Allowed

Kotak Mahindra Bank Limited v. M/S Gs Trading Company and Others

DRT27 Aug 2026OA/532/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs.40,21,757.91 as per the Debt Recovery Tribunal-III, Chandigarh judgment. The court granted 8% simple interest and authorized recovery from the hypothecated vehicle or attachment of other assets.

What did the court decide?

Recovery of Rs.40,21,757.91 with costs and 8% simple interest p.a.; liberty to realize through sale of hypothecated asset or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.532/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2026

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DATE OF DECISION: 27.08.2026

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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 - 141001 through its Manager, Sh. Rakesh Kumar.

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……..Applicant

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Versus

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M/s G.S. Trading Company, through its Proprietor Sh. Gurdyal Singh, Office No.10, Near Government High School, Bhud, Tehsil Baddi, District Solan, Himachal Pradesh - 173205.

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Sh. Gurdyal Singh S/o Sh. Chajju Ram, Proprietor M/s G.S. Trading Company, R/o Village Kalyanpur, P.P. Haripur Sandholi, Tehsil Baddi, District Solan, Himachal Pradesh - 173205.

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Smt. Sinu Devi W/o Sh. Gurdyal Singh, R/o Village Kalyanpur (201), Tehsil Baddi, District Solan, Himachal Pradesh - 173205.

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…….. Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 18.08.2026).

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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.40,21,757.91 (Rupees Forty Lacs Twenty One Thousand Seven Hundred Fifty Seven and Paise Ninety One Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, who is competent to institute

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2 OA NO.532/2026 KOTAK MAHINDRA BANK LTD. VS M/S GS TRADING COMPANY AND OTHERS

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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 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity a pproached the applicant for grant of Term Loan Facility for purchase of Commercial Vehicle of Rs.42,00,000.00 vide Non Individual Customer Relation Form dated 25.03.2025, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan Facility for purchase of Commercial Vehicle of Rs.42,95,833.00 and the terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 31.03.2025, which is Annexure A3 to this OA. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its movable asset i.e., Commercial Vehicle namely TATA SIGNA 2830 bearing Registration No. HP12S9892, Chassis No. MAT567005R3P34969, Engine No. 7B62300D03142M64433161 vide Virtual Registration Certificate, which is Annexure A6 to this OA. Documents executed: Demand Promissory Note, Power of Attorney, both dated 31.03.2025, which are Annexures A4 & A5 to this OA; Legal Notice dated 21.10.2025, which is Annexure A7 to this OA; Statement of Account along with certificate, which is Annexure A8 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.40,21,757.91, 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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3 OA NO.532/2026 KOTAK MAHINDRA BANK LTD. VS M/S GS TRADING COMPANY 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 18.08.2026.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Ltd. has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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 Annexures A1 to A8 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 and defendant no. 2 in his individual capacity a pproached applicant for availing of loan facility which was granted to them, defendant no. 3 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.40,21,757.91 (Rupees Forty Lacs Twenty One Thousand Seven Hundred Fifty Seven and Paise Ninety One 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.

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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 @24.00%p.a. with monthly rests from 12.02.2026 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 vehicle, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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4 OA NO.532/2026 KOTAK MAHINDRA BANK LTD. VS M/S GS TRADING COMPANY AND OTHERS

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%p.a. in the loan account 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 defendants are liable to pay to the applicant sum Rs.40,21,757.91 (Rupees Forty Lacs Twenty One Thousand Seven Hundred Fifty Seven and Paise Ninety One Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 vehicle of 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.09.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 27.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Gs Trading Company and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Gs Trading Company and Others

Case brief

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