Allowed

Bank of Baroda v. M/S. Proveg Seeds and Genetics

DRT5 Sept 2023OA/86/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the application filed by Bank of Baroda for recovery of Rs. 23,56,742.30 plus future interest from the respondents who failed to repay loan facilities sanctioned in 2019, disposing the matter ex-parte.

What did the court decide?

Direct payment of Rs. 23,56,742.30 with interest @ 10.25% p.a.; authority to proceed against hypothecated and other properties of the respondents.

Bank of Baroda versus M/S. Proveg Seeds and Genetics — Execution and Attachment | DRT (2023)

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fomGtNAIj'

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE sTH DAY OF'SEPTEMBER, 20.23

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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o.A.a6l2022

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Bank of Baroda,

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D.No.4- 1-366, RBVR Reddy Hostel Complex, Main road, Abids, Hyderabad-SO0 OO1. Rep. by its Authorized officer

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... Applicant Bank

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VERSUS

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1.M/s Proveg Seeds & Genetics Rep. by its Managing partner Mr. Revuru Suresh, O lo Flat No.303, Amulya Residency, 3.d floor, Sy.No.24, pet Basheerabad, Qutubullapur,^{Hyderabad-SO0} 047.

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Mr. Revuru Suresh,S/o Subbaiah Revuru, Aged about 50 years, Occ:business,

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R/o H.No.13-9-27 1103, panduranga Nagar, Motinagar, Balanagar, Hyderabad-S00 0 18.

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Mrs. Revuru Sowmya, W/o Revuru Suresh Subbaiah, Aged 41 years, Occ:business, R/o H.No.13-9-27 1103. panduranga Nagar, Motinagar, Balanagar, Fl-v"derabad-500 018 ... Defendants

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Counsel for the Parties:

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For the Applicant Bank :Ld. Advocate M.Rishikesh Reddy & company For the Defendants : None

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ORDER

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i. The Applicant Bank^{filed the present OA againstDefendantsNo' 1 to 3} for recovery of a total^{sum of Rs.23,56,742.30ps' (Rupees Twenty three} lakhs fifty six thousand^{sevenhundred forty two and paisethirtyonly)} with future interest @^{10.25%p.a. with monthly rests from the date of} frling till the date of^{realizationand in case of default, for sale of the} hypothecated assets^{described in schedule to the O'A'}

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The case of the Applicant Bank^{is thatat the request of the} defendants, the Applicant^{Bank sanctionedTerm loan and Cash Credit} facilities vide Sanction letter^{dt.25 03.2019. To secure thedue} repayment of the aforesaid^{loan facilities,DefendantsexecutedLetter} of Undertaking, DP Note for^{Partnership lirm, Letter of Continuing} Security, Composite Hypothecation^{Agreementin favour of the Applicant} Bank. Defendants^{No. l. to 3 have executedGeneral Form of Guarantee} dt. 28.03.2019 to secure^{the aggregatecredit facilitiesof Rs.42 lakhs} availed by ttre defendants.^{After availing the said loan facilities,the} defendants failed to^{adhereto the repaymentscheduleand in spite of} repeated demands, the^{defendants have not cleared the dues' In vierv} of the default in repayment^{of dues in theloan accounts, the loan} accounts have been^{classified as NPA and the Applicant Bank issued a} legal notice dt.l4.O3.20'22 to^{the defendants.Flence the o.A.}

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J. Defendant No. 1 '*'as^{served lvith surnmons, calledabsent andset} exparte on 07.12.2022.^{Surnmons served on Defendants No.2&3} through publication and^{they were called absentand set exparteon} 25.Ot.2023.

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Heard Ld. Counsel for the^{Applicant Bank}

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'tl 4

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is whether the APPIicant^{Bank is}

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1. The point that arise^{for consideration} entitled for the claim^{made in the OA} against the Defendants^as PraYed for?

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Sri G. Muthyala^{Rao, Asst. GeneralManagerof the Applicant Bank} examined himself as^{AW- 1and exhibited the relevant documents} which are marked as Ex.A1^{to A17}

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The defendants were called absent^{and set exparte.To substantiatethe} case of the Applicant Bank,^{AW- 1, official of the Applicant bankwas} examined and he exhibited^{relevant documents which are markedas} Ex.Al to AL7. tn view of^{the above, I hold that the ApplicantBankhas} established their claim made in^{the O.A. against the defendants and} hence the Applicant Bank is entitled^{to recover the claim made in the} O.A. 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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i) The Defendants No.l to 3 are^{jointlyand severallyliable to pay to} the Applicant Bank a total sum^{of Rs.23,56,742.3O ps.. (Rupees} Twenty three lakhs fifty six thousand^{seven hundred forty two and} paise thirty only) with future interest @^{lO.25o/op.a.from the date of} application till the date of realization.

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ii) The Applicant Bank is entitled to^{proceed againstthe hypothecated} assets described in schedule to^tne /.X.^{towardsrealizationof the} debt due. l) / ,l/V

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iii)TheApplicantBankisentitledtoproceedagainstthepersonand properties of defendants^{No.2 &3 and propertiesof DefendantNo'1} firm towards realization^{of the debt due.}

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