Allowed

Indian Overseas Bank v. M/S. the Pegadapally Primary Agriculture Co-Operative Society Ltd.

DRT27 Nov 2024OA/140/2024

Case brief

AI extract

What is this about?

In an Original Application for recovery of debt, the Debts Recovery Tribunal allowed the bank's claim against a cooperative society and its officials, who failed to repay crop loans, directing them to pay the outstanding sum with interest and costs.

What did the court decide?

Directors and society ordered to pay Rs. 10.40 crores with interest; recovery certificate issued.

Indian Overseas Bank versus M/S. the Pegadapally Primary… — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD DATED THIS THE 27TH DAY OF NOVEMBER' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.t4O of 2OZ4

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Between:

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Indian Overseas Bank, Hanamakonda branch, Warangal district,

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Represented by its Chief Manager And GPA holder

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Applicant

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VERSUS

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M/s. The Pegadapally primary Agricultural Co-operative Society Limited, Pegadapally, Represented by its^president Pegadapalli, Warangal dist

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Telangana State.

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M/s. The Pegadapally^primary Agricultura I Co-operative Society Limited, Pegadapally, Represented by its Director, Pegadapalli, Warangal dist Telangana State.

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M/s. The Pegadapally primary Agricultura I Co-operative Society Limited, Pegadapally, Represented by its CEO, Pegadapalli, Warangal dist Telangana State.

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IOA.L4} of 2024)

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Counsel for the parties:

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For the Applicant For the Defendants

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Sri DishitBhattacharjee

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Ex pa rte

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ORDER

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l The Appricant Bank fired the present oA against Defendants for recovery of a total sum of Rs.10,40,69,OL4.94ps (Rupees Ten crores Forty Lakhs sixty Nine Thousand and Fourteen and paise Ninety Four only) i.e.,

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a) A sum of Rs.2,10,20,234/- under Account No.O173O3237OOOO',2 withfurther interest @ 9.BOo/o p.a with monthly rests from 01.02.2024 till date of realization;

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b) A sum of Rs.1,43,96,339/- under A/c. No.o17303237000015 with further interest @ g.O0o/o p.a with monthly rests from Ot.O2.2OZ4 till the date of realization;

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c) A sum of Rs.2,45,64,832.94ps under A/c. No.01730323700001S with interest @ 9.45% p.a with monthly rests from01 .02.2024 till the date of realization;

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d)A SUM of Rs.3,33,53,443/under loan .. accou nt No.017303237000025 with inte p.a with monthly

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rests from 01.02.2024 till the

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e) A sum of Rs.L,07 ,34,156/account No.017303237000027 with ihtere3tldW.lS" p.a ith monthly rests from Ol.OZ.2O24 till the,date,bf realizatffi:":.,

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(oA.140 of 2024)

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And in defaurt for sale of hypothecated movabres 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.1 is a society and defendant No.2 is director and Defendant no.3 is CEO availed short term loan crop loan of Rs.2,50,00,0000/- on 20.Og.2OI7 against hypothecation of existing and future crops. The defendants executed memorandum of agreement dated 20'0g.2017. Defendants 1 to 3 again avaired short term crop roan of Rs.go.oo rakhs and executed deed of assignment dated 13'10'2017' Again the defendants avaired Agricurturar short term crop loan of Rs.4,31,00,000/_ and executed memorandum of agreement dated 24.01.2018. Subsequenily the defendants availed Rs.2.00 crores against hypothecation of existing and future crops. 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 regar notice dated 06'09'2023'Inspite of severar requests and demands, the defendants did not clear the outstanding. Hence this OA.

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3, Defendants No.1 to 3 called 2s.07.2024. 2^{7 N0,} '02t

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|OA.L4) of 20241

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Sri A. Sai Kumar Naik, Asst, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.27.

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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

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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 remained set exparte. To substantiate the case of the Applicant Bank, AW'1, officiar of the Appricant Bank was examined and he exhibited rerevant documents as Ex.Al to A.27. In view of the above, I hord that the Appricant Bank has estabrished their craim made in the oA against the Defendants and hence the Appricant Bank is entiued to recover the craim 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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severally liable to pay to the lO,4O,69,OL4.94ps (Rupees Ten Crores Forty nd and Fourteen and

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(OA.140 of 2024)

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a) A sum of

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Rs.2,L0,20,234/_ under Account No.017303237000012 with further interest @ 9.BO% p.a from 07.02.2024 till date of realization;

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b) A sum ot Rs.L,43,96,339/- under A/c. No.017303237000015 with further interest @ 9.00o/o p.a from 0L.02.2024 till the date of realization;

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c) A sum of

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Rs.2,45,64,83 2.94ps under A/c. No.017303237000018 with interest @ 9.45o/o p.a from 0I.02.2024 till the date of realization;

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d) A sum of Rs.3,33,53,443l_ under loan accou nt No.017303237000025 with interest @ B.B0% p.a from 07.02.2024 till the date of realization;

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e) A sum of Rs.|,07,34,166/_ under loan account No.017303237000027 with interest @ 8.25o/o p.a from 07.02.2024 till the date of realization;

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The Applicant bank is entitled to proceed against the hypothecatedmovables as described in schedule to OA towards realization of the debt due.

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The Applicant entitled to roceed against the person and properties the debt due.

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The Applicant Bank is

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(oA.140 ot 2024)

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The Applicant shall file a cost memo within two weeks from the date

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of receipt of order.

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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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Ififntjij3 L"rtfu"Jllscribed bv her, corrected, sisned and pronounced by me in the open court on

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sd/ - (G. GOPTCHAND) PRESIDING OFFICER

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2 7 ilotl ?0?4 Pi.
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Indian Overseas Bank v. M/S. the Pegadapally Primary Agriculture Co-Operative Society Ltd.

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/S. the Pegadapally Primary Agriculture Co-Operative Society Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

All orders in this case

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