Allowed

Kotak Mahindra Bank Limited v. M/S. Royal Automotives

DRT11 Feb 2026OA/579/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery. The court held that the defendants are jointly and severally liable to repay the outstanding overdraft and term loan amounts with future interest and costs, based on admitted documentary evidence.

What did the court decide?

Defendants directed to pay total sum of Rs. 15,36,24,231.27 plus future interest, costs, and allow proceeding against mortgaged and other properties.

Kotak Mahindra Bank Limited versus M/S. Royal Automotives — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDEMBAD DATED THIS THE 11TH DAY OF FEBRUARY, 2026 PRESENT: SH. RAMESHWAR KoTHE, B.Com., L.LB, (Hons.), M.A. PRESIDING OFFICER

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ORIGINAL APPLICATION No: 579 OF 2025

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Kotak Mahindra Bank Limited., Having its Branch Office at Legal Department, 6-3-7t09/7 2nd Floor, Nava Bharat Chambers Rajbhavan Road, Somajiguda Hyderabad - 500082. Rep. by its Constituted Attorney.

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, ....Applica nt.

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Versus

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M/s. Royal Automotives., Rep by its Proprietor Sri.Ch.Narender Reddy, Having its Office at^plot No.31 Pakabanda Bazar, Khammam Telangana - 507002,

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lvl/s. Hemanth Automotives., Rep by its Proprietor Sri.Ch.Narender Reddy, Having its Office at NTR Shop No.4 & 5, Kissan Complex Pacs Sathupally, RTC Bus Stand Vemsoor Road, Opp TVS Showroom Sathupally, Khammam, Telangana-507303.

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Sri. Ch. Narender Reddy S/o. Ch. Venkateswar Reddy Aged about 36 Years, Occ: Business Resident of H. No.3- 15, Gudimalkauram Village, Mellachervu Mandal, Nalgonda District, Telangana - 508246.

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Sri. Ch. Venkateswar Reddy S/o. Ch, Bali Reddy, Aged about 60 Years Occ: Business, Resident of H.No.6-97 Gudimalkauram Village, Mellachervu Mandal Nalgonda District, Telangana ^ 508246. 0w^

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oA.NO.579/2025

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Smt. Ch. Bharathi,^{D/o.K. Mallikarjuna} Reddy, Aged about 29^{Years, Occ:} Business, Resident of^H.No.6-97 Gudimalkauram^{Village,l.4ellachervu Mandal} Nalgonda Dlstrict, Telangana -^508246.

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... Defendants

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Counsel for the Applicant Defendants

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: Mr. R. Rajendra Prasad

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: Ex-pa rte

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:: qLLqL ::

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The Applicant Bank flled the^{present OA for the recovery a total} sum of Rs.f536,24,231.27ps i.e., a sum^of Rs.12,36,33,215.92ps as on 25.72.2024 towards Over^Draft Facility A/c. No.8112794626, a sum of^{Rs.1,62,11,504.16psas} on 25,72.2024 towards Term Loan^{A/c.No.7802TL0100000004} and a sum of Rs.1,37,79,511.19ps towards Over^draft A/c.No.8112100717 from the defendants^jointly and severally with future interest @240lo p.a. from the date of application till the date of realization along with costs and in default for sale of OA schedule^properties.

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Summons served on D1 to 5 through paper publication. They were set ex-parte on 24.70.2025 as called absent and no representation.

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The Applicant Bank examined K. Balaji Rao, Legal Manager, as AW-1 and marked 68 documents through him as Ex. A.1 to Ex. A.68.

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Heard the Ld. Counsel for the Applicant Bank.^perused the material placed on record. ffirX

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oA.NO.S79l2025

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The point that arises for consideration is:-

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Whether the Applicant Bank is entiued for the claim made in the OA against the Defendants and OA schedule properties?

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As stated supra, the Defendants remained ex-parte. The Evidence Amdavit coupled with the recitals in the documents viz., Exs. A.1 to A.68 marked on behalf of the Applicant Bank clinches the claim of the Applicant Bank against the Defendants. Hence, I hold that the Defendants are joinfly and severally liable to pay the OA claim to the Applicant Bank with future interest and costs.

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In the result, the present Original Apptication No.57912025 is allowed as under: -

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i) The Defendants are jointly and severally liable to pay to the Applicant Bank a totat sum of Rs.15,36,24,231.27ps i.e., a sum of Rs,12,36,33,215.92ps as on 25.t2.2024 towards Over Draft Facility Alc. No. 8LL2794626, a sum of Rs.1,62,11,504.16ps as on 25.12.2024 towards Term Loan A/c. No.7802TL0100000004 and a sum of Rs.1,37,79,511.19ps towards Over draft A,/c. N o.81 12 10 0 717; with future interest @8.65%^p.a. simple from the date of application till the date of rcatizatioa OW.\

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oA.NO.s79l202s

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ii) the OA claim is secured by way of mortgage of properties described in the schedule annexed to the OA and the applicant bank is entitled to proceed against the same to realise its debt;

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iii) the applicant bank is also entitled to^proceed against the person and^properties of defendants for realization of its dues;

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iv) the applicant bank is entitled for the costs.

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B. The Applicant Bank is directed to file Cost Memo within 2 weeks from the date of receipt of this Order.

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Issue Recovery Certificate accordingly,

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Communicate a copy of this order to the parties concerned. (Dictated to the steno, corrected, signed and pronounced by me in the open court on this the 1lth Day of February, 2026).

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( U;'t*Y--(RFMESHWAR KoTHE) PRESIDING OFFICER

Kotak Mahindra Bank Limited v. M/S. Royal Automotives

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S. Royal Automotives

Case brief

What is this about?

What did the court decide?

What the court decided

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