Allowed

State Bank of India v. M/S.Pushpa Trading

DRT18 Jan 2024OA/165/2023

Case brief

AI extract

What is this about?

In an original application for recovery of dues, the Debts Recovery Tribunal held that the bank established its claim through the examination of its manager and documentary evidence. The Tribunal allowed the application, held the first defendant jointly and severally liable with the other respondents, and awarded costs.

What did the court decide?

The respondents were directed to pay a total sum of Rs.4,17,05,992/- with future interest; a Recovery Certificate was issued.

State Bank of India versus M/S.Pushpa Trading — DRT (2024) — LawSathi Research

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IN THE DEBTS RECOVERY TRIBUNAL.I AT HYDERABAD

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DATED THIS TI{E 18IH DAYOF JANUARY 2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.155 of 20.23

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Between:

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State Bank of India, Stressed Assets Recovery Branch, (SARB), 2nd floor, TSRTC Commuter Amenity Centre, Bus Terminal Complex, Koti, Hyderabad. Represented by its Branch Manager

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Applicant

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VERSUS

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M/s. Pushpa Trading,

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(erstwhile Pushpa Trading Company) A proprieta ry concern, Represented by its proprietor The defendant no.2 herein

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Plot no.14, shed no.3, Bell marg, IDA, Mallapur, Hyderabad - 500 076.

¶12

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Plot no.116, Sri Sai Nagar, Boduppal village, Ghatkesar, Ranga Reddy district - 500 039.

¶14

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H.No.5-3-35, plot no.14, Jeera, Secunderabad - 500 003.

¶16

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H. No.3-2-728, Rahmathbagh, Chapel bazar, Kachiguda, Hyderabad - 500 027.

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rJ * 1 I ,rl1l{ ZlIZl )t
'' :l,t i <br>'<br>W*-*'

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(OA. No.16sl2023)

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Sri Ajay Damani, s/o Sri MadhoDasDamani, aged about 35 years, male, occ: business and proprietor of 1st defendant

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H.No.4-5-709, Kutbiguda, Badichowdi, Kachiguda, Hyderabad - 500 027.

¶22

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H . No. 5-3 - 3 5, p lot no. 14, Jeera, R.P. Road, Secunderabad - 5OO OO4,

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SmtPushpadeviDamani, w/o Sri SriMadhoDasDamani, aged about 35 years, male, occ:--business and proprietor of 1" defendant

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H. No.4-5-709, Kutbiguda, Badichowdi, Kachiquia, Hyderabad - 5OO 027.

¶26

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H,No.5-3-35, plot no, 14, Jeera, R.p. Road, Secunderabad - 5OO OO4.

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Defendants

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Counsel for the parties: For the Applicant For the Defendants

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J^{1sJANzul rr} .{1. ? 1. The Applicant Bank filed the present dants for recovery of a total sum of ps..4,L7,OS,gg2/_ (Rupees Four Crores

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(oA.No.16sl2023)

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Seventeen Lakhs Five thousand Three hundrcd and Ninety ttno only)

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i,€.,

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a) a sum of Rs.2,63,03,0I7/- under cash credit loan with interest @ 17.2So/op.a with monthly rests from the date of OA till the date of realization;

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b) a sum of Rs.63,74,771/- under SLC account with interest @

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L2.400/op.a with monthry rests from the date of oA tiil the date of realization;

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c) a sum of Rs.58,g5,925l- under GECL account with interest @ 9.25o/op.a with monthly rests from the date of OA till the date of realization;

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d) a sum of Rs.31,41,679/- under GECL_I account with interest @ 9.2So/op.a with monthly rests from the date of OA till the date of realization;

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and in default for sale of mortgaged and hypothecated properties as described in the schedules ,.A & B,, to OA.

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As per the averments in the application, the Applicant Bank states that defendant No.1 isa proprietary concern represented by

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defendant no.2 as prop son of defendant no.3 availed

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Overdraft mo lakhs on 09.02.2015.

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Defendants 2 and executed guarantee

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agreement da .0J.4/d.N Zffit,r,""* tly the defendant no.1

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company availed cility of Rs.140.00 Iakhs

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(oA.No.16sl2023)

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and defendants 2& 3 guaranteed the repayment of said loan. After availing the cash credit loan it was enhanced from Rs.140,00 lakhs to Rs.190.00 lakhs and term loan of Rs.9.65 lakhs with overall facilities of Rs.199.65 lakhs. To secure due repayment, the defendants executed supplemental agreement of loan cum hypothecation. On request of defendant no.1, the enhanced cash credit (Hyp) loan was enhanced from Rs.190 to Rs.240 lakhs and later to Rs.30O lakhs. Defendant no.1 represented by defendant no.2 availed guaranteed emergency credit line of Rs.5g lakhs with overall loan of Rs.35g lakhs. Defendant no.3 created equitable mortgage by deposit of original sale deed document no.4202/1999 over schedule mentioned property - A and hypothecated all movables as described in the schedule - B to OA. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to crassify the account as NpA and issued regar notice dated 22.03.2023. Inspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants 1 to 3 called absent and set exparte on 31.08.2023.

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Shri A. G. Satya Prasad, Manager of the Applicant Bank examined himself as AW.1 and which are ma rked as Ex.A.1 to E 10,;rt ry24; \fudr*# l

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(oA. No.16sl2023)

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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 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.45. 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 entiued 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 joinuy and severally liable to pay to the Applicant Bank a total sum of Rs.4,17,OS,ggU- (Rupees Four Clo1€s Seventeen Lakhs Five thousand Three hundrcd and Ninety two only) i.€. ,

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a) a sum of Rs.2,63,03,017/- under cash credit loan with interest @ L7.25o/op.a from the I the date of realization ;

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b) account with interest @ 12.4Oo/op.a e of realization ;

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(oA. No.16sl2023)

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c) a sum of Rs.58/85,925/- under GECL account with interest 9.25o/op.a from the date of OA till the date of realization ;

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d) a sum of Rs,31,41,679l- under GECL-I account with interest 9.25o/op,a from the date of OA till the date of realization ;

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The Applicant bank is entitled to proceed against the Mortgaged and Hypothecated properties as described in the schedules "A &B " to OA towards realization of the debt due.

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the Applicant Bank is also entitled to proceed against the person and properties of defendant No.2 & 3 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., transcribed by her, corrected, signed and pronounced by me in the open court on this the 18th day of )an'2}24)

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sd/-
(G. GOPTCHAND)
PRESIDING OFFICER
A [,"2?€':,')L;<> sfl;, i v /_r( | t
Asst. Registrar _,..-{O I
Dnr.a HyDE'RA8AD.

State Bank of India v. M/S.Pushpa Trading

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S.Pushpa Trading

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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