Allowed

Bank of India v. M /S .S.S. Motors

DRT11 Jul 2023OA/286/2022

Case brief

AI extract

What is this about?

In OA No.286 of 2022, Bank of India sought recovery of dues and interest from borrowers and their heirs for a non-performing account. The Tribunal allowed the application, holding entitlement to recover the principal and future interest from the defendants jointly and severally

What the court decided

AI extract

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

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I^{AT HYDERABAD}

¶2

DATED THIS THE 11TH DAY OF JULY²⁰²³

¶3

PRESENT: SRI GUMMADI GOPICHAND,^{PRESIDING OFFICER}

¶4

OA.No.286 OF 2022

¶5

Between :

¶6

Bank of India, Adikmet branch, Vijaya Sai Celestia, Opp Vegetable market, Shankar Mutt Road, Nallakunta, Hyderabad - 500 044 Represented by its authorised^signatory

¶7

Applicant

¶8

VERSUS

¶9

M/s. S.S, Motors, A proprietary concern, Represented by the legal^{heirs of} Late P. Chandrasekhar Reddy, i.e., P. Swaroop Rani & Mr. Soumith Reddy^(male), Office at #2-2-11,23, Near Railway Bridge, New Nallakunta, Hyderabad -^{500 044} 2. Smt P. Swaroopa Rani, w/o Late P. Chandrashekhar^ReddY, aged about 48^{years (female),} R/o H.No.2-9-57 / t/ L37, GSR enclave, Risala Bazar, Bollarum, Secunderabad, Hyderabad- 500^010. 3. Mr. Soumith Reddy, ' 6"'%u, S/o Late P. Chandrashekar^{Reddy (Male)} 1t *lil't Aged about 25^years, JUL ry3 ... lt R/o H.No.2-9-57 I 7/ 737, GSR enclave,

¶10

lOA.No.286/2022)

¶11

Risala Bazar, Bollarum, Secunderabad, Hyderabad- 500 010.

¶12

Defendants

¶13

Counsel for the Parties:

¶14

For the Applicant

¶15

For the Defendants

¶16

Sri Sethu Madhava Rao Exparte

¶17

ORDER

¶18

The Applicant Bank filed the^present OA against^{Defendants for} recovery of a total sum of Rs.20,33,O25.8Ops^{(Rupees Twenty} Lakhs Thirty three thousand and twenty five^{and paise Eighty} only) together with subsequent^interest @^{12'30olo p.a (10'30o/o +} 2olo penal) with monthly rests from the^date of application^{till the} date of realization and in default for^sale of^{hypothecated assetsas} described in the schedule to OA.

¶19

As per the averments in the application,^{the ApplicantBank states that} the defendant No.1 is the^{Proprietorof M/s. S'S. Motors who availed} cash credit loan limit of Rs.20.00^{lakhs vide sanction letter dated} 7t.07.2O77. Defendant no.2 is the wife of^{defendantno.1 and} defendant-no.3 is sijriV$denaant^{no.1/ Sri P. ChandrashekarReddy} oieo ogl+.0+.zo'jz teavl,B)'hnino a"r"noants^{2 & 3 as his legal heirs.} ia -:¹¹ IUL?W :jj 'i,'\ ^. ;ll^, \! _:=-=rr,! gl,"tt}#:\ ,r 2-a .

¶20

(oA. No.286/2022)

¶21

The defendant No.1 executed^{demand promissorynote for Rs.20.00} lakhs, letter L 440, Letter of continuity,^{letter of declaration and} undertaking, letter of^{request, L 516 agreementand hypothecation} cum loan agreement.^{After availing the loan facility, the defendants} failed to comply the terms^of sanction,^{hence the applicant bankwas} constrained to classify the account^{as NPA on 27} '7,2022^{and issued} notices. Inspite of several^{requests and demands, the defendantsdid} not clear the outstanding.^{Hencethis OA.}

¶22

Defendants were called absent^{and set exparteon 11'05.2023.}

¶23

Sri M.K. Panda, Chief Manager^{of the ApplicantBank examined himself} as AW.1 and exhibited^{relevant documents,which are marked as} Ex.A.1to A.11.

¶24

tr Heard the Ld. Counsel for the^{ApplicantBank.}

¶25

The point that arise for consideration^{is whether the ApplicantBankis} entitled for the claim^madein the^{OA againstthe Defendantsas} prayed for?

¶26

The defendants were called^{absent and set exparte.To substantiate} the case of the Applicant^{Bank, AW'1 who is theofficial of the} ' +: ' ':''' "-='

¶27

Applicant eank :t w6t "*u.',6gd^{anAtQ exhibited relevant documentsas} .-- i,'

¶28

(oA. No.286/2022)

¶29

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.

¶30

B. In the result, the^present OA is allowed^{with costs, as under:}

¶31

The Defendants No.1 to 3 are^jointly and severally^{liable to pay to the} Applicant Bank a total sum of Rs.2O,33,O25.8Ops^(Rupees Twenty Lakhs Thirty three thousand^and twenty^{five and paise} Eighty onty) together with subsequent^interest @^10'30o/op.a from the date of application till the date of^realization.

¶32

i) The Applicant bank is entitled to^{proceed against the hypothecated} assets as described in the schedule to^{OA towardsrealizationof its} dues.

¶33

ii) There is no personal liability against defendants 2 & 3.^However, the applicant bank is entitled to^{proceedonly to the extent of estate} devolved upon legal heirs^(defendants 2^& 3)^{from the deceasedP.} Chandrashekar Reddy.

¶34

iii) The Applicant Bank is entitled to the costs^{oF the OA.}

¶35

iv) The Appllcant shall file a cost memo within two weeks from^{the date} of receipt of orde.r.

¶36

(oA. No.286/2022)

¶37

Issue Recovery certificate accordingly.

¶38

Communicate a copy of the order to the parties concerned.

¶39

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 11th day of July,2023)

sd/-

(G. GOPTCHAND)

PRESIDING OFFICER

.TR.i,JE COPY

u*.h,ffi,,

DRI-|,^flYDERABAO.

Bank of India v. M /S .S.S. Motors

Case brief

What is this about?

What the court decided

Bank of India v. M /S .S.S. Motors

Case brief

What is this about?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus M S Sowmya Plastics

Union Bank of India versus M S Sd Cnc Technologies

State Bank of India versus M/S . Aaradhya Hospitality Services

Idbi Bank Ltd. versus Sri. Rajeev Saini

Bank of India versus Mr. Gali Vijaya Krishna

State Bank of India versus M/S. Karigar Furnitures