Allowed

Canara Bank v. M/S. Ascendant Sun Projects

DRT27 Jul 2023OA/395/2022

Case brief

AI extract

What is this about?

In this Original Application filed before the Debt Recovery Tribunal, the Bank sought recovery dues totaling approximately Rs. 29.27 million against proprietary firms and its proprietor for outstanding loans, eventually joining future interest and实现对抵押财产的处置权.

What did the court decide?

Applicant Bank awarded joint and several liability for Rs. 29,27,947.91 with interest; order to proceed against mortgaged and personal properties; recovery certificate issued.

Canara Bank versus M/S. Ascendant Sun Projects — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 27TH DAY OF JULY 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

OA.No.395 of 2022

Between:

Canara Bank,

Basheerbagh branch, D. No.3-6-69/4/1A, Avanthi nagar Opp Skylark Apts, Basheerbagh, Hyderabad, Telangana. Represented by its Manager

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Applicant

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VERSUS

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M/s. Ascendant Sun Projects, H.No. 1-B-700/10, Padma colony, Nallakunta, Hyderabad,

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Telangana - 500 044.

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Represented by its Proprietor Sri Nimishakavi Sudersan Sai Teja,

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Sri Nimishakavi Sudershan Sai Teja, S/o N.V.A Raju, aged 35 years, Male, occ: business, R/o H.No. 1-B-7OO/10, Padma colony, Behind Shankar Mutt, Nallakunta, Hyderabad, Telangana - 500 044.

Defendants

For6e nppffint

Sri K. Bhaskar Reddy

Exparte

(OA. No.395/2022 )

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs,29t27,947.91ps (Rupees Twenty Nine Lakhs twenty Seven thousand Nine hundred forty seven and paise Ninety one only) i.€.,

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a) a sum of Rs.23,80,427.59ps in respect of loan account no.0878261555601 with current and future interest @ 16.25olo p.a with monthly rests from date of OA till the date of realization;

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b) a .sum of Rs.|,25,t47.32ps in respect of loan account no.0878753000026 with current and future interest @ 10.8% p.a with monthly rests From date of application till the date of realization;

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c) a sum of Rs.4,22,3731- in respect of loan account no.0878755000024 with current and future interest @ 11.40olo p.a with monthly rests from date of application till the date of realization;

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and in default for sale of hypothecated stocks as described in the schedule to OA.

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gr:Lllre averments in the application, the Applicant Bank states that ;:B;-*", is the proprietorship firm represented by its ,.i",orl^'*r[hau n, no.2 availed loan under "CGTMSE" scheme for a

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?t.mt0[J :

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L.; ri

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(OA. No.39sl2022)

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sum of Rs.20.00 lakhs on hypothecation of stocks and book debts as primary securiues mentioned in the schedule to oA. Defendant no.2 on behalf of defendant no.1 executed cash credit agreement, pronote for Rs.20.00 lakhs, letter of renewar, retter of proprietorship, sanction/ renewal letter and acknowledgement of debt and security etc. In addition to above loans, the defendants availed working capital demand loan of Rs.4.OO lakhs and executed letter of undertaking, supplemental agreement and pronote for Rs.4.00 lakhs. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the appllcant bank was constrained to classify the account as NPA and issued legal notice dated 28.O9.2022. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants were called absent and set exparte on 06.04.2023.

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4' sri N.Siva Prasad, Manager of the Appricant Bank examined himserf as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.25.

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*'o=lti
t
the Applicant Bank'
Nrnselror
:
; 2tJl][m +
I
^si
'tk# 3

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(oA.No.39s/2022)

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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 who is the official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A.25. 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 entiUed 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 No.1 & 2 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs,29,27 p47.gtps (Rupees Twenty Nine Lakhs twenty Seven thousand Nine hundred forty seven and paise Ninety one only) i.€.,

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a) a sum of Rs.23,80,427.59ps in respect of loan account

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-,, ..i.,nqiO$74261555601 with current and future interest @ 16.25olo p.a
" '.i" ' .- _ 1. ., 't :]..'.,
',-[t'.om Oid{o1,OA titt the dare of reatizarion;
,i-
"*i
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" -r zl,llJt 2U3 ?
...i .. .€ Sr

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(OA. No.395/2022)

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b) a sum of Rs.l,25,L47.32ps in respect of loan account no.0878753000026 with current and future interest @ 1O.Bo/o p.a from date of application Ull the date of realization;

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c) a sum of Rs.4,22,373/- in respect of loan account no.0878755000024 with current and future interest @ 11.40olo p.a from date of application till the date of realization;

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The Applicant bank is entitled to proceed against the mortgaged property as described in the schedule to oA towards realization of its dues.

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The applicant bank is also entitled to proceed against the person and properties of defendant No.1 and properties of defendant no.2 firm 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 receipt of order.

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issue Recovery certificate accord ing ly.

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Communicate a copy of the order to the parties concerned.

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bed by her, corrected, signed and pronounced by me in the open )uly , 2023)

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]'RUE COFY sd/(G. coPrcHAND) Asst. Rad€QzrCik) PRESIDING OFFICER I^{,, JlJ[m} ; DFT..I . HYDERAAAO.' ,e#

Canara Bank v. M/S. Ascendant Sun Projects

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Ascendant Sun Projects

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

Coram

Case details

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