Allowed

Kotak Mahindra Bank Limited v. Sh. Ravi Kumar and Another

DRT27 May 2026OA/304/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank against two borrowers and a guarantor for recovery of a loan of Rs.64,15,772.90, granting simple interest at 8% p.a. and ordering issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.64,15,772.90 with interest @8%p.a., order to issue Recovery Certificate, and liberty to enforce through sale of assets.

Kotak Mahindra Bank Limited versus Sh. Ravi Kumar and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.304/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.03.2025

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DATE OF DECISION: 27.05.2026

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Kotak Mahindra Bank Limited, a Body Corporate, incorporated under the Companies Act 1956, having its Registered Office at 27 ВКС, С-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-141001, through its Manager Sh. Rakesh Kumar.

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……..Applicant

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Versus

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Sh. Ravi Kumar S/o Sh. Mohan Lal Hira, R/o C-2088, Street No. 12, SGM Nagar, Faridabad NIT, District Faridabad, Haryana – 121001.

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Sh. Praveen Kumar Heera S/o Sh. Mohan Lal Heera, R/o C-2088, Street No. 12, SGM Nagar, Faridabad NIT, District Faridabad, Haryana – 121001.

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……..Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 05.01.2026).

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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.64,15,772.90 (Rupees Sixty Four Lacs Fifteen Thousand Seven Hundred Seventy Two and Paise Ninety 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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2 OA NO.304/2025 KOTAK MAHINDRA BANK LTD. VS SH. RAVI KUMAR AND ANOTHER

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Term Loan Facilities for purchase of Two units of commercial vehicles of Rs.39,12,416.00 vide Individual Customer Relation Form dated 20.03.2023, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 approached the applicant for grant of Term Loan Facilities for purchase of Two units of commercial vehicles of Rs.40,60,000.00 vide Individual Customer Relation Form dated 17.11.2023, which is Annexure A8 to this OA. 3. The applicant sanctioned the Term Loan Facilities for purchase of Two units of commercial vehicles of Rs.39,12,416.00 and the terms and conditions were duly accepted by the defendants vide Loan-CumGuarantee Agreement dated 03.04.2023, which is Annexure A5 to this OA. Thereafter, the applicant sanctioned the Term Loan Facilities for purchase of Two units of commercial vehicles of Rs.41,49,452.00 and the terms and conditions were duly accepted by the defendants vide Loan-Cum-Guarantee Agreement dated 05.12.2023, which is Annexure A11 to this OA. Defendant no. 2 stood as guarantor in the loan accounts.

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Defendant no. 1 hypothecated his Commercial Vehicles i.e. (i) TATA LPT 1109 bearing Registration No. HR38AE9259, Engine No. 3.8SGI79CWX607771, Chassis No. MAT812028P5C03662 vide Tax Invoice dated 30.03.2023 and Virtual Registration Certificate, which is Annexure A3 to this OA.

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(ii) TATA LPT 1109 bearing Registration No. HR38AE6041, Engine No. 3.8SGI79CWX607917, Chassis No. MAT812028P5C03595 vide Tax Invoice dated 30.03.2023 and Virtual Registration Certificate, which is Annexure A4 to this OA.

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(iii) TATA LPT 1109 bearing Registration No. HR38AG2448, Engine No. 3.8SGI83NWX808932, Chassis No. MAT812085P5N13379 vide Tax Invoice dated 30.11.2023

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3 OA NO.304/2025 KOTAK MAHINDRA BANK LTD. VS SH. RAVI KUMAR AND ANOTHER

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and Virtual Registration Certificate, which is Annexure A9 to this OA.

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(iv) TATA LPT 1109 bearing Registration No. HR38AG4650, Engine No. 3.8SGI83NWX808691, Chassis No.

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MAT812058P5N13371 vide Tax Invoice dated 30.11.2023 and Virtual Registration Certificate, which is Annexure A10 to this OA.

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Documents executed: Demand Promissory Note, Power of Attorney, both dated 03.04.2023, which are Annexures A6 & A7 to this OA; Demand Promissory Note, Power of Attorney, both dated 05.12.2023, which are Annexures A12 & A13 to this OA; Legal Notice dated 16.01.2025, along with postal receipts, which is Annexure A14 to this OA; Statement of Accounts along with certificate, which are Annexures A15 to A18 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.64,15,772.90, 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 05.01.2026.

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

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 A18 to this OA, it is proved that the defendant no.1 approached applicant for availing of loan facilities which were granted to him, defendant no. 2 stood as

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4 OA NO.304/2025 KOTAK MAHINDRA BANK LTD. VS SH. RAVI KUMAR AND ANOTHER

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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 NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.64,15,772.90 (Rupees Sixty Four Lacs Fifteen Thousand Seven Hundred Seventy Two and Paise Ninety 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 the loan accounts from 29.12.2024 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.64,15,772.90 (Rupees Sixty Four Lacs Fifteen Thousand Seven Hundred Seventy Two and Paise Ninety 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

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5 OA NO.304/2025 KOTAK MAHINDRA BANK LTD. VS SH. RAVI KUMAR AND ANOTHER

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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 18.06.2026.

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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: 27.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Ravi Kumar and Another

Case brief

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Kotak Mahindra Bank Limited v. Sh. Ravi Kumar and Another

Case brief

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