Allowed

State Bank of India v. M/S. Chandra Hospitality Services

DRT20 Dec 2023OA/138/2023

Case brief

AI extract

What is this about?

This is an Origin Application filed by a public sector bank for recovery of a stressed term loan. The Debts Recovery Tribunal, after hearing the bank's representative and finding the defendants absent, allowed the application, authorizing the sale of hypothecated assets and recovery from the borrowers' properties.

What did the court decide?

The Applicant was granted recovery of ₹41,51,909 with interest at 14.40% p.a., authorization to sell hypothecated assets, and the right to proceed against respondents' properties and persons.

State Bank of India versus M/S. Chandra Hospitality Services — Company and Corporate | DRT (2023)

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IN THE DEBTS RECOVERYTRIBUNAL-I^{AT HYDERABAD}

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DATED THIS THE 2OTH DAY OF^{DECEMBER, 2023}

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PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

OA.No.138 of 2023

Between:

State Bank of India,

Stressed Assets Recovery^Branch, 2nd floor, TSRTC bus terminal complex (Commuter Amenity Centre), 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. Chandra Hospitality Services, Represented by its Partners^(presently Represented by its Proprietrix) SmtJogu Saritha, female, major, Plot no.7-t4, Hajipur "X" roads, Achampet, Nagarkurnool district - 509 375.

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Smtlog uSaritha, w/o Late JoguMallesh, female, major, partner/ Proprietor of

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M/s. Chandra Hospitality Services, Plot no. 7-14, Hajipur "X" roads, Achampet, Nagarkurnooldist

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Defendants

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Counsel for the Parties:

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For the Applicant Sri P.V. Satyanarayana
For the DeFendants 1
I i-iJ
m"
*
2tl ;; 2023

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(OA.No.138/2023)

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ORDER

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The Applicant Bank filed the present OA against Defendants^for recovery of a total sum of Rs.41,51,9O9l- (Rupees Forty One lakhs Fifty one thousand Nine hundred and nine only) with interest @ 14.40olo p.a with monthly rests from date of filing of OA till the date of realization and in default for sale of hypothecated movables as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 is a partnership firm and Sri JoguMallesh and 2nd defendant were partners of 1st defendant availed term loan of Rs.40.00 lakhs vide letter of arrangement dated 30.06.2018. Defendants 1 & 2 executed an agreement of loan cum hypothecation and guarantee agreement dated 30.06.2018 in favour of Applicant bank. Sri JoguMallesh who was husband of 2nd defendant and sole legal heir of deceased person. 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 and issued legal notice dated 23.03.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence

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thls OA.

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.l. Defendants call dbsenI and.set 22.09.2023. \Jrf, *a ii En't

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(OA.No.138/2023)

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Shri Shailendra Rao Joshi,^{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 whetherthe ApplicantBank is} entitled for the claim^{made in} the^{OA against the Defendantsas} 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.10.} In view of the above, I hold that^{the Applicant Bank has established} their claim made in the^{OA against the Defendantsand hence the} Applicant Bank is entitled to^{recover the claim made in the OA with} future interest and costs.

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

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llable to^pay to the APP|icant pees Forty One lakhs e only) with interest @

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of filing of OA \ill tion.

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(OA.No.138/2023)

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i) The Applicant bank is entitled to^proceed against the hypothecated movable assets as described in the schedule to OA towards realization of the debt due.

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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.

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

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iv) The Applicant shall file 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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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 19th day of Dec., 2023)

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sdl(G. GOPTCHAND) PRESIDING OFFICER

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([l.i-'Y*rd
- issr. Reg/stra7
DfrT.I, HYDERABAD.

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State Bank of India v. M/S. Chandra Hospitality Services

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Chandra Hospitality Services

Case brief

What is this about?

What did the court decide?

What the court decided

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