Allowed

Bank of India v. M/S. Rayalas Alankar

DRT12 Jun 2023OA/8/2022

Case brief

AI extract

What is this about?

AOA.No.8/2022: Bank of India filed an Original Application to recover dues from borrowers of Rayalas Alankar. The Tribunal allowed the application, holding the bank established its claim and directed defendants to pay total Rs.1.39 crore with interest and authorize sale of hypothecated assets.

What did the court decide?

Defendants ordered to jointly and severally pay Rs.1,39,83,817.87 with future interest and costs; bank authorized to realize dues from hypothecated assets and person/properties of defendants; recovery

Bank of India versus M/S. Rayalas Alankar — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 12TH DAY OF JUNE' 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER

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OA.No.O8 OF 2022

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Between:

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Bank of India, Basheerbagh branch, D.No.5-9-30/31 to 34, First floor, New MLA quarters lane, Basheerbagh, Hyderabad - 500 063. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Rayalas Alankar, Proprietrix Mrs Vennala, M D No.BB/89, AR empire,

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Sri Sai Ram Nagar colony, Puppalaguda, Manikonda,

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Ranga Reddy district - 500 084.

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Mrs Vennala Manne, D/o Sri Manne Veeraswamy, Present address : d.No.BB/89, AR Empire, Sri Sai Ramnagar colony, Puppalaguda, Manikonda, Ranga Reddy district - 500 084.

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Permanent address: B-7- Manneari street, SBH building, Achanta, West Godava.ri, .

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Defendants
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, 12 Jlt
MJ?}

¶15

(OA, No.8/2022)

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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Shri K.V. Nageswara Rao

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Exparte

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.1r39,g3,gL7.g7ps (Rupees One Crore Thirty Nine lakhs Eighty Three thousand Eight hundred Seventeen and paise Eighty seven only) i.e.,

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i) Defendants 1& 2 to pay jointly and severally a sum of Rs.56,59,279l- under term loan account with future interest @ t3.4Oo/o p.a including penal interest @2o/o p.a with monthly rests from the date of application till realization;

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ii) Defendants 1& 2 to pay jointly and severally a sum of Rs.51,90,354.55/- under cash credit loan account with future interest @ 13.40olo p.a including penal interest @2olo p.a with monthly rests from the date of application till realization;

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iii) Defendants 1 & 2 to pay jointly and severally a sum of Rs.2,88,475/- under FITL loan account with future interest @ 73.4Oo/o p.a including penal interest @2olo p.a with monthly rests from the date of application till realization;

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iv) Defendants 1& 2 to pay jointly and severally a sum of Rs22,37,45t/- under loan a.cc No.860170410000067 with future interest @ 13,40%..9;a i ncludiiig rY penal interest @2olo p.a with monthly restg from theldate:e of f pSilication oritication till realization :;

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r ti 12^{tuil ?m} F+-qlr

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(oA.No.8/2022)

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v) Defendants 1 & 2 to pay jointly and severally a sum of Rs.6,08,258.32ps under loan account No.86017011000002S with future interest @ 13.40olo p.a including penal interest @2o/o^p.a with monthly rests from the date of application till realization;

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And in default for sale of hypothecated properties as described in the schedule to OA.

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As per the averments in the appllcatlon, the Applicant Bank states that the defendant no.1 is proprietorship concern represented by defendant no.2 availed term loan and cash credit facilities for setting up of make up studio in the name and style of "Rayalas Alankar". The defendants availed Rs.55.00 lakhs under term loan and Rs.40.00 lakhs under cash credit facility. The defendants executed bearer letter dated 29.09.2018. The defendants executed hypothecation cum loan agreement dated 29.09.2018 and hypothecated movable assets more fully described in the schedule to OA. The defendant no.1 availed GECL / term loan for a sum of Rs.17.00 lakhs and defendants 1 &² availed covid 19 Cess 2020 for a sum of Rs.4.00 lakhs. 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 notice daled 29.O7.2021. 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 29.09.2022. ;'N

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nt Bank examined which are marked

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as Ex.A.1 to A.44. : 12^{lull lg23} ; 4, , -iJ W-iP

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(oA.No.8/2022)

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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.44. 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 Rs.1,39,83,8L7.87ps (Rupees One Crore Thirty Nine lakhs Eighty Three thousand Eight hundred Seventeen and paise Eighty seven only) i.e.,

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i) Defendants 1 & 2 to pay a sum of Rs.56,59,279l- under term loan account with future interest @ 13.40olo p,a from the date of a pplication till realization;

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ii) Defendants 1 & 2 to pay a sum of Rs.51,90,354.55/- under cash credit loan account with future interest @ 13.400/o p.a from the date of application till realization;

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iii) Defendants 1 & 2 to pay a sum of Rs.2,8g,475l- under FITL .r, . .

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rtergt @ l3.4Oo/o p.a from the date

¶45

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t^{12 JUr} mg

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(OA.No.8/2022)

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iv) Defendants 1 & 2 to pay a sum of Rs22,37,45L/under loan account No.860170410000067 with future interest @ 13.40olo

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p.a from the date of application till realization;

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v) Defendants 1 & 2 to pay a sum of Rs.6,0g,258.32ps under loan account No.860170110000025 with future interest @ 13.40olo

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p.a from the date of application till realization;

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The Applicant bank is entitred to proceed against the hypothecated assets as described in the schedule to oA towards realization of the debt due.

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the Applicant Bank is arso entitred to proceed against the person and 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 weeks from the date of rece ipt 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 12th day of June, 2023)

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sd/-

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(G. GOPTCHAND) PRESIDING OFFICER

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I rl*u-'^uur or:t,--ffi'rillt\ of,-i,^*ioee'PaeP'

Bank of India v. M/S. Rayalas Alankar

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S. Rayalas Alankar

Case brief

What is this about?

What did the court decide?

What the court decided

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