Allowed

Kotak Mahindra Bank Limited v. Eshwar Retailing and Exports Pvt. Ltd.

DRT30 Jun 2026OA/316/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for a Recovery Certificate against five defendants jointly and severally for a housing loan default of Rs 86,50,677/-, granting interest at a reduced rate of 8% p.a. simple.

What did the court decide?

Recovery Certificate issued for Rs 86,50,677/- with further interest @ 8.00% p.a. (simple) from date of filing till realization, recoverable from defendants jointly and severally and against schedule

Kotak Mahindra Bank Limited versus Eshwar Retailing and… — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.316/2022

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BETWEEN:

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Kotak Mahindra Bank Ltd Branch office at: 4^th Floor, “Kotak House”, No. 22, MG road, Bengaluru – 560 001 Rep: by its Manager Mr. Murali M R …APPLICANT

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AND:

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Eshwar Retailing and Exports Pvt Ltd Rep By its Director and Share Holder Mr. Vinay K J No. 1101, 3^rd floor, 24^th main, Golden square, JP Nagar, 1^st phase, Bangalore – 560 078

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Also at: Eshwar Retailing and Exports Pvt Ltd No.66/1, Kamal Kunj, Kanakapura Main Road, Surveyor Street Corner, Bangalore – 560 004

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Mr. Vinay K J S/o. Jayaram Katta Aged about 45 years Director and share holder Eshwar Retailing and Exports Pvt Ltd No. 1101, 3^rd floor, 24^th main, Golden square, JP Nagar, 1^st phase, Bangalore – 560 078

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OA-316/2022

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Also at: BG-4, No.70, JP Nagar, 6^th phase, Kanakapura main road, Bangalore – 560 078

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Mr. Jayaram Katta S/o. Krishnaiah Setty Aged about 73 years No. 1101, 3^rd floor, 24^th main, Golden square, JP Nagar, 1^st phase, Bangalore – 560 078

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Also at: BG-4, No.70, JP Nagar, 6^th phase, Kanakapura main road, Bangalore – 560 078

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Mrs. Sharmila Katta Vinay W/o. Vinay K J Aged about 41 years No. 1101, 3^rd floor, 24^th main, Golden square, JP Nagar, 1^st phase, Bangalore – 560 078

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Also at: BG-4, No.70, JP Nagar, 6^th phase, Kanakapura main road, Bangalore – 560 078

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Mrs. K J Vani W/o. Venkachala R M Aged about 66 years No. 1101, 3^rd floor, 24^th main, Golden square, JP Nagar, 1^st phase, Bangalore – 560 078

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Also at: BG-4, No.70, JP Nagar, 6^th phase, Kanakapura main road, Bangalore – 560 078 ...DEFENDANTS

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OA-316/2022

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Counsel on record/appeared for:

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Applicant : MGC & Co. Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 86,50,677/- (Rupees Eighty-Six Lakhs Fifty Thousand Six Hundred and Seventy-Seven Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed a housing loan of Rs. 1,58,50,000/- (Rupees One Crore Fifty-Eight Lakhs Fifty Thousand Only).

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan document along with tripartite agreement.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA-316/2022

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 10.04.2026.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-10 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains

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unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, and

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the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the

OA-316/2022

limitation.

Hence in view of the finding arrived herein above, the Tribunal

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finds that both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility is availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.316/2022, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 86,50,677/- (Rupees Eighty-Six Lakhs Fifty Thousand Six Hundred and Seventy-Seven Only) with further interest @8.00% p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants

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OA-316/2022

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 2026].

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Sd/-

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Murali M R, S/o. late Rame Gowda, Authorized officer, of Applicant Bank.

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OA-316/2022

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Exhibits on the part of the Applicant:

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Exhibits	Description of loan documents
A-1	Application dated 27.08.2013
A-2	Board resolution dated 30.09.2013
A-3	Sanction letter dated 30.09.2013
A-4	Home loan agreement dated 30.09.2013
A-5	Letter dated 07.11.2013
A-6	Tripartite agreement dated 02.01.2014
A-7	Award dated 11.09.2015
A-8	Statement of account of disbursement of amount of the tune of Rs. 85,48,080/-
A-9	Statement of account of disbursement of amount of the tune of Rs. 85,48,080/-
A-10	Statement of account duly certified by the manager along with certificated u/SN 2A(b) and 2A(c) under bankers’books of evidence
Witness	Examined for the Defendants: -Nil -
List of Do	cuments Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Kotak Mahindra Bank Limited v. Eshwar Retailing and Exports Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Eshwar Retailing and Exports Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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