Allowed

Union Bank of India v. M S Sowmya Plastics

DRT10 Jul 2023OA/247/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the original application filed by Union Bank of India for recovery of a term loan default from M/s. Sowmya Plastics, granting a recovery certificate and permission to proceed against hypothecated assets. The respondent was absent.

What did the court decide?

Recovery certificate issued; direction to pay Rs.46,99,947 with interest; permission to proceed against hypothecated assets and properties of the respondent.

Union Bank of India versus M S Sowmya Plastics — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 1OTH DAY OF JULY'2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.247 of 2022

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Between:

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Union Bank of India (earlier known as Andhra Bank) Karwan branch, Hyderabad. Represented by its Senior Branch Manager

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Applicant

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VERSUS

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M/s. Sowmya Plastics, Rep by its Prop: Mr. Harijan Mahesh, S/o Anjilappa,

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Aged about 30 years, occ: business, R/o H. No.4-40 -54/ C, Ptagathinagar, Kukatpally, Medchal, Malkajgiri dis!.., Telangana - 500 037. .-_:,'-..];^... Defendant 'tstl "Yi":..'\ bNCounsel for the Partiesr,;r. lY, hpally Jhansi Rani For the Appticant j 1 0 JUt^{,Z0g r.I} For the Defendant e -, ; ,.E)tpt Nfr}.,,",oe(.I# sbd !s,

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The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs,46,99,947l- (Rupees Forty Six Lakhs Ninety Nine thousand Nine hundred and forty seven

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lOA.No.247l2022l

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only) with current and future interest @ 14.50%^p.a with monthly rests from 78.O4.2022 till 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 availed term loan of Rs.47.00m lakhs for manufacturing plastic granule business on 15.01.2021. The defendant executed letter of sanction, demand promissory note, interest agreement, letter of continuity, letter of undertaking, general term loan agreement etc. After availing the loan facility, the defendant failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on L7.04.2022 and issued legal notice dated 01.08.2022. Inspite of several requests and demands, the defendant did not clear the outstanding. Hence this OA.

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Defendant was called absent and set exparte on 09.05.2023.

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Shri Girish Kumar Jha, Senior Manager of the Applicant Ba examined himself as AW.1 and exhibited relevant documents, whi are marked as Ex.A.l to A. 12.

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Heard the Ld. Counsel for the Applicant

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10ltJtzm

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lOA.No.247l2022l

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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 defendant was 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.12. In view of the above, I hold that the Applicant Bank has established 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.

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B. In the result, the present OA is ailowed with costs, as under:

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The Defendant is liable to pay to the Applicant Bank a total Rs.46,99,947l- (Rupees Forty Six Lakhs Ninety Nine thousand Nine hundred and forty seven only) with current and future interest @ 14.50% p.a from t8.04.2022 till the date of realization.

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i) The Applicant Bank is entitled to proceed against the hypothecated assets as described realization of ,,:iffi-"".

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the debt due. * ,.-,^1r0 JU 20n

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lOA.No.247l2022l

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

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

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iv) 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 lOth day of July, 2023)

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sd/-

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(G. GOPTCHAND) PRESIDING OFFICER

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Union Bank of India v. M S Sowmya Plastics

Case brief

What is this about?

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Union Bank of India v. M S Sowmya Plastics

Case brief

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