Allowed

Kotak Mahindra Bank Limited v. M/S Knight Detective Security Service Pvt. Ltd. and Others

DRT30 Jul 2026OA/719/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an ex-parte application by Kotak Mahindra Bank Ltd. to recover approximately Rs. 2.18 crores from principal borrower and guarantors. The court fixed a uniform simple interest rate of 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Directing defendants to pay Rs. 2,18,80,028.46 with 8% p.a. simple interest; issued Recovery Certificate.

Kotak Mahindra Bank Limited versus M/S Knight Detective… — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 719/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.05.2025

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DATE OF DECISION: 30.07.2026

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Kotak Mahindra Bank Ltd., the applicant is a Banking Company carrying on the Banking Business under the Companies Act, 1956 and having its Registered Office at 27 ВKС, C 27, G Block, Bandra Kurla Complex, Bandra E, Mumbai and Branches at different places, one at SCO 153-154-155, Sector 9C, Madhya Marg, Chandigarh- 160022 through Sh. Rakesh Kumar, Authorized Officer

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…..Applicant

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Versus

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M/S Knight Detective and Security Service (P) Ltd., SCF no. 125, 2^nd Floor, Sector 60, Phase 3B2, Mohali, Punjab- 160062 through its Directors, defendant nos. 2 and 3

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Sh. Gurparkash Singh Virk, R/o House no. 675, Phase 3B1, Mohali, Punjab- 160059

¶11

Ms. Rajwant Kaur Virk, R/o House no. 675, Phase 3B1, Mohali,

Punjab- 160059

………Defendants

Advocates:

Argued by Sh. Ankush Redhu, Advocate proxy for Sh. Iqbal Mohammed, Advocate for applicant

¶16

None for defendants (already ex-parte vide order dated 26.11.2025)

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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. 2,18,80,028.46 (Rupees Two Crores Eighteen Lacs Eighty Thousand Twenty Eight and Paise Forty Six Only). The Original Application has been filed through Sh.

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2 OA NO. 719/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S KNIGHT DETECTIVE AND SECURITY SERVICE (P) LTD. AND OTHERS

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Rakesh Kumar, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of attorney dated 07.08.2024, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 7.90 Lacs vide Loan Application dated 04.07.2017, which is Annexure A3 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 48.10 Lacs and Rs. 54.30 Lacs vide Loan Application dated 07.04.2018, which is Annexure A4 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 46.75 Lacs vide Loan Application dated 05.10.2018, which is Annexure A5 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 4.43 Lacs vide Loan Application dated 13.03.2019, which is Annexure A6 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loans of Rs. 4.43 Lacs and Rs. 4.00 Lacs vide Loan Application dated 25.06.2019, which is Annexure A7 to this OA. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loans of Rs. 4.00 Lacs and Rs. 33.00 Lacs. Thereafter, defendant no. 1 approached the applicant for grant of Commercial Vehicle Loan of Rs. 50.00 Lacs vide Loan Application dated 18.02.2020, which is Annexure A8 to this OA. 3. The applicant sanctioned Commercial Vehicle Loan of Rs. 7.90 Lacs vide Loan cum Guarantee Agreement dated 04.07.2017, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs. 54.30 Lacs vide Loan cum Guarantee Agreement dated 04.05.2018, which is Annexure A12 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs.37.10 Lacs vide Loan cum Guarantee Agreement dated 04.07.2018, which is Annexure A15 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan- IV of Rs. 46.75 Lacs vide Loan

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3 OA NO. 719/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S KNIGHT DETECTIVE AND SECURITY SERVICE (P) LTD. AND OTHERS

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cum Guarantee Agreement dated 18.10.2018, which is Annexure A17 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loans of Rs. 4.00 Lacs and Rs. 4.43 Lacs vide Loan cum Guarantee Agreements dated 26.04.2019 and 28.06.2019, which are Annexure A25 and A26 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loans of Rs. 4.00 Lacs and Rs. 33.00 Lacs vide Loan cum Guarantee Agreement dated 26.04.2019 and 24.06.2019, which are Annexure A40 and A41 to this OA. Thereafter, the applicant sanctioned Commercial Vehicle Loan of Rs. 50,02,500.00 vide Loan cum Guarantee Agreement dated 24.02.2020, which is Annexure A42 to this OA. Defendant nos. 2 and 3 stood as guarantors in all the loan accounts.

