Allowed

Indian Overseas Bank v. Ms Multi Level Rehab Co.

DRT27 Jul 2023OA/104/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the application filed by Indian Overseas Bank for recovery of Rs. 43,23,902/- comprising term loan and cash credit dues along with interest. The court held the respondents jointly and severally liable and issued a recovery certificate.

What did the court decide?

Respondents directed to pay Rs. 43,23,902/- comprising term loan and cash credit dues with interest. Hypothecated assets and properties of respondents are available for realization of dues. Order allo

Indian Overseas Bank versus Ms Multi Level Rehab Co. — Contract and Commercial Disputes | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 27TH DAY OF JULY 2023

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PRESENT: SRI GUMMADI GOPIcHAND, PRESIDING oFFICER

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OA.No.1O4 of 2022

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Between :

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Indian Overseas Bank, Marredpally branch, Situated at plot no.48, Sarvasuki society, West Marredpally, Secunderabad - 500 026 Represented by its Chief Manager

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Applica nt

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VERSUS

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M/s. Multi Level Rehab Co., Represented by its Proprietor Mr. K. Giri Babu, situated at No.1-9-341136,37 & 38, Road no.20VN Reddy Nagar, Kushaiguda, Hyderabad - 5OO 062. 2. Sri K. Giri Babu, s/o Sri Asirinaidu, aged 37 years, occ: business, Rlo t-to-1/213/a3, Chakriyapuram, Kushaiguda,

¶10

Hyderabad - 500 062. Defenda nts

¶11

Sri M. S rin ivas Exparte 1l lut ?v)

¶12

lOA.No.L04/2022)

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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,43r23,9o2l- (Rupees Forty Three Lakhs Twenty three thousand Nine hundred and two only) i.e.,

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a) a sum of Rs.4,81,420l- in respect of term loan facility with interest @ 12.80%^p.a with monthly rests from date of OA till the date of realization;

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b) a sum of Rs.38,42,482/- in respect of cash credit loan facility with interest @ 13% p.a with monthly rests from date of application till the date of realization;

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and in default for sare of hypothecated stocks as described in the schedule "A & B" to OA.

¶18

As per the averments in the application, the Applicant Bank states that the defendant No.1 is a proprietary concern represented by defendant no.2 who availed term loan facility of Rs.10.00 lakhs on 28.O7.2OL5 and hypothecated the prant and machrnery as coilaterar security. Subsequently the defendants availed cash credit of Rs.30.00 lakhs on

¶19

,.,.rfi',flffitAl..0^{executed demand promissory note, retter} of

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,'nf' .i+1i"r',r;'i*q of hypothecation dated 27.03,2017. The defendants machinery more fuily described in the schedutes A

¶21

: Z lnlfri,ffiS.ted{il 1- , ,,.,.i':--?t# 2 4, a . i"S#ll it;'.+ ',n 'rt '{@#:/'

¶22

(OA.No.104/2022)

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and B to OA. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA on 30.11.2019 and issued demand notice dated 06.12.2019. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

¶24

Defendants were called absent and set exparte on 31.10.2022.

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Sri Jagannatha Rao, Chief Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1to A.15.

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Heard the L,d. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is entitled for the claim made in the OA against the Defendants as prayed for?

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The defendants were called absent and set exparte. To substantiate the case of the Applicant Bank, AW.1 who is the official of the Applicant Bank was examined and he exhibited relevant documents as In view of the above, I hold that the Applicant Bank ir claim made in the OA against the Defendants

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,h )r ,7o 2rJn2[n : 4.',,,*. -,tr.i;1',, ,.,.&M{i)Y,

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(OA. No.104/2022)

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and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

¶32

B. In the result, the present OA is allowed with costs, as under:

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The Defendants No.1 & 2 are jointly and severally liable to pay to the Appllcant Bank a total sum of Rs.43,23,9O2/- (Rupees Forty Three Lakhs Twenty three thousand Nine hundred and two only) i.€.,

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a) a sum of Rs.4,81,420l- in respect of term loan facility with interest

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@ 12.80%^p.a from date of OA till the date of realization;

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b) a sum of Rs.38,42,482/- in respect of cash credit loan facility with interest @ 13olo p.a from date of application till the date of realization;

¶37

The Applicant bank is entitled to proceed against the hypothecated assets as described in the schedules "A & 8., to OA towards rea lization of its dues.

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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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The_Applicant Bank is entitled to the costs of the OA.

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file a cost memo within two weeks from the date of iy . ot orA) r* <sup>2, J[El.T

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fu,att#

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(OA. No.104/2022)

¶43

Issue Recovery certificate accord ing ly,

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Communicate a copy of the order to the parties concerned.

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by her, corrected, signed and pronounced by me in the open ,²⁰²³⁾

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Indian Overseas Bank v. Ms Multi Level Rehab Co.

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Ms Multi Level Rehab Co.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

All orders in this case

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