Allowed

M/S.Karnataka Bank Limited v. M/S.Shakunthala Industries

DRT13 Mar 2023OA/266/2022

Case brief

AI extract

What is this about?

In OA No.266 of 2022, the Debt Recovery Tribunal allowed Karnataka Bank Ltd's application for recovery of a term loan of Rs.18 lakhs along with interest and costs from three defendants who defaulted on repayment obligations secured by mortgaged property.

What did the court decide?

Allowed OA for recovery of Rs.28,19,977.49 with interest and costs; authorized proceedings against mortgaged property and personal assets of respondents.

M/S.Karnataka Bank Limited versus M/S.Shakunthala Industries — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I^{AT HYDERABAD} DATED THrS THE 13rH DAY OF MARCH,2023

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PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

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OA.No.266 of 2022

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Between:

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M/s. Karnataka Bank Limited, Branch office no.12-2-6, Jandhayam complex, SVN road, Battala bazar, Warangal- 506 002. Represented by its branch head Sri Baddam Anil Kumar

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Applicant

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VERSUS

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M/s. Shakunthala Industries, R/o H.No.23-6-2041b, Sri Vinayaka Hills, Hunter road, Warangal - 506 001

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Telangana. Represented by its Proprietrix

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SmtD. Shakunthala, w/o Sri D. Komuraiah,

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aged about 54^yrs, occ: business, R/o H.No.4-t30/L, BC colony, Malakapally, Warangal - 506 001. Telangana State.

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Sri SeelamChandraiah, s/o Sri Posaiah, aged about 62^yrs, occ: business, R/o^H .No.24-7:27015, near Mayuri^gardens, Ramakrishna colony, Hanamkonda, Warangal - 506 001. Telangana state.

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{^{13 ilAn zm} Defendants

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loA.No.266/2022)

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Counsel for the Parties: For the Applicant

For the Defendants

Sri G. Ramesh Babu

Exparte

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.28r19,977.49ps (Rupees Twenty Eight lakhs Nineteen thousand Nine hundred Seventy Seven and paise forty nine only) with current and future interest @ 15.95olo p.a with monthly rests from 19.08.2022 till the date of realization and in default for sale of mortgaged property as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendants no.1 to 3 availed term loan of Rs.18.00 lakhs to purchase 5000 LPH RO Plant with Membrane auto flush system. Defendants No. 1 to 3 jointly executed term loan agreement on 14.09.2016 agreeing to repay the same in 84 monthly instalments of Rs.30,774/- with interest @ 10.95olo compounded monthly raising or falling with the base rate of interest as fixed by the Applicant Bank. .,c. The defendants agy?€adp.:pay'tfe.FRgl interest @ 5olo. The said {4..- / {}'r',:. 1:1- .+ limits are securedr;p, by way of ifnjnQyable property in Survey no.573/b/2 of shalamq$ Vlrpegffom*fiurins 400 sq.yds situated at Deendayalnagar;,63nsrnkonda, waralifrr district. The defendants

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(OA.No.266/2022],

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also executed the acknowledgement of debt on 05.09.2019. 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 15.05.218 and issued legal notice dated 16.05.2018. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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3, Defendants were called absent set exparte on t6.O2.2023.

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Sri B. Anil Kumar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.9.

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Heard the Ld. Counsel for the Applicant Bank.

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rhe point that arise for considerl[on r.ol",l[.FJ the^{Applicant Bank is} entitled for the claim made in'tft OA Egain Defendants as prayedfor? t* *\i l,-, 13 llln 7r3 i.1" ''{;n io *t,, .--. :j.r' .<sup>'.1 . ^'^.:..' 7. The defendants were called adsEn..t bnd set expitte. To substantiate .1

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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.9. 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

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(oA.No.2G612022)

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Applicant Bank is entiiled to recover the craim made in the oA with future interest and costs.

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B' In the resurt, the present oA is ailowed 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.2g,19,977.49ps (Rupees Twenty Eight lakhs Nineteen thousand Nine hundred Seventy Seven and paise forty nine only) with current and future interest @ 15.95olo p.a from L9.08.2022 till realization.

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i) The Applicant Bank is entitled to proceed against the mortgaged immovable property as described in the schedule to OA towards realization of the debt due.

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ii) the Applicant Bank is also entiued to proceed against the person and properties of defendant No.2& 3 and properties of defendant no.1 firm 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 date of receipt of order.

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(oA.No.266 /2022)

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Issue Recovery certificate according ly.

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Communicate a copy of the order to the parties concerned.

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:3l1ftJ?rtir""t;3*Til'"7,?r""...?,n;?:;.rected,^{sisned and pronounced} by me in the open

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(G. GOPTCHAND) PRESIDTNG OFFICER

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M/S.Karnataka Bank Limited v. M/S.Shakunthala Industries

Case brief

What is this about?

What did the court decide?

M/S.Karnataka Bank Limited v. M/S.Shakunthala Industries

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

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