Allowed

Kotak Mahindra Bank Limited v. M/S Baba Transport Company and Others

DRT22 Apr 2026OA/404/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an ex-parte application filed by Kotak Mahindra Bank Ltd. for recovery of loans against M/S Baba Transport Company and others. The Tribunal confirmed the defendants' liability for the outstanding amount and directed the issuance of a Recovery Certificate under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; defendants directed to pay Rs. 1,65,59,682.68 with simple interest at 8% p.a.; sale of hypothecated vehicles and personal assets authorized.

Kotak Mahindra Bank Limited versus M/S Baba Transport Company… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.404/2026

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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: 22.04.2026

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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 Baba Transport Company, through its Proprietor, Tralla Union, under flyover Bridge, Tehsil Sunam, District Sangrur, Punjab- 148028

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Sh. Sanjiv Kumar, S/o Sh. Lal Chand, Proprietor M/S Baba Transport Company, R/o H. no. 166/B, Ward no. 9, Peer Banna Banoi Road, Tehsil Sunam, District Sangrur, Punjab- 148028

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Sh. Mohit Kashyap, S/o Sh. Sanjiv Kumar, R/o H. no. 166/B, Ward no. 9, Peer Banna Banoi Road, Tehsil Sunam, District Sangrur, Punjab- 148028

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………. Defendants

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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. 1,65,59,682.68 (Rupees One Crore Sixty Five Lacs Fifty Nine Thousand Six Hundred Eighty Two and Paise Sixty Eight Only). The Original Application has been filed

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2 OA NO.404/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S BABA TRANSPORT COMPANY AND OTHERS

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through Sh. Rakesh Kumar, Manager o f 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 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 37.00 Lacs vide Non-Individual Customer Relation Form dated 25.02.2022, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 37.00 Lacs vide Non-Individual Customer Relation Form dated 16.04.2022, which is Annexure A8 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 42,01,250.00 vide NonIndividual Customer Relation Form dated 18.11.2022, which is Annexure A13 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 80.00 Lacs vide Non-Individual Customer Relation Form dated 31.07.2023, which is Annexure A17 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 36.00 Lacs vide Non-Individual Customer Relation Form dated 05.09.2023, which is Annexure A24 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Short Term Loan of Rs. 48,76,350.00 Lacs vide Non-Individual Customer Relation Form dated 03.08.2024 , which is Annexure A28 to this OA. 3. The applicant sanctioned the Commercial Vehicle Loan of Rs.37,02,500.00 for vide Loan-cum-Guarantee Agreement dated 07.03.2022, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter the applicant sanctioned the Commercial Vehicle Loan of Rs. 37,01,250.00

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3 OA NO.404/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S BABA TRANSPORT COMPANY AND OTHERS

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vide Loan-cum-Guarantee Agreement dated 22.04.2022, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned the Commercial Vehicle Loan of Rs. 42,01,250.00 vide Loan-cumGuarantee Agreement dated 25.11.2022, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned the Commercial Vehicle Loan of Rs. 80,06,800.00 vide Loan-cum-Guarantee Agreement dated 22.08.2023, which is Annexure A20 to this OA. Thereafter, the applicant sanctioned the Commercial Vehicle Loan of Rs. 40,03,400.00 vide Loan-cum-Guarantee Agreement dated 05.09.2023, which is Annexure A25 to this OA. Thereafter, the applicant sanctioned the Short Term Loan of Rs. 48,76,350.00 vide Loan-cum-Guarantee Agreement dated 05.08.2024, which is Annexure A29 to this OA. Defendant no. 3 stood as guarantor.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their Commercial Vehicles namely:

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i.	Tata Signa 5530.S-4X2 bearing Registration	no. PB13BP8	935,
	Engine no. B6.7B6A300D02112M64184232	and Chassis	no.
	MAT828025N2B02956 vide Tax Invoice dated	26.02.2022	and
	Virtual RC, which isAnnexure A3to this OA;
ii.	Tata Signa 5530.S-4X2 bearing Registration	no. PB13BP6	205,
	Engine no. B6.7B6A300D02122C64203457	and Chassis	no.
	MAT828024N2C06737 vide Tax Invoice dated	15.04.2022	and
	Virtual RC, which isAnnexure A7to this OA;
iii.	Bharat Benz 5428TT+4X2 bearing R	egistration	no.
	PB13BQ1747, Engine no. 926956DO133705	and Chassis	no.
	MEC862FCKNP128358 vide Tax Invoice dated	17.11.2022	and
	Virtual RC, which isAnnexure A12to this OA;
iv.	Tata Signa 5530.S 4X2 bearing Registration	no. PB13BR7	205,
	Engine no. B6.7B62300D02132G64310798	and Chassis	no.
	MAT828045P2G18511 vide Tax Invoice dated	12.08.2023	and
	Virtual RC, which isAnnexure A18to this OA;

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4 OA NO.404/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S BABA TRANSPORT COMPANY AND OTHERS

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v. Tata Signa 5530.S 4X2 bearing Registration no. PB13BR6505, Engine no. B6.7B62300D02132G64310935 and Chassis no. MAT828045P2G18509 vide Tax Invoice dated 12.08.2023 and Virtual RC, which is Annexure A19 to this OA;

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vi. Tata Signa 5530.S 4X2 bearing Registration no. PB13BR8935, Engine no. B6.7B62300D02132H64317299 and Chassis no. MAT828045P2H21130 vide Tax Invoice dated 31.08.2023 and Virtual RC, which is Annexure A23 to this OA. Documents executed: DP Note and Power of Attorney, both dated 07.03.2022, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 22.04.2022, which are Annexure A10 and A11 to this OA; DP Note and Power of Attorney, both dated 25.11.2022, which are Annexure A15 and A16 to this OA; DP Note and Power of Attorney, both dated 22.08.2023, which are Annexure A21 and A22 to this OA; DP Note and Power of Attorney, both dated 05.09.2023, which are Annexure A26 and A27 to this OA; DP Note and Power of Attorney, both dated 05.08.2024, which are Annexure A30 and A31 to this OA; Loan Recall Notice dated 08.01.2026 along with postal receipts, which is Annexure A32 to this OA; Statement of Accounts, which are Annexure A33 to A45 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 was a debit of Rs.1,65,59,682.68, 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. 6. 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 20.04.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited h as been filed.

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5 OA NO.404/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S BABA TRANSPORT COMPANY AND OTHERS

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel (through VC) 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 A45 to this OA, it is proved that the defendants approached applicant for availing of the 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, 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. 1,65,59,682.68 (Rupees One Crore Sixty Five Lacs Fifty Nine Thousand Six Hundred Eighty Two and Paise Sixty Eight Only) along with interest from the defendants, jointly and severally, 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 28.12.2025 till the realization.

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The Tribunal is of the considered opinion that sometimes in

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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 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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6 OA NO.404/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S BABA TRANSPORT COMPANY AND OTHERS

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,65,59,682.68 (Rupees One Crore Sixty Five Lacs Fifty Nine Thousand Six Hundred Eighty Two and Paise Sixty Eight Only) jointly and severally, with costs, current and future simple interest @08.00%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 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.

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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 13.05.2026. 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: 22.04.2026

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

Kotak Mahindra Bank Limited v. M/S Baba Transport Company and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Baba Transport Company and Others

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