Allowed

Canara Bank v. M/S. Golden Threads

DRT27 Jul 2023OA/70/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Canara Bank for recovery of loans (OCC, Term, GECL) of approximately Rs. 79 lakhs from the defendants, granting a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs. 79,04,837.48; directions to proceed against hypothecated assets and properties of defendants for realization.

Canara Bank versus M/S. Golden Threads — Execution and Attachment | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 27TH DAY OF JULY 2023

¶2

PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER

¶3

OA.No.70 of 2O23

¶4

Between :

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Canara Bank, Saidabad colony b ra nch, Hyderabad, TS Represented by its Manager And GPA holder Applicant

¶6

VERSUS

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M/s. Golden Threads, Represented by its partners, Survey no,.93, plot no.1, Satyam enclave west, Pet Basheerbad village, Quthbullapur mandal, Medchal, Malkajgiri dist - 500 055.

¶8

Sri Sandeep Reddy Kamalapuram, S/o Sri Jeevan Reddy, aged major, Occ: business, H.No.6-293/4, plot no.95, M.N. Nagar, Sri Venkateswara nagar, Quthbullapur, Srinayaki High Sch6ol, Hyderabad - 5OO 055.

¶9

smt. teswari Kamalapuram, p Reddy, : service, Raws Suchitra Kongnlly, neaFBi ji hospital, Hakeemper, Hy@ bad- 500 014. Defendants

¶10

(OA.No.7012023)

¶11

Counsel for the pa rties:

¶12

For the Applicant Sri Dishit Bhattacharjee For the Defendants Expa rte

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ORDER

¶14

The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs.79,O4,83Z,4gps (Rupees Seventy Nine Lakhs Four thousand Eight hundred Thirty seven and paise forty eight only) i.e.,

¶15

a) a sum of Rs.25,24,909.58 ps in respect of OCC loan facility with interest @ 13.40olo p.a with monthly rests from 01.01,2023 till the date of rea lization;

¶16

b) a sum of Rs,44,58,684.53ps in respect of term loan Facility with interest @ 11.85o/o p,a with monthly rests from 01.01.2023 till the date of rea lization;

¶17

c) a sum of Rs.9,21,243.37ps in respect of GECL loan facility with interest @ 11.40% p.a with monthry rests from 01.01.2023 tiil Ie^{Oate of realization;}

¶18

of hypothecated assets as described in the

¶19

(oA.No.70l2023)

¶20

2' As per the averments in the apprication, the Appricant Bank states that the defendant No.1 is a partnership firm represented by its partners / defendants 2 & 3 avaired working capitar roan of Rs.25.00 rakhs, term roan of Rs'45.00 rakhs on 20.07.20rg. The defendants executed demand promissory note, cash credit agreement, agreement-cum_ deed of hypothecation agreement dated 20.02.2020. subsequenry the defendants availed GECL of Rs.13,80,000/_ to meet temporary liquidity against the hypothecation of stocks and machinery. After avairing the roan facirities, the defendants faired to compry the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued legal notice dated O1.L2.2O22. 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 1O.07.2023.

¶22

.+.A Sri M.S. Venkatesh, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as

¶23

Ex.A.1 to A.23.

¶24

unsel for the Applicant Bank.
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¶25

(oA.No.70l2023)

¶26

The point that arise for consideration is whether the Applicant Bank is

¶27

entitled for the claim made in the OA against the Defendants as prayed for?

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7 ' The defendants were cailed absent and set exparte. To substantiate the case of the Appricant Bank, AW.1 who is the officiar of the Applicant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.23. In view of the above, I hold that the Applicant Bank has estabrished their craim made in the oA against the Defendants and hence the Appricant Bank is entitred to recover the craim made in the OA with future interest and costs.

¶29

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

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9, The Defendants No.1 to 3 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.79,O4,837.4gps (Rupees Seventy Nine Lakhs Four thousand Eight hundred Thirty seven and paise forty eight only) i.e.,

¶31

a) a sum of Rs.25,24,909.58 ps in respect of OCC loan facility with
-rr:=={(t-erest @ t3.4oo/o p.a from 01.01.2023 till the date of
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¶32

(OA.No.70l2023)

¶33

b) a sum of Rs.44,58,684.53ps in respect of term roan facirity with interest @ 11.85o/o p.a from 01.01.2023 till the date of realization;

¶34

c) a sum of Rs.9,2L,243.37ps in respect of GECL loan facility with interest @ 11.40% p.a from 01.01.2023 till the date of rea lization;

¶35

10' The Appricant bank is entitred to proceed against the hypothecatecr assets as described in the schedure to oA towards rearization of its dues.

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The applicant bank is arso entitred 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.

¶37

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

¶38

The Applicant shail fire a cost memo within two weeks from the date of receipt of order.

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t4. Issue Recovery certificate a ccord ing ly. 15. Communicate a copy of the order to the pa rties concerned.

¶40

, transcribed by her, corrected, signed and pronounced by me in the open
L day of Juty, 2023)
IP TRUE OPY
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(G. GOPTCHAND)
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Canara Bank v. M/S. Golden Threads

Case brief

What is this about?

What did the court decide?

Canara Bank v. M/S. Golden Threads

Case brief

What is this about?

What did the court decide?

What the court decided

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