others

Case brief

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What did the court decide?

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