Allowed

Union Bank of India v. M/S Sree Rama Cement Bricks

DRT8 Aug 2023OA/117/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Union Bank of India for recovery of a term loan and cash credit facility. The court held that the bank sustained its claim against the defendants, who are jointly and severally liable, and directed the issuance of a recovery certificate with interest and costs.

What did the court decide?

Defendants to be jointly and severally liable to pay Rs.20,54,388 plus future interest; Applicant Bank entitled to proceed against movable property and all properties of defendants for realization; Re

Union Bank of India versus M/S Sree Rama Cement Bricks — Specific Performance | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 8TH DAY OF AUGUST'2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.117 of 2022

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Between :

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Union Bank of India, Shamsheergunj bra nch, IB-4-42/ A, Shamsheergunj, Hyderabad, Telangana - 500 053. Represented by its Branch Manager

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Applicant

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VERSUS

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M/s. Sree Ra ma Cement Bricks, Plot no.3, Batasingaram, Abdullapurmet, Ranga Reddy Hyderabad, Telangana - 501 505 Represented by its Proprietor

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Mr. Ja rpu la Kiran.

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Mr. Jarpu la Kira n, s/o Jarpula Jagram, aged 23 years,

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occ: business, R/o H.No.80,

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Banjara colony, Near Hanuman temple, Hayatnagar, Telangana - 508 253.

Defendants

Counsel for For the

Sri D.S. Pavan Kumar

For the

Expa rte

(OA.No.117l2022)

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.2or54,3gg/- (Rupees Twenty Lakhs Fifty four thousand three hundred eighty eight onty) i.e., a sum of Rs.16,12,732l- with current and future interest @ 11.050/o p.a with monthly rests and a sum of Rs.4,41,656/- with current and future interest @ 10.08o/o p.a with monthly rests from the date of OA till realization and in default for sale of movable property as described in the schedule to OA.

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As per the averments in the apprication, the Appricant Bank states that the defendant Noi.1 is the borrower running the business under the name and style of "M/s. Sree Rama cement Bricks and defendant no.2 is the proprietor of defendant no.1 firm availed term loan of Rs.19.38 lakhs under^pMEGp scheme for purchase of prant & Machinery and a sum of Rs.4.37 lakhs under CC facilities on 22.01.2020. The defendants executed composite agreement, demand promissory note, undertaking retter, letter of consent and undertaking letter to refund subsidy on 23.01.2020. After avairing the roan facirities, the defendants failed of sa nction, hence the applicant bank vra s constrained to the account as NPA on 77.LL.202t andiilbued rotic.edated ftri1,f .ZOZr. ___ Inspite of several .:_: [ 5 Atifi l:;n :1: 2

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(OA.No.11712022)

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

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Defendants were called absent and set exparte on 09.05.2023.

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

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Heard the Ld. Counsel for the Applicant Bank.

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R 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 Appricant Bank, AW.1 who is the officiar of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A,14. In view of the above, I hold that the Applicant Bank has established their craim made in the oA against the Defendants and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs,

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B. In the result, t OA .is.allowed costs, as u nder:

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lo^A.No.777 /2022]|

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The Defendants are jointly and severally liable to pay to the Applicant Bank a total Rs.2O,54,388/- (Rupees Twenty Lakhs Fifty four thousand three hundred eighty eight only) i.e., a sum of Rs.L6,12,732l- with current and future interest @ 11.05% p.a with monthly rests and a sum of Rs.4,41,656/- with current and future interest @ 10.08o/o p.a from the date of oA till the date of realization.

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i) The Applicant bank is entitled to proceed against the movable property as described in the schedure to oA towards rearization of its dues.

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ii) the Applicant Bank is arso entitred 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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iii) The Applicant Bank is entiUed to the costs of the OA.

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

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Issue Recovery certificate a ccord in g ly.

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Com,municate a copy of the order to the parties concerned.

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.:.1*1.by^{her, corrected, signed and pronounced by} me in the open court r ?023 )

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sd/_ (G. GOPTCHAND)

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'* coP'l, PRESIDING OFFICER
4
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Union Bank of India v. M/S Sree Rama Cement Bricks

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Sree Rama Cement Bricks

Case brief

What is this about?

What did the court decide?

What the court decided

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