Dr. allowed debtor bank's application under RDB Act for recovery of Rs. 22.94 Lakh outstanding loan along with costs and 8% simple interest pending sale of hypothecated vehicle.
Recovery of Rs. 22,94,008.99 with costs and simple interest @ 8% p.a. Order to issue Recovery Certificate.
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.816/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.06.2025
DATE OF DECISION: 29.04.2026
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, Punjab- 141001, through its Manager, Sh. Rakesh Kumar
……..Applicant
Versus
……Defendants
Advocates:
Argued by Sh. Rahul Garg, Advocate for applicant
None for defendants (already ex-parte vide order dated 23.04.2026)
FINAL ORDER
2 OA NO. 816/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S BALWAN & COMPANY AND OTHERS
Documents executed: DP Note and Power of Attorney, both dated 11.04.2023, which are Annexures A5 and A6 to this OA; Loan Recall Notice dated 24.05.2025, which is Annexure A7 to this OA and Statement of Account, which is Annexure A8 to this OA.
3 OA NO. 816/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S BALWAN & COMPANY AND OTHERS
From the perusal of all the Annexure A1 to A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favor of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,94,008.99 (Rupees Twenty Two Lacs Ninety Four Thousand Eight and Paise Ninety Nine Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.
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 vehicle, undertaking of the defendants, quantum of loan 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 account 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.22,94,008.99 (Rupees Twenty Two Lacs Ninety Four Thousand Eight and Paise Ninety Nine Only), jointly and severally, with costs, current and future simple interest @08.00% p.a. in the loan account from the date of filing of OA till the date of realization of the amount.
4
OA NO. 816/2025
KOTAK MAHINDRA BANK LIMITED VS. M/S BALWAN & COMPANY AND OTHERS
Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated vehicle 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.
Pronounced by me in the open Tribunal .
Dated: 29.04.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount declared as NPA.
What rate of interest should apply pendente lite and for future till realization.
1 provisions across 1 enactments
Kotak Mahindra Bank Ltd.
M/S Balwan & Company
Sh. Balwan Singh
Sh. Manmeet Dhankhar
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
