Allowed

Kotak Mahindra Bank Limited v. M/S Ashok Panjla Tiles and Others

DRT22 Apr 2026OA/411/2026

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Kotak Mahindra Bank Ltd. under Section 19 RDB Act for recovery of dues. The court ordered payment of the principal sum plus simple interest at 8% p.a., authorizing recovery through SARFAESI Act proceedings or attachment of assets.

What did the court decide?

Defendants declared liable to pay Rs. 35,82,300.90 with simple interest at 8% p.a. Recovery via SARFAESI Act or attachment of assets ordered.

Kotak Mahindra Bank Limited versus M/S Ashok… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.411/2026

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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 Ashok Panjla Tiles, through its Proprietor, Village Baduhi Garan, Tehsil Nurpur, District Kangra, Himachal Pradesh176051

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Sh. Varinder Kumar, S/o Sh. Ashok Kumar, Proprietor M/S Ashok Panjla Tiles, R/o Village Garan, Post Office Gurial, Tehsil Nurpur, District Kangra, Himachal Pradesh- 176051

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Sh. Ashok Kumar, S/o Sh. Isher Dass, R/o Village Garan, Tehsil Nurpur, District Kangra, Himachal Pradesh- 176051

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…..Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for applicant (through VC)

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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. 35,82,300.90 (Rupees Thirty Five Lacs Eighty Two Thousand Three Hundred and Paise Ninety Only). The Original Application has been filed 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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2 OA NO.411/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S ASHOK PANJLA TILES AND OTHERS

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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. 22.00 Lacs vide Non-Individual Customer Relation Form dated 14.02.2022, 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. 30.00 Lacs vide Non-Individual Customer Relation Form dated 31.03.2022 which is Annexure A7 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for grant of Light Commercial Vehicle Loan of Rs. 8.10 Lacs vide Non-Individual Customer Relation Form dated 06.12.2022, which is Annexure A12 to this OA. Thereafter defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for grant of Construction Equipment Loan of Rs. 35.00 Lacs vide Non-Individual Customer Relation Form dated 20.04.2023, which is Annexure A17 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for grant of Term Loan of Rs. 24.00 Lacs vide Non-Individual Customer Relation Form dated 20.10.2023 , which is Annexure A22 to this OA. 3. The applicant sanctioned the Commercial Vehicle Loan of Rs.21,68,500.00 vide Loan-cum-Guarantee Agreement dated 05.03.2022, 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. 21,68,500.00 vide Loan-cum-Guarantee Agreement dated 01.04.2022, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned the Light Commercial Vehicle Loan of Rs. 7,97,600.00 vide Loan-cumGuarantee Agreement dated 13.12.2022, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned the Construction Equipment Loan of Rs. 33,13,403.00 vide Loan-cum-Guarantee Agreement dated 03.06.2023, which is Annexure A19 to this OA. Thereafter, the applicant sanctioned the Term Loan of Rs. 22.41 Lacs vide Loan-cum-Guarantee Agreement dated 02.11.2023, which is Annexure A23 to this OA. Defendant no. 3 stood as guarantor.

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3 OA NO.411/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S ASHOK PANJLA TILES AND OTHERS

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4.	Defendant no. 1 through its	Proprietor de	fendant no	. 2
hyp i.	othecated their movable properties Tata Ultra 1918.T 5L bearing Reg Engine no. 5LNGDICR21BX	namely: istration no. X505343 and	HP38G67 Chassis	71, no.
	MAT790213N7B04506 vide Tax	Invoice dated	28.02.2022	and
	Virtual RC, which isAnnexure	A3to this OA;
ii.	Tata Ultra 1918.T 5L bearing	Registration	no. HP38G6	442,
	Engine no. 5LNGDICR21	BXX505345,	Chassis	no.
	MAT790213N7B04519 vide Tax Virtual RC, which isAnnexure A	Invoice dated 8to this OA;	15.03.2022	and
iii.	Mahindra and Mahindra Limited	Bolero bearing	Registration	no.
	HP38G9464, Engine no.	TNN1L21183,	Chassis	no.
	MAIZU2TNKN1L10789 vide Tax	Invoice dated	07.12.2022	and
	Virtual RC, which isAnnexure A	13to this OA;
iv.	Venus Make (Eco-18) Pan Mixer	Type, Silo 100	Ton Cement	with
	Accessories, Bilower 50 HP, D	ebagger 30 HP	and Disch	arge
	Chute vide Performa Invoice	dated 09.05.	2023, whic	h is
	Annexure A18to this OA.

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Documents executed: DP Note and Power of Attorney, both dated 05.03.2022, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 01.04.2022, which are Annexure A10 and A11 to this OA; DP Note and Power of Attorney, both dated 13.12.2022, which are Annexure A15 and A16 to this OA; DP Note and Power of Attorney, both dated 03.06.2023, which are Annexure A20 and A21 to this OA; DP Note and Power of Attorney, both dated 02.11.2023, which are Annexure A24 and A25 to this OA; Loan Recall Notice dated 29.01.2026, which is Annexure A26 to this OA; Statement of Accounts, which are Annexure A27 to A31 to this OA. 5. 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. 35,82,300.90 which is recoverable and the defendants were served recall notices 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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4 OA NO.411/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S ASHOK PANJLA TILES AND OTHERS

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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 vide order dated 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. 8. 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. From the perusal of all the Annexure A1 to A31 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. 35,82,300.90 (Rupees Thirty Five Lacs Eighty Two Thousand Three Hundred and Paise Ninety 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 pendent elite 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 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 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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5 OA NO.411/2026 KOTAK MAHINDRA BANK LIMITED VS. M/S ASHOK PANJLA TILES 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.35,82,300.90 (Rupees Thirty Five Lacs Eighty Two Thousand Three Hundred and Paise Ninety 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 OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.05.2026.

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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: 22.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Ashok Panjla Tiles and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Ashok Panjla Tiles and Others

Case brief

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