Allowed

Bank of India v. M/S. Kavitha Constructions

DRT6 Sept 2023OA/6/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Originating Application filed by Bank of India against various defendants for recovery of loan amounts, interest, and costs. The court upheld the bank's right to proceed against mortgaged properties and personal properties of guarantors/heirs.

What did the court decide?

Order allowed with costs. Defendants jointly and severally liable to pay Rs.76,65,480.65 inclusive of interest. Bank entitled to proceed against mortgaged properties and properties of defendants 2 to

Bank of India versus M/S. Kavitha Constructions — Contract and Commercial Disputes | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 6TH DAY OF SEPTEMBER, 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.6 OF 2022

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Between :

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Bank of India, Warangal bra nch, Near Gopala Swamy Temple, M.c. Road, Warangal - 506 002. Represented by its Constituted attorney

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... Applicant

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VERSUS

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M/s. Kavitha Constructions, Represented by its Proprietor Smt T. Kavitha, Sy.No.20lA, Hanmakonda, Warangal - 506 001 And flat no.402, Kapil Homes, Wadepally, Opp PGR^gardens, Warangal - 506 001.

¶9

Flat

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Smt T. Kavitha, w/o Late Thadishetti Madhu,

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aged 42^years, occ: business, R/o H.No.4-1-66, Kothur Zanda,

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Hanmakonda, Warangal -^{506 001} And also at flat no.4O2, KaPil^Homes, Wadepally, Opp PGR^gardens,

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Warangal - 506 001.

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? Shri Dumpala Ramesh,

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S/o Ilaiah, aged 56^years, occ:^business, R/o H.No.4-1-298, Subhash^nagar,

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Kothur, Hanmakonda, Warangal -^{506 001.}

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*
0 5 sEP 2021

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(OA.No.6/2022)

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Smt Dumpala Srilatha, w/o Dumpa Ramesh,^{aged 46} Years, occ: housewife, R/o^{H.No.4-1-298,} Subhash nagar,^Kothur, Hanmakonda,^Warangal -^{506 001.}

¶20

Sri Ravula Krishna, s/o Janardhan,^{aged 50} Years, occ: business,^{R/o H.No,4-2-t4olL,} Kothur, Hanmakonda,^{Warangal-506001.}

¶21

Smt KothapallY^Rajitha, w/o Eggiri Kumara^{Swamy, aged 35 yearst} - occ: G&t teacher,^{R/o H'No.11-30-189/190,} Thummalakunta,^Kothawada, Warangal citY -^{506 001 andalso at} House constructed^{on open plot in Sy.No'20/A,} Bheemaram^{village, Hasanparthy mandal,} Warangal - 506^015.

¶22

Sri Vadluri^{Sambaiah, S/o Ramaiah,} Aged 47^{years, occ: business,} R7o H.No.11-22-673,^{Pothana veedhi,} Warangal citY -^{506 001 andalsoat} Houseionstructed^{on open plot in Sy'No'20/A,} Bheemaram^{village, Hasanparthy mandal,} Warangal -^{506 015.}

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B. Ms. T. Ramya^{Sree, D/o LateThadisheetiMadhu,} Aged 21^{years, occ: business,R/o H'No'4-1-66,} Kothur Zanda,^Hanmakonda, And also at flat^{no.402, KaPil Homes,} WadepallY, OPP^{PGR gardens,} Warangal - 506^001.

¶24

Sri T. Harshith^{Sai, S/o LateThadishetti Madhu} Aged 19^{years, occ: business,} R/o H.No.4-1-66,^{Kothur Zanda,} Hanmakonda,^Warangal -^{506 001} And also at^{flat no.402, Kapil Homes,} ,

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WadepallY, OPP^{PGE gardens,} .,:' ,,:. Warangal - 506 001. ,i.

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Homes,
, .'
.,:' ,,:.
,i.
,-,
,l
":. 6 SFp
',...ii,,
'
l\ ...

¶27

(oA.No.6/2022)

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Thadisetty Mahesh, S/o Janardhan, Aged 43 years, occ: business, R/o H.No.4-3-l2t/1, Kothur zanda, Hanmakonda, Warangal - 506 001.

