Allowed

State Bank of India v. Primary Agricultural Co. Operative Society

DRT1 Oct 2024OA/100/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India against a Primary Agricultural Co-operative Society and its directors for recovery of Rs.1,50,05,380 with interest. The court held the defendants jointly and severally liable and ordered execution against their properties and hypothecated movables.

What did the court decide?

Defendants jointly and severally liable to pay Rs.1,5O,OS,3gO with interest @ 14.25o/o p.a.; entitlement to proceed against hypothecated movables and properties; recovery certificate issued.

State Bank of India versus Primary Agricultural Co. Operative… — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 1ST DAY OF OCTOBER' 20,24

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING oFFICER OA.No.lOO ot 2024

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Between:

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

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Applicant

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VERSUS

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M/s. Primary Agricultural Co.operative Society, represented by its president Sri Kundarapuyadagiri, major, Male, Chintapally, Sangemmandal, Warangal (Rural) district - 506 105.

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Sri Kundarapuyadagiri, s/o Sri Ramaiah, major, male, r/o 3-7-343, Kakatiya colony, Hanumakonda, Warangal - 506 OO1.

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Sri AllempuMallesh, s/o A. Yellaiah, major, male, vice President of M/s. primary Agricultura I Co. Operative Society Chintapally, Sangemmandal,

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Warangal (Rurat) dist - 506 330.

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Sri BommaganiVenkateswarlu, s/o Sri B. Agaiah, major, male, director of M/s.^primary Agricultural Co-opertive Society, Chintapally, Sangemmandal, Warangal lnurat; District - 506 330.

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(OA.100 of 2024)

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S mtDa sa riRa ma dev i, Major, female, director of M/s.^primary Agricultural Co_operative Society, Chintapally, Sangemmandal, Warangat (Rurat) dist _ 506 330.

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Sri Vankdothu Ravi,

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s/o Sri V. Samya, major, male, director ofM/s.^primary Agricultural Co_operative Society, Chintapally, Sangemmandal, Warangal (Rurat) dist _ 506 330.

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Sri NagaboinaRavinder

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s/o Sri Illaiah, major, male, director of M/s. primary Agricultural Co_operative Society, Chintapally, Sangimmandal. Warangat (Rurat) dist _ Sb6 330.

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B. Sri Bomma Satish,

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s/o Sri B. Ramaswamy, major, male, Director of M/s. primiry Agricu ltura I Co-operativesociety, Chintapally, Sangemmandal, Warangat (Rurat) dist _ 506 330.

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S.ri RouthuLingaiah, major, Male, H.No.2-2/L, director of M/s_^prim€ry Agricultural Co_operative ]g_.i",r,^{Chintapaily,Sangemmandat,-} warangat (Rurat) dist _ 506 330.

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SmtPoshalaRajitha,

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w/o Sri^p. Sadanandam, major, male, H.No.3 -27, Director oi M/s. Primary Agricultural Co_operative Ip-.1:tV,^{Chinrapaily, Sangemmandii-} warangal (Rural) dist _ 506 330.

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S,ri .Boda Ravi, S/o Sri BodaSwamy, Major, male, Director of

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M/s- Primary Agricultural Co_operativ i'i:;{:'tili"e',fi w;;;;;;iiil;:i;;1;,-:t[:lT|iYr"^ ;:3::],?";**.lKq*GS "B

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t2. srSr i Emmadi R avi,avi, r" * 2 n - _-

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s/o,sri.E. Malaiah, major, iiUl^U 1 0f,l 7m * mate, director of i' i * ? t

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(OA.100 of 2024)

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M/s. Primary Agricu ltu ra I Co_operative Society, Chintapally, Sangemmandal, Warangat (Rurat) dist - 506 330.

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Sri MekalaChandramouli, S/o M. Komaraiah, major, Male, H.no.4-19, director of M/s. Primary Agricultural Co_operative Society, Chintapally, Sangemmandal, Warangat (Rural) dist - 506 330.

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Defendants

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Counsel for the^parties: For the Applicant For the Defendants

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Sri P.V. Satyanarayana Exparte

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ORDER

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1' The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs.l,5O,O5,3gO/_ (Rupees One Crore Fifty Lakhs Five thousand Three hundred and Eighty only) with interest @ 14.25o/o p.a with monthly rests from date of apprication ti, the date of rearization and in defaurt for sare of hypothecated movables as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.2 was the President and defendant no.3 was Vice

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President of defendant no.1 'endants No.4 to 13 are directors of defendant it (MC-ACC) toan il /* of Rs.1,so,oo,ooo/- od!1610+.zorff :i ,n" #rl dants accepted the terms a n d co n d itio n s u;4, urJ.rt"8[JrJ'-014"* ; 20.04.20787 and

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(oA.100 of 202a)

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agreement dated 20.04.2019 in favour of applicant bank. The defendants also executed Revival letter dated 24.03.2021 and 20.04.2018 respectively. After avaiting the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to crassify the account as NpA on t4.09.2020 and issued legal notice dated 04.03.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1 and 2 called absent and set exparte on 25.06.2024.

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sri Manjul Dixit, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.10.

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Heard the Ld. Counsel for the Applicant Bank. 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

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prayed for?

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Defendants called absent and set exparte. To substantiate the case of the Applicant Bank, the Applicant Bank was d<sup>--' examined and he exhib .releva as Ex.A1 to A.10. In nk has established view of the above, rfi&o thal #*-t \t%+ .o.+1 t**j.z

¶45

(oA.100 of 2024)

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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: The Defendants No.1 to 13 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.1,5O,OS,3gO/_ (Rupees One crore Fifty Lakhs Five thousand rhree hundred and Eighty only) with interest @ t4.25o/o p.a from date of applicationtill the date of realization;

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The Applicant bank is entitled to proceed againstthe hypothecated movables as described in schedule to OA towards rea lization of the debt due.

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The Applicant Bank is also entitled to proceed against the person

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and properties of defendant No.2 to 13 and properties of defendant

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no.1 firm towards rea lization of the debt due.

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

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t2. The Applicant shall file a cost memo within two weeks from the date of receiPt of order',rffi\

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{i *
ii,g o 1 rlct Mt *
Wd-#

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(oA.100 of 2024)

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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., kanscribed by_her, corrected, signed and pronounced by me in the open court on this the 1st day of Oct, ZO24)

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sd/(G. GOPTCHAND)

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PRESlDING OFFICER

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r"t\
J olocrm :
W,,.dF'

¶62

d"Wffi

¶63

DRTJ. H\TI)€F.^BAA,

State Bank of India v. Primary Agricultural Co. Operative Society

Case brief

What is this about?

What did the court decide?

State Bank of India v. Primary Agricultural Co. Operative Society

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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