The Debt Recovery Tribunal allowed an application under Section 19 of the RDB Act 1993 filed by Kotak Mahindra Bank Ltd. against borrowers and a guarantor for recovery of a debt of Rs. 1,15,11,893.15, granting simple interest at 8% p.a.
Recovery of Rs.1,15,11,893.15 with simple interest at 8% p.a. and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.388/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 07.03.2026
DATE OF DECISION: 23.06.2026
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, 2nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana - 141001 through its Manager, Sh. Rakesh Kumar.
……..Applicant
Versus
……..Defendants
Advocates:
Argued by Sh. Rahul Garg, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 20.06.2026).
FINAL ORDER
2 OA NO.388/2026 KOTAK MAHINDRA BANK LTD. VS SH. PARVINDER SINGH AND ANOTHER
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 Facility for purchase of Commercial Vehicle along with its body of Rs.44,11,688.00 vide Individual Customer Relation Form dated 31.07.2023, which is Annexure A7 to this OA. Thereafter, the defendant no. 1 approached the applicant for grant of Term Loan Facility for purchase of Commercial Vehicle along with its body of Rs.37,11,756.00 vide Individual Customer Relation Form dated 22.09.2023, which is Annexure A12 to this OA. Thereafter, the defendant no. 1 approached the applicant for grant of Term Loan Facility for purchase of Commercial Vehicle along with its body of Rs.44,65,055.00 vide Individual Customer Relation Form dated 28.09.2024, which is Annexure A17 to this OA. Thereafter, the defendant no. 1 approached the applicant for grant of Term Loan Facility against hypothecation of used Commercial Vehicle of Rs.32,00,000.00 vide Individual Customer Relation Form dated 24.03.2025, which is Annexure A22 to this OA.
3 OA NO.388/2026 KOTAK MAHINDRA BANK LTD. VS SH. PARVINDER SINGH AND ANOTHER
and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 05.10.2024, which is Annexure A18 to this OA. Thereafter, the applicant sanctioned the Term Loan Facility against hypothecation of used Commercial Vehicle Rs.30,07,150.00 and terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 31.03.2024, which is Annexure A23 to this OA. Defendant no.2 stood as guarantor in all the loan accounts.
(ii) TATA SIGNA 5530 bearing Registration No. PB03BM7835, Chassis No. MAT828045P2G18372, Engine No. B6.7B62300D02132G64310076 vide Tax Invoice dated 31.07.2023 along with Virtual Registration Copy, which is Annexure A8 to this OA. (iii) TATA SIGNA 5530 bearing Registration No. PB13BR7835, Chassis No. MAT828045P2J22848, Engine No. B6.7B62300D02132J64322485 vide Tax Invoice dated 29.09.2023 along with Virtual Registration Copy, which is Annexure A13 to this OA.
4 OA NO.388/2026 KOTAK MAHINDRA BANK LTD. VS SH. PARVINDER SINGH AND ANOTHER
Documents executed : Demand Promissory Notes, Powers of Attorney, dated 13.04.2023, 16.08.2023, 07.10.2023, 05.10.2024, 31.03.2025, which are Annexures A5, A6, A10, A11, A15, A16, A19, A20, A24 & A25 to this OA; Legal Notice dated 27.01.2026, along with postal receipts, which is Annexure A27 to this OA; Statement of accounts along with certificates, which are Annexures A28 to A36 to this OA.
From the perusal of all the Annexures A1 to A36 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facilities, which were granted to him, defendant no. 2 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 NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,15,11,893.15 (Rupees One Crore Fifteen Lacs Eleven Thousand Eight Hundred Ninety Three and Paise Fifteen Only), along with interest from the defendants, jointly and
5 OA NO.388/2026 KOTAK MAHINDRA BANK LTD. VS SH. PARVINDER SINGH AND ANOTHER
severally, from the date of filing of the present Original Application till realization of the amount.
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 simple interest @08.00%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.
6 OA NO.388/2026 KOTAK MAHINDRA BANK LTD. VS SH. PARVINDER SINGH AND ANOTHER
Pronounced by me in the open Tribunal .
Dated: 23.06.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the bank is entitled to recover the outstanding loan amount from the guarantors and patrons.
2 provisions across 2 enactments
Kotak Mahindra Bank Ltd.
Sh. Parvinder Singh
Smt. Manpreet Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
