Allowed

Kotak Mahindra Bank Limited v. M/S Sharma Constructions and Others

DRT20 Jul 2026OA/95/2026

Case brief

AI extract

What is this about?

Bank sought recovery of outstanding loans totaling Rs.51 lakh from construction firm and guarantor after accounts became NPA. Defendants failed to appear. Tribunal allowed application, fixed interest at 8% p.a., and authorized sale of hypothecated assets under SARFAESI.

What did the court decide?

Recovery certificate issued; defendants liable to pay principal plus costs and simple interest at 8% p.a. Amount recoverable via sale of hypothecated equipment or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 95/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.01.2026

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DATE OF DECISION: 20.07.2026

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Kotak Mahindra Bank Limited, 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, Ludhiana141001 through its Manager, Sh. Rakesh Kumar .

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……..Applicant

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Versus

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M/s Sharma Constructions, through its Proprietor, SCO No. 180,

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Sector 7-C, 2nd Floor, Chandigarh, Chandigarh-160019.

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2nd Address: Village Karmaji, Post Office Rorughati, Tehsil Rajgarh, District Sirmaur, Himachal Pradesh-173101.

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Sh. Kamal Sharma S/o Sh. Jagat Ram, Proprietor M/s Sharma Constructions, R/o H. No. 646, Near Masjid, Sector 20-A, Chandigarh, Chandigarh-160020.

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Sh. Anjana Sharma W/o Sh. Kamal Sharma, R/o H. No. 646, Near Masjid, Sector 20-A, Chandigarh, Chandigarh-160020.

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.……Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate for applicant

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None for Defendants

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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.51,02,632.85 (Rupees Fifty One Lac Two Thousand Six Hundred Thirty Two and Paise Eighty Five Only). The

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2 OA/ 95/2026 KOTAK MAHINDRA BANK LIMITED VS M/S SHARMA CONSTRUCTIONS AND OTHERS

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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. 2. The brief facts of the OA are that the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for Term Loan of Rs.29,46,310.00 for purchase of construction equipment vide NonIndividual Customer Relation Form dated 03.04.2023, which is Annexure A2 to this OA.

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Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for Term Loan of Rs.45,63,198.00 for purchase of another construction equipment vide Non-Individual Customer Relation Form dated 30.04.2023, which is Annexure A9 to this OA.

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Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for Term Loan of Rs.41,09,875.00 for purchase of another two units of construction equipment vide NonIndividual Customer Relation Form dated 15.07.2023, which is Annexure A13 to this OA.

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Defendant no.3 stood as guarantor in all the loan facilities.

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The applicant sanctioned the Term Loan-I of Rs.29,46,310.00 for purchase of construction equipment vide Loan-cum-Guarantee Agreement along with Schedules dated 19.04.2023, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the Term Loan-II & III of Rs.22,36,068.00 & Rs.23,27,130.00 for purchase of another construction equipment vide Loan-cum-Guarantee Agreement along with Schedules dated 03.05.2023, which is Annexure A11 to this OA. Thereafter, the applicant sanctioned the Term Loan-IV & V of Rs.29,46,310.00 & Rs.11,63,565.00 for purchase of two units of

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3 OA/ 95/2026 KOTAK MAHINDRA BANK LIMITED VS M/S SHARMA CONSTRUCTIONS AND OTHERS

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construction equipments vide Loan-cum-Guarantee Agreement along with Schedules dated 03.08.2023, which is Annexure A16 to this OA. 4. Defendant no.1 hypothecated its construction equipments as under:

