Allowed

State Bank of India v. M/S. Sri Laxmi Kirana and General

DRT30 Aug 2023OA/104/2023

Case brief

AI extract

What is this about?

In an original application, the Debts Recovery Tribunal allowed an appeal for recovery Rs.27,99,611 plus interest against two defendants. The bank, herein applicant, claimed dues from cash credit and working capital loans. The defendants, herein respondents, were declared absent. Examining an official witness and documents, the tribunal held the bank's claim established as the defendants failed to

What did the court decide?

Recover Rs.20,09,949 (Cash Credit) + Rs.7,89,662 (WCTL) with interest; proceed against mortgaged and personal properties; issue recovery certificate.

State Bank of India versus M/S. Sri Laxmi Kirana and General — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 3OTH DAY OF AUGUST'2023

¶2

PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

¶3

OA.No.1O4 of 2OZ3

¶4

Between:

¶5

State Bank of India, Stressed Assets Recovery Branch _II (SARB-II) Opp Sandhya theatre, RTC cross roads, Chikkadpally, Hyderabad. Telangana State. Represented by its Chief Manager

¶6

Applicant

¶7

VERSUS

¶8

M/s. Sri Laxmi Kirana & General, Represented by its proprietor Sri Brahmanpally Devender, The defendant no.2 herein,

¶9

H.No.6-95, Armoor road, Dichpally, Nizamabad Dlstrict - 503 t74.

¶10

¶11

H.No.7 -38/ t/C, Nadpaily vi[age, Dichpally Mandal, Nizamabad dist - 503 175.

¶12

Sri Brahmanpally Devender, S/o Late Sri Balaiah, Aged about 46 years, O_cc: business & proprietor of 1't defenda nt

¶13

,0 AU82m

¶14

(OA. No.104/2023)

¶15

H.No.6-95, Armoor road Dichpally, Nizamabad District - 503 L74.

¶16

¶17

H. No. 7-3811/C, Nadpally village, Dichpally Mandal, Nizamabad dist - 503 175.

¶18

Defendants

¶19

Counsel for the^parties:

¶20

For the Applicant

¶21

For the Defendants

¶22

Sri G. Prabha kar Sarma Exparte

¶23

ORDER

¶24

The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.27,99,611/_ (Rupees Twenty Seven Lakhs Ninety Nine thousand Six hundred and Eteven only) i.e., a sum of Rs.20,09,9 49/- under cash credit roan with interest @ 77.25o/o p.a and a sum of Rs.7,8g,662/_under WCTL with interest @ B' 150/o p.a with monthry rests from date of apprication tirr rearization and in default for sale of mortgaged property and hypothecated assets as described in the schedules,,A & 8,, to OA.

¶25

¶26

a"{trrq

¶27

cant Bank states th at the defendant No.1 repres"""ff the 2nd defendant XlfdhAropriat

¶28

¶29

(oA.No.104/2023)

¶30

availed working capital loan under cash credit loan of Rs.10.00 lakhs vide arrangement dated 25.01.2018. To secure due repayment of said cash credit roan, the defendants executed agreement of roan cum hypothecation. subsequently the defendants availed additional cash credit loan of Rs.14.50 lakhs by enhancing existing cash credit loan from Rs,10 rakhs to Rs.24.50 rakhs vide retter of arrangement dated 13.08.2018. After avairing roan facirity, the defendants avaired renewar and reduction of cash credit roan from Rs.24.50 rakhs to Rs.18 lakhs and availed wcrl roan of Rs.7.1B rakhs to enabre the defendants to repay the said roan amount. on 07.08,2018 defendant no.2 created equitabre mortgage by deposit of originar Regd sare deed no.2653/2008 dt. 08.05.2008 and notorised affrdavit over immovable property more fully described in the schedule A property to OA. The loan documents, stocks, current assets, equipments, book debts and other assets are hypothecated in favour of applicant bank more fully described in the schedure B to oA. After availing the loan facirity, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued legal notice on 30.01.2023. Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this oA.

¶31

¶32

(oA.No.104/2023)

¶33

? Defendants were called absent and set exparte on 18.07.2023.

¶34

Shri Venkateswar Rao, Deputy Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.14.

¶35

Heard the Ld. Counsel for the Applicant Bank,

¶36

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

¶37

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

¶38

prayed for?

¶39

The defendants were called absent and set exparte. To substantiate the case of the Applicant Bank, AW.1 who is the official of the Appricant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.14, 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 entired to recover the craim made in the OA with future interest and costs.

¶40

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

¶41

The Defendants are Bank a total Lakhs Ninety

¶42

1 0^{Nlff ?i'J$}

¶43

(oA.No.1oal2023)

¶44

i.e., a sum of Rs.20,09,949/_ under cash credit loan with interest @ 77.25o/o p.a and a sum of Rs.7,89,662/_ under WCTL with interest @ 8.15olo p.a from date of application till realization.

¶45

i) The Applicant bank is entitled to proceed against the mortgaged property and hypothecated property as described in the schedures "A & B" to OA towards realization of its dues.

¶46

ii) 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.

¶47

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

¶48

iv) The Appricant sha' fire a cost memo within two weeks from the date of receipt of order.

¶49

Issue Recovery certificate accordingly,

¶50

communicate a copy of the order to the parties concerned.

¶51

(Dictated to the p.A., transcribed court on this the 30rh day of Aug, by 2023)her, corrected, signed and pronounced by me in the open

¶52

sd/(G. GOPTCHAND) PRESIDING OFFICER

¶53

TRUE^GOPY /(, ',1,.?;:';f;ffffii^a- -E:r-, olo/o^{tr / > aj}

State Bank of India v. M/S. Sri Laxmi Kirana and General

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Sri Laxmi Kirana and General

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Mr. Kamalla Stalin

Union Bank of India versus M/S. Dream House Cine Techniq

Indian Bank versus Sri Sandrapalli Venkata Bipin Kumar

Canara Bank versus M S Bismilla Agency

State Bank of India versus M/S. Vishnu Enterprises

Union Bank of India versus M/S .Joyce Industries