Allowed

Indian Bank v. M/S. Siddhartha Logistics

DRT21 Aug 2023OA/75/2023

Case brief

AI extract

What is this about?

The DRT allowed the Bank's OA against the logistic company for recovery of default dues on term loan, FITL, and trade finance accounts totaling over Rs. 43 lakhs with interest, granting authority to sell hypothecated properties. Costs awarded to the applicant.

What did the court decide?

Defendant to pay total Rs.43,66,009/- with interest; applicant entitled to sell hypothecated property and proceed against defendant for recovery.

Indian Bank versus M/S. Siddhartha Logistics — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 21ST DAY OF AUGUST' 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.75 of 2023

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Between :

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Indian bank, Himayathnagar branch, Hyderabad. Represented by its Asst. General Manager

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Applicant

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VERSUS

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M/s. Siddhartha Logistics, Represented by its Proprietor, Sri Mula Parmesh, S/o Raghavaiah, Aged about 52 years, R/o plot no.40, EWS colony, Tukaram gate, Secunderabad - 500 017.

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Defenda nt

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Counsel for the Pa rties:

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For the Applicant

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Sri B. Damodar Reddy

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For the Defendant Ex pa rte

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(oA.No.7sl2023)

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ORDER

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1' The Applicant Bank fired the present oA against Defendant for recovery of a total sum of Rs,43,66,OO9l_ (Rupees Forty Three lakhs Sixty Six thousand Six hundred and Nine only) i.e.,

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a) a sum of Rs.29,75,9g8/- in respect of term roan account interest @ 9.35olo p.a with monthry rests from 07.02.2023 tiil the date of rea lization;

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b) a sum of Rs.2,45,481/- in respect of FITL account with interest @ 7.85o/o p.a with monthry rests from 07.02.2023 tiil the date of realization

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c) a sum of Rs.11,45,140/_ in Ind_GECLS 1.0 extension account with interest @ 9.25olo p.a with monthry rests from 07.02.2023 till the date of realization;

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

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As per the averments in the apprication, the Appricant Bank states that the defendant availed term loan of Rs.30,97,595/_, bank guarantee limit of Rs.4.00 lg@r-,f nQ.SJS{_OD timit of Rs.1.00 takh for purchase .: .....:.:t't:'I'af,',.'. .:. i-r :j(r. \.

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of 18 MT BI TLFE Tant truc{iiyfoer Indhan Vahana Scheme. The -,L .\

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defendant exgiuted derirand_ promisiory note, disposal of proceeds '* ?1[uBzuJ r1

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'-"1, rr ." 2

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..r-'i. ..^..;11 - .<.'4-' \ksrJry

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(OA.No.7sl2023)

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letter, term loan agreement and agreement of hypothecation of vehicles dated 29' 11.2018. After avairing the roan facirities, the defendant failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA on 24.07,2022 and issued legal notice dated LO.Og.ZO22. Inspite of several requests and demands, the defendant did not clear the outstanding. Hence this OA.

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Defendant was called absent and set exparte on 04,O7.2023.

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Shri N. Suresh yadav, Assistant Manager of the Applicant Bank examined himself as AW,1 and exhibited relevant documents, which are marked as Ex.A,1 to A,24.

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Heard the Ld. Counsel for the Applicant Bank.

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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 defendant was called a exparte. To substantiate the case of the Applicant il;rn[, 4.,? .-.:j "nilitl'L<sup>the Applicant Bank was .,- ! examined and he exhi6ited relevant 1'''"i^{',,"'[ilEo*""t:'} as Ex.A1 to A.24. In

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(oA.No.7sl2023)

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view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendant and hence the Applicant Bank is entitled 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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9' The Defendant is riabre to pay to the Appricant Bank a totar Rs.43,56,609/- (Rupees Forty Three rakhs sixty six thousand Six hundred and Nine only) i.e.,

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a) a sum of Rs.29,75,988/- in respect of term roan account interest @ 9.35o/o p.a from 07.02.2023 till the date of realization;

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b) a sum of Rs.2,45,481/- in respect of FITL account with interest @ 7.85o/o p.a from 07.02.2023 till the date of realization

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c) a sum of Rs.11,45,140/_ in Ind_GECLS 1.0 extension account with interest @ 9.25olo p.a from 07.02.2023 tiil the date of rearization;

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i) the Applicant Bank is entitred to proceed against the hypothecated property as described in the schedule to oA for recovery of its due.

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ii) the Appricant Bank is arso entifled to proceed against the person and properties of defendant towards realization of the debt due. -'-==:

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iii) The Applicant Bank iidffreG{ of the OA.

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iv) The Applicant shall;Iile a n two weeks from the date :it, * of receipt of ordeij. ;1 2^{1 rltB zsn} fil ',',bwr'-aflf

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(OA.No.7sl2023)

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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 open court on this the 17th day of Aug, 2023)

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(G. GOPTCHAND) PRESIDING OFFICER

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Indian Bank v. M/S. Siddhartha Logistics

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S. Siddhartha Logistics

Case brief

What is this about?

What did the court decide?

What the court decided

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