Allowed

State Bank of India v. M/S. Surex Auto Works

DRT18 Oct 2023OA/14/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an application by State Bank of India for recovery of loans and interest against multiple defendant automotive enterprises and individuals who executed guarantees and mortgages.

What did the court decide?

Respondents liable to pay Rs. 3,29,22,920 with interest; Bank entitled to proceed against mortgaged properties and other respondents for realization.

State Bank of India versus M/S. Surex Auto Works — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 18TH DAY OF OCTOBER' 2O2g

¶2

PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

¶3

OA.No.14 ot 2023

¶4

Between:

¶5

State Bank of India, Stressed Assets Recovery Branch, 2nd floor, TSRTC Commuter Amenity Centre, bus terminal complex, Koti, Hyderabad - 500 095. Represented by its Chief Manager

¶6

Applicant

¶7

VERSUS

¶8

M/s. Surex Auto Works, Represented by its managing partner G-13, Alipur, Rural Industrial estate, Alipur, Zaheerabad, Sanga reddy dist

¶9

Telangana - 502 OO2.

¶10

Sri Syed Nasir Hussain, s/o Mr. Syed Munawar Hussain,m aged major, male, 6-2-1,64/6, sapphire castle, G-2, 1.t floor, P& T colony, Near Glendale Academy school, su ncity, Bandlaguda Jagir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

¶11

Also at

¶12

1-6-1 13/8, Adarshnagar, Zaheerabad, Sanga reddy dist-502

¶13

Also at 1 E-|,ff ?an

¶14

(OA.No.14 of 2023)

¶15

H.No. 1 1-95, Moosanagar colony, Allipur, Zaheerabad, - 5OZ Z2O Sangareddy dist, Telangana.

¶16

Mr, Syed Hajee Hussain, s/o Mr. Syed Munavar Hussain, aged major, male, 1-6-L13/1D, Adarshnagar, Zaheerabad Sangareddy dist, Telangana - 502 220.

¶17

Also at

¶18

6-2-L64/ 6, sapphire castle, G-2, 1st floor,^p& T colony, Near Glendale Academy school, suncity, Bandlaguda Jagir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

¶19

Also at

¶20

H.No. 1 1-95, Moosanagar colony, Allipur, Zaheerabad, - SO2 220 Sangareddy dist, Telangana.

¶21

Mr Syed Muzafeer Hussain, s/o Mr. Syed Munawar Hussain, aged major, male, 1-B-1 13/1, Adarshnagar, Zaheerabad, Sangareddy dist Telangana - 502 22O.

¶22

Also at

¶23

6-2- 164 I 6, sapphire casfl e, G-2, 1't floor,^p& T colony, Near Glendale Academy school, su ncity, Bandlaguda Jag ir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

ty
*

(OA.No.14 of 2023)

Also at

H.No. 11-95, Moosanagar colony, Allipur, Zaheerabad, - SOZ ZZO Sangareddy dist, Telangana.

¶28

Mr. Syed Sadiq Hussain, s/o Sri Syed Munawar Hussain, aged major, male, 7-6-113/ t, Adarshnagar, Zaheera bad, Sa nga reddy d ist, Telangana - 5O2 22O.

¶29

Also at

¶30

H...No. 11-95, Moosanagar colony, Allipur, Zaheerabad, - SOZ ZZO Sangareddy dist, Telanga na.

¶31

¶32

Smt Syeda Meharunnisa Begum, w/o Sri Syed Munawar Husiain,' aged major, female,

¶33

7-6-113/ t, Adarshnagar, Zaheerabad,Sangarediy dist, Telangana - SO2 2ZO.

¶34

Also at

¶35

H.. No.11-95, Moosanagar colony, Allipur, Zaheerabad, - SOZ ZZO Sangareddy dist, Telangana.

¶36

7, Smt Syeda Naseema Begum, w/o Sri Syed Hajee Hussain, aged major, female, P.No.67, Adarshnagar, Zaheerabad, Sangareddy dist Telangana - 5O2 22O.

¶37

Also at

¶38

1 I UtI ?09

¶39

(OA. No.14 of 2023)

¶40

6-2-L64/ 6, sapphire castle, G-2, 1't floor, P& T colony, Near Glendale Academy school, s u ncity, Bandlaguda Jagir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

¶41

B. Smt Syeda Gulzar Begum, w/o Sri Syed Nasir Hussain, aged major, female, 7-6-173/ l, Adarshnagar, Zaheerabad,Sangareddy dist,

¶42

Telangana - 5O2 220.

