KOTAK MAHINDRA BANK LIMITED vs KJ Motor Works on 14 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank before DRT-III Delhi & then transferred to DRT-I Delhi on 21.08.2021 under section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.1,12,94,116.12 (Rupees One Crore Twelve Lacs Ninety Four Thousand One Hundred Sixteen and Paise Twelve only) as on 02.07.2021 with pendente lite and future interest @24% per annum from 19.08.2021 till the date of realization and costs.

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2. The brief facts of the case are that at the request of defendant no.1 & 2, the applicant bank sanctioned loan facilities aggregating Rs.93,36,160/- on 24.03.2021 to be repayable in 49/50 EMIs w.e.f. 10.10.2021 for purchase of 5 light commercial vehicles against hypothecation. Further, the applicant bank sanctioned ECLGS facility of Rs15,69,600/- on 18.06.2020 to be repaid in 48 EMIs as per guidelines of Govt. of India guidelines with 100% guarantee backed from NCGTC due to Covid-19 pandemic. The defendant no.3 stood as guarantor for the light commercial vehicle loans sanctioned by applicant bank in favour of defendant no.1 and 2.

3. That in order to avail the light commercial vehicles loan facilities, defendants submitted application on 23.03.2021 and executed Loan cum Guarantee Agreements, Demand Promissory Note and Power of Attorney on 24.03.2021 towards the applicant bank. Further, the defendants executed Sole Proprietorship Declaration Form, Term Loan Agreement and Deed of Hypothecation on 22.06.2020 for ECLGS loan facility extending second charge over light commercial vehicles with applicant bank. The defendant no.2 & 3 executed Loan cum Guarantee Agreement on 24.03.2019 towards the applicant bank liable to pay entire outstanding, jointly or severally.

4. It has been submitted by the applicant bank that in order to secure the light commercial vehicle loan facilities, the defendants hypothecated Five Light Commercial Vehicles bearing Registration number HR55AJ0265, HR55AJ3220, HR55AJ3380, HR55AJ9042, HR55AJ1251 in favour of the applicant bank which was purchased from the loan availed.

5. It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions and despite of several Sd- requests and reminders, the defendants failed to pay the outstanding dues and monthly installments in time in time to the applicant bank. Ultimately, the applicant bank classified the account as NPA on 08.02.2021 and issued the loan recall notice dated 02.07.2021 calling upon the defendants to pay the entire outstanding dues to the applicant bank but the defendants failed to clear the outstanding, hence the applicant bank has approached this Tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 03.09.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Kumar Jyoti, authorized representative of the applicant bank who has proved the documents as Board Resolution Annexure A-1, Loan Application Exhibit AW1/1, Loan cum Guarantee Agreement Exhibit AW1/2, DP Note Exhibit AW1/3, Power of Attorney Exhibit AW1/4, Request for ECLGS Exhibit AW1/5, Sanction Letter Exhibit AW1/6, Term Loan Agreement Exhibit AW1/7, Deed of Hypothecation Exhibit AW1/8, Sole Proprietorship Declaration Form Exhibit AW1/9, Legal Notice Exhibit AW1/10, Certified Statement of Account Exhibit AW1/11.

8. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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9. The case filed by the applicant bank gone unrebutedted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

10. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.1,12,94,116.12 (Rupees One Crore Twelve Lacs Ninety Four Thousand One Hundred Sixteen and Paisa Twelve only) as on 02.07.2021 together with future interest @24% per annum from 19.08.2021 till the date of realization with costs, failing which the aforesaid amount shall be recovered from the sale of Five hypothecated light commercial vehicles having registration nos. HR55AJ0265, HR55AJ3220, HR55AJ3380, HR55AJ9042, HR55AJ1251. In case of shortfall / default the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 14.12.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*Sd - 2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Pronounced in open court) Dated: 14.10.2026