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i. JCB JS 81 bearing Engine No. 4H.2188/2320108, Chassis No. PUNJD81AEP3273174 and Serial No. 3273174;
ii. Wet Mix Paver (Waken Multitech) bearing Engine No.
4H3315232000 and Chassis No. WKNWWP45NGR000476;
iii. ABP 809 (Matching & Mixing Plant) bearing Serial No.
AI1604MAY202324;
iv. JCB JS 81 bearing Engine No. 4H.2188/2320199, Chassis No. PUNJD81ATP3273274 and Serial No. 3273274;
v. JCB VMT 330 bearing Engine No. SJ327B62162, Chassis No. PUNVT330TP2231110 and Serial No. 2231110.
vide Tax Invoice dated 07.04.2023, which isAnnexure A3to this
OA; Performa Invoice dated 26.04.2023, which isAnnexure A7to this OA; Performa Invoice dated 28.06.2023, which isAnnexure A8 to this OA; Tax Invoice dated 31.07.2023, which isAnnexure A14
to this OA; Tax Invoice dated 31.07.2023, which isAnnexure A15
to this OA;
Documents executed: Demand Promissory Note dated 19.04.2023,
which isAnnexure A5to this OA; Power of Attorney dated 19.04.2023,
which isAnnexure A6to this OA; Deeds of Hypothecation dated
03.05.2023, which isAnnexure A10to this OA; Demand Promissory
Note dated 03.05.2023, which isAnnexure A12to this OA; Demand
Promissory Note dated 03.08.2023, which isAnnexure A17to this OA;
Power of Attorney dated 03.08.2023, which isAnnexure A18to this
OA; Loan Recall Notice dated 19.12.2025, which isAnnexure A19to
this OA; Statement of Accounts, which areAnnexures A20 to A24to this OA.

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4 OA/ 95/2026 KOTAK MAHINDRA BANK LIMITED VS M/S SHARMA CONSTRUCTIONS AND OTHERS

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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.51,02,632.85 (Rupees Fifty One Lac Two Thousand Six Hundred Thirty Two and Paise Eighty Five Only), 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.

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The defendants were served summons to appear before this Tribunal and after the service of summons, Ms. Rubinia Sharma, Advocate appeared on behalf of defendants and filed her Memo of Appearance on 06.03.2026. Power of Attorney on behalf of defendants was filed on 07.05.2026. Paper book was supplied to counsel of defendants on 13.05.2026. Thereafter, no WS was filed on behalf of defendants within or even after expiry of stipulated period. Therefore, opportunity to file WS by defendants was closed and defense was struck of vide order dated 14.07.2026.

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7.	In support of the OA, affidavit of Sh. Rakesh Kumar, Manager,
Kota	k Mahindra Bank Limited,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
docu	mentary evidence brought on record which had gone unrebutted,
the a	pplicant had proved its case.

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None was appeared on behalf of defendants for arguments. From the perusal of all the Annexures A1 to A24 to this OA, it is proved that the defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, all the accounts of the defendants were classified as NPA. From the documentary evidence

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5 OA/ 95/2026 KOTAK MAHINDRA BANK LIMITED VS M/S SHARMA CONSTRUCTIONS AND OTHERS

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brought on record, it is proved that applicant is entitled to recover a sum of Rs.51,02,632.85 (Rupees Fifty One Lac Two Thousand Six Hundred Thirty Two and Paise Eighty 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @24.00%p.a. with monthly rests from 12.12.2025 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 construction equipments, 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 simple interest @8.00% p.a. in 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.

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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.51,02,632.85 (Rupees Fifty One Lac Two Thousand Six Hundred Thirty Two and Paise Eighty Five Only), jointly and severally, with costs, current and future simple interest @8.00% 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 construction equipments of the 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

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OA/ 95/2026 KOTAK MAHINDRA BANK LIMITED VS M/S SHARMA CONSTRUCTIONS AND OTHERS

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sale of personal assets of the defendants. The applicant is at liberty to

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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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Parties to appear before Learned Recovery Officer of this Tribunal on 04.08.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 20.07.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Kotak Mahindra Bank Limited v. M/S Sharma Constructions and Others

Case brief

What is this about?

What did the court decide?

Kotak Mahindra Bank Limited v. M/S Sharma Constructions and Others

Case brief

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What did the court decide?

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