Allowed

State Bank of India v. M/S. L.N. Engineering Industries

DRT4 Jul 2024OA/150/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's recovery claim againstdefendants M/s. L.N. Engineering Industries and Sri Devaram John reddy for a total of Rs. 2.69 crore based on outstanding loan accounts with interest and costs.

What did the court decide?

Defendants jointly and severally liable to pay Rs.2,69,23,259/- with interest; bank entitled to proceed against hypothecated and mortgaged assets; recovery certificate issued.

State Bank of India versus M/S. L.N. Engineering… — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS THE 4TH DAY OF JULY' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER OA.No.15O of 2024

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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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M/s. L.N. Engineering Industries, Represented by its Proprietor Sri Devaram John reddy -2nd Defendant herein,

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H.no.5-65, sy.No.46, block no.5, Redlakunta village, Kodadamandal, Suryapet district - 508 206.

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D.No.5-105, sy.No.46, block no.5, Redlakunta village, Kodadamandal, Suryapet district - 508 206.

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Sri Devaram John reddy, s/o Sri Somireddy, aged about 51 occ: business and proprietor of 1't defendant herein,

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H. No. 2-77, choutapally, Mattampallymandal, Suryapet district - 508 204.

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Counsel for the Parties:

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For the Applicant

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For the Defendants

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Sri G. PrabhakarSarma Exparte

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(OA.No.1s0 of 2024)

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs.2,69,23,259/- (Rupees Two Crores Sixty Eight Lakhs Twenty three thousand Two hundred and Fifty Nine only) i.e.,

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a) A sum of Rs.71,35,351/- under Loan account No.402517g0926 with interest @ I4.40o/o p.a with monthly rests from the date of filing of OA till the date of realization;

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b) A sum of Rs,1,54,88,7451- under Loan account No.39g75144563 with interest @ 13.40olo p.a with monthly rests from the date of filing of OA till the date of realization;

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c) A sum of Rs.41,99,163/- under Loan account No.40770503768with interest @ 9.25olo p.a with monthly rests from the date of filing of OA till the date of realization; and in default for sale of hypothecated assets and mortgaged immovable property as described in the schedules ..I to III,, to oA.

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As per the averments in the appli the Applicant Bank states that defendant ruo.r reppes6ffi rietor defendant no.2 ,,1^..1,h

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availed working capital" tdain faci h credit loan of Rs.60.00 lakhs and term toa8 df ,[ft.ffi fatft vide arrangement i\

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letter dated 17.12. represented by

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(OA.No.150 of 2024)

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defendant no.2 availed GECL facility of Rs.39 lakhs while continuing the existing cash credit of Rs.60 and term loan of Rs.140 lakhs (overall loan facirities of Rs.239 rakhs) vide retter of arrangement dated 08.02.2022. Defendant no.2 created equitable mortgage on 77.L2.2020 and the same was extended on 08.02.2022 by deposit of original regd sale deed document no.222s/2009 dated 04.06.2009. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the appricant bank was constrained to classify the account as NpA and issued regar notice dated 26.2.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants 1 and 2 called absent and set exparte on 13.06.2024.

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4' sri P'^prabhakar, Manager of the Appricant Bank examined himserf as AW' 1 and exhibited rerevant documents, which are marked as Ex.A.1 to A.23.

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Heard the Ld. Counsel for the Applicant Bank.

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6' The point that arise for consideration is whether the Appricant Bank is entitled for the claim made in against the Defendants as

prayed for?

\ 3

(OA.No.150 of 2024)

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.23. In view of the above, I hord that the Appricant 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 are joinily and severally liable to pay to the Applicant Bank a total sum of Rs.2,6g,2g,2ig/- (Rupees Two Crores Sixty Eight Lakhs Twenty three thousand Two hundred and Fifty Nine only) i.e.,

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a) A sum of Rs.71,35,351/- under Loan account No.402517g0926 with interest @ L4.40o/o p.a from the date of filing of OA till the date of realization;

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b) A sum of Rs.l,S4,BB,745/- under Loan account No.39875144563 with interest @ 13.40olo p.a from the date of filing of OA till the date of realization;

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c) A sum of Rs.41,99,163/- under Loan Eccount No.40770503768 with interest O::gZt the date of filing of OA till the date of realization;

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(OA.No.1sO of 2024)

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The Applicant bank is entiued to proceed against the hypothecated assets and mortgaged property as described in schedule to OA

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towards realization 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 and properties of defendant no.1

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firm.

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t2. The Applicant Bank is entiUed to the costs of the OA.

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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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(Dictated to the p.A., transcribe court on this the 4rh day * 4fr,corrected, signed and pronounced by me in the open ^,r,orZt

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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trwry**,
DRr-r, ^<{8^i",'Hyrif;'.4BAD

State Bank of India v. M/S. L.N. Engineering Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. L.N. Engineering Industries

Case brief

What is this about?

What did the court decide?

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