Allowed

State Bank of India v. M/S.Varalaxmi Electronics and Enterprises

DRT28 Nov 2023OA/181/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application by State Bank of India against M/s. Varalaxmi Electronics & Enterprises and its proprietor. The Bank claimed Rs. 47.31 Lakhs with interest and sought sale of hypothecated assets. Being ex-parte, the Bank established its case via documentary evidence.

What did the court decide?

Joint and several liability to pay Rs. 47.31 Lakhs with interest @12.40% p.a. from 11.05.2023; permission to proceed against hypothecated movable properties and defendant's person/properties for reali

State Bank of India versus M/S.Varalaxmi Electronics and… — Company and Corporate | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 28TH DAY OF NOVEMBER' 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.181 ot 2023

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Between:

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State Bank of India, ARMB, Chikkadpally, Hyderabad, TS Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Varalaxmi Electronics & Enterprises, Represented by its Proprietor Mrs. Ga dd a mVa ra lax m i, female, Aged major, 3-2-86/8, Kamala Nehru colony, Armoor, Nizamabad district - 503 224.

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Mrs. GaddamVaralaxmi,

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Female, aged major, 3-2-86/8, Kamala Nehru

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colony, Armoor, Nizamabad

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District - 5O3 224. TS.

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Defendants

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Counsel for the Pa rties:

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For the Applicant Sri A.M. Kira n Kumar

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For the Defendants

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(oA. No.181/2023)

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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.47p3,L41l- (Rupees Forty Seven Lakhs Thirty three thousand One hundred and forty oneonly) with future interest @ l2.4Oo/o p.a with monthly rests from 11.05.2023 till the date of realization and in default for sale of hypothecated assets 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 proprietary concern represented by defendant no.2 as proprietor of M/s. Varalaxmi Electricals and Enterprises availed term loan facility of Rs.49 lakhs. The defendant company represented by its proprietor Mrs. GaddamVaralaxmi executed letter of arrangement, agreement of loan cum hypothecation to secure term loan limit on 26.02.2027. 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 24.09.2022 and issued legal notice dated 31.03.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this oA.

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Defenda nts called abse

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(oA. No.181/2023)

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Sri D. Naga Prasad, Manager of the Applicant^{Bank examined himself} as AW.l and exhibited relevant documents, which are^markedas Ex.A.1 to A.5.

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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 ApplicantBankis} entitled for the claim made in the OA against the^{Defendants as} prayed for?

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Defendants called absent and set exparte. To substantiate the^caseof the Applicant Bank, AW.1, official of the Applicant^{Bank was examined} and he exhibited relevant documents as Ex.A1 to A.5. 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} entitled to recover the claim made in the OA with future^{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 pees Forty Seven Lakhs Thirty three forty one only) with ;^2snrr,nll I Qfu,n",oelfsi 9or;ii19

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(OA.No.181/2023)

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11.05.2023 till the date of future interest @ 12.40%^p.aFrom

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realization;

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The Applicant Bank is entitled to^{proceed againstthe hypothecated} movable property as described^{in the scheduleto OA.}

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the Applicant Bank^{is also entitledto proceed against the personand} properties of defendants towards^{realization of the debt due'}

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The Applicant Bank^{is entitled to the costs of the OA'}

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The Applicant shall^{file a cost memo within two weeksfrom the date of} receipt of order.

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14, 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^{byher, corrected, signed and pronounced by mein theopen} court on this^{the 28thday of Nov, 2023)}

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sd/_ (G. GOPICHAND) PRESIDING OFFICER

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State Bank of India v. M/S.Varalaxmi Electronics and Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S.Varalaxmi Electronics and Enterprises

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

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