Allowed

State Bank of India v. M/S. Sri Parameshwara Industries

DRT1 Nov 2023OA/97/2023

Case brief

AI extract

What is this about?

In an Original Application for recovery of banking dues, the Debts Recovery Tribunal allowed the bank's claim against seven defendants jointly and severally liable for a total sum of Rs. 67,71,686 along with future interest and costs, directing issuance of a recovery certificate.

What did the court decide?

Defendants jointly and severally liable to pay Rs.67,71,686/-. Future interest granted. Recovery certificate issued. Injunction order made absolute.

State Bank of India versus M/S. Sri Parameshwara Industries — Banking and Recovery | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD

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DATED THIS THE 1ST DAY OF NOVEMBER'2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.97 OF 2fJ23

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Between:

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State Bank of India, Stressed Assets Recovery Branch, 2nd floor, TSRTC Commuter Amenity Centre, Bus terminal complex, Koti, Hyderabad - 500 095. Represented by its Chief Manager

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Applicant

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VERSUS

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1, M/s. Sri Parameswara Ind ustries, Rep by its Proprietrix, Smt Boddu Laxmi, D.No. 1 -6-L41 / tO/ A6, NH-65, Bypass road, Suryapet post and Mandal, Suryapet district - 508 213.

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Smt Boddu Laxmi, w/o Sri Boddu Nagaiah, aged 41 years, female,

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D.No. 1-6-141 / tO/ A6, NH-65, Bypass road, suryapet post and Mandal, suryapet dist - 508 213.

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2 Smt. Boddu Sravani, D/o Sri Boddu Nagaiah, aged 27 years, Female, D.No. 1-6-141 / 10/ A6, NH-65, Bypass road, suryapet post and Mandal, suryapet dist - 508 213.

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i ;,im
01 l'l0lJ 2[23

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(oA. No.97l2023)

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4.	SriBoddu Nagaiah, s/oSriBoddu Sailu, agedmajor,male, D.No.1-6-141/tO/A6,NH-65, Bypassroad, suryapet postand Mandal,suryapetdist-5OB213.
5.	SmtYaggadi^padma, w/oVenkateswarlu,female, aged49years, R/oN.Annaramvillage,penpahad Mandal,Suryapetdist-508213.
6,	SmtYaggadi^jyothi, D/oKrishnaiah, female, Aged 32 years, R/oN.Annaramvillage,penpahad Mandal,Suryapetdist-5Og213.
7.	Defendants SmtYaggadi^padmasri, w/oRam Prasad,female, aged44 years, R/oN.Annaramvillage, PenpahadMandal, Suryapetdist-508213.
Cou	nselforthe^parties:
Fort	he Applicant Sri C. Prabhakar
Fort	heDefendants Exparte

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a tota I su m of Rs.67 ,7 L,6g6 / - (Rupees Sixty seven

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Lakhs Seventy One thousand hundred Eighty Six only) i.e.,

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(OA.No.97l2023)

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a) A sum of Rs.35,54,84L/- under loan a/c. No.39671883540 with future interest @ 8.650/o p.a with monthly rests from date of application till the date of realization ;

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b) A sum of Rs.26,39,298/- under loan a/c. No.39861196164 with future interest @ 7.35o/o p.a with monthly rests from date of appllcation till the date of realization ;

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c) A sum of Rs,S,77,547/- under loan a/c. No.39418949413 with future interest @ 7.80% p.a with monthly rests from date of application till the date of realization ; and in default for sale of hypothecated property and mortgaged properties as described in the schedules "I to IV" to OA.

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As per the averments in the application, the Applicant Bank states that the defendant no.2 is proprietrix of defendant no.1. defendants 2 to 4 stood as guarantors, defendants 2 & 3 are mortgagors. Defendants 1,2 &.4 availed cash credit of Rs.19.00 lakhs vide letter of arrangement dated 02.07 .2016. Defendant no.2 being proprietrix of defendant no.1 executed agreement of loan cum hypothecation and hypothecated all movable assets more fully described in OA schedule^property-I. Defendant no.4 executed guarantee agreement. To secure due repayment of aforesaid "li.miig ,^{defendantno.2 created} equitable mortgage by,,.yay of d€dosit of si eed no.6559/2016 dated " 01^ltl0"1, 2r8 ? J) 'iL a-Y -."qi$/ :&;;;:;W

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(OA.No.97l2023)

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13.05.2016 in respect of schedule property-Il. Subsequently, the defendants 1 & 2 enhanced the cash credit to Rs.34.00 lakhs and executed supplemental agreement of loan cum hypothecation dated 05.02.2018. Defendant no.2 extended the existing mortgage on

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05.02.2018 by way of memorandum for recording extension of mortgage. Subsequently, the cash credit loan was enhanced to Rs.49,90,000/- under SBI Asset Backed loan through letter of arrangement dated 29.11.2018. 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 and issued legal notice dated 16.02.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1,2,4 to 6 were called absent and set exparte on 1,2.05.2023 and defendants No.3 & 7 were set exparte on 30.08.2023.

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Shri P. Prabhakar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.40.

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Heard the Ld. Counsel for the Applic_AnL.Bank.

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,fcu?Jn-'t}il<br>fu l:"j' 'l

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(oA.No.97l2023)

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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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Defendants called absent and set exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A1 to A.40. 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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B, In the result, the present OA is allowed with costs, as under:

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The Defendants No.1 to 7 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.67,7L,686/- (Rupees Sixty seven Lakhs Seventy One thousand Six hundred Eighty Six only) i.e,, a) A sum of Rs.35,54,841/- under loan a/c. No.39671883540 with future interest @ 8.650lo p.a from date of application till the date of realization;

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b) A sum of Rs.26,39,298/- under loan a/c. No.39861196164 with future interest @ 7.35o/o p.a of application till the date of

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realization;

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(oA.No.97l2023)

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c) A sum of Rs.5,77,547/- under loan a/c. No.39418949413 with future interest @ 7.80o/o p.a from date of application till the date of realization;

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The Applicant Bank is entitled to proceed against the hypothecated movables and mortgaged properties as described in the schedule^,'I to IV " to OA.

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the Applicant Bank is also entiiled to proceed against the person and properties of defendants No.2 to 7 and properties of defendant No.1 firm towards realization of the debt due.

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t2. The order of injunction in IA.No.549 /2023 dated 30.08.2023 in respect of Petition schedule property is made absolute.

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

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

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Issue Recovery certificate a ccord in g ly,

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P

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court on

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by her, corrected, signed and pronounced by me in the open 2023)

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sd/-

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(G. GOPTCHAND)
u,,
PRESIDING OFFICER
o 1 l'lo,t 2[8 ;
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State Bank of India v. M/S. Sri Parameshwara Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Sri Parameshwara Industries

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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