¶43

Also at

¶44

6-2-764/ 6, sapphire castle, G-2, 1't floor,^p& T colony, Near Glendale Academy school, su ncity, Bandlaguda Jag ir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

¶45

Smt Syeda Habeeb Sultana, W/o Sri Shaik Allabhaksh, Aged major, female 1-8-1 13/1, Adarshnagar, Zaheerabad, Sangareddy dist Telangana - 502 22O.

¶46

Mr. Syed Fayaz Hussain, S/o Sri Syed Hazimia, Plot no. 102, Adarshnagar, Zaheerabad, Sanga reddy dist Telangana - 502 220.

¶47

Also at

¶48

H.No.2-1-25, block road, ..^{. .d.} Zaheerabad, Sangareddy dist- 502 /z* ,t

¶49

(OA.No.14 of 2023)

¶50

Mr. Syed Abbass Hussain, s/o Mr. Syed Hajimiah, aged major, male, 13-6-434/B/176, Om nagar Karwan, Golconda, Hyderabad - SOO OOg.

¶51

M/s. Munna Auto works, Represented by its proprietor, Sri Syed Hajee Hussain, S/o Sri Syed Munawar Hussain, Aged major, male, l-6-l13/ t, Adarshnagar, Zaheerabad,Sangareddy dist, Telangana - 502 2ZO.

¶52

Also at

¶53

6-2-164 / 6, sapphire castle, G-2, 1'' floor,^p& T colony, Near Glendale Academy school, suncity, Bandlaguda Jagir, Danbasco nagar, Rajendra naga r K. V. Ranga Reddy, Telangana- 86.

¶54

Also at

¶55

H.No. 1 1-95, Moosanagar colony, Allipur, Zaheerabad, - SO2 220 Sangareddy dist, Telangana,

¶56

M/s. Imran Industrial works, Rep by its Proprietor, Sri Syed Fayaz Hussain, s/o Sri Syed Hazimia, aged major, male, plot no.102, Adarsh nagar, Zaheerabad, Sanga reddy dsit, Telangana - 502 22O.

¶57

Also at

¶58

H.No.2-1-25, block road, Zaheerabad, Sangareddy dist- 502 220.

¶59

A.
E
10 ut.l ',tiJ

¶60

(OA.No.14 of 2023)

¶61

M/s. Shad Auto Industries, A Proprieta ry concern, Represented by its proprietor Sri Syed Abbas Hussain, S/o Late Sri Syed Hajimiah, Aged major, male, 13-6-434/B/ t76, Om nagar Karwan, Golconda, Hydeiabad -08, Defend a nts

¶62

Counsel for the^pa rties: For the Applicant Sri C. Prabhakar For the Defendantsthe DefendantsDefendants Expa rte

¶63

For the Defendantsthe DefendantsDefendants

¶64

ORDER

¶65

1' The Appricant Bank fired the present oA against Defendants ror recovery of a total sum of Rs.3,29,22,g2ol- (Rupees Three Crores Twenty Nine lakhs Twenty two thousand Eight hundred and twenty oniy) i.e,

¶66

a) a sum of Rs.33,58,496l_ under loan A/c. No.52128433332 with further interest @ 13.90olo p.a with monthly rests from date of application till realization;

¶67

b) a sum of Rs,55,31,285/- under loan A/c. 62423663730 with further interest @ 13.90o/o p.a with monthly rests from date of application till the date of realization;

¶68

(oA.No.14 of 2023)

¶69

c) a sum of Rs.12,83,457/- under loan A/c. 39269072324 with further interest @ 11.30o/o p.a with monthly rests from date of application till the date of realization;

¶70

d) a sum of Rs.2,13,25,521/- under loan A/c. 40258171101 with further interest @ 13.900/o p.a with monthly rests from date of application till the date of realization;

¶71

e) a sum of Rs.!4,24,061/- under loan A/c. 40251206498 with further interest @ 13.90olo p.a with monthly rests from date of application till the date of realization;

¶72

and in default for sale of hypothecated and mortgaged properties as described in the schedule i to VII to OA,

¶73

(OA.No.14 of 2023)

