Allowed

Kotak Mahindra Bank Limited v. Sh. parveen and another

DRT14 May 2026OA/292/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Kotak Mahindra Bank Limited against two defendants for recovery of a loan amount. The court adjusted the interest rate from 24% p.a. to 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Directing defendants to pay Rs. 47,88,431.92 with 8% p.a. interest; issuance of Recovery Certificate; liberty to enforce through execution.

Kotak Mahindra Bank Limited versus Sh. parveen and another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 292/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.02.2026

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DATE OF DECISION: 14.05.2026

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

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……..Applicant

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Versus

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Sh. Parveen, S/o Sh. Ramphal Singh, R/o Village and Post Office Bilawal (86), Tehsil and District Bhiwani, Haryana- 127026

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Sh. Pawan, S/o Sh. Ramphal Singh, R/o Village and Post Office Bilawal (86), Tehsil and District Bhiwani, Haryana- 127026

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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 04.04.2026)

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 47,88,431.92 (Rupees Forty Seven Lacs Eighty Eight Thousand Four Hundred Thirty One and Paise Ninety Two 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.

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The brief facts of the OA are that defendants approached the applicant for grant of Term Loan of Rs. 46.80 Lacs for purchase of Commercial Vehicle vide Individual Customer Relation Form dated 23.01.2023, which is Annexure A3 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Term Loan of Rs. 46.00

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2 OA/292/2026

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KOTAK MAHINDRA BANK LIMITED VS. PARVEEN AND ANOTHER

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Lacs for purchase of Commercial Vehicle vide Individual Customer Relation Form dated 22.02.2024, which is Annexure A8 to this OA. 3. The applicant sanctioned the Term Loan of Rs. 47,20,832.00 for purchase of Commercial Vehicle vide Loan cum Guarantee Agreement dated 25.01.2023, which is Annexure A4 to this OA. Thereafter, the applicant sanctioned the Term Loan of Rs. 46,41,292.00 for purchase of Commercial Vehicle vide Loan cum Guarantee Agreement dated 21.02.2024, which is Annexure A9 to this OA. Defendant no. 2 stood as guarantor in Term Loan Account- II. 4. (i) Defendants hypothecated their movable property namely Tata Signa 5530.S- 4X2 bearing Registration no. HR846230, Engine no. B6.7B6A300D02132A64259655 and Chassis no. MAT828024P2A00357 vide Tax Invoice dated 21.01.2023 and Virtual RC, which is Annexure A2 to this OA; (ii) Defendant no. 1 hypothecated his movable property namely Tata Signa 5530.S BSVI 4X2 bearing Registration no. HR841242, Engine no. B6.42A95452545 and Chassis no. MAT828045RAB02693 vide Tax Invoice dated 16.02.2024 which is Annexure A7 to this OA and Virtual RC filed in compliance of order dated 08.04.2026 through diary no. 8391. Documents Executed: DP Note and Power of Attorney, both dated 25.01.2023, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 21.02.2024, 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. 5. The loan accounts became irregular and were classified NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 47,88,431.92 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. 6. 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 04.04.2026.

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3 OA/292/2026

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KOTAK MAHINDRA BANK LIMITED VS. PARVEEN AND ANOTHER

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7.	In support of the OA,	affidavit of Rakesh Kumar, Manager, Kotak
Mah	indra Bank Limitedhas	been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned counsel 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 Annexure A1 to A14 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 applicant. 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. 47,88,431.92 (Rupees Forty Seven Lacs Eighty Eight Thousand Four Hundred Thirty One and Paise Ninety 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24%p.a. with monthly rests from 10.12.2025 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 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 uniform 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,88,431.92 (Rupees Forty Seven Lacs Eighty Eight Thousand Four

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OA/292/2026

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KOTAK MAHINDRA BANK LIMITED VS. PARVEEN AND ANOTHER

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Hundred Thirty One and Paise Ninety 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 assets of the defendants 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 05.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 14.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. parveen and another

Case brief

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Kotak Mahindra Bank Limited v. Sh. parveen and another

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