Allowed

Kotak Mahindra Bank Limited v. M/S Royal Sardar Enterprises Private Limited and Others

DRT23 Jun 2026OA/671/2026

Case brief

AI extract

What is this about?

DRt-III Chandigarh heard an ex-parte application by Kotak Mahindra Bank Ltd. for recovery of loan dues totaling approximately Rs. 95.26 lakhs against M/s Royal Sardar Enterprises and its directors. The Tribunal allowed the application, set the interest rate at 8% p.a., and ordered joint and several liability for repayment.

What did the court decide?

Deemed the respondents jointly and severally liable to pay principal sums totaling Rs. 95,26,700.91 with costs and future simple interest at 8% p.a. from the date of filing.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.671/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.05.2026

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DATE OF DECISION: 23.06.2026

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Kotak Mahindra Bank Limited, a Body Corporate, incorporated under the Companies Act, 1956 having its Registered Office at 27 ВКС, С-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 Royal Sardar Enterprises Pvt. Ltd., through its Directors Sh. Satvinder Singh and Sh. Paramjeet Singh, 54, Block No.5, Village & Post Office Munak(28), Tehsil Gharunda, District Karnal, Haryana-132114.

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Sh. Satvinder Singh S/o Sh. Balbir Singh, Director Royal Sardar Enterprises Pvt. Ltd., R/o Village & Post Office Munak, Tehsil Gharunda, District Karnal, Haryana-132114.

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Sh. Paramjeet Singh S/o Sh. Surjeet Singh, Director Royal Sardar Enterprises Pvt. Ltd., R/o H. No. 80, Karan Vihar, Karnal, District Karnal, Haryana-132001.

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Sh. Sher Singh S/o Sh. Balbir Singh, R/o Village & Post Office Munak, Tehsil Assandh, District Karnal, Haryana - 132039.

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…….. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 20.06.2026).

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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.95,26,700.91 (Rupees

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2 OA NO.671/2026 KOTAK MAHINDRA BANK LTD. VS M/S ROYAL SARDAR ENTERPRISES PVT. LTD. AND OTHERS

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Ninety Five Lacs Twenty Six Thousand Seven Hundred and Paise Ninety One 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 and defendant nos. 2 & 3 in their individual capacity approached the applicant for grant of Term Loan Facility for purchase of commercial vehicle of Rs.9,00,000.00 vide Non Individual Customer Relation Form dated 23.11.2023, which is Annexure A5 to this OA. Thereafter, the defendant no. 1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facility for purchase of Two units of commercial vehicles of Rs.46,00,000.00 vide Non Individual Customer Relation Form dated 01.05.2024, which is Annexure A12 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no. 1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facility for purchase of commercial vehicle of Rs.12,90,000.00 vide Non Individual Customer Relation Form dated 16.05.2024, which is Annexure A18 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no. 1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached the applicant for grant of Term Loan Facility for purchase of Two units of commercial vehicles of Rs.60,00,000.00 vide Non Individual Customer Relation Form dated 05.06.2025, which is Annexure A23 to this OA. Defendant no. 4 stood as guarantor.

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The applicant sanctioned the Term Loan Facility I for purchase of commercial vehicle of Rs.9,16,389.00 and the terms and conditions were duly accepted by the defendant nos. 1, 2 & 3 vide Loan-CumGuarantee Agreement dated 24.11.2023, which is Annexure A6 to this OA. Thereafter, the applicant sanctioned the Term Loan Facility II & II for purchase of Two units of commercial vehicles of

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3 OA NO.671/2026 KOTAK MAHINDRA BANK LTD. VS M/S ROYAL SARDAR ENTERPRISES PVT. LTD. AND OTHERS

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Rs.33,01,200.00 and the terms and conditions were duly accepted by the defendant nos. 1, 2 & 3 vide Loan-Cum-Guarantee Agreement dated 04.05.2024, which is Annexure A13 to this OA. Thereafter, the applicant sanctioned the Term Loan Facility IV for purchase of commercial vehicle of Rs.12,95,700.00 and the terms and conditions were duly accepted by the defendant nos. 1, 2 & 3 vide Loan-CumGuarantee Agreement dated 15.05.2024, which is Annexure A19 to this OA. Thereafter, the applicant sanctioned the Term Loan Facility V for purchase of commercial vehicle of Rs.30,11,100.00 and the terms and conditions were duly accepted by the defendant nos. 1, 2 & 4 vide Loan-Cum-Guarantee Agreement dated 05.06.2025, which is Annexure A24 to this OA. Thereafter, the applicant sanctioned the Term Loan Facility VI for purchase of commercial vehicle of Rs.30,03,500.00 and the terms and conditions were duly accepted by the defendant nos. 1, 2 & 4 vide Loan-Cum-Guarantee Agreement dated 05.06.2025, which is Annexure A27 to this OA.

