Allowed

Kotak Mahindra Bank Limited v. Harender Trading Co. and Others

DRT20 May 2026OA/533/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Kotak Mahindra Bank against M/s Harender Trading Co. and others. The Tribunal awarded a sum of Rs. 29,40,380.01 plus costs and fixed simple interest at 08% p.a., permitting recovery from hypothecated assets or sale of personal assets.

What did the court decide?

Recovery of Rs. 29,40,380.01 with costs and simple interest at 08% p.a. Granted recovery certificate. Order to recover via sale of hypothecated vehicle or attachment of personal assets.

Kotak Mahindra Bank Limited versus Harender Trading Co. and Others — Cheque Dishonour | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.533/2026

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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: 20.05.2026

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Kotak Mahindra Bank Ltd. a Body Corporate, incorporated under the provisions of 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 Harender Trading Co. through its proprietor Sh. Harender, Khewat No. 166/200, Khatoni No. 2017, Killa No. 36 25 25 8, Nehra Pana Merandola, Village Tajpur, Tehsil & District Sonipat, Haryana-131001.

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Sh. Harender S/o Sh. Om Prakash, Proprietor, R/o House No. 63, Village Tajpur, Tihara Khurd (191), Tehsil & District Sonipat, Haryana-131022.

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Sh. Gurjeet Singh S/o Sh. Om Prakash, R/o Village Tajpur, Tihara Khurd 191, Tihar Bagru, Sonipat, Haryana-131022.

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……..Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for Applicant

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None for Defendants (Already ex-parte vide order dated 18.05.2026).

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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.29,40,380.01 (Rupees Twenty Nine Lacs Forty Thousand Three Hundred Eighty and Paise One Only). The Original Application has been filed through Sh. Rakesh

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2 OA/533/2026 KOTAK MAHINDRA BANK LTD. VS M/S HARENDER TRADING CO. AND OTHERS

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Kumar, Manager of 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 the defendant no.1 through its proprietor defendant no.2 and defendant no.2 also in his individual capacity approached the applicant for grant of Term Loan for purchase of Commercial Vehicle of Rs.45,00,000.00 vide Non Individual Customer Relation Form dated 06.03.2024, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan for purchase of Commercial vehicle of Rs.45,37,068.00 and the terms and conditions were duly accepted by the defendant no.1 through its proprietor defendant no.2 and defendant no.2 also in his individual capacity vide Loan-Cum-Guarantee Agreement dated 22.03.2024, which is Annexure A4 to this OA. Defendant no. 3 stood as guarantor.

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Defendant no.1 through its proprietor defendant no.2 hypothecated its movable vehicle i.e., TATA SIGNA 5590 Bearing Registration No. HR69F8187, Engine No. 7B62300D02142B64366676, Chassis No. MAT828045R2B04328 vide Tax Invoice date 15.03.2024 along with Virtual Registration Certificate, which is Annexure A3 to this OA.

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Documents executed: Demand Promissory Note, Power of Attorney, both dated 22.03.2024, which are Annexures A5 & A6 to this OA; Legal Notice dated 20.03.2026, along with postal receipts, 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 loan account there was a debit of Rs.29,40,380.01 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/533/2026 KOTAK MAHINDRA BANK LTD. VS M/S HARENDER TRADING CO. 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 on 18.05.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 also in his individual capacity approached applicant for availing of the 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.29,40,380.01 (Rupees Twenty Nine Lacs Forty Thousand Three Hundred Eighty and Paise 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%p.a. from 11.03.2026 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 asset, undertaking of the defendants, quantum of loan 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

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4 OA/533/2026 KOTAK MAHINDRA BANK LTD. VS M/S HARENDER TRADING CO. AND OTHERS

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just and appropriate to grant simple interest @08.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,40,380.01 (Rupees Twenty Nine Lacs Forty Thousand Three Hundred Eighty and Paise One Only), jointly and severally, with costs, current and future simple interest @08.00%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 the defendant no. 1 through its proprietor defendant no.2 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. 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 11.06.2026. 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: 20.05.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Harender Trading Co. and Others

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Harender Trading Co. and Others

Case brief

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What did the court decide?

What the court decided

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