Allowed

Indian Overseas Bank v. Ms Abi Industry

DRT17 Aug 2023OA/60/2022

Case brief

AI extract

What is this about?

The ATP allowed an original application filed by Indian Overseas Bank for recovery of Rs.1.14 crores with interest against M/s. Abi Industry and Mr. Chirra Venkanna, holding that the bank established its claim through documentary evidence presented by its senior manager.

What did the court decide?

Defendants jointly and severally liable to pay Rs.1,14,99,522.90 with 12.55% interest; Bank entitled to costs and recovery certificate.

Indian Overseas Bank versus Ms Abi Industry — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 17TH DAY OF AUGUST'2023

¶2

PRESENT: SRI GUMMADI GoPICHAND, PRESIDING oFFICER

¶3

OA.No.6O of 2OZ2

¶4

Between:

¶5

Indian Overseas Bank, Adarshnagar branch, 5-9-305A, Paigah Plaza building, Adarshnagar, Hyderabad - 5OO 063. Represented by its branch Chief Manager Sri Arshad Perwaiz

¶6

Applicant

¶7

VERSUS

¶8

M/s. Abi Industry, Represented by its Proprietary Mr. Ch irra Venkanna, s/o Chirra Papaiah, aged 42 years, occ: business, R/o H.No.4- Ll6/349, plot no.349, Judges colony, Tatti Annarm, Hayathnagar Bandlaguda, Ranga Reddy district -500 068.

¶9

Mr. Chirra Venkanna, S/o Chirra Papaiah, Aged 42 years, occ: business, R/o H.No.4-116/348, plot no.349, Judges colony, Tatti Annarm, Hayathnagar Bandlaguda, Ranga Reddy district - 500 068. Defendants 1 7 AIJE MJ

¶10

loA.60/20221

¶11

Counsel for the Pa rties:

For the Applicant

Sri M. Srinivas

For the Defendants

Exparte

ORDER

The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.1,14,99,522.9ops (Rupees One Crore Fourteen Lakhs Ninety Nine thousand Five hundred Twenty two and paise Ninety only) with further interest @ L2.55o/o p.a with monthly rests from date of filing of application till realization.

¶18

As per the averments in the application, the Applicant Bank states that the defendant No.1 represented by its proprietor defendant no.2 availed term facility of Rs.98.00 lakhs vide sanction letter dated 30.03,2019. The defendants executed demand promissory note, letter of undertaking, letter of defendant undertaking, letter of authorization, term loan agreement and deed of hypothecation dated 30.03.2019. The defendants also agreed to pay additional interest in case of defaults in repayment of loan. After availing the loan facility, the defendants failed to co !_r -_of sanction, hence the applicant bank was coXstiainea e account as NPA on 1 t 'lljg 2023

¶19

(oA.60/20221

¶20

31.03.2O2O and issued recall notice dated 06.05.2020. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

¶21

Defendants were called absent and set exparte on 23.O1.2023.

¶22

Smt Lavanya Kumari Ipparti, Senior Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.11.

¶23

Heard the Ld. Counsel for the Applicant Bank.

¶24

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?

¶25

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 she exhibited relevant documents as Ex.A1 to A,11. 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 entitled to recover the claim made in the OA with future,interest -'*SI 'YIi---*.and costs. ,i- B u,\ 11

¶26

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¶27

loA.60/2022]'

¶28

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

¶29

The Defendants are jointly and severally liable to pay to the Applicant Bank a total Rs.1,14,99,522.90ps (Rupees One Crore Fourteen Lakhs Ninety Nine thousand Five hundred Twenty two and paise Ninety only) with further interest @ 12.55o/o p.a from date of filing till the date of realization.

¶30

i) the Applicant Bank is also entitled to proceed against the person and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

¶31

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

¶32

iii) The Applicant shall file a cost memo within two weeks from the date of receipt of order.

¶33

Issue Recovery certificate accord ing ly.

¶34

Communicate a copy of the order to the parties concerned.

¶35

(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 17th day of Aug, 2023)

¶36

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¶37

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(G. GOPTCHAND)
PRESIDING OFFICER

¶38

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Indian Overseas Bank v. Ms Abi Industry

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Ms Abi Industry

Case brief

What is this about?

What did the court decide?

What the court decided

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Parties & counsel

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