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Defendant no. 1 through its director defendant no. 2 hypothecated its commercial vehicles i.e., (i) MAHINDRA BOLERO bearing Registration No. HR45D9930, Engine No. TVP6K99727, Chassis No. MA1XL2TVXP5L56788 vide Tax Invoice dated 14.11.2023 along with Virtual Registration Certificate, which is Annexure A4 to this OA. (ii) MAHINDRA SCARPIO S11 bearing Registration No. HR45E1237, Engine No. YSR4D76225, Chassis No. MA1TA2YS2R2D13110 vide Tax Invoice dated 15.04.2024 along with Virtual Registration Certificate, which is Annexure A9 to this OA. (iii) MAHINDRA SCARPIO S11 bearing Registration No. HR45E1363, Engine No. YSR4D64079, Chassis No. MA1TA2YS2R2D14585 vide Tax Invoice dated 24.04.2024 along with Virtual Registration Certificate, which is Annexure A10 to this OA. (iv) MAHINDRA SCARPIO S11 bearing Registration No. HR45E2249, Engine No. YSR4D76441, Chassis No. MA1TA2YS2R2D13567 vide Tax

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4 OA NO.671/2026 KOTAK MAHINDRA BANK LTD. VS M/S ROYAL SARDAR ENTERPRISES PVT. LTD. AND OTHERS

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Invoice dated 15.05.2024 along with Virtual Registration Certificate, which is Annexure A17 to this OA.

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(v) EICHER PRO 3011 bearing Registration No. KA30A6889, Engine No. E446CDTD140001, Chassis No. MC2V1KRT0TD564517 vide Virtual Registration Certificate, which is Annexure A30 to this OA.

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(vi) EICHER PRO 3011 bearing Registration No. KA30A6888, Engine No. E446CDTD139933, Chassis No. MC2V1KRT0TD564515 vide Virtual Registration Certificate, which is Annexure A31 to this OA.

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Documents executed: Certificate of Incorporation dated 05.04.2023, which is Annexure A2 to this OA; Board Resolutions dated 21.11.2021, 25.04.2024, 22.04.2024, 02.06.2025, which are Annexures A3, A11, A16 & A22 to this OA; Demand Promissory Notes, Powers of Attorney, dated 24.11.2023, 04.05.2024, 17.05.2024, 05.06.2025, which are Annexures A7, A8, A14, A15, A20, A21, A25, A26, A28 & A29 to this OA; Legal Notice dated 20.03.2026, along with postal receipts, which is Annexure A32 to this OA; Statement of Accounts along with certificates, which are Annexures A33 to A38 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.95,26,700.91, 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. 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 20.06.2026. 7. In support of the OA, affidavit of Sh. 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 bank had proved its case.

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5 OA NO.671/2026 KOTAK MAHINDRA BANK LTD. VS M/S ROYAL SARDAR ENTERPRISES PVT. LTD. AND OTHERS

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From the perusal of all the Annexures A1 to A38 to this OA, it is proved that the defendant no. 1 through its director defendant no. 2 and defendant nos. 2 & 3 in their individual capacity approached applicant for availing of Term Loan facility I which was granted to them, thereafter, the defendant no. 1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached applicant for availing of Term Loan facilities II, III & IV which were granted to them, defendant no. 3 stood as guarantor, thereafter, the defendant no. 1 through its director defendant no. 2 and defendant no. 2 in his individual capacity approached applicant for availing of Term Loan facilities V & VI which were granted to them, defendant no. 4 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 loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.95,26,700.91 (Rupees Ninety Five Lacs Twenty Six Thousand Seven Hundred 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 in all the loan accounts from 18.03.2026 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 the loan

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6 OA NO.671/2026 KOTAK MAHINDRA BANK LTD. VS M/S ROYAL SARDAR ENTERPRISES PVT. LTD. AND OTHERS

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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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In the result, the application is allowed declaring that the defendant nos. 1, 2 & 3 are liable to pay to the applicant sum of Rs.39,85,700.08 (Rupees Thirty Nine Lacs Eighty Five Thousand Seven Hundred and Paise Eight Only) and the defendant nos. 1, 2 & 4 are liable to pay to the applicant sum of Rs.55,41,000.83 (Rupees Fifty Five Lacs Forty One Thousand and Paise Eighty Three Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in 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 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 08.07.2026. 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: 23.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Royal Sardar Enterprises Private Limited and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Royal Sardar Enterprises Private Limited and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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