Allowed

Kotak Mahindra Bank Limited v. Kadian Builders & Developers and Others

DRT1 Jun 2026OA/589/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of an outstanding loan of Rs. 2,45,87,318.19 against the borrower and guarantor. Despite a claimed 24% interest rate, the Tribunal granted a reduced simple interest of 8% per annum for the recovery period.

What did the court decide?

Directing payment of principal sum with costs and simple interest at 8% p.a.; issuing Recovery Certificate; authorizing execution proceedings.

Kotak Mahindra Bank Limited versus Kadian Builders… — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 589/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.04.2026

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DATE OF DECISION: 01.06.2026

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Kotak Mahindra Bank Limited, 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, 2nd 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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Kadian Builders & Developers Pvt. Ltd., Through its Directors, Village Balour, Sidhpur, Lowa Road, Bahadurgarh, Tehsil Bahadurgarh, District Jhajjar, Haryana,-124507.

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Sh. Krishan Kadian S/o Sh. Bhoop Singh, Director Kadian Builders & Developers Pvt. Ltd., R/o H.No.1727, Sector-2, Bahadurgarh, Tehsil Bahadurgarh, District Jhajjar, Haryana-124507.

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Smt. Rekha W/o Sh. Krishan Kadian, Director Kadian Builders & Developers Pvt. Ltd., R/o H.No.1727, Sector-2, Bahadurgarh, Tehsil Bahadurgarh, District Jhajjar, Haryana-124507.

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.……Defendants

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Advocates:

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Argued by Sh. Manav Singal, Advocate for applicant.

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None for Defendants (already ex parte vide order dated 29.05.2026)

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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.2,45,87,318.19 (Rupees Two Crore

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2 OA/ 589/2026 KOTAK MAHINDRA BANK LIMITED VS KADIAN BUILDERS & DEVELOPERS PVT. LTD. AND OTHERS

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Forty Five Lacs Eighty Seven Thousand Three Hundred Eighteen and Paise Nineteen Only). The Original Application has been filed through Sh. Rakesh 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 director defendant no. 2, approached the applicant for grant of commercial vehicle loan of Rs. 579.60 lacs for purchase of 10 units of commercial vehicles vide Non-Individual Customer Relation Form dated 01.05.2023, which is Annexure A14 to this OA. Defendant no.3 stood as guarantor.

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The applicant sanctioned the commercial vehicle loan of Rs. 579.60 lacs for purchase of 10 units of commercial vehicles vide Loancum-Guarantee Agreement along with Schedules dated 03.05.2023, which is Annexure A15 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1, through its director defendant no. 2,

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hypothecated its commercial vehicles as under:

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Sr. No.	Model of Vehicles	Engine No.	Chassis No.	Regn. No.
1.	Eicher Pro 6055	VEDX8615477K6P	MC2BUERCOPC092280	HR-63E- 8749
2.	Eicher Pro 6055	VEDX8616239K6P	MC2BUERCOPC093202	HR-63E- 5658
3.	Eicher Pro 6055	VEDX8616237K6P	MC2BUERCOPC093197	HR-63E- 5373
4.	Eicher Pro 6055	VEDX8616101K6P	MC2BUERCOPC093184	HR-63E- 9982
5.	Eicher Pro 6055	VEDX8616222K6P	MC2BUERCOPC093194	HR-63E- 1107
6.	Eicher Pro 6055	VEDX8615983K6P	MC2BUERCOPC093169	HR-63E- 0975
7.	Eicher Pro 6055	VEDX8615852K6P	MC2BUERCOPC092285	HR-63E- 7621
8.	Eicher Pro 6055	VEDX8616016K6P	MC2BUERCOPC093171	HR-63E- 4332
9.	Eicher Pro 6055	VEDX8616224K6P	MC2BUERCOPC093195	HR-63E- 1743
10.	Eicher Pro 6055	VEDX8616230K6P	MC2BUERCOPC093200	HR-63E- 1561

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3 OA/ 589/2026 KOTAK MAHINDRA BANK LIMITED VS KADIAN BUILDERS & DEVELOPERS PVT. LTD. AND OTHERS

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vide Tax Invoices and Virtual Registration Certificates dated 28.04.2023, which areAnnexures A4 to A13to this OA.
Documents executed: Certificate of Incorporation dated 12.01.2015,
which isAnnexure A2to this OA; Board Resolution dated 20.04.2023,
which isAnnexure A3to this OA; Demand Promissory Note dated
15.12.2022, which isAnnexure A16to this OA; Power of Attorney
dated 15.12.2022, which isAnnexure A17to this OA; Loan Recall
Notice dated 16.01.2026, which isAnnexure A18to this OA;
Statement of Accounts, which areAnnexures A19 to A28to this OA.
5. The loan accounts became irregular and were classified as NPA
and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.2,45,87,318.19 (Rupees Two Crore Forty Five Lacs Eighty
Seven Thousand Three Hundred Eighteen and Paise Nineteen Only), 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.
6. 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 29.05.2026.
7. In support of the OA, affidavit ofSh. Rakesh Kumar, Manager,
Kotak Mahindra Bank Limited,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. From the perusal of all theAnnexures A1 to A28to this OA, it
is proved that the defendant no. 1, through its director defendant no. 2,
approached applicant for availing of the commercial vehicle loans, which were granted to them. Defendant no. 3 stood as guarantor. They had

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4 OA/ 589/2026 KOTAK MAHINDRA BANK LIMITED VS KADIAN BUILDERS & DEVELOPERS PVT. LTD. AND OTHERS

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executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, all the 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.2,45,87,318.19 (Rupees Two Crore Forty Five Lacs Eighty Seven Thousand Three Hundred Eighteen and Paise Nineteen 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @24.00%p.a. with monthly rests from 24.03.2026 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 vehicles, 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 @8.00% 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,45,87,318.19 (Rupees Two Crore Forty Five Lacs Eighty Seven Thousand Three Hundred Eighteen and Paise Nineteen Only), jointly and severally, with costs, current and future simple interest @8.00% 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 vehicles of the 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

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5 OA/ 589/2026 KOTAK MAHINDRA BANK LIMITED VS KADIAN BUILDERS & DEVELOPERS PVT. LTD. AND OTHERS

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.06.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 01.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Kadian Builders & Developers and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Kadian Builders & Developers and Others

Case brief

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