Allowed

Karur Vysya Bank v. M S Splendor Insulated Products

DRT21 Jun 2023OA/63/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Karur Vysya Bank for recovery of a loan facility with future interest and costs against defaulting borrowers and their proprietors, holding that the Bank established its claim through evidence.

What did the court decide?

Allowance of the Original Application with costs, entitlement to recover claim with future interest and costs, and authority to proceed against hypothecated/mortgaged properties and personal propertie

Karur Vysya Bank versus M S Splendor Insulated Products — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 21ST DAY OF JUNE, 2O2g

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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0.A.6312023

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The Karur Vysya Bank Ltd., tyt^{RecoveryManagement branch,} D.No.5-8-3S6 tO 362, 3'd floor, Chirag Ali lane, Abids, Hyderabad-SOO 001.

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Rep. by its Chief Manager

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... Applicant Bank

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VERSUS

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1.M/s Splendor Insulated products

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Rep. by its^proprietor

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Jain Hitesh Ramesh Kumar.

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Sri Jain Hitesh Ramesh Kumar @ Hitesh Ramesh Jain

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S/o Ramesh Kumar Ottarmal Jain,

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Occ:business

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Sri Ramesh Kumar Ottarmal Jain, S/o Late Otramal Jain

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All are at S.No.223, Rampally village, Kesara Mandal, Medchal-Malkaj giri Dist_S0 1 30 1 .

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Also at: Plot No.37C/FF, phase_S, IDA, Cherlapally, Medchal- Malkajgiri Dist._S01 301

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Also at: D.No. I-8-SO/3110, 11/B, ptot No.43, lai^{Vatika,pG.Ro_ad,Street No.11} , Si4dhi: C- g-lonyi, gec. bad - S o0 0 03 .

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o flfl, t^{.?*t i ;i;} ti;*lt ls i_T B Block, tta, Sec.bad-SOO 003. ... Defendants

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Counsel for the Parties:

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For the Appiicant Bank For the Defendants

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: Ld. Advocate Sri LankaJagannadham : None

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ORDER

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1' The Applicant Bank filed the present OA against Defendants No.l to 3 for recovery of a total sum of Rs.8,71,29,64s50 ps. (Rupees Eight crores seventy one lakhs twenty nine thousand six hundred forty five and paise fifty only) with future interest @ 16.15% p.a. with monthly rests from the date of filing till the date of realization and in case of default, for sale of the hypothecated assets/mortgaged properties described in schedules to the O.A.

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2' The case of the Applicant Bank is that lst Defendant is a proprietary concern represented by its Proprietor 2rd defendant. At the request of the defendant No.1 firm, the Bank sanctioned OCC-Fresh of Rs.200 crores and ILC Fresh of Rs.2O0 crores vide Sanction Letter dt'L7.O4.2OL5. To secure the due repayment of the aforesaid loan, Defendants executed Demand promissory Note, Agreement for Hypothecation of Goods. To further secure the above said loan facility, Defendants No.2 created mortgage over the schedule property in favour of the Applicant Bank and also conlirmed the said mortgage. At the request of defendants, the aforesaid credit facilities \Mere renewed on 77'lo'2o16 and the defendants executed necessary loan documents. .,i,'. "'The^'availing ;.'. .j3'd defendant^{the said} loan stood facilities, as guarantor for the defendants the above failed loan facilities. to adhere to Afterthe i: ,.ⁱ repayrhent schedule ,and .. : in spite of repeated demands, the defendants have no:8 gle3Lrea the dues. In view of the default in repayment of dues i; in^{the ,o*.,,:.oo}ts, the roan accounts have been classified as NpA} .\ rr'' ".'# i. l.;' ' .r,i',,1:,-_;.' i..-ia r^, ,' ; 1"; , ,,r'-.i";._i, lf 2 'tq.-:'i {,Ltr{^'1 "-;;;"' -*ik;.;;.#"'-

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and the Applicant Bank issued a demand notice dt.O1.O4.201g under the provisions of SARFAESI Act, 2OO2. Hence the O.A.

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The defendants were called absent and they were set exparte on 1 1.05.2023.

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Heard 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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entitied for the claim made in the OA against the Defendants as prayed

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for?

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Sri Ch. Srinivasa Satish, Legal Manager of the Applicant Bank

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examined himself as AW_ 1 and exhibited the relevant documents which are marked as Ex.Al to A2O

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The defendants were called absent and set exparte. To substantiate the case of the Applicant Bank, AW-1, official of the Appricant bank was examined and he exhibited relevant documents which are marked as Ex.A1 to A20. In view of the above, I hold that the Applicant Bank has established their craim made in the o.A. against the defendants and hence the Applicant Bank is entitled to recover the craim made in the O.A. with future interest and costs.

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In the result, the present oA is alowed with costs, as und.er:

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i) to pay to (Rupees

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hundred

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p.a. from

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iil The Applicant Bank is entitled to proceed against the hypothecated assets/mortgaged properties described in schedules to the o.A. towards realization of the debt due.

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iii) The Applicant Bank is entitled to proceed against the person and properties of defendants No.2 &3 and properties of Defendant No.1 firm towards realization of the debt due.

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iv) The Applicant Bank is entitled to the costs of the OA

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

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Issue Recovery certificate accordingly.

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communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the gpen court on this the 2l"t day of June, 2023)

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COPY
sd/-
(G. GOPr CHANDI
AsstffiistrarAld PRESIDING OFFICER
DF:"./. HY*ERAEAD.

Karur Vysya Bank v. M S Splendor Insulated Products

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M S Splendor Insulated Products

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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