Allowed

Kotak Mahindra Bank Limited v. Sh. Sunil Kumar and Another

DRT2 Jul 2026OA/737/2026

Case brief

AI extract

What is this about?

This judgment records the decision of the Debts Recovery Tribunal on an Original Application filed by Kotak Mahindra Bank Limited against Sunil Kumar and Sakshi for recovery of a defaulted Light Commercial Vehicle loan. The Tribunal allowed the application established on documentary evidence, adjusted the claimed interest rate from 24% to 8% per annum, and authorized recovery of the principal sum with costs and 8% interest from hypothecated assets or personal assets.

What did the court decide?

Recovery certificate issued for Rs. 22,59,266.38 jointly and severally with costs and simple interest at 8% p.a. from the date of filing till realization. Applicant entitled to recover amount via sale of hypothecated assets or personal assets.

Kotak Mahindra Bank Limited versus Sh. Sunil Kumar… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 737/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.05.2026

¶5

DATE OF DECISION: 02.07.2026

¶6

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, 2^nd Floor, Apra Tower, Feroze Gandhi Market, Ludhiana, Punjab- 141001 through its Manager, Sh. Rakesh Kumar

¶7

……..Applicant

¶8

Versus

¶9

Sh. Sunil Kumar, S/o Sh. Partap, R/o House no. 188, Street no. 2, Dharampur 59, Daultabad, District Gurgaon, Haryana122006

¶10

Ms. Sakshi, D/o Sh. Balwant Singh, R/o House no. 36, Near Govt School, Dharampur 59, District Gurgaon, Haryana- 122006

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Rahul Garg, Advocate for applicant

¶14

None for defendants (already ex-parte vide order dated 29.06.2026)

¶15

FINAL ORDER

¶16

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. 22,59,266.38 (Rupees Twenty Two Lacs Fifty Nine Thousand Two Hundred Sixty Six and Paise Thirty Eight 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.

¶17

The brief facts of the OA are that defendant no. 1 approached the applicant for grant of Light Commercial Vehicle Loan of Rs.22,01,500.00 vide Individual Customer Relation Form dated 16.08.2022, which is Annexure A2 to this OA. Thereafter, defendant

¶18

2 OA/737/2026 KOTAK MAHINDRA BANK LIMITED VS. SUNIL KUMAR AND ANOTHER

¶19

no. 1 again approached the applicant for grant of Light Commercial Vehicle Loan of Rs. 22.00 Lacs vide Individual Customer Relation Form dated 18.08.2023, which is Annexure A8 to this OA.

¶20

The applicant sanctioned Light Commercial Vehicle Loan of Rs.22,46,456.00 vide Loan cum Guarantee Agreement dated 30.08.2022, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant again sanctioned Light Commercial Vehicle Loan of Rs.22,45,956.00 vide Loan cum Guarantee Agreement dated 04.09.2023, which is Annexure A9 to this OA. Defendant no. 2 stood as guarantor in both the loan accounts. 4. Defendant no. 1 hypothecated his movable assets namely: i. Tata Motors Ltd. 1512 LPT bearing Registration no. HR55AM1482, Engine no. 3.3LNGD06FXX518676 and Chassis no. MAT563011N7F16017 vide Tax Invoice dated 17.08.2022 and Virtual RC, which is Annexure A3 to this OA;

¶21

ii. Tata Motors Ltd. 1816 LPT bearing Registration no. HR55AR1482, Engine no. 3.3LNGD11FWX516037 and Chassis no. MAT843016P7F12214 vide Tax Invoice dated 24.08.2023 and Virtual RC, which is Annexure A7 to this OA.

¶22

Documents Executed: DP Note and Power of Attorney, both dated 30.08.2022, which are Annexure A5 and A6 to this OA; DP Note and Power of Attorney, both dated 04.09.2023, which are Annexure A10 and A11 to this OA; Loan Recall Notice dated 27.04.2026, which is Annexure A12 to this OA and Statement of Accounts, which are Annexure A13 and A14 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. 22,59,266.38 which is recoverable and the defendants were served recall notice 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 29.06.2026.

¶23

3 OA/737/2026 KOTAK MAHINDRA BANK LIMITED VS. SUNIL KUMAR AND ANOTHER

¶24

In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited h as been filed.

¶25

Heard ex-parte arguments and perused record.

¶26

It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶27

From the perusal of all the Annexure A1 to A14 to this OA, it is proved that the defendant no. 1 approached applicant for availing of the loan facilities which were granted to him. Defendant no. 2 stood as guarantor in both the loan accounts. Defendants had 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, 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.22,59,266.38 (Rupees Twenty Two Lacs Fifty Nine Thousand Two Hundred Sixty Six and Paise Thirty Eight Only) from defendants, along with interest, 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 in relief clause has claimed interest @24%p.a. with monthly rests from 18.04.2026 till the realization.

¶28

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 @8.00% p.a. in both 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.22,59,266.38 (Rupees Twenty Two Lacs Fifty Nine Thousand Two

¶29

4 OA/737/2026 KOTAK MAHINDRA BANK LIMITED VS. SUNIL KUMAR AND ANOTHER

¶30

Hundred Sixty Six and Paise Thirty Eight Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both 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 the defendants 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.

¶31

12. Any other application pending stands disposed of.

¶32

Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this

¶34

Tribunal on 17.07.2026.

¶35

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: 02.07.2026

¶36

(MRIDULESH KUMAR SINGH)

¶37

Presiding Officer,

¶38

DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Sunil Kumar and Another

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. Sh. Sunil Kumar and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of Baroda versus M/S Deep Garments and Another

Union Bank of India versus Smt. Renu Sharma and Others

Axis Bank Ltd. versus Sh. Gurjot Singh

Yes Bank Ltd. versus M/S Vohra Trading Company and Others

Hdfc Bank Limited versus M/S Home Need Department Store and Others

Idfc Bank Limited versus Naib Singh and Another