Allowed

Kotak Mahindra Bank Limited v. M/S G.N. Construction and Others

DRT23 Apr 2026OA/403/2026

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal adjudicated an ex-parte original application filed by Kotak Mahindra Bank Ltd. for recovery of dues from construction firms and their partners. The Tribunal found the case proven based on documentary evidence and allowed the application, granting a uniform simple interest rate of 8% p.a. instead of the claimed 24%.

What did the court decide?

Recovery of Rs. 33,22,733.57 (from defendants 1-5), Rs. 11,66,910.76 (from defendants 1-2), and Rs. 58,20,882.18 (from defendants 1-3) with simple interest at 8% p.a. Recovery certificate issued.

Kotak Mahindra Bank Limited versus M/S G.N. Construction and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.403/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2026

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DATE OF DECISION: 23.04.2026

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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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M/S G.N. Constructions, through its Partners, Near Football Chowk, 1^st Floor, Star Motors, Jhandianwala, Peer Chowk, Canal Road, Leather Complex Industrial Area, Jalandhar, Punjab144002

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Sh. Harkrishan Singh Walia S/o Sh. Tarlochan Singh, Partner M/S G.N. Constructions, R/o H. no. 1602-1603, Kapurthala Road, Jalandhar Extension- I, Jalandhar, Punjab- 144013

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2^nd Address: Village and Post Office Mansurwal Dona, District Kapurthala, Punjab- 144601

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1. Ms. Gurpreet Kaur Walia D/o Sh. Ranjit Singh Walla, Partner M/S G.N. Constructions, R/о Н. no. 1602-1603, Kapurthala Road, Jalandhar Extension- I, Jalandhar, Punjab- 144013

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M/s G.N. Crane Services, through its Partners, Chowk Jhandianwala Peer, Football Chowk, Jalandhar, Punjab- 144002

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Smt. Amarjit Kaur W/o Sh. Tarlochan Singh, Partner M/S G.N. Crane Services, R/о H. no. 1602-1603, Kapurthala Road, Jalandhar Extension- I, Jalandhar, Punjab- 144013 …Defendants

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2 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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Advocates:

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Argued by Sh. Manav Singal, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 20.04.2026)

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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. 1,03,10,526.51 (Rupees One Crore Three Lacs Ten Thousand Five Hundred Twenty Six and Paise Fifty One 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 defendant no. 1 is a Partnership Firm in which defendant nos. 2 and 3 are Partners. Defendant no. 4 is also a Partnership Firm in which Defendant nos. 2 and 5 are Partners.

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The Defendant no. 1 through its Partner defendant no. 2 and Defendant no. 2 in individual capacity approached the applicant for grant of Term Loan of Rs.84 Lacs for purchase of Construction Equipment Machinery vide Non-Individual Customer Relation Form dated 21.11.2022, which is Annexure A4 to this OA. Defendant no. 3 and Defendant no. 4 through its Partners Defendant nos. 2 and 5 stood as guarantor.

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Thereafter, Defendant no. 1 through its Partner Defendant no. 2 approached the applicant for grant of Term Loan of Rs.110 Lacs for purchase of two units of Commercial Vehicle i.e. TATA SIGNA 3530 vide Non-Individual Customer Relation Form dated 02.06.2023, which is Annexure A9 to this OA. Defendant no. 3 stood as guarantor. Thereafter, Defendant no. 1 through its Partner Defendant no. 2 approached the applicant for grant of Term Loan of Rs.35 Lacs for purchase of Construction Equipment Machinery vide Non-Individual

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3 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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Customer Relation Form dated 2.07.2023, which is Annexure A15 to this OA. Defendant no. 2 stood as guarantor.

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Thereafter, the Defendant no. 1 through its Partner defendant no. 2 and Defendant no. 2 in individual capacity approached the applicant for grant of Term Loan of Rs.12 Lacs for purchase of Light Commercial Vehicle i.e. ISUZU D MAX vide Non-Individual Customer Relation Form dated 24.01.2024, which is Annexure A21 to this OA. Defendant no. 3 stood as guarantor.

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The applicant sanctioned the Term Loan of Rs. 83,79,846.00 for purchase of Construction Equipment Machinery and terms and conditions were duly accepted by the defendants. Loan-cum-Guarantee Agreement dated 03.12.2022, which is Annexure A6 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs.1,01,59,690.00 (Two Term Loans of Rs.50,79,845.00 each) for purchase of two units of Commercial Vehicle i.e. TATA SIGNA 3530 and terms and conditions were duly accepted by Defendant nos. 1 to 3. Loan-cum-Guarantee Agreement dated 29.06.2023, which is Annexure A12 to this OA. Thereafter, the applicant sanctioned Term Loan of Rs.29,70,000.00 for Purchase of Construction Equipment Machinery. and terms and conditions were duly accepted by Defendant nos. 1 and 2. Loan-cum-Guarantee Agreement dated 02.08.2023, which is Annexure A17 to this OA.