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Defendants

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Counsel for the Pa rties:

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For the Applicant Sri M.V. Ramana

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For the Defendants 1,3 to 7 & 10

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Expa rte

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Defendants 2,8 & 9 Nelson Mathew

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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.76,65,48o.65ps (Rupees Seventy Six Lakhs Sixty Five thousand Four hundred Eighty and paise Sixty five only) i.e.,

¶37

a) a sum of Rs.38,83,493.70ps under cash credit loan facility with interest @ 74.25o/o p.a with monthly rests including 2o/o penal interest from date of filing of OA till the date of full and final rea lization ;

¶38

b) a sum of Rs.37,81,986.95ps under housing loan facility with interest @ 14.25% p.a with monthly rests including Zo/o penal interest from date of filing of OA till the date of full and fina I realization;

¶39

i::
' .
,, '-r.'?"t
'-'
.:,

¶40

(oA.No.6/2022)

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and in default for sale of mortgaged properties as described in the

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schedules "A & B" to OA.

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As per the averments in the application, the Applicant Bank states that the defendant No.1 is a firm represented by its^proprietor, the^2nd defendant as its Proprietor availed credit facility of Rs.30.00^lakhsfor purchasing building construction material in 2013 and defendants 3 & 4 stood as guarantors. The defendants 1 and^{2 executeddemand} promissory note for Rs,30.00 lakhs bearer letter, hypothecation^cum loan agreement, L-515, L516, letter of^{declaration, undertakingand} authority dated 14.10.2013. In^{addition to above securities, Sri} Thadisetti Madhu mortgaged his^{immovableproperty as security for} due repayment of loan and^{depositedtitle deeds of the propertyon} t4.10.2013. Subsequently^{Sri ThadishettiMadhu fraudulently sold} away the said^property to^{defendant no.4 and defendant no.5.And} defendants 4 & 5 sold their^{respective portions to defendants 6 & 7} through doc no.s2210/2015^{dated27'05.20t5and 1305/2016dated} 06.04.2016 both^{registeredin office of SRO, Warangal. Later Sri} Thadisetti Madhu died on^{09.006.2018 leaving behind defendants2,8} and 9 as his legal heirs.^{Defendantno.10 stood as guarantor and} executed security letter in^{favour of the} ,li Bank. After availfiq the defendants failed^to

¶44

(oA.No.6/2022)

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comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 31.03.2021 and issued demand notice on L4.O7.202L and legal notice on 18.8.2021. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶46

Defendants No.1,3 to 7 and 10 rvere called absent and set exparte on 26.08.2022. Shri Nelson Mathew filed vakalath for D.2,8 &9 but not filed WS.

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Shri E. Sandeep Kumar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.40 (except A.13 to A.16).

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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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To su bsta ntiate officia I of the docu ments as Ex.A1 to A.40 (except.A.13 to A.16).^' above, I hold

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r*'., ll E 61 'its x :'l.il'l i.-'.'| -r . .,;

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(oA.No.6/2022)

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that the Applicant Bank has established their claim made in the OA aga inst 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 Rs.76r65,4go.65ps (Rupees Seventy Six Lakhs Sixty Five thousand Four hundred Eighty and paise Sixty five only) i.e.,

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a) a sum of Rs.38,83,493.70ps under cash credit loan facility with interest @ 14.25o/o p.a from date of firing of oA tiil the date of full and final realization;

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b) a sum of Rs.37,81,986.95ps under housing loan facility with interest @ 14.25o/o p.a from date of firing of oA tiil the date of full and final rea lization;

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The Applicant bank is entifled to proceed against the mortgaged properties as described in the schedules ,,A & B,, to OA towards realization of its dues,

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the Apprrcant Bank is arso entitred to proceed against the person and properties of defendant No.2 to 10 and properties of Defendant no.1 However the Applicant No.2,B&gonlytothe

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(OA.No.6/2022)

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extent of estate devolved upon them from deceased late Thadishetti Madhu.

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t2. The Applicant Bank is entitled to the costs of the OA.

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13, The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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1.4. Issue Recovery certificate accord ingly.

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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 6th day of Sept, 2023)

sdl(G. GOPTCHAND)

PRESIDING OFFICER

0 r iiit 2l]n

TRUE GOPY
^*rr,,tr#rfiy

Bank of India v. M/S. Kavitha Constructions

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S. Kavitha Constructions

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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