Allowed

State Bank of India v. M/S. Radha Sree Motors

DRT4 Jul 2023OA/132/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed State Bank of India's original application against a firm and its partners for recovery of outstanding dues of approx Rs. 47 lakhs along with interest and permission to proceed against hypothecated and personal properties.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 46,97,908/- plus interest at 13.55% p.a.; permission to proceed against hypothecated and personal properties; applicant entitled to costs of OA.

State Bank of India versus M/S. Radha Sree Motors — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 4TH DAY OF JULY 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.132 OF 2022

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Between :

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State Bank of India, Stressed Assets Recovery Branch (SARB)-l 2nd floor, TSRTC complex, Koti, Hyderabad.

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Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Radha Sree Motors,

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Represented by its Managing partner Smt Kathula Radhika, sy.No.96, Marriguda By-pass road,

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Nalgonda district, Telangana.

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Smt Kathula Radhika, w/o Srisailem, managing pa rtner sy.No.96, Marriguda By-pass road, Nalgonda district, Tela ngana.

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3, Sri Srisailam, s/o Mallaiah, R/o H.No.3-4-13, Jammalagadda Area, Nalgonda Town, Nalgonda district, Telangana - 508 001.

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Defend a nts

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Counsel for the Parties:

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For the Applicant

For the Defenda nts

Sri M.P. Sanjay

Expa rte

(OA.No.132 of 2022)

ORDER

1, The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.46,97,908/- (Rupees Forty Six Lakhs Ninety Seven thousand Nine hundred and Eight only) ie., a sum of Rs.5,42,367/- under cash credit loan account and a sum of Rs.41,55,541/- under term loan account with further interest @^{13.55o/o p.a} from 1O.03.2022 till realization and in default for sale of hypothecated 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 defendant No.1 is a partnership firm in the name and style M/s. Motors represented by its partners/ defendants 2 & 3 av a iled ng capital facilities of Rs.5.00 lakhs and term loan of s on 14.01.2016. The defendants executed letter of arrang and agreement of loan cum hypothecation dated Defendants No.2 & 3 executed guarantee agreement on 19. 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 07.05.2021 and issued demand notice dated OB.O7.2O2l. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

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(OA.No.132 of 2022)

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Defendants were called absent and set exparte on 02.01.2023.

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Sri Satya Prakash, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.10.

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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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The defendants were called absent and set exparte. To substantiate Applicant Bank, AW.1 who is the official of the

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qs.examined and he exhibited relevant documents as 14 \

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I Ex.A1 to A.10. In aiew of the above, I hold that the Applicant Bank : [4Jttrzm :; has established th6ir claim made in the OA against the Defendants :j cant Bank is entitled to recover the claim made in

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re interest and costs.

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B. In the result, the present OA is allowed 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.46,97,9O8/- (Rupees Forty Six Lakhs

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(OA.No.132 of 2022)

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Ninety Seven thousand Nine hundred and Eight only) ie., a sum of Rs.5,42,367/- under cash credit loan account and a sum of Rs.41,55,541/- under term loan account with further interest @ 13.55o/o p.a from 10.03.2022 till the date of realization.

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i) The Applicant bank is entitled to proceed against the hypothecated property as described in the schedule to OA towards realization of its dues.

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ii) the Applicant Bank is also entitled to proceed against the person and properties of defendants No.2 & 3 and properties of defendant no.1 firm towards realization of the debt due.

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nk is entitled to the costs of the OA.

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plica n file a cost memo within two weeks from the date
*"l-
0{ {0[elEBofo
ficate accord ing ly.

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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 4th day ot )uly,2023)

State Bank of India v. M/S. Radha Sree Motors

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Radha Sree Motors

Case brief

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