DRT allowed the bank's application for recovery of loan dues. The court adjusted the interest rate to 8% p.a. upon realization of the hypothecated vehicle or by attachment of personal assets.
Recovery of Rs.29,74,212.79 with costs and 8% p.a. interest from sale of hypothecated vehicle or attachment of personal assets.
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.409/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.03.2026
DATE OF DECISION: 15.07.2026
Kotak Mahindra Bank Limited, having its Registered Office at Kotak Mahindra Bank Limited, 27 BKC, 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.
……..Applicant
Versus
Badhi, Muktsar – 152026.
……..Defendants
Advocates:
Argued by Ms. Pinki, Advocate proxy for Ms. Dipti Toni, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 13.07.2026).
FINAL ORDER
2 OA NO.409/2026 KOTAK MAHINDRA BANK LTD. VS SH. BEANT SINGH AND ANOTHER
Customer Relation Form dated 03.03.2023, which is Annexure A2 to this OA.
From the perusal of all the Annexures A1 to A9 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
3 OA NO.409/2026 KOTAK MAHINDRA BANK LTD. VS SH. BEANT SINGH AND ANOTHER
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.29,74,212.79 (Rupees Twenty Nine Lacs Seventy Four Thousand Two Hundred Twelve and Paise Seventy Nine 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.
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 asset, 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 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.
4
OA NO.409/2026 KOTAK MAHINDRA BANK LTD. VS SH. BEANT SINGH AND ANOTHER
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.
Pronounced by me in the open Tribunal .
Dated: 15.07.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendants jointly and severally.
What rate of interest should apply pending realization of the debt considering market trends.
1 provisions across 1 enactments
Kotak Mahindra Bank Limited
Sh. Beant Singh
Ms. Ramandeep Kaur
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