¶74

totaring Rs.250.00 rakhs vide retter dated or.o2.2014. Defendants 2 to 10 jointly executed guarantee agreement dated 01.12.2014. The Applicant bank renewed cash credit of Rs,150.00 rakhs term roan of Rs'87.87 rakhs and sanctioned adhoc roan of Rs.40.00 rakhs totailing Rs.277.87 lakhs on 12.01.2016. Subsequenfly the Applicant bank renewed cash credit of Rs.150.00 lakhs, term loan of Rs.71.69 and sanctioned new term loan of Rs.100.00 lakhs on 12.07.20!6. Defendants 2 & 4 created equitable mortgage on 09.05,200g by way of deposit of deed of sare dated 05.12.2000 in respect of schedure property II. Defendants 5& 6 created equitable mortgage on 09.05.2008 by way of deposit of deed of sale dated 05.12,2000 in respect of schedure property III. Defendant 13 created equitabre mortgage on 09.05.2008 by way of deposit of deed of sale dated 20"02'1998 in respect of schedure property IV. Defendant 14 created equitable mortgage on 09.05.2008 by way of deposit of deed of sale dated 23.12.2002 in respect of schedule property V. Defendant 12 created equitable mortgage on 09.05.2008 by way of deposit of deed of sale dated 23.t2.2O02 in respect of schedule property VI. Defendant 3 created equitable mortgage on 09.05.2008 by way of deposit of deed of sale dated 23.12.2OO2 in respect of schedule property VIL After avairing the roan facirities, the defe4dants faired to compry the terms of t,^' il+ i.: .. sanction, hence the appljcinf Uant, wal$o\strained to classify the

¶75

(oA.No.14 of 2023)

¶76

account as NpA and issued legal notice dated tS.Lt.ZO22. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶77

Defendants 1 to 14 called absent and set exparte on 06.06.2023.

¶78

Shri L.N. Naik, Senior Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked

¶79

as Ex.A.1 to A.61.

¶80

Heard the Ld. Counsel for the Applicant Bank.

¶81

The point that arise for consideration is whether the Applicant Bank is

¶82

entitled for the claim made in the OA against the Defendants as

¶83

prayed for?

¶84

Defendants ca,ed absent and set exparte, To substantiate the case of the Applicant Bank, AW.1, officiar of the Appricant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.61. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA aqainst the Defendants and hence the Appricant Bank is entitred to recover the craim made in the oA with future interest and costs.

¶85

(OA.No.14 of 2023)

¶86

B. In the result, the present OA is allowed with costs, as under:

¶87

The Defendants No.1 to 14 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs,3,29,22,g2O/_ (Rupees Three Crores Twenty Nine lakhs Twenty two thousand Eight hundred and twenty only) i.e,

¶88

a) a sum of Rs.33,58,496/_ under loan A/c. No.52128433332 with further interest @ 13.90o/o p.a from date of application till rea lization;

¶89

b) a sum of Rs.55,31,285/_ under loan A/c. 62473663730 with further interest (q) 13.90olo p.a from date of application till the date of rea lization;

¶90

c) a sum of Rs.12,83,457/- under loan A/c. 39269072324 with further interest @ 11.30% p.a from date of application till the date of realization;

¶91

d) a sum of Rs.2,13,25,52I/_ under loan A/c. 402581"71101 with further interest @ 13.90olo p.a from date of application till the date of rea lization;

¶92

e) a sum of Rs.L4,24,061l_ under loan A/c. 4O25B2O64gBwith further interest @ 13.90o/o p.a from date of apprication tilr the date of realization;

¶93

(OA.No.14 of 2023)

¶94

The Applicant Bank is entiued to proceed against the hypothecated movables and mortgaged properties as described in the schedule^,'I

¶95

to VII" to OA.

¶96

the Applicant Bank is also entitled to proceed against the person and properties of defendants No.2 to 11 and properties of defendants no.7,!2,1,3, and 14 firms towards realization of the debt due.

¶97

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

¶98

13, The Appricant sha' fire a cost memo within two weeks from the date of receipt of order.

¶99

Issue Recovery certificate accord ing ly.

¶100

Communicate a copy of the order to the parties concerned.

¶101

(Dictated to the p.A., transcribec corrected, signed and pronounced by me in the open court on this rhe luth day ", o.l,%1:;

¶102

sd/-

¶103

(G. GOPTCHAND) PRESIDING OFFICER

¶104

18 DtI 2W
:r,li,.:i
'i:4.',
\ u'^
\i'r

¶105

,oY5 coPy
,"**."*ffikp,',

¶106

State Bank of India v. M/S. Surex Auto Works

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Surex Auto Works

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

Canara Bank versus Sri Chilmala Krishna

Indian Overseas Bank versus M/S. Saras Enterprises

Mr Anwar Ali Jiwani versus Union Bank of India

Smt Kethavath Maji versus Bank of Baroda

City Union Bank Limited versus M/S. Kunta Raja Govindu and Sons

City Union Bank Ltd, versus M/S. Sri Venkateswara Motors