Allowed

State Bank of India v. M/S. Cuts and Curve

DRT18 Oct 2024OA/161/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India against a proprietary concern and its proprietor for recovery of a term loan sum of Rs.49.54 lakhs with interest and rights over hypothecated properties.

What did the court decide?

Defendants directed to pay Rs.49,54,371/- with interest; recovery certificate issued.

State Bank of India versus M/S. Cuts and Curve — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD DATED THIS THE 18TH DAY OF OCTOBER' 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.161 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. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Cuts and Curve, Represented by its proprietor Md. Asif Rahman, D.No.5-30/5

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Mallikarjuna complex, Gandimaisamma, Kompally, Dundigal, Medchal, Malkajgiri- 5OO 043.

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Mr. Md. Asif Rahman, S/o Firoz Rahman,.,occ: business, H.No.7 -4-60/03, 4th floor, Sri AmbikaNivas, Sadasiva Gems School , Ferozguda, Tirumalgiri, Medchal, Malkajgiri - 500 043.

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Defendants

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zd<br>Counsel for the Pa rties:' ,
For the Applicant
lBOCI mana Kumari
For the Defendants ,.- 4d$
'a1^)'
"0i',?r rrtttt
{9ovrsl

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(o A.L61,/ 2024)

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ORDER

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The Applicant Bank filed the present oA against Defendants for recovery of a total sum of Rs.49,g4,371l_ (Rupees Forty Nane Lakhs Eighty Four Thousand Three Hundred and Seventy One only) with current and future interest @ 14,650/o p.a with monthry rests from 23.o4.2024 tiil the date of rearization and in defaurt for sale of hypothecated property as described in the schedure to oA.

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2' As per the averments in the apprication, the Appricant Bank states that defendant No.1 is a proprietary concern and defendant no.2 is its sole proprietor availed term loan facility of Rs.44.50 lakhs vide arrangement retter dated 2g.12.2022. To secure due repayment of loan facirity and executed the agreement of roan cum hypothecation on 28.L2.2022. The aforesaid loan facility was primarily secured by hypothecation of prant and Machinery, stock and receivabres. After avairing the roan facirity, the defendants faired to compry the terms of sanction, hence the appricant bank was constrained to crassify the account as NpA and issued legal notice dated 1g.04.2024. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants No.1 exparte on 02.09.2024. * ' \ 1go[Tml

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(oA.16u2024)

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4 Sri P. Prabhakar, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as

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Ex.A.1 to A.B.

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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 exparte. To substantiate the case of the Applicant Bank, AW.1, official of the Applicant Bank was examined and he exhibited rerevant documents as Ex.A1 to A.B. 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 entitred to recover the craim made in the oA with future interest and costs.

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In the result, the present OA is allowed with costs, as under: The Defendants are joinUy and severally liable to pay to the Applicant Bank a total sum of Rs.4g;8.4,gl1l_ (Rupees Forty Nine Lakhs Eighty Four ThogS!--Three Hundred and Seventy One only) with cu @ 14.65% p.a from

¶27

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23.04.2024 tiil the d realiz#bn; *

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1 0 ocI^{?fi71 ,i} f-,..

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loA.t6u2o24l

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The Applicant bank is entitled to proceed against the hypothecated

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property as described in schedule to OA towards realization of the

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debt due.

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The Applicant Bank is also entifled to proceed against the person

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and properties of defendant No.2 and properties of defendant no.1 firm towards realization of the debt due.

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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 accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the p.A., court on this the lgth transcribed by her, corrected. day of Oct, 2024\ signed and pronounced by me in the open

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sd/(G. GOPTCHAND) PRESIDlNG OFFICER

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1 I 0CT zut

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LJ t&frcfu\

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State Bank of India v. M/S. Cuts and Curve

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Cuts and Curve

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

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