Allowed

State Bank of India v. M/S. Ganesh Ginning Factory

DRT5 Sept 2023OA/116/2023

Case brief

AI extract

What is this about?

The Applicant Bank sought recovery of outstanding loan dues along with interest and costs. The Defendants were absent. The Court held that the Bank had established its claim and allowed the application, directing the Defendants to pay the amount and proceed against mortgaged assets.

What did the court decide?

Defendants No.1 to 4 directed to pay Rs.6,65,27,395/- with future interest and costs; Bank entitled to proceed against hypothecated and mortgaged properties.

State Bank of India versus M/S. Ganesh Ginning Factory — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I^{AT HYDERABAD} DATED THIS THE sTH DAY OF SEPTEMBER, 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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o.A.tL6l2023

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State Bank of India,

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Assets Recovery Management Branch(SARB-2), 1-8-563/ 1, RTC Cross Roads, Opp.Sandhya Theatre, 1"t floor, Chikkadapally, Hyderabad-500 020.. Rep. by its Chief Manager ... Applicant Bank

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... Applicant Bank

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VERSUS

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1.M/ s. Ganesh Ginning Factory, Rep. by its Propriegtor

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Mr.P. Sachin Kumar, 3-l-2641 18, Rampur Road, Adilabad-SO4 001.

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Sri P. Sachin kUmar, S/o Sri P. Dattatri, Aged 53 years, H.No.5- 1-34, Vasavi Nilayam, Rani Sathiji Road Adilabad-s04 001..

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P. Ganesh Kumar,

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S/o D. Padigaelwar, aged 45 years, H.No.5- 1-34, Vasavi Nilayam, Rani Sathiji Road Adilabad-s04 001

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Smt. P. Vaishali,

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W/o sachin Kumar, aged 53 years, Vasavi Nilayam, Rani Sathiji Road Adilabad-SO4 Defendants Counsel for the Parties: For the Applicant Bank :Lcl. Advoca'tci Sri C. For the Defendants :l*t 5^SEP I

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ORDER

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The Applicant Bank^{filed the present OA againstDefendantsNo'1to 4} for recovery of a^{total sum of Rs.6,65,27,395/- (RupeesSix crores sixty} five lakhs twenty^{seventhousand three hundredand ninetyfive only) i'e'}

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A sum of Rs.4,07,89,298/^{- with future interest} @¹⁷ '25o/o^p'a A sum of Rs.43,35,^{I 12l - witln futureinterest} @^{17 '25o/o p'a'} A sum of Rs.82,88,195/-^{with future interest} @⁹ '25o/o^p'a' A sum of Rs.29,08,6341-^{with futureinterest} @^{9.9o/o p'a'} A sum of Rs.20,23,833/-^{with future interest} @^{8.55% p'a'} A sum of Rs.9,99,3721-^{with luture interest} @^{1O.4o/o p'a'} A sum of RS.8,O0,586/-^{with futureinterest} @9.25o/o^p'a' A sum of Rs.21,44,6711-^{with futureinterest} @9.25%^{p'a' and} A sum of Rs.42,37 ,694 l-^{with futureinterest} @^{9.25o/o p'a'} with monthly rests from the^{date of frling till the date of realization} and in case of default,^{for sale of the hypothecated assets describedin} schedule I and mortgaged^{properties described in SchedulesII to V to} the O.A.

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The case of the Applicant^{Bankis that DefendantNo' 1 is a proprietary} concern and^{principal borrower. At the request of the defendantsNo.1 to} 3,AdilabadbranchofApplicantBanksanctionedvariouscredit facilities vide Letter of^{Arrangement dt. 10.03.2010.To secure the due} repayment of the a-foresaid^{loan facilities,DefendantNo' 2 being the} Proprietor of Defendant No.t^{has executedAgreement of Loan cum} Hypothecation dt. 10.03.2010.^{Defendant No.3 executed Guarantee} Agreement in favour of^{the Applicant Bank.To securethe aggregate} credit facilities of^Rs.95fa!.hC, .P{e$$.g1ts^{No'2&3have extended} mortgage in respect of o/{f;th'tdfrl.3p."p?$-att^{confirmedthe same} s dt.09.03.2010. *

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0j SEP 7L?3 ?

