Allowed

Indian Overseas Bank v. Ms Srinivasa Associates

DRT12 Dec 2022OA/57/2022

Case brief

AI extract

What is this about?

In OA No.57 of 2022, the Debts Recovery Tribunal allowed the recovery claim of Indian Overseas Bank against M/s. Srinivasa Associates and Mr. Potula Srinivas Rao for a term loan facilitating the purchase of an excavator. The relief includes principal, interest, and recovery rights.

What did the court decide?

Respondents to jointly and severally pay Rs. 1,06,94,395.89 with interest @ 12.85% p.a. Bank entitled to recover from their properties.

Indian Overseas Bank versus Ms Srinivasa Associates — Contract and Commercial Disputes | DRT (2022)

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IN THE DEBTS RECOVERYTRIBUNIAL-I AT HYDERABAD DATED THrs rHE 12rH DAy oF DECEMBER,2022

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PRESENT: SRI GUMMADI GoPIcHAND/ PRESIDING oFFICER

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OA.No.57 of 2022

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Between:

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Indian Overseas Bank, Adarshnagar branch, Situated at 5-9-3054, paiga plaza building, Adarshnagar, Hyderabad - 63. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Srinivasa Associates, Rep by its Proprietary

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Mr. Potula Srinivas Rao,

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S/o Potula Ramakrishna,

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Aged 44yrs, occ: business, R/o H.No.6-293/3, plot no.29,

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Venkateswara Nagar,

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Quthbullapur, Telangana- 45.

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Mr.Potula Srinivas Rao, S/o Potula Ramakrishna,

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Aged 44 yrs, occ: business, R/o H.No. 10-5-572, Lataguda, Thukaramgate,

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Secunderabad - 500 017.

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Defendants

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*
'

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Sri M. Srinivas Exparte

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loA.s7 /20221

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ORDER

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The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.1,O6.94,395.g9ps (Rupees One Crore Six Lakhs Ninety four thousand Three hundred Ninety five and paise Eighty nine only) with interest @ 12.85o/o p.awith monthly rests from date of filing of OA till the date of realization.

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2' As per the averments in the apprication, the Appricant Bank states that the defendant no.1 represented by its proprietor Mr. p. srinivasa Rao, defendant no.2 herein avaired term roan facirity of Rs'92.00 rakhs for purchase of rata Hitachi Hydrauric Excavator Model Zaxis 370 LC for business purpose on 25.09.20t7. The defendant executed demand promissory note dated 25.09.2017 for a sum of Rs.92.00 lakhs, letter of undertaking and letter of undertaking for repayment of interest, term loan agreement and deed of hypothecation secure term loan dated 25.09.2017, After avairing the roan facirity, the defendants faired to compry the terms of sanction, hence the appricant bank was constrained to crassify the

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on the q, .i-t' $ri 3. DefendalUvF;g[ set exparte on 05.09.2022. k.i#;{9

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(oA5712022\

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Shri M. Rajesh, Manager of the Applicant Bank examined himself as

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AW.1 and exhibited relevant documents, which are marked as

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Ex.A.1 to A.13.

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Heard the Ld. Counsel for the Applicant Bank.

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

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

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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 A.13. In view of the above, I hold that the Applicant Bank has estabrished their craim made in the oA against the Defendants and hence the Appricant Bank is entitred to recover the craim made in the OA with future interest and costs.

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B. In * allowed with costs, as under:

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o gaffifl(pz arently and severally liable to pay to the

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Bank a of Rs.1,O6,94,395.g9ps (Rupees

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One' inety four thousand Three hundred

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loA.s7l2022l

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Ninety five and paase Eighty nine only) with interest @

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12.B5o/o p.a from date of firing of oA tiil the date of rearization.

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i) the Applicant Bank is also entitled to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

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

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iii) 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., court on this the 12th transcnbed by her, corrected. day of Dec.,2O2Z) signed and pronounced by me in the open

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sd/(G. GOPICHAND) PRESIDING OFFICER

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TRUE COPY W'NY oat:ft;ifs!il8'A[lt 9

Indian Overseas Bank v. Ms Srinivasa Associates

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Ms Srinivasa Associates

Case brief

What is this about?

What did the court decide?

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