Allowed

Kotak Mahindra Bank Limited v. Sh. Mahesh and Another

DRT30 Jul 2026OA/840/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Kotak Mahindra Bank Ltd. for recovery of dues from two respondents. The court held the bank proved its case via documentary evidence, allowed the claim for principal and costs, and reduced the interest rate to 8% per annum. A Recovery Certificate was issued.

What did the court decide?

Debt of Rs.64,05,840.24, costs, and simple interest at 8% p.a. allowed; Recovery Certificate issued.

Kotak Mahindra Bank Limited versus Sh. Mahesh and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.840/2025

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PRESIDED OVER BY IMRIDULESH KUMAR SINGH

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DATE OF iNSTrruTioN: 02.07.2025

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DATE OF DECISION : 30.07.2026

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Kotak Nlahindra 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.

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........Applicant

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Versus

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Sh. Mahesh S/o Sh. Mahendra Singh, R/o 1348, Village & Post Office Sandwa (76), Sub-District Tosham, District Bhiwani, Haryana - 127043.

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Sh. Mahender Singh S/o Sh. Duli Chand, R/o Ward No.5, Village Sandwa(76), Sub-District Tosham, District Bhiwani, Haryana 127043.

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.. . ... .. Defendants

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Advocates:

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Argued by Rahul Garg, Advocate for the applicant None for defendants (Already ex-parte vide order dated 27.11.2025).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.64,05,840.24 (Rupees Sixty Four Lacs Five Thousand Eight Hundred Forty and Paise Twenty Four Only). The Or.iginal Application has been filed through Sh. Rakesh Kumar, Manager of the applicant, who is competent to institute the Original Application vide Board 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 defendants approached the applicant for grant of Term Loan Facilities for purchase Two units of

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2 OA NO.840/2025

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KOTAK MAHIN DRA BANK LTD. VS SH. MAHESH AND ANOTHER

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Commercial Vehicles of Rs.87,13,266,00 vide Individual Customer ! Relation Form dated 08.09,2022, which is Annexure A4 to this OA. Thereafter, the defendants approached the applicant for grant of Short Term Loan Facility against hypothecation of commercial vehicles of Rs.32,73,479.00 vide Individual Customer Relation Form dated 18.07.2024, which is Annexure A8 to this OA. 3. The applicant sanctioned the Term Loan Facilities for purchase Two units of Commercial Vehicles of Rs.87,13,266.00 and the terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 09.09.2022, which is Annexure A5 to this OA. Thereafter, the applicant sanctioned the Short Term Loan Facility against hypothecation of commercial vehicles of Rs.32,73,479.00 and the terms and conditions were duly accepted by the defendants vide Loan cum Guarantee Agreement dated 20.07.2024, which is Annexure A9 to this OA. 4. Defendant no. 1 hypothecated his movable assets i.e., (i) Commercial Vehicle namely TATA SIGNA 5530 bearing Registration No. HR61E2031, Chassis No. MIAT828024N2H15855, Engine No. B6.7B6A300D02122H64231578, vide Tax Invoice dated 05.09.2022, which is Annexure A2 to this OA and Virtual Registration Certificate filed on 02.01.2026, in compliance of order dated 05.12.2025. (ii) Commercial Vehicle namely TATA SIGNA 5530 bearing Registration No. HR61E8231, Chassis No. MIAT828024N3H24048, Engine No. B6.7B6A300D02122H64230477, vide Tax Invoice dated 05.09.2022, which is Annexure A3 to this OA and Virtual Registration Certificate filed on 02.01.2026, in compliance of order dated 05.12.2025. Documents executed: Demand Promissory Notes, Powers of Attorney, dated 09.09.2022, 20.07.2024, which are Annexures A6, A7, A:lO & All to this OA; Legal Notice dated 24.05.2025, along with postal receipts, which is Annexure A:12 to this OA; Statement of Accounts along with and certificates, which are Annexures A:13 to A:15 to this OA. -- - -– +e;_r JEI11b& ;IH!!==S=+ ;.F +}# _0 + Le

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OA NO.840/2025

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KOTAI< MAHINDRA BANK LTD. VS SH. MAHESH AND ANOTHER

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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.64,05,840.24, 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 27.11.2025. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Ltd. 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 had proved its case. From the perusal of all the Annexures A1 to A:15 to this OA, it is proved that the defendants approached applicant for availing of loan facilities which were granted to them 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.64,05,840.24 (Rupees Sixty Four Lacs Five Thousand Eight Hundred Forty and Paise Twenty Four 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 relief clause has claimed interest @24.00%p.a. with monthly rests from 13.05.2025 till the realization. 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

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4 OA NO.840/2025

KOTAK MAHINDRA BANK LTD. VS SH. MAHESH AND ANOTHER

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of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while I 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 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 defendants are liable to pay to the applicant sum of Rs.64,05,840.24 (Rupees Sixty Four Lacs Five Thousand Eight Hundred Forty and Paise Twenty Four 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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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.

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Copy of this order be given dasH 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 : 30.07.2026

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fG!€:§}}{i{§,,'

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. Sh. Mahesh and Another

Case brief

What is this about?

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Kotak Mahindra Bank Limited v. Sh. Mahesh and Another

Case brief

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