Allowed

Canara Bank v. Ms Renuka Poultry Farms and Feeds

DRT12 Dec 2022OA/180/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal at Hyderabad allowed an application filed by Canara Bank for recovery of approximately Rs. 2.9 crores against two defendants, holding them jointly and severally liable to pay outstanding loans with interest and proceed against mortgaged properties.

What did the court decide?

Respondents ordered to pay Rs. 2,80,56,719.45 with interest; Bank entitled to proceed against mortgaged properties and recover dues from Debtor; Recovery certificate issued.

Canara Bank versus Ms Renuka Poultry Farms and Feeds — Contract and Commercial Disputes | DRT (2022)

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IN THE DEBTS RECOVERY TRIBUi,IIAL.I AT HYDERABAD

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DATED THIS THE 12TH DAY OF DECEMBER,2022

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFIcER

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OA.No.18O of 2OZz

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Between:

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Canara Bank, Hi-tech Agricultural finance branch, Canara Bank building, II floor, Abids, Hyderabad, Telangana state. Represented by Chief Manager

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Applicant

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VERSUS

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M/s. Renuka Poultry Farms and Feeds, Represented by its proprietor Smt K. Vijaya Laxmi Kuruva, w/o Sri K. VenlkatRamulu,

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aged about 45 yrs, H.No.2-35, lammichedu village, Gadwalmandal, Mahabubnagardist, Telangana state.

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Sri K, Venkat Ramulu, s/o Sri K. Savaranna, aged about 50 yrs, occ: business, H.No.2-35, Jammichedu village, Gadwalmandal, Mahabu bnagardist, Telangana state. Defendants Counsel for the Pa Ly For the Applicant G. Ram Reddy For the Defenda

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(oA.No.180/2022)

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,90,56,719.45ps (Rupees Two crores Eighty Lakhs Fifty six thousand seven hundred Nineteen and paise forty five onty) ie,,

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i) Defendants 1 &2 are joinfly and severally liable to pay a sum of Rs.1,11,59,524/- under Agricultural term loan with future interest @ L2.5o/o p.a (including 2o/o penal interest) with monthly rests from 28.04.2022 till the date of realization;

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ii) Defendants 1 &2 are joinfly and severally liable to pay a sum of Rs.19,93,923.99ps /- under II term loan with future interest @ 12.30o/o p.a with monthly rests from L3.04.2022 till the date of realization ;

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iii) Defendants 1 &2 are joinfly and severally Iiable to pay a sum of Rs.1,49,03,27t.46ps under OCC credit loanwith future interest @ 10.25olo p.a with monthly rests from 01.05.2022 till the date of realization ;

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and in default for sale of hypothecated and mortgaged properties as described in the schedule^..A to D,,to OA.

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As per the ave ,^{the Applicant} Bank states

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that the defend by its Proprietor Smt K.

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Vijaya Laxmi K u, J, 3o^{[uEg[,.,3tfi*u,,8} nce credit short term loan

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(oA.No.180/2022)

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facility of Rs.180 lakhs for poultry farming and accordingly the defendant no.1 offered security of immovabre property as described in the schedule to OA, Defendant no.2 stood as guarantor to defendant no.1 and submitted guarantee agreement dated 28.03.2014. Defendant no.1 arso deposited originar registered sare deed vide document no,25B2/L995, 2SB4/Lgg5 and L742/tggg, pattadar pass book and title deeds, land conversion certificate and also offered 9 acres 2 guntas land covered by survey nos. U7, L7B and 181 as collaterar security for repayment of said loan amount. In continuation of loan another roan facility for a sum of Rs.30.00 rakhs and Rs.42.00 lakhs was availed on 06.06.2015. Defendant no.1 executed supplementar memorandum of deposit of tiile deeds vide document no.5817/2015 in favour of applicant bank. Defendant no.1 once again availed occ roan of Rs.1.00 crore towards working capital on 04.01.2016 and offered security of property bearing H.No.2_35 situated at lammichedu village. The credit facilities initially availed I.e., term loan facility on 28.03.2014 and another term loan avaired on 30'06'2015 and 28.03.2016. Defendants avaired working capitar loan on 24.03.2017 when the OCC limit was enhanced on 23.01.2019 and subsequently 16.4.2016 and 25.05.2018 and . After availing the loan the applica rll tant,,WaSSil8f}aine( classify the account as NpA iSf and issued IE gdlngtice on 20*X;X0i 1. Inspite of several requests \Q&xi9,,

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(oA. No.180/2022)

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and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants were called absent set exparte on 27.09.2022.

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Shri Naveen Kumar, Manager of the Appricant Bank examined himserf as AW'1 and exhibited rerevant documents, which are marked as Ex.A.1 to A.100.

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Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is

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entitled for the claim made in the OA against the Defendants as prayed for?

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The defendants were cailed absent and set exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to 4.100. In view of the above, I hold that the Applicant Bank has established their cla_ilL.XEadq-i.ethe OA against the Defendants and hence the ltA--'+S+{,.".o,",.^{the craim made in the}

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OA with -e!^qr r\r L[JJL).

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:rest ahdcosts. ***** I! r I 0EC 2St2^-rl , *r l,

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S;i:lc-. .^,-:i

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R In the result, t OA i*a'nq:wr}6 with costs, as under:

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(oA. No.180/2022)

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9' The Defendants are jointly and severally iiable to pay to the Applicant Bank a total sum of Rs.2,8O,56,1l9.45ps (Rupees Two Crores Eighty Lakhs Fifty Six thousand Seven hundred Nineteen and paise forty five only) ie.,

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a) Defendants 1 &2 are joinUy and severally liable to pay a sum of Rs.L,lt,59,524/- under Agricultural term loan with future interest @ 12.5o/o p.a from 28.04.2022 till the date of realization;

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b) Defendants 1 &2 are jointly and severally liable to pay a sum of Rs.19,93,923.99ps /- under II term loan with future interest @ 12.30o/o p.a from L3.04.2022 till the date of realization ;

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c) Defendants 1 &2 are joinUy and severally liable to pay a sum of Rs.1,49,03,27L.46ps under OCC credit loanwith future interest @ 10.25olo p.a from 01.05.2022 till the date of realization;

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i) The Applicant Bank is entitled to proceed against the hypothecated and mortgaged properties as described in the schedule "A to D" t_o realization of the debt due.

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ii) the Appticant ,ifio ,, .,;o%.,,,,"0tg\roceed asainst the person and properti"g"t i"?"#f$r?0fto., g.{} oroo"nies of Defendant no 1 rirm."ift*?:i:l,gti1:R t due. |-]r^p;6{+.,'Iii {qr'/g-i;;,.-

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(oA. No.180/2022)

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iii) The Applicant Bank is entitled to the costs of the OA.

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iv) The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 12th day of Dec.,2022)

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sd/(G. GOP]CHAND) PRESIDING OFFICER

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;12oECzna ;

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TRUE^COPY ,i:iw{tv

Canara Bank v. Ms Renuka Poultry Farms and Feeds

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Renuka Poultry Farms and Feeds

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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