Allowed

State Bank of India v. M/S. Chaya And Co.

DRT11 Nov 2024OA/169/2024

Case brief

AI extract

What is this about?

The Presiding Officer of the Debts Recovery Tribunal Hyderabad allowed the Original Application filed by the State Bank of India for recovery of loan dues. The Court held that the bank established its claim and is entitled to recover the outstanding sum with interest, costs, and proceed against hypothecated properties.

What did the court decide?

Defendant liable to pay Rs. 23,68,954/- with future interest; Applicant entitled to proceed against hypothecated properties and recover costs.

State Bank of India versus M/S. Chaya And Co. — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 11TH DAY OF NOVEMBER'2024

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.169 of 2O24

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Between:

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State Bank of India, Stressed Assets Recovery Branch-II, 1-B-563/1, 1't floor, Opp Sandhya Theatre, RTC Cross Roads, Chikkadpally, Hyderabad, Telanga na State. Represented by its Chief Manager

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Applicant

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VERSUS

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M/s. Chaya and Co., Represented by its proprietor Priya Kumar, # 14-L76-178, Parameshwari ta lkies, Shadnagar, Gargahdhi Nagar colony, Mahabubnagar - 509 216.

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Defendant

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Counsel for the Parties: For the Applicant For the Defendant

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Smt B. RamanaKumari Exparte

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ORDER

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The Applicant Bank filed the present OA against Defendant for recovery of a total sum of Rs.23,68,954/- (Rupees Twenty

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Three Lakhs Sixty Eight

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Eight Hundred and Fifty Four * 1t t0y t, -i i.irr

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only) i.e.,

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(oA.No.169/202a)

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a) A sum of Rs.15,17,303/- in respect of cash credit loanwith current and future interest @ 14.05% p.a with monthly rests from 25.04.2024 till the date of realization ;

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b) A sum of Rs.8,51,651/- in respect of term loan with current and future interest @ 12.40o/o p.a with monthly rests from 25.04.2024 till the date of realization,

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And in default for sale of hypothecated property as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that defendant availed cash credit of Rs.15.00 lakhs and term loan of Rs.9.50 lakhs aggregating a sum of Rs.24.50 lakhs vide letter of arrangement dated 30.11.2019. To secure the due repayment of loan facility, the defendant executed agreement of loan cum hypothecation in favour of applicant bank. After availing the loan facility, the defendant failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NpA and issued legal notice dated 04.04.2024. Inspite of several requests and demands, the defendant did not clear the outstanding. Hence this OA.

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Defendant called abse

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t5.70.2024.
1 1 ilot, npt

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(OA. No.169/2024)

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Smt M. Sarala, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A.8.

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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 Defendant as prayed for?

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Defendant remained 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.B. In view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendant 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 Defendant is liable to pay to the Applicant Bank a total sum of Rs.23,68,954/- (Rupees Twenty Three Lakhs Sixty Eight thousand Nine Hundred and Fifty Four only) i.e.,

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of cash credit loan with current and future i from 25.04.2024 till .1. 11 -.:i

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(oA.No.169/202a)

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b) A sum of Rs,8,51,651/- in respect of term loan with current and future interest @ 12.40olo p.a from 25.04.2024 till the date of realization.

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The Applicant bank is entitled to proceed against the hypothecated movables as mentioned in the schedule 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 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 11th day of Nov, 2024)

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sdl(G. GOPTCHAND) PRESIDING OFFICER

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State Bank of India v. M/S. Chaya And Co.

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S. Chaya And Co.

Case brief

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