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Thereafter, the applicant sanctioned Term Loan of Rs.11,02,600.00 for purchase of Light Commercial Vehicle i.e. ISUZU D MAX and terms and conditions were duly accepted by Defendant nos. 1 to 3. Loan-cum-Guarantee Agreement dated 01.02.2024, which is Annexure A22 to this OA. 4. Defendant no. 1 through its Partner defendant no. 2 hypothecated its movable properties namely:

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4 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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i.	Construction Equipment Machinery i.e. Grader CLG418	0D/AL
	BSIV/ZF bearing Engine no. NFHM112967 and Chassis no	. and
	Machine serial no. LGI4180DVNNAG0078. Tax Invoice	dated
	02.12.2022, which isAnnexure A5to this OA.
ii.	Commercial Vehicle TATA SIGNA 3530.TK 8X4 BSVI HD	23bx
	bearing Registration no. PB08FE3737, Engine	no.
	B6.7B62300D03132E64296639 and Chassis	no.
	MAT569002P3E15801. Tax Invoice dated 14.06.2023 along	with
	Virtual RC of Vehicle, isAnnexure A10to this OA.
iii.	Commercial Vehicle TATA SIGNA 3530.TK 8X4 BSVI HD	23bx
	bearing Registration no. PB08FE4040, Engine	no.
	B6.7B62300D03132E64298887 and Chassis	no.
	MAT569002P3E16808. Tax Invoice dated 14.06.2023 along	with
	Virtual RC of Vehicle, isAnnexure A11to this OA.

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iv. Construction Equipment Machinery i.e. CASE 770 EX-2WD bearing Registration no. PB08FF4545, Engine no. PLHM105411 and Chassis no. NKJ770EXVPKH34899. Tax Invoice dated 24.07.2023 along with Virtual RC of Construction Equipment Vehicle, is Annexure A16 to this OA. v. Light Commercial Vehicle ISUZU D-MAX S-CAB 2WD HR AC bearing Registration no. PB08FJ0565, Engine no. AAH968 and Frame no.M3GTFR546PB700955. Tax Invoice dated 23.01.2024 along with Virtual RC of Vehicle, is Annexure A20 to this OA. Documents executed: Partnership Deeds dated 03.12.2018 and 22.11.2022, which are Annexure A2 and A3 to this OA; DP Note dated 03.12.2022, which is Annexure A7 to this OA; Power of Attorney, which is Annexure A8 to this OA; DP Note dated 29.06.2023, which is Annexure A13 to this OA; Power of Attorney, which is Annexure A14 to this OA; DP Note dated 02.08.2023, which is Annexure A18 to this OA; Power of Attorney, which is Annexure A19 to this OA; DP Note dated 01.02.2024, which is Annexure A23

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5 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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to this OA; Power of Attorney, which is Annexure A24 to this OA; Loan Recall Notice dated 29.01.2026, along with postal receipts, which is Annexure A25 to this OA and Statement of Accounts, which are Annexure A26 to A30 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 loan accounts there were a debit of Rs. 1,03,10,526.51 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.

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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 on 20.04.2026.

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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 through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexure A1 to A30 to this OA, it is proved that the defendants approached applicant for availing of various loan facilities which were granted to them 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, all the 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.33,22,733.57 (Rupees Thirty Three Lacs Twenty Two Thousand Seven Hundred Thirty Three and Paise Fifty Seven only) along with interest, jointly and severally, from the defendant nos. 1 to 5, a sum of Rs.11,66,910.76 (Rupees Eleven Lacs Sixty Six Thousand Nine Hundred Ten and Paise Seventy

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6 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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Six only) along with interest, jointly and severally, from the defendant nos. 1 and 2 and a sum of Rs.58,20,882.18 (Rupees Fifty Eight Lacs Twenty Thousand Eight Hundred Eighty Two and Paise Eighteen only) along with interest, jointly and severally, from the defendant nos. 1 to 3 from the date of filing of the present Original Application till realization of the accounts.

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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 from 28.01.2026 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 and commercial equipment/machinery, 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 @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.

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In the result, the application is allowed declaring that the defendant nos. 1 to 5 are liable to pay to the applicant a total sum of Rs.33,22,733.57 (Rupees Thirty Three Lacs Twenty Two Thousand Seven Hundred Thirty Three and Paise Fifty Seven only), defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs.11,66,910.76 (Rupees Eleven Lacs Sixty Six Thousand Nine Hundred Ten and Paise Seventy Six only) and defendant nos. 1 to 3 are liable to pay to the applicant Rs.58,20,882.18 (Rupees Fifty Eight Lacs Twenty Thousand Eight Hundred Eighty Two and Paise Eighteen 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

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7 OA NO.403/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S G.N. CONSTRUCTIONS AND OTHERS

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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 and construction equipment/machinery of the defendant 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 14.05.2026.

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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: 23.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S G.N. Construction and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S G.N. Construction and Others

Case brief

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