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4.	Defendant no. 1 hypothecated its moveable assets namely:
i.	Traveller T1 Delivery Van bearing Registration no. PB65AT5241,
	Chassis no. MC1E1BKA8JP011952 and Engine no. D67009544
	vide RC filed on 23.07.2026 in compliance of order dated 04.12.2025;
ii.	Traveller T1 Delivery Van bearing Registration no. PB65AT5293,
	Chassis no. MC1E1BJAXKP012393 and Engine no. D67022275
	vide RC filed on 23.07.2026 in compliance of order dated 04.12.2025;
iii.	Mahindra Bolero Camper Ps 2wd bearing Registration no.
	PB65AU0928, Chassis no. MA1RU2TBKJ3D96006 and Engine
	no. TBJ4D89553 vide RC filed on 23.07.2026 in compliance of order dated 04.12.2025;
iv.	Traveller D Van bearing Registration no. PB65AH9081, Chassis
	no. MC1E1BCA2GP011047 and Engine no. D61002128 vide RC
	filed on 23.07.2026 in compliance of order dated 04.12.2025;
v.	Traveller D Van bearing Registration no. PB65AK6917, Chassis
	no. MC1E1BMA2HP011517 and Engine no. D67000626 vide RC
	filed on 23.07.2026 in compliance of order dated 04.12.2025;

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4 OA NO. 719/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S KNIGHT DETECTIVE AND SECURITY SERVICE (P) LTD. AND OTHERS

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vi. Traveller D Van bearing Registration no. PB65AK1435, Chassis no. MC1E1BKАЗНР011416 and Engine no. D67001070 vide RC filed on 23.07.2026 in compliance of order dated 04.12.2025. Documents executed: Memorandum of the Article dated 01.05.2001, which is Annexure A2 to this OA; DP Note and Power of Attorney, both dated 04.07.2017, which are Annexure A10 and A11 to this OA; DP Note and Deed of Hypothecation, both dated 04.07.2018, which are Annexure A13 and A14 to this OA; DP Notes dated 18.10.2018 and 07.04.2021, which are Annexure A16 and A27 to A30 to this OA; DP Note and Deed of Hypothecation, both dated 23.10.2018, which are Annexure A18 to A24 to this OA; Power of Attorney and Deed of Hypothecation, both dated 29.06.2019, which are Annexure A31 to A39 to this OA; DP Note and Power of Attorney, both dated 24.02.2020, which are Annexure A43 and A44 to this OA; Recall Notice dated 11.11.2024, which is Annexure A45 to this OA and Statement of Accounts with certificate, which are Annexure A46 to A101 to 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. 2,18,80,028.46, which is recoverable and the defendants were served recall notice but defendants 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 26.11.2025. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Authorized Officer, Kotak Mahindra Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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5 OA NO. 719/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S KNIGHT DETECTIVE AND SECURITY SERVICE (P) LTD. AND OTHERS

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It was argued by learned proxy counsel 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 A101 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facilities which were granted to defendant no. 1. Defendant nos. 2 and 3 stood as guarantors in all the loan accounts. Defendants had executed all the relevant documents in favor of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, 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. 2,18,80,028.46 (Rupees Two Crores Eighteen Lacs Eighty Thousand Twenty Eight and Paise Forty Six 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 pendente lite and future rate of interest is concerned, the applicant in Loan cum Guarantee Agreements has claimed interest @9.93% p.a., @8.85% p.a., @10.21% p.a., @10.27% p.a., @9.91% p.a., @14.03% p.a., @10.72% p.a., @9.91%p.a., @10.26% p.a. and @10.03% p.a. in Commercial Vehicle Loan Accounts.

¶29

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 uniform simple interest @08.00% p.a. in

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6 OA NO. 719/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S KNIGHT DETECTIVE AND SECURITY SERVICE (P) LTD. AND OTHERS

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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.2,18,80,028.46 (Rupees Two Crores Eighteen Lacs Eighty Thousand Twenty Eight and Paise Forty Six Only) jointly and severally, with costs, current and future simple interest @08.00% 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 assets 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. 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 14.08.2026. 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: 30.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Knight Detective Security Service Pvt. Ltd. and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Knight Detective Security Service Pvt. Ltd. and Others

Case brief

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