Allowed

State Bank of India v. M/S. Rekha Automotives

DRT2 Nov 2023OA/125/2023

Case brief

AI extract

What is this about?

Recovery Tribunal allowed the Debt Recovery Application filed by State Bank of India against three defendants jointly and severally liable to pay a principal sum of Rs. 65,01,351 with future interest and costs, authorizing recovery from the defendants' properties and hypothecated movables.

What did the court decide?

Defendants directed to pay Rs. 65,01,351 with future interest @ 17.25% p.a.; recovery certificate issued; execution allowed against all respondents.

State Bank of India versus M/S. Rekha Automotives — Execution and Attachment | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 2ND DAY OF NOVEMBER' 2023

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PRESENT: sRI GUMMADI GoPICHAND, PRESIDING oFFICER OA.No.125 of 2O2g

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Between :

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State Bank of India, ARM Branch, Chikkadpally, Hyderabad Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Rekha Automotives, Represented by its Managing Partner Mrs. idha Lava nya, H.No. 1-25131, Hitech coiony, Mancherial. 2. Mrs. Idha Lavanya, w/o Idha Chandraiah, aged 39 years, female. Vikasnagar, Mancherial. 3. Mr. Ram Naik Ajmeera, s/o Bheelya Naik Ajmeera, aged major, male, Vikasnagar, Mancherial. Defenda nts

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Counsel for the pa rties:
For the Applicant
A.M. Kiran Kumar
For the Defendants
rte
0 2 il0ll 20?3

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(oA.No.12sl2023)

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ORDER

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1' The Appricant Bank fired the present oA against Defendants for recovery of a total sum of RS.6S,O1,3S1/- (Rupees Sixty Five Lakhs One thousand Three hundred and Fifty one only) with future interest @ 17.25olo p,a with monthly rests from date of application tiil the date of rearization and in defaurt for sare of hypothecated movables and mortgaged property as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that the defendants No.2&3 are partners of defendant No,1 firm availed cash credit for a sum of Rs.25.00 lakhs and bank guarantee for a sum of Rs.50.00 lakhs. The defendants executed letter of arrangement,

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agreement of loan cum hypothecation and counter indemnity on 02'06'2018' The cash credit and bank guarantee rimits are secured by equitable mortgage of schedule mentioned property belonging to defendant no.2. On 04.06.2022 the Defendants 2 & 3 executed guarantee agreement for Rs.75.00 rakhs to secure the roan avaired by defendant no.1. The bank guarantee is invoked by beneficiary i.e., CNGH Industrial Capital India pvt Ltd on 07.09.2022. After availing the loan facirities, the defendants faired to compry the terms of sanction, hence the appricant bank was constraind.llp,grassify the account as NpA

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(oA.No.125/2023)

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on 70.12.2022 and issued demand notice dated t2.t2.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants 1 to 3 called absent and set exparte on 11.09.2023.

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Smt M. Sarla, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.18.

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Heard the 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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Defendants called 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.18. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the claim OA with future interest and costs.

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(oA.No.12sl2023)

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In the resurt, the present oA is a[owed with costs, as under:

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The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.65,01,351/_ (Rupees Sixty Five Lakhs One thousand Three hundred and Fifty one only) with future interest @ 17.25o/o p.a from date of apprication tiI the date of rearization ;

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The Applicant Bank is entiUed to proceed agalnst the hypothecated

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movables and mortgaged property as described in the schedule to

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oA.

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the Applicant Bank is also entifled to proceed against the person and properties of defendant No.2 & 3 and properties of defendant no. 1

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firm towards realization of the debt due.

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The Applicant Bank is entifled to the costs of the OA.

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13' The Appricant sha, fire 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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(oA. No.12sl2023)

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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, signed and pronounced by me in the open court on this the 2.d day of Nov, 2023)

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sd/_

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(G. GOPTCHAND) PRESIDING OFFICER

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¶39

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State Bank of India v. M/S. Rekha Automotives

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Rekha Automotives

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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