Allowed

Union Bank of India v. M/S. Fraternity Interactive Private Limited

DRT8 Jun 2023OA/145/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's Original Application seeking recovery of outstanding term loan and emergency line dues from corporate and individual respondents, holding the bank established its claim via documentary evidence.

What did the court decide?

Decrease for joint and several liability to pay Rs.49,87,624.94 with future interest, costs, and resort to attachment of properties.

Union Bank of India versus M/S. Fraternity Interactive Private… — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 8TH DAY OF JUNE' 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.145 OF 2022

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Between:

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Union Bank of India, (Erstwhile Andhra Bank), Narayanaguda bra nch, YMCA campus, Narayanaguda, Hyderabad - 500 029. Represented by its authorised officer

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Applicant

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VERSUS

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M/s. Fraternity Interactive Private Limited, Represented by its Director Mr. Kodanda Jayaram Susarala, office at plot no.45la, Road no.3, Venkataramana colony, Nagole, Hyderabad - 500 058.

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R/o shop no.401 & 402, 4th floor, Zee plaza, opp Minerva coffee shop, Street no.7, Himayathnagar, Hyderabad - 500 029.

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Mr. Kodanda Jayaram Susarala, s/o Rama Krishna Rao, major, occ: business, H,No.2-1-189/ 45/ A, plot no.45/A, Venkataramana colony, Nagole, Hyderabad - 500 068.

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; ooJUllzozl
fS_

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(oA. No.1asl2022)

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Counsel for the Parties:

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For the Applicant

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Shri V. Sethu Madhava Rao

For the Defendants

Exparte

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.49,gZ,6z4.94ps (Rupees Forty Nine Lakhs Eighty Seven thousand Six hundred twenty four and paise Ninety four only) i.e., a sum of Rs.41,15,218.45ps /- under term loan account with subsequent interest @ 13.65olo p.a with monthly rests and a sum of Rs.8,72,4O6.49ps under UGECL account with subsequent interest @ 9.50o/o p.a with monthly rests from the date of application till realization.

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As per the averments in the application, the Applicant Bank states that the defendant no.1 is a Private Limited Company represented by its directors i.e., defendants 2 & 3. The defendant no.1 represented by defendants 2 & 3 availed term loan of Rs.49.75 lakhs vide sanction letter dated 01.03,2017. The defendants executed composite agreement, letter of undertaking, letter of acceptance on 01.03.2017. Defendant no.1 availed term loan and was restructured vide sanction bydefendants2&3. The defendants availed Union Emergency Covid Line limit of Rs.8.14 lakhs on executed term loan agreement, interest agreement, ion deed, letter of guarantee and consent letter.

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(OA. No.14sl2022)

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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 notices. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants were set exparte on 09.L2.2022.

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..i.A Shri P. Srinivasula Reddy, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.20.

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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 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.20. 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 entitred to recover the claim made in the oA with future interest and costs.

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B. In thr is allowed with costs, as under:

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(oA.No.1asl2022)

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The Defendants are jointly and severally liable to pay to the Applicant Bank a total Rs.49,87,624.94ps (Rupees Forty Nine Lakhs Eighty Seven thousand Six hundred twenty four and paise Ninety four only) i.e., a sum of Rs.41,15,218.45ps /- under term loan account with subsequent interest @ 13.650lo p.a and a sum of Rs.8,72,406.49ps under UGECL account with subsequent interest @ 9.50% p.a from the date of application till the date of realization.

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i) the Applicant Bank is also entitled to proceed against the person and properties of defendants towards realization of the debt due.

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

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iii) 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 8th day of June, 2023)

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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sr' . .-(11

Union Bank of India v. M/S. Fraternity Interactive Private Limited

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S. Fraternity Interactive Private Limited

Case brief

What is this about?

What did the court decide?

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