Debts Recovery Tribunal allowed the banks Original Application for recovery of a term loan debt. The court issued a Recovery Certificate and ordered simple interest at 8% p.a. instead of the claimed 24% p.a.
Recovery Certificate issued; Defendants liable to pay Rs.1,33,77,507.08 with simple interest at 8% p.a. from filing date.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.697/2026
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 11.05.2026
DATE OF DECISION: 23.06.2026
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, 2nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana - 141001 through its Manager, Sh. Rakesh Kumar.
……..Applicant
Versus
……..Defendants
Advocates:
Argued by Sh. Rahul Garg, Advocate for the applicant
None for Defendants (Already ex-parte vide order dated 20.06.2026).
FINAL ORDER
2 OA NO.697/2026 KOTAK MAHINDRA BANK LTD. VS M/S MALIK TRANSPORT COMPANY AND OTHERS
Crore Thirty Three Lacs Seventy Seven Thousand Five Hundred Seven and Paise Eight Only). The Original Application has been filed through Sh. Rakesh Kumar, Manager of the applicant bank, who is competent to institute the Original Application vide Resolution dated 29.11.2024, which is Annexure A1 to this OA.
3 OA NO.697/2026 KOTAK MAHINDRA BANK LTD. VS M/S MALIK TRANSPORT COMPANY AND OTHERS
(iii) TATA SIGNA 5530 bearing Registration No. HR62A5740, Chassis No. MAT828045RAJ14004, Engine No. 42H95480839 vide Tax Invoice dated 30.09.2024, which is Annexure A4 to this OA and Virtual Registration Certificate filed on 22.06.2026. (iv) MAHINDRA BLAZO 55 bearing Registration No. HR46F9562, Chassis No. MA1UAARXFM6J73881, Engine No. PAMZJ14214 vide Virtual Registration Certificate, which is Annexure A12 to this OA. Documents executed : Demand Promissory Notes, Powers of Attorney, dated 04.10.2024, 11.10.2024, which are Annexures A7, A8, A10 & A11 to this OA; Legal Notice dated 17.04.2026, along with postal receipts, which is Annexure A13 to this OA; Statement of accounts along with certificate, which are Annexures A14 to A17 to this OA.
4
OA NO.697/2026 KOTAK MAHINDRA BANK LTD. VS M/S MALIK TRANSPORT COMPANY AND OTHERS
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 is entitled to recover a sum of Rs.1,33,77,507.08 (Rupees One Crore Thirty Three Lacs Seventy Seven Thousand Five Hundred Seven and Paise Eight 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.
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 assets, 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 @08.00%p.a. in 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.
5
OA NO.697/2026 KOTAK MAHINDRA BANK LTD. VS M/S MALIK TRANSPORT COMPANY AND OTHERS
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.
Pronounced by me in the open Tribunal .
Dated: 23.06.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the bank is entitled to recover the outstanding loan amount from the defendants.
Whether the Tribunal should grant rate of interest less than the claimed rate.
Whether a Recovery Certificate should be issued against the respondents.
1 provisions across 1 enactments
Kotak Mahindra Bank Ltd.
M/s Malik Transport Company
Ms. Munni
Sh. Vijay
M/s Vijay Enterprises
Mridulesh Kumar Singh
As recorded by the court registry
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