DRT Disallows Prepayment Charges After Loan Recall as Borrower Did Not Seek Early Repayment

Kotak Mahindra Bank Limited Vs Sh. Brij Satvindra Pal Singh Ahaluwalia (DRT Delhi) The application was filed by the bank on 16.06.2014 under Section 19 of the RDB Act, 1993 before the Debts Recovery Tribunal (DRT), Delhi, seeking recovery of ₹12,38,383 along with interest at 19% per annum from the date of filing of the application until full realization. According to the bank, defendant no.1 had requested a loan facility and was sanctioned financial assistance of ₹21,00,000 under a loan agreement dated 29.05.2012. The loan was secured by hypothecation of purchased construction equipment an...