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Defendants No.2&4 have availed separate housing^{loans and created} mortgages in favour of the Bank by way of deposit^of titie deeds'^The said defendants NO.2 &4 have extended the mortgage in respect^of OA schedule properties III to V to cover the various loan facilities sanctioned to defendant No. I aggregating to Rs.5,O6,50,000/ - by way of Memorandum ol deposit of title deeds dt. 1 1.09.2013. The Bank has renewed the loan facilities from 20 1 1 to 20 19 and defendants have extended the mortgages from time to time. Defendants No.2 to 4 have jointly executed Guarantee Agreement dt.01.06.2020 guaranteeing due repayment of the aforesaid loan amount of Rs.520 lakhs sanctioned to Defendant No. 1. After availing the said loan facilities, defendants failed to adhere to the repayment schedule and in spite of repeated demands, the defendants have not cleared the dues. In view of the default in repayment of dues in the loan accounts, the loan accounts have been classified as NPA and the Applicant Bank issued a legal notice dt..23.11.2022 to the defendants. Hence the O.A.

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Defendants No. 1 to 4 called absent and set exparte on 05.06.2023.

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Heard Ld. 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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Sri R. Venkateswara Rao, Chief Manager of the Applicant Bank examined himself as AW- 1 and exhibited the relevant documents which are marked as Ex.Al to A59

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The defendants were arltn-et exparte. To substantiate the '.' .rj :i r ' \6-r" Ift

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case of the Applicant Aw.{, oflicial pf the Applicant bank was examined and he releVdnt documents which are marked as ii:^o s sEP zon^,*. .t -/ r , .1:r We:#

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Ex.A1 to A59. In view of^{the above,I hold that the Applicant Bank} has established their claim^{made in the O.A. against the defendants} and hence the Applicant Bank is^{entitledto recover the claim made in} the O.A. with future interest^{and costs'}

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In the result, the^{present OA is allowedwith costs, as under:}

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g. The Defendants No.l to 4^{are jointlyand severally liable to pay to the} Applicant Bank a total sum^{of Rs.6,65,27,395/- (Rupees Six crores sixty} five lakhs twenty seven thousand^{three hundredand ninetyhveonly) i'e'} A sum of Rs.4 ,O7,89,298/-^{with future interest} @^{17.25oh p.a} A sum of Rs.43,35,¹ 12l -^{witll,futureinterest} @^{L7 .25o/op.a-} A sum of Rs.82,88,195/-^{with future interest} @^{9.25o/o p-a.} A sum of Rs.29,08,634/- with^{future interest} @^{9.9ok p.a.} A sum of Rs.20,23,S33/-^{with future interest} @^{8.55% p.a'} A sum of Rs.9,99,3721'^{with future interest} @^lO.4o/op.a. A sum of RS.8,00,586/^{- with futureinterest} @^9.25o/op.a. A sum of Rs.21,44,6711- with^{futureinterest} @9.25%^{p.a' and} A sum of Rs.42,37 ,694 /-^{with futureinterest} @^9.25o/op.a.

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from the date of application^ti11 the date^{of rea.lization.}

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The Applicant Bank is entitled^{to proceed against the hypothecated} assets and mortgaged^{properties describedin schedules I to V to the} O.A. towards realization^{of the debt due.}

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ii) The Applicant Bank^is entitled and properties of defendants No.2 No.1 firm towards realizati

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iii) The Applicant eOA
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The Applicant shall^{file a cost memo withintwo weeks from the dateof} 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,signedand pronounced} by me in the open^{courton this the sth day of September, 2023)}

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sd/(G. GOPI CHAND) PRESIDING OFFICER

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agir

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TR,JTE COpy
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State Bank of India v. M/S. Ganesh Ginning Factory

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Ganesh Ginning Factory

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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