Allowed

City Union Bank Limited, v. Smt.Chella Sashikala

DRT28 Mar 2023OA/270/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank to recover a total sum of approximately Rs. 27.94 lakhs plus interest and costs from the legal representatives of a deceased deceased sole proprietor who had defaulted on a home and business loan facility.

What did the court decide?

Recovery of total sum of Rs. 27,94,91.74 with interest and costs; grant of recovery certificate; permission to proceed against mortgaged and personal properties.

City Union Bank Limited, versus Smt.Chella Sashikala — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD DATED THIS THE 28rH DAy oF MARCH, 2023

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PRESENTI sRI GUMMADI GOPICHAND, PRESTDING OFFICER

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OA.No.27O of 2O22

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Between:

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City Union Bank Limited, Kamareddy branch, Telangana Represented by its branch Manager...

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Applicant

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VERSUS

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SmtCheelaSashikala, w/o Late CheelaSanthosh, Hindu, aged about 27 yrs,

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5.- 5-48/ 7, Viveka nanda colony, Kamareddy, Kamareddy Oistriit.

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Sri Cheela Sudhakar, s/o Rama Chandram. Hindu, aged about 7i years, 5-5-48/ t, Vivekananda colony, Kamareddy, Kamareddy Oistriit.

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SmtCheela Rajeswari, w/o Sudhakar, Hindu, aged about 61 yrs,

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5.-5-48/ 7, Vivekananda colony, Kamareddy, Kamareddy district.

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Cheela Varun, aged about 5 years Being minor represented by his mother and natural guardian, SmtCheela Sashikala,5-5 -48/ I, Vivekananda colonv_ Kamareddy, Kamareddy district.

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2 I ilAF 7[23

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(oA.no.27O/20221

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CheelaManvitha,

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Aged about 2 years, being minor Represented by her mothLr and Natural guardian smtCheelaSashikala 5-5-48/L,Vivekananda cofony,'-'Kamareddy, Kamareddy Oistrict.

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Defendants

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Counsel for the parties: For the Applicant For the Defendants

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Sri A. Satyanarayana Exparte

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ORDER

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1' The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2Z,g4,l'.gl-.74 ps (Rupees Twenty Seven Lakhs Ninety Four thousand One hundred Eighty One and paise Seventy Four only) i.e., a sum of Rs.15.00 lakhs with interest @ l2.2So/o p.a with monthly rests; a sum of Rs.17.00 Iakhs with current and future interest @ LL.25o/o p.a with monthly rests and a sum of Rs.2.65 lakhs with interest @ 9.25% p.a with monthly rests along with 2% penal till the date of realization and in -. \ properties as described in the schedu,,6to oo, .^*" rrr r"s r,'s('rr.t#, "t fl illn m : l ' d- n YL,,$. 1..' -o "t',,' 2. h''ru .,u,P,,,ti, As per the averments in the appticatiori,i'-ftg\pprcaritliant states th at defcnrre,.,'i. ^^ r :^ !,ti:: i; ' ' "'"^{^:-tl--"'' r!e!-J} at defendants no.1 is the wife, o"r"noui[]n#+;t.; ;;; and defendants 4 and 5 are chirdren of Late cheera santhosh. Late Cheela Santhosh is the sole proprietor of business concern Viz., M/s.

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(OA.no.Z7O/ZOZZI

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Jai SanthoshiMaatha Medical Agencies availed OD facility of Rs.15.00 lakhs for business requirements. Late cheera Santhosh arso avaired housing loan of Rs.17.00 Iakhs for purchase of application.,C,, schedure property' The said cheera santhosh as borrower and defendant no'1 as co borrower agreed to the terms and conditions and executed various necessary documents. During covid pandemic, shri cheera Santhosh and the deFendant no.1 avaired additionar loan of Rs'2'65 rakhs under ECLGS scheme vide sanction letter dated 11.06.2020. The above loan facilities are secured by way of hypothecation charge on stocks, movabre assets and book debts and also collaterally secured by way of equitable mortgages on the properties more fury described in schedule B and c. sri cheela Santhosh died on 05.05.2021 leaving behind the defendants as legal representatives. The estate of deceased is lying in the hands of defendants No.1 to 5 being legal representatives. After availing the loan facilities, the defendants faired to compry the terms of sanction, hence the appricant bank was constrained to crassify the account as NPA and issued demand notice dated 20.07.2022. Inspite of several

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Hence this OA. this OA. OA.

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..*.' Hence this OA. this OA. OA. * 2 B ilrR 202! 3. Defendants were called absent on 02.

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(OA.no.27O/20221

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Sri D. Balakrishna, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as

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Ex.A.1 to A.30.

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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

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entitled for the claim made in the OA against the Defendants as prayed for?

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The defendants were cailed 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.30, In view of the above, I hold that the Applicant Bank has estabrished their craim made in the oA against the Defendants and hence the Appticant Bank is entifled to recover-th;.er,im-ftg*-.in ,n" OA with future interest and costs.

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tt. z s ilif, ,rrn lj, In the result, the present OA is allowed Iqpsts, as under: "-1;i ,.l'^rx S)..Y.,/

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1. *l,f.ff^{rn,^"r'.!9+)/} The Defendants No.1 to 5 are joinUy and sarq._H [y- liabJe]orp a y to

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the Applicant Bank a total sum of Rs.27,94,:.g1.74 ps (Rupees Twenty seven Lakhs Ninety Four thousand one hundred Eighty One and paise Seventy Four only) i.e., a sum of

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loA.no,z70/20221

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Rs.15.00 lakhs with interest @ L2.25o/o p.a; a sum of Rs.17.00 lakhs with current and future interest @ 11.25% p.a and a sum of Rs.2.65 lakhs with interest @ 9.25olo p.a from date of applicationtill realization.

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i) The Applicant Bank is entitled to proceed against the mortgaged immovabre properties as described in the schedule to oA towards realization of the debt due.However the applicant bank is entiUed to proceed only to the extent of estate devolved upon the defendants being regar representatives of deceased cheera Santhosh.

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ii) the Appricant Bank is arso entiued to proceed against the person and properties of defendants towards rearization 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. .1'

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.r]b.* by he_r, corrected, signed and pronounced by me in the open of March., 2023)

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1 ZBuAB?071 I sdlTRUE^COPY (G. GOPTCHAND) PRESIDING OFFICER o*r.rnr,*Wtr)rv OR.".I.^HYOER,IBAO. W--*P

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City Union Bank Limited, v. Smt.Chella Sashikala

Case brief

What is this about?

What did the court decide?

City Union Bank Limited, v. Smt.Chella Sashikala

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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