Allowed

Karur Vysya Bank v. M S Crescent Insulations

DRT22 Jun 2023OA/67/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed a recovery order for the Karur Vysya Bank Limited against the Defendants for approximately Rs. 8.60 crores, including future interest and costs, based on unchallenged documentary evidence.

What did the court decide?

Recovery of Rs. 85,989,804.13 with interest; entitlement to proceed against mortgaged/hypothecated assets and properties of Defendants No. 2, 3, and No. 1 firm.

Karur Vysya Bank versus M S Crescent Insulations — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 22ND DAY OF JUNE'2023

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

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OA.No.67 of 2O2Z

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Between :

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The Karur Vysya Bank Limited, Asset Recovery Management Bra nch, D.no.5-8-356 to 362,3.d floor, Chirag Ali Lane, Abids, Hyderabad - 500 001. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Crescent I nsu lations, represented by its^proprietor lain Hitesh Ramesh Kumar

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Jain Hitesh Ramesh Kumar @ H itesh Ramesh Jain,

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s/o Ramesh Kumar Ottarmal Jain, major, occ: business, male,

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Ramesh Kumar Ottarmal Jain, s/o Late Sri Ottarmal Jain, major, occ: business, male,

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All d efe nda nts are at:

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S, No.2 lly village, Keesa r edchal, 01 301. Also a 2 2luilMJ : {$}l ;l'r:rl{w

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(oA.No.5712023)

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Plot no.37C/FF, phase-S, IDA, Cherlapally, Medchal, Malkajgiri Dlstrict - 501 301.

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Also at

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D.No. 1-B-50/3/10& 1 1/B, plot no.43, Sai vatika, PG road, street no.11, Sindhi colony, Secunderabad - 500 003.

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Also at

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H.no.2-3-450, flat no.303, B-block, Sri Sai residency, Gayadeen bagh, MG road, Nallagutta, Secunderabad - 500 003. Defendants

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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Sri Lanka Jagannadham

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Expa rte

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.gr59,g9,go4.13ps (Rupees Eight crores Fifty Nine Lakhs Eighty nine thousand Eight hundred four and paise thirteen only) with subsequent interest @ 16' 15olop.a from date of application till realization and in default for sale of mortgaged properties and hypothecated assets as described in

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?2JUfiFd : ,& -os ,,.rbr,,.''"-,*[t,

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(OA. No.67l2023)

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As per the averments in the application, the Applicant Bank states that the defendant No.1 is a proprietary concern represented by its proprietor 2nd defendant availed occ fresh of Rs.200.00 lakhs and ILC Fresh of Rs.200.00 lakhs totaling a sum of Rs.4.00 crores vide arrangement letter dated 31.03.2015. on 17.04.2015 the defendants executed demand promissory note for Rs.200.00 lakhs, ILC_1 Agreement of hypothecation of book debts , FX-12- Agreement for hypothecation of goods received under letter of credit etc. defendant no.3 stood as guarantor and executed guarantee agreement dated 31.10.2016. Defendant No.2 deposited original title deeds with Applicant bank with an intention to create charge over the property for repayment of loan. Defendant no.2 deposited application schedule properties original title deed document bearing Regd No.1052 of 2015 dated 02.04.2015 with an intention to create charge over property for repayment of loan taken by defendant no.1. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA on 30.03.2018 and issued demand notice dated 2l.O4.2OLB. Inspite of several requests and demands, the defendants did not crear the outstanding. Hence this OA.

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absent and set exparte on 11.05.2023.
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(oA.No.6712023)

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sri chamarty srinivasa Satish, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.21.

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Heard the Ld. Counsel for the Applicant Bank.

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6, 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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7' 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.21. 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 and costs,

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In the result, the present oA is allowed with costs, as under:

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9, The Defendants are jointry and severaily riabre to pay to the Appricant tal Rs.8r59r89,8o4.13ps (Rupees Eight crores Fifty

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6trfr *Et!-, hty rr..'Ynine t housand Eight hundred r.vegerrv L.!r.tL r1Lrrfif Efr foru ur an (l d pa li se

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r"{* iffi rf*' thitr€en onlfi',ftruith * subsequent interest @ 16.15o/op.a from date

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- rrrrr ^nn^

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'i : -{n 2 ff^{dililri&ffion q} i{ne^date i^of reatization. ,. tJ#

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(oA.No.67l2023)

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i) The Applicant bank is entitled to proceed against the mortgaged properties and hypothecated assets as described in the schedule to OA towards realization of its dues.

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ii) the Applicant Bank is also 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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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 accord ing ly.

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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 open court on this the 22"d day of June, 2023)

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sd/f R,UE^COPY

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(G. GOPTCHAND) PRESIDING OFFICER a,ui.%sr"ti"t-ilo)

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Karur Vysya Bank v. M S Crescent Insulations

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M S Crescent Insulations

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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Case details

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