Allowed

Kotak Mahindra Bank Limited v. Sh. Sanjay Tiwari and Others

DRT27 Jul 2026OA/408/2026

Case brief

AI extract

What is this about?

Allowed the bank's application for recovery of outstanding term loan dues of Rs.39,45,518.37 against the borrower and two guarantors. Ordered payment of principal with simple interest at 8% p.a. and directed issuance of Recovery Certificate and attachment of hypothecated assets.

What did the court decide?

Declared respondents jointly and severally liable to pay principal sums with interests; issued Recovery Certificate; ordered recovery from sale of hypothecated vehicles or personal assets.

Kotak Mahindra Bank Limited versus Sh. Sanjay… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.408/2026

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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: 27.07.2026

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Kotak Mahindra Bank Limited, having its Registered Office at Kotak Mahindra Bank Limited, 27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai - 400051, and Branch Office at Kotak Mahindra Bank, SCO 131-132-133, Second Floor, Apra Tower, Feroze Gandhi Market, Ludhiana - 141001 through its Authorized Representative Sh. Rakesh Kumar.

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……..Applicant

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Versus

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Sh. Sanjay Tiwari S/o Sh. Ganga Sagar Tiwari, R/o Phase 5, Focal Point, Ludhiana – 141010.

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Sh. Amandeep Singh S/o Sh. Daljit Singh, R/o 1124 28, Campa Cola Colony, Dhanadari Kalan, Ludhiana – 141014.

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M/s Kartar Trading Company through its Partners Sh. Gurparkash Singh & Sh. Surjit Singh, H No.541, HIG Jamalpur Colony, Chandigarh road, Focal Point, Ludhiana – 141010.

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…….. Defendants

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Advocates:

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Argued by Ms. Dipti Toni, Advocate for the 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.39,45,518.37 (Rupees Thirty Nine Lacs Forty Five Thousand Five Hundred Eighteen and Paise Thirty Seven Only). The Original Application has been filed through Sh. Rakesh Kumar, Authorized Representative of the applicant, who is competent to institute the Original Application vide Board Resolution dated 29.11.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 approached the applicant for grant of Term Loan Facility for purchase

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2 OA NO.408/2026 KOTAK MAHINDRA BANK LTD. VS SH. SANJAY TIWARI AND OTHERS

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of Commercial Vehicle of Rs.34,00,000.00 vide Individual Customer Relation Form dated 21.04.2023, which is Annexure A2 to this OA. Thereafter, the defendant no. 1 a pproached the applicant for grant of Term Loan Facility for purchase of Commercial Vehicle of Rs.38,00,000.00 vide Individual Customer Relation Form dated 21.12.2023, which is Annexure A5 to this OA. 3. The applicant sanctioned the Term Loan Facility I for purchase of Commercial Vehicle of Rs.30,53,808.00 and the terms and conditions were duly accepted by the defendant nos. 1 & 3 vide Loan cum Guarantee Agreement dated 25.04.2023, which is Annexure A3 to this O A. Defendant no. 3 stood as guarantor. Thereafter, th e applicant sanctioned the Term Loan Facility II for purchase of Commercial Vehicle of Rs.36,77,757.00 and the terms and conditions were duly accepted by the defendant nos. 1 & 2 vide Loan cum Guarantee Agreement dated 02.01.2024, which is Annexure A6 to this O A. Defendant no. 2 stood as guarantor. 4. Defendant no. 1 hypothecated his movable assets i.e., (i) Commercial Vehicle namely Mahindra Blazo 55 bearing Registration No. PB10JC0417, Chassis No. MA1UAARXFP6C72645, Engine No. PHPZC12386, vide Virtual Registration Certificate filed on 24.07.2026, in compliance of order dated 23.04.2026. (Ii) Commercial Vehicle namely Bharat Benz 5528 bearing Registration No. PB10JH0717, Chassis No. 926956D0155202, Engine No. MEC862FCJPP148441, vide Virtual Registration Certificate filed on 24.07.2026, in compliance of order dated 23.04.2026. Documents executed: Demand Promissory Notes, dated 25.04.2023, 02.01.2024, which are Annexures A4 & A7 to this OA; Statement of Accounts along with and certificates, which are Annexures A8 & A9 to this OA; Legal Notice dated 31.01.2026, along with postal receipts, which are Annexures A10 to A13 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.39,45,518.37, which is recoverable and the defendants were served recall notices but they did not repay the

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3 OA NO.408/2026 KOTAK MAHINDRA BANK LTD. VS SH. SANJAY TIWARI AND OTHERS

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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, Authorized Representative, Kotak Mahindra Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant 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 Annexures A1 to A13 to this OA, it is proved that the defendant no. 1 a pproached applicant for availing of Term Loan Facility I which was granted to him, defendant no. 3 stood as guarantor and the defendant no. 1 a pproached applicant for availing of Term Loan Facility II which was 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.14,27,909.81 (Rupees Fourteen Lacs Twenty Seven Thousand Nine Hundred Nine and Paise Eighty One Only), along with interest from the defendant nos. 1 & 3, jointly and severally and Rs.25,17,608.56 (Twenty Five Lacs Seventeen Thousand Six Hundred Eight and Paise Fifty Six Only), along with interest from the defendant nos. 1 & 2, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @24.00%p.a. with monthly rests from 23.01.2026 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

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4 OA NO.408/2026 KOTAK MAHINDRA BANK LTD. VS SH. SANJAY TIWARI AND OTHERS

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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 @8.00%p.a. in both 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 defendant nos. 1 & 3 are liable to pay to the applicant sum of Rs.14,27,909.81 (Rupees Fourteen Lacs Twenty Seven Thousand Nine Hundred Nine and Paise Eighty One Only) and the defendant nos. 1 & 2 are liable to pay to the applicant sum of Rs.25,17,608.56 (Twenty Five Lacs Seventeen Thousand Six Hundred Eight and Paise Fifty Six Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 defendant no. 1 i n 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 11.08.2026. 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: 27.07.2026

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

Kotak Mahindra Bank Limited v. Sh. Sanjay Tiwari and Others

Case brief

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Kotak Mahindra Bank Limited v. Sh. Sanjay Tiwari and Others

Case brief

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