Allowed

State Bank of India v. M/S Shiva Earth Movers

DRT26 Sept 2023OA/155/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Origination Application filed by State Bank of India against a proprietary firm and its proprietress for recovery of dues. The tribunal directed defendants to pay approximately Rs.31 lakhs with interest and costs, confirming joint and several liability and entitlement to proceed against hypothecated and other properties.

What did the court decide?

Directed respondents to pay Rs.31,07,364/- with future interest and costs; bank entitled to proceed against hypothecated and other properties.

State Bank of India versus M/S Shiva Earth Movers — Insurance | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

¶2

DATED THIS THE 26TH DAY OF SEPTEMBER' 2023

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

OA.No.155 ot 2023

¶5

Between :

¶6

State Bank of India, Asset Recovery Management bra nch (SARB-2), 1-8-563/1, RTC cross Roads, Opp Sandhya Theatre, 1't floor, Chikkadpally, Hyderabad - 500 020. Represented by its Chief Manager Applicant

¶7

VERSUS

¶8

M/s. Shiva Earth Movers, A proprieta ry concern, Represented by its^proprietress Smt Chintakaya Yadamma,

¶9

Smt Chlntakaya Yadamma, Aged 34 years, female, w/o Sheikh Azmeer, Proprietress M/s. Shiva Earth Movers, H.No.3-84, Chowdarigudem^jilled, Kondurg, Mahabubnagar dist - 509 207. Defendants

¶10

Counsel for the Parties:

¶11

For the Applicant lanaki Ram
'' 'J''
.
',.j;

¶12

(OA.No,155of 2023)

¶13

ORDER

¶14

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.31,07,364l- (Rupees Tharty One Lakhs Seven thousand three hundred and Sixty four only) i.e., a sum of Rs.27,67,429l- under term loan account with interest @ I2.4Oo/o p.a with monthly rests and a sum of Rs.3,39,935/- under GECL account with interest @ 9.25olo p.a with monthly rests from date of application till the date of realization and in default for sale of hypothecated property as described in the schedule to OA.

¶15

As per the averments in the apprication, the Appricant Bank states that the defendant No.1 is a sore proprietary concern represented by its Proprietress i,e., defendant no.2 avaired credit facirity of Rs. 21.30 lakhs for purchase of Earth Excavator vehicre vide retter of arrangement dated 30.11.2019. The defendants executed agreement of loan cum hypothecation on 30.11.2019 and hypothecated Earth Excavator Vehicre bearing Moder No,JCB3DX Excavator Motor. The defendants avaired additionar facirity under GECL term roan of Rs,4.21 lakhs vide retter of arrangement dated 17.06.2020 and executed supplemental agreement of lqan.6ur1r.iypothecation. The applicant . - :rbank restructured the gfedit facirities vide' arrangement retter dated

¶16

2 6rStP zoa

¶17

(OA.No.155of 2023)

¶18

02.OB.2O2L and rescheduled the term loan installments. 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 notices dated 21.03.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶19

Defendants were called absent and set exparte on 04.09.2023.

¶20

Shri Ch. Raghavendra Rao, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.13.

¶21

5 Heard the Ld. Counsel for the Applicant Bank.

¶22

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?

¶23

The defendants were called absent and set exparte. To substantiate the case of the Appricant Bank, AW.1, officiar of the Appricant Bank ..-...)a"' ,:^''

¶24

was examined and he exhi$fedlS6vbnt dosuments as Ex.A1 to A.13. - +'.

¶25

it *,.

¶26

In view of the above, I h@ that the; Appriciq Bank has established

¶27

(oA.No.1ssof 2023)

¶28

their claim made in the OA against the Defendant and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

¶29

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

¶30

The Defendants are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.31,O7,364/- (Rupees Thirty One Lakhs Seven thousand three hundred and Sixty four only) i.e., a sum of Rs.27,67,429/- under term loan account with interest @ I2.4Oo/o p.a and a sum of Rs.3,39,935/- under GECL account with interest @ 9.25o/o p.a from date of application till the date of realization ;

¶31

i) rhe Appricant Bank is entiued to proceed against the hypothecated property as described in the schedule to OA.

¶32

ii) the Applicant Bank is arso entitred to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

¶33

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

¶34

iv) The Applicant shail fire a cost memo within two weeks from the date of receipt of order.

¶35

(OA.No.155of 2023)

¶36

Issue Recovery certificate accordingly.

¶37

Communicate a copy of the order to the parties concerned.

¶38

(Dictated to the P.A., transcribed by her, corrected, sagned and pronounced by me in the open court on this the 26th day of Sept, 2023)

sd/-

(G. GOPTCHAND)

PRESIDING OFFICER

,,("t11i,q-EN
', +.{, q
; z6srp2oa :
'-kgl-

State Bank of India v. M/S Shiva Earth Movers

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Shiva Earth Movers

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

State Bank of India versus M/S. Vasantha Engineers @ Vasantaa Engineers

Union Bank of India ( Formerly Andhra Bank) versus M/S. Mirror Advertising Agency

M S Amruthamayee Milk Products versus Union Bank of India

State Bank of India versus Sri. Ratan Pillay

City Union Bank Limited versus M S Annapurna Enterprises

Union Bank of India versus M/S Sai Saranyas Cloth Stores