Allowed

Kotak Mahindra Bank Limited v. M/S Bajwa Traders and Others

DRT13 Jul 2026OA/875/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application by Kotak Mahindra Bank Limited against three defendants. The court decreed recovery of Rs. 38.35 Lakhs with costs and fixed interest at 8% per annum despite an application for 24%. The judgment authorizes recovery via sale of hypothecated asset or attachment of personal assets.

What did the court decide?

Order to recover Rs. 38,35,156.35 jointly and severally with costs and pendent lite interest at 8% per annum; direction to issue Recovery Certificate; liberty to enforce claim via sale of assets.

Kotak Mahindra Bank Limited versus M/S Bajwa Traders and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 875/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2025

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DATE OF DECISION: 13.07.2026

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Kotak Mahindra Bank Limited having its Regional Office at SCO no. 153-154-155, Sector 9C, Madhya Marg, Chandigarh and Registered Office at Kotak Mahindra Bank Limited, 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai- 400051 through its Authorized Representative, Sh. Rakesh Kumar

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……..Applicant

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Versus

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M/S Bajwa Traders, Main Anaj Mandi, Banur Mohali, Patiala, Punjab- 140601

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Sh. Narinder Singh, R/o House no. 55, Chimbian Wala Banur, Mohali, Punjab- 141016

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Ms. Navreet Kaur, R/o House no. 55, Chimbian Wala Banur, Mohali, Punjab- 141016

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….……Defendants

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Advocates:

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Argued by Sh. Iqbal Mohammed, Advocate for applicant

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None for defendants (already ex-parte vide order dated 23.01.2026)

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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. 38,35,156.35 (Rupees Thirty Eight Lacs Thirty Five Thousand One Hundred Fifty Six and Paise Thirty Five Only). The Original Application has been filed through Sh. Rakesh Kumar, Authorized Representative of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.08.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Commercial Vehicle Loan of Rs. 49,53,900.00 vide Application Form dated 31.12.2023, which is Annexure A2 to this OA.

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2 OA/875/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S BAJWA TRADERS AND OTHERS

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The applicant sanctioned Commercial Vehicle Loan of Rs.49,53,900.00 vide Loan cum Guarantee Agreement dated 25.01.2024, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. 4. Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their movable asset namely Tata Motors Tipper Signa bearing Registration no. PB65BG2457, Chassis no. MAT569002P3P36651 and Engine no. 7B62300D03132M64348302 vide RC filed on 04.07.2026 in compliance of order dated 20.03.2026. Documents Executed: DP Note dated 25.01.2024, which is Annexure A4 to this OA; Legal Notice dated 10.06.2025, which is Annexure A5 to this OA and Statement of Account with certificate, which are Annexure A6 and A7 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 38,35,156.35 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 23.01.2026. 7. In support of the OA, affidavit of Sh. Rakesh Kumar, Manager, Kotak Mahindra Bank Limited, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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.

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From the perusal of all the Annexure A1 to A7 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility which was granted to them. Defendant no. 3 stood as guarantor. Defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of

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OA/875/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S BAJWA TRADERS AND OTHERS

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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. 38,35,156.35 (Rupees Thirty Eight Lacs Thirty Five Thousand One Hundred Fifty Six and Paise Thirty Five 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%p.a. with monthly rests from 28.05.2025 till the realization.

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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 asset, 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 @8.00% 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.38,35,156.35 (Rupees Thirty Eight Lacs Thirty Five Thousand One Hundred Fifty Six and Paise Thirty Five Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in the loan account 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 asset of defendant nos. 1 and 2 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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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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4 OA/875/2025 KOTAK MAHINDRA BANK LIMITED VS. M/S BAJWA TRADERS AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.07.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 13.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Bajwa Traders and Others

Case brief

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Kotak Mahindra Bank Limited v. M/S Bajwa Traders and Others

Case brief

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