Allowed

Kotak Mahindra Bank Limited v. M/S Deeksha Roadlines and Others

DRT5 May 2026OA/320/2026

Case brief

AI extract

What is this about?

This judgment allowed an Original Application for recovery of Rs. 30,49,932.14 from a borrower and guarantor who defaulted on commercial vehicle loans. The Tribunal granted a Recovery Certificate and capped future interest at 8% p.a. despite a claim for 24%.

What did the court decide?

Recovery of Rs. 30,49,932.14 with costs and simple interest at 8% p.a. directed; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.320/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.02.2026

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DATE OF DECISION: 05.05.2026

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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- 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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1. M/S Deeksha Roadlines through its Proprietor, 1, Numberdar Compound, near Sonu Dharm Kanta, Shi Sikanderpur Road, Kherki Daula, Gurgaon, Haryana- 122004

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Sh. Yogesh, S/o Sh. Ved Parkash, Proprietor M/S Deeksha Roadlines, R/o Village Devrala (73), Tosham Road, Tehsil Tosham, District Bhiwani, Haryana- 127029

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Ms. Renu, D/o Sh. Lok Ram, R/o Village Devrala (73), Tehsil Tosham, District Bhiwani, Haryana- 127029

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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 29.04.2026)

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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. 30,49,932.14 (Rupees Thirty Lacs Forty Nine Thousand Nine Hundred Thirty Two and Paise Fourteen 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. 320/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S DEEKSHA ROADLINES AND OTHERS

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loans of Rs. 50,23,522.00 (Term Loan I of Rs. 23,20,196.00, Term Loan II of Rs. 23,20,196.00, Term Loan III of Rs. 1,91,565.00 and Term Loan IV of Rs. 1,91,565.00) for purchase of two units of commercial vehicles along with their bodies vide Non-Individual Customer Relation Form dated 29.09.2023, which is Annexure A2 to this OA.

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3. The applicant sanctioned the Term Loans of Rs. 50,23,522.00 (Term Loan I of Rs. 23,20,196.00, Term Loan II of Rs. 23,20,196.00,
Term Loan III of Rs. 1,91,565.00 and Term Loan IV of Rs.
1,91,565.00) for purchase of two units of commercial vehicles along
with their bodies vide Loan cum Guarantee Agreement dated
05.10.2023, which isAnnexure A5to this OA and terms and
conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor.
4. Defendant no. 1 through its Proprietor defendant no. 2
hypothecated their Commercial Vehicles namely:
i. Tata LPT 1921 bearing Registration no. RJ32GD3927, Chassis no. MAT837003P1H24022 and Engine no. HWX106480 vide Tax Invoice dated 28.09.2023 and Virtual RC, which isAnnexure A3to this OA;
ii. Tata LPT 1921 bearing Registration no. RJ32GD3930, Chassis No. MAT837003P1H23673 and Engine no. HWX106404 vide Tax Invoice dated 29.09.2023 and Virtual RC, which isAnnexure A4to this OA.
Documents executed:DP Note and Power of Attorney, both dated
05.10.2023, which areAnnexure A6 and A7to this OA; Loan Recall
Notice dated 27.01.2026 along with postal receipts, which is
Annexure A8to this OA and Statement of Accounts, which are
Annexure A9 to A12to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 30,49,932.14, which is recoverable and the defendants

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3 OA NO. 320/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S DEEKSHA ROADLINES AND OTHERS

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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.

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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 29.04.2026.

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

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Heard ex-parte arguments and perused record.

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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 A12 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 stood as guarantor. Defendants 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. 30,49,932.14 (Rupees Thirty Lacs Forty Nine Thousand Nine Hundred Thirty Two and Paise Fourteen 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%p.a. with monthly rests w.e.f. 14.01.2026 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

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4 OA NO. 320/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S DEEKSHA ROADLINES AND OTHERS

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,49,932.14 (Rupees Thirty Lacs Forty Nine Thousand Nine Hundred Thirty Two and Paise Fourteen Only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in all 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 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. 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 26.05.2026. 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: 05.05.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Deeksha Roadlines and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Deeksha Roadlines and Others

